WORLD TRADE
ORGANIZATIONG/LIC/N/3/PHL/4
7 November 2001
(01-5488)
Committee on Import Licensing Original:  English
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES1
Notification under Article 7.3 of the Agreement on Import Licensing Procedures
PHILIPPINES
The following notification, dated 10 October 2001, has been received from the Permanent
Mission of the Philippines.
_______________
Outline of system
1. Imports into the Philippines are allowed without restrictions unless otherwise prohibited by
existing laws or rules or otherwise  subject to the requirements of prior approval by appropriate
government agencies/committees responsible for implementing the legislation regulating imports.
The Tariff and Customs Code of 1978 (Presidential Decree No. 1464) and the New Central Bank Act
(Republic Act No. 7653), provide the primary lega l bases for the regulation of imports in the
Philippines.
Import licence applications must be submitted to the appropriate administrative body
responsible for issuing licences (import permits/clearances/authorizations).  The licence holder is
required to present the import authority to the aut horized agent banks (AABs) upon the opening of the
letter of credit for such imports.  The licence holder is required to submit the licences to the AABsand to the Bureau of Customs at the time of customs declaration.  The licence will enable the holder
to purchase from banks the foreign exchange required for the imports  of regulated items subject to
presentation of shipping and or/other supporting documents required under Bangko Sentral ng
Pilipinas (BSP) rules.  It also authorizes banks to service applications for imports effected through any
mode of payment allowed under BSP rules.
Purpose and coverage of licensing
2. All commodities/commodity groups subject to automatic and non-automatic import licensing
are embodied in the Tariff and Customs Code of 1978 (Presidential Decree 1464), as amended, and inthe Philippines Standard Commodity Classification Manual.  Commodity groups whose importation
are regulated or prohibited are listed in Annex A hereof.
3. The system applies to goods originating from any country, the choice of the source of the
supply being left entirely to the prospective importers.
                                                     
1 See document G/LIC/3, Annex, for the Questionnaire.G/LIC/N/3/PHL/4
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4.   Import licensing is intended, among others to: (a) safeguard public health, safety, security and
welfare;  and (b) meet international treaty obligations related to the regulation of certain
products/commodities as well as the medical, scientific and other legitimate needs of the country.
5. The Tariff and Customs Code of 1978 (Presidential Decree 1464), as amended, and the New
Central Bank Act (Republic Act 7653), provide the primary legal bases for licensing but there are
specific laws that govern the importation of, and designate the appropriate agencies/bureaus which
administer the licensing regime for a specified commodity or group of commodities.  These agencies
and bureau and the products they administer are al so provided in Annex A.  Central Bank Circular
No. 1389, series of 1993, as amended, consolidates all foreign exchange rules and regulations on
various foreign exchange transactions including those on imports.   The licensing system is statutorilyrequired.
Procedures
6. For quota products:I. All regulations are circulated and made available to interested parties.  They are also
published in the Official Gazettes and/or in the national newspapers.
II.(a) Import quotas are determined on an annual basis. Since the quotas are allocated in the name
of the importers, they are not published in order to avoid possible disclosure of confidential
information.  However, they can be made known to government, upon request and when necessary
and appropriate.
(b) For agricultural products covered under the Ta riff Rate Quota (TRQ) mechanism the size of
quotas is based on Philippine commitments contained in Section 1.b, Schedule LXXV of the Uruguay
Round Final Act.  The tariff rate quota year is from February of a given year to January of the
following year.  Tariff quotas are allocated twice duri ng the quota year.  In February, the incremental
quota for the quota year, the allocation of the prior quota year which have been recalled and any
portion of the quota not taken up during the prior quota year are put together in a Beginning Year Pool
(BYP) which is apportioned to license holders and new entrants.  In July, the allocations surrendered
or relinquished by licensees on or before the last working day of May of the quota year are puttogether in a Mid-Year Pool (MYP) which is reallocated to other qualified applicants.
(c) For agricultural products, regular licences are issued on a yearly basis, at the start of the quota
year.  Consequently, such licences have a validity of one year.  However, special licences, whose
validity may be less than a year, are issued for the following:
(i)  those quotas reallocated from the surrendered volumes during the quota year;(ii)  the additional quotas created and then allocated by government in excess of those committed; and
(iii)  any remaining quotas allocated on a first-come-first-served basis.
III.(a) Quotas are granted on the basis of an importer's past performance in relation to historical
growth in sale.
(b) For agricultural products:  In the initial year of implementation, products covered by the TRQ
mechanism are classified into two types: (a) those which have been imported regularly and in
substantial volumes during the representative period; and (b) those which have been irregularly or
scarcely imported.  Allocation of licences for regularly imported agricultural products is based onG/LIC/N/3/PHL/4
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import shares.  Meanwhile, irregularly imported products are allocated based on local output shares.
Under this system of allocation, a portion of the li cences has, by necessity, been allocated to domestic
producers.  Subsequent entrants are accepted on the basis of import history.
In the subsequent year, allocation is done through a systematic distribution procedure (SDP)
and then, if necessary, through a first-come-first-served distribution procedure.  Under this system, the
BYP and MYP are allocated as follows:  (a) priority access is given to licensees which have not
surrendered part or all of their allocation in the previous quota year, and have utilized at least
80 per cent of their allocations (for BYP) and 30 per cent by the last working day of May (for MYP),
and qualified entrants;  and (b) any volume remaining in the BYP and MYP are available to interested
applicants on a first-come, first-served-basis.
Administrative Order 1 provides for a quota utilization threshold of 80 per cent below which
penalties are imposed.  Licensees whose utilization rates fall below this threshold are penalized by
having 50 per cent of their unused and unsurrendered quotas deducted from their next quota year
allocation on the first instance; 75 per cent on the second instance; and 100 per cent on the third and
subsequent instances.  Unused allocations are not added to the quotas for the succeeding period.
The list of licensees and their corresponding allocations are published in two newspapers of
national circulation.  Governments and export promotion bodies of exporting countries can readily
have access to this information.
IV. The time allowed for submitting applications for licences is usually up to the end of the
authorized period which is normally up to the end of a quarter, semester or end of the sixth month or
year.  For agricultural products under the TRQ mechanism, the application period for TRQ licences is
approximately one month.
V. Under normal circumstances, an application for an import licence if complete in all respects
can be granted within two weeks or even sooner.  In the case of agricultural products under the TRQ
mechanism, the processing period of applicati on for TRQ licences is approximately one month.
VI. Licences are issued with a specific period of validity for shipment of goods.  It is up to the
importer to import goods any time during the validity  period of the import licence.  Goods should be
shipped from the exporting country only after the import licence is issued.
VII. Only one administrative body considers the application for licence.VIII. Under TRQ rules, the allocations from the previous year are carried over to the following year
plus the incremental volumes arising from, the annual  increase of the quotas.  The incremental volume
forms part of the BYP.  The procedure outlined in our response to III.B above is followed regardless
of whether the demand for licence is fully satisfied or not.
IX. Not applicable.
X. Not applicable.
7. For non-quota products:(a) Where there is no quantitative limit on importation of products, application must be filed at
least two weeks before the estimat ed loading date of the product.
(b) Depending on the urgency of the request , licences could be granted immediately.G/LIC/N/3/PHL/4
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(c)  Applications may be filed on any working days of the year.
(d) Generally, consideration of application for import permit is effected by only one
administrative body.
8. In the event of denial or disapproval by the pertinent administrative body of an application for
import licence, the applicant is informed of the reason for such disapproval and given the right to
make a written appeal for reconsideration of the decision.
Eligibility of importers to apply for a licence
9.(a) Under the non-automatic licensing system, only persons, firms and institutions duly registered
as bona fide importers, domestic users, breeders, producers, traders, etc., are eligible to apply for
licences, except in instances when only the Government or its entities/agencies may import the
products sought to be imported by applicants (e.g., rice, which is State-traded; warships by the
Philippine Navy).
(b) Under the automatic system, all persons, firm s and institutions, are eligible to apply for
licence as long as they meet the basic requirements/criteria laid down by the administering  agencies
and bureaus.
(c) For certain imports there is a system of registration of persons or firms permitted to engage in
importation.  This system ensures that only qualified applicants are granted licences.  The products
and the registration fees or charges relevant in this regard are provided in Annex B.
Documentation and other requirements for application for licence
10. The information usually required in applications includes name and address of importer,business of importer, name and address of exporter/shipper, country of origin, means of transport,
description and amount of goods to be imported.   The documents required to support the application,
usually include, among others:  (a) pro forma invoice covering the importation applied for;  (b)
Securities and Exchange Commission (SEC) registration certificate for corporations and partnerships
and Bureau of Domestic Trade registration certification for single proprietorship;  (c) financial
statements;  and (d) a copy of export contract or L/C application.
11. Upon importation, the documents required include:  (a) commercial invoice;  (b) bill of
lading;  (c) clearance certificate from pertinent administrative bodies;  and (d) formal customs entry.
12.  For the list of licensing fees or administrative charges imposed, see Annex  C.  Other fees and
charges that are not included in either Annexes B or C are provided in Annex D .
13. There is no deposit or advance payment requirement associated with the issuance of licences.
Conditions of licensing
14. Some licences are issued for a particular shipment only, with a validity period adequate to
cover the whole process of importation.  Others are issued with a validity period identical with that of
the period granted on the quota held.  The period of validity ranges from one month to one year and in
all cases renewable upon written application by interested parties to the concerned agency/bureau.
15. There is no penalty for the non-utilization of a licence subject to quota or a portion of it.16. Licences are made in the name of the applicant-importer only and are non-transferable.G/LIC/N/3/PHL/4
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17. Import permit/clearance/authority is issued upon compliance with conditions/requirements
imposed by a particular agency.
Other procedural requirements
18. Other than the procedures of import licensing described above, there are no other
administrative procedures required prior to importation.
19. Except under conditions of a national emergency or an economic crisis that threaten among
others the stability of the balance-of-payments, a holder of an import licence may purchase foreign
exchange from authorized agent banks to pay for the importation in accordance with BSP rules.G/LIC/N/3/PHL/4
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ANNEX A
Regulated Commodities
(Commodities the Importation of which Requires Clearance/Permits from Appropriate Government
Agencies including the Bangko Sentral ng Pilipinas)
Commodity Description/
Commodity Group (PSCC Code)Government Agency/
Issuing permit/clearance
1. Dangerous drugs and exempt dangerous drug
preparationsDangerous Drugs Board (DDB)
2. Precursors (various chemicals for the manufacture
of dangerous drugs)DDB
3. Diagnostic kits for drugs of abuse DDB
4. Rice National Food Authority (NFA)
5. Cyanide and cyanide compounds Department of Environment & Natural
Resources (DENR)/EnvironmentalManagement Bureau (EMB)
6. Chlorofluorocarbons DENR/EMB
7. Asbestos DENR/EMB
8. Penicillin and its derivatives Department of Health (DOH)/Bureau of
Food and Drugs (BFAD)
9. Mercury and mercury compounds DENR/EMB
10. Color Reproduction machines National Bureau of Investigation (NBI)/
Bangko Sentral ng Pilipinas (BSP)/Cash
Department
11. Various chemicals for the manufacture ofexplosivesPhilippine National Police (PNP)/Firearms
and Explosives Office (FEO)
12. Firearms, ammunitions and parts PNP/FEO
13. Pesticides, incl. agricultural chemicals Fertilizer & Pesticide Authority (FPA)
14. Motor vehicles (used), parts and components Department of Trade and Industry
(DTI)/Board of Investments (BOI)/Bureau
of Import Services (BIS)
15. Truck and automobile tyres and tubes, used, of all
sizesDTI/BOI/BIS
16. All commodities originatin g in Socialist and other
centrally planned economy countriesPhilippine International Trading Center
(PITC)
17. Commercial vessels and pleasure crafts Maritime Industry Authority (MARINA )
18. Coins, banknotes and gold Bangko Sentral ng Pilipinas (BSP)
19. Radioactive materials Philippine Nuclear Research Institute
(PNRI)
20. Toy guns Philippine National Police
21. Video machines Games and Amusement Board22. Used clothing Department of Social Welfare and
DevelopmentG/LIC/N/3/PHL/4
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ANNEX B
Schedule of Registration Fees/Charges (in Pesos)
Product Amount
Gamefowl breeders/importers
- Initial registration (valid for 3 years) 600
- Renewal (for another 3 years) 300.00
Feedgrains and feedgrain substitutes 600Antibiotics
- For initial registration (per 5 years)
Generic drug 2,500 + cost of laboratory analysis
Branded 5,000 + cost of laboratory analysis
- For renewal registration 300 per year or 1,500 for 5 years
+ cost of laboratory analysis
Pesticides
- Application fee for the registration of a pesticide
per active ingredient 4,500.00
per pesticide product 3,000.00
- Registration fee
per active ingredient (3 years)
Category 1 & 2 20,000.00
Category 3 & 4 15,000.00
Per pesticide product (3 years)
Category 1 & 2 15,000.00
Category 3 & 4 7,000.00
Fertilizer 1,200.00
- Organic and/or specialty products 4,200.00
- New products 6,000.00
- Old products 5,400.00
Imported logs, lumber, veneer and commercial poles
and piles , plywood, other wood-based panels,
pulpwood and wood chips
- Application fee 500.00
- Registration fee 400.00- Cash bond 10,000.00
Imported coal
- Application fee 250.00
- Permit fee 150.00G/LIC/N/3/PHL/4
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ANNEX C
List of Licence Fees/Administrative Charges (in Pesos)
Product Amount Product Amount
Carabaos, buffaloes,
cattle, horses, ponies,asses, mules, donkeys,swine and goats200.00 per permit BOI-regulated products 100.00 per import
authority
Dogs and cats, and other
domestic livestock
Bull semen and other
animal semen;  embryo100.00 per permit
100.00 per permitFirearms, ammunitions
and explosivesA.  Permit fee to importfirearms, ammunitions,spare parts, accessories
and components for
commercial purposes
Adult chicken, geese,
turkeys, ducks, pigeons,doves, quails and other
adult domesticated fowls,
chicks, poults, ducklings,and other young fowls100.00 per permit Firearms
AmmunitionComponents
-  Shells
-  Primers-  Gunpowder-  Spare parts –barrel/frames/slides
-  Reloading machine
-  Bullet-proof vests10.00 per firearm
0.05/pc
0.01/pc
0.01/pc0.25/pc5.00/pc
1,000.00
500
Fighting or game birdsHatching eggs
Hatching eggs of
gamebirds, per egg
For meat, meat products100.00 per head
100.00 per permit
20.00 per egg
200.00 per permitB.  Permit fee to unload
-  Explosive/explosiveingredients (solid form)
-  Explosive/explosive
ingredients (liquid form)-  Detonating cords,safety fuses-  Blasting caps,connector0.25/kg
0.02/l
0.01/m0.01/pc
Large-size wild animals
and birds
Medium-size wild
animals and birds
Small wild animals and
birds100.00 per permit
100.00 per permit
100.00 per permitVarious chemicals for the
manufacture ofexplosives300 per permit
Fresh/chilled/frozen fish
and fishery aquatic
products
-  Application feeColour reproduction
machines1,500.00
150.00
50.00 per permitFish and fishery aquatic
products
AntibioticsAcetic anhydride100.00 per permit
5.00 per clearance
30.00 per chemicalG/LIC/N/3/PHL/4
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ANNEX D
Fees and Charges Collected by Import Regulating Agencies
Import Regulating Agency Fees and Charges  (in Pesos)
Fertilizer and Pesticides Authority
1.  Fertilizer and pesticide product registration
Fertilizer product registration
(i)  Application fees - EUP/product/crop imported 1,200.00
(ii)  Provisional registration (annual) - imported
-  Inorganic fertilizer (new) 1,800.00
-  Inorganic fertilizer (old) 1,800.00
-  Organic 1,800.00
-  Soil conditioner 1,800.00-  Raw material 1,800.00
-  Plant growth promoter 1,800.00
-  Specialty 1,800.00
(iii)  Full registration/renewal - imported (3-year validity)
-  Inorganic fertilizer (old) 6,000.00
-  Inorganic fertilizer (new) 5,400.00
-  Organic 4,200.00
-  Soil conditioner 4,200.00
-  Raw material 4,200.00-  Plant growth promoter 4,200.00
-  Specialty 4,200.00
2.  Licensing of fertilizer and pesticide handlers,
dealers and warehouses
Fertilizer and pesticide handlers other than dealers (annually)
(i)  Over P5M capitalization
-  1st activity, fertilizer 8,400.00
                       pesticide     8,500.00
-  Additional activities, fertilizer 4,800.00
           pesticide                   5,000.00
(ii)  Over P1M to P5M capitalization
-  1st activity, fertilizer  5,400.00
                       pesticide                     5,500.00
-  Additional activities, fertilizer  3,600.00
                                      pesticide                                             4,000.00
(iii)  Over P500 to P1M capitalization
-  1st activity, fertilizer  3,600.00
                       pesticide                                                            4,000.00
-  Additional activities,  fertilizer  1,800.00
                                       pesticide                                            2,000.00G/LIC/N/3/PHL/4
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Import Regulating Agency Fees and Charges  (in Pesos)
(iv)  P550T and below capitalization
-  1st activity, fertilizer 1,800.00
                       pesticide 2,000.00-  Additional activities , fertilizer 850.00
                                      pesticide                                           1,000.00
3.  Processing fees(a)  Processing fees - fertilizer 600.00
(b)  Processing fees - pesticide 750.00(c)  Import certificate 350.00
(d)  Letter of authority to import 500.00
National Food Authority
Application fee/registration fee
-  Single line of activity in rice and/or corn industry 100.00
-  Two or more lines of activity 150.00
Licensing fee for importing (charged separately
     per branch/outlet) 3,000.00
Import permit fee 200.00Equalization fee 3.24/kg
Service fee ½ of 1% of CIF
Maritime Industry Authority
Fees for importation
Processing fee for importation/charter
1.  Fishing vessel
-  Vessels ten years old and below 6,600.00/vessel
-  Vessels over ten years old 13,200.00/vessel
2.  Importation/renewal of vessel spare parts 1.5% of the invoice value or a minimum 
P2,200.00/invoice and a maximum of 
P5,000.00/invoice
 3. Importation of cargo ships-10 years and below 6,600.00/ship
- over 10 years                                  13,200.00/ship
4. Fastcrafts   20,000.00/ship
5.  Importation/renewal of marine engines 300.00/engine
6.  Extension of validity to import spare parts 250.00/invoice
7.  Board of Investment endorsement of tax-free
importation
-  Spare parts 500.00/applicationG/LIC/N/3/PHL/4
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Import Regulating Agency Fees and Charges  (in Pesos)
-  Vessel 2,000.00
8.  Importation/purchase of vessel for overseas use 5,000.00/vessel
9.  Endorsement to the Bureau of Customs through the
Department of Finance for exemption from import
duties and taxes
-  Vessel importation 1,000.00
-  Spare parts 260.00
10.  Service fee for processing of application for
Certificate of Authority to import under PD 666:  1.2% of the invoice value of imported
item but in no case less than 1,500.00
nor more than 2,500
11.  Endorsement to authorized agent banks for foreign
exchange requirement of shipping companies 260.00
Bureau of Animal Industry
Livestock and poultry feeds
Importer/indentor
-  Analysis fee/per sample 425.00
-  Registration fee 480.00
Veterinary Biological Product Permit
Import permit fees
-  Provisional 100.00
-  Special 100.00
-  Regular 100.00-  Regular (renewal) 50.00
-  Extension of permit 50.00
Biological distributor/importer
   initial 2,400.00
- renewal (for 2 years) 4,800.00
National Meat Inspection Commission
Meat Import Inspection Fees 0.30 per kg.Bureau of Food and Drugs
Drug importer
- for manufacturers
- initial 5,000.00
- renewal (for 2 years) 10,000.00G/LIC/N/3/PHL/4
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Import Regulating Agency Fees and Charges  (in Pesos)
- for traders
- initial 3,000.00- renewal 6,000.00
- for distributors
- initial 2,000.00
- renewal 4,000.00
Food establishment importer
Fees based on capitalization
-  200,000-500,000 500.00-  500,000-1 Million 1,000.00
-  over 1 Million 0.01% of capitalization
Importer of medical device, cosmetic and
household hazardous substances- for manufacturers
- initial 5,000.00
- renewal (for 2 years) 10,000.00
- for traders
- initial 3,000.00- renewal 6,000.00
- for distributors
- initial 2,000.00
- renewal 4,000.00
Dangerous Drugs Board 
Import fees for registered importers
- raw materials 360.00
- precursor chemicals 360.00
- finished drug products 500.00
- diagnostic kits for drugs of abuse 500.00
Certification on whether or not a substance
is controlled by DDB 30.00 per chemical
Import fees for persons not registered as importers 30.00Other fees based on units of measure
- raw materials 1.00 per 100 grams
- finished products
   - tablets and capsules quantity x dd content in grams x 1.50
per 100 gram
  -  ampules
-1ml-5ml 0.10/ampule
-10ml 0.20/ampule
- vials
-  10ml vial or < 1 gram 0.20/vialG/LIC/N/3/PHL/4
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Import Regulating Agency Fees and Charges  (in Pesos)
-  30ml or 1.5g 0.40/vial
-  50ml or 2.5g 0.50/vial
Bureau of Import Services
Processing fee for the importation of used motor vehicles
-  motor vehicles, completely built-up 1,500.00/unit
-  trucks 600.00/unit
-  buses 600.00/unit
-  motorcycles, CBU 900.00/unit
-  motor vehicle parts (brand new and used) 300.00/application-  motorcycle parts (brand new) 300.00/application
-  government importation 300.00/application
- importation through donation by 300.00/application
   government agencies, charitable institutions,
   foundations and religious institutions
- re-exportation (exhibition/display) 300.00/application
Bureau of Plant Industry
Permit to import  - planting materials 20.00
  - plant products 30.00
Inspection and certification fees
Imports
Inspection of imported living plants
-  shipments of ten plants or less 12.00
-  every plant thereafter 1.20
Small living plants in community pots/pot 15.00
Imported seeds, cuttings, rhizomes, bulbs, corms,
grafts, scions and other materials capable of
propagation/m.t. or fraction thereof 10.00
Imported plant products and other materialscapable of harbouring plant pests/m.t. or  parts thereof 20.00
Exports
Phytosanitary certification of:Living plants for a shipment of ten 10.00
In excess of ten pieces, plus/piece 1.00
Plants in community pots or similar packaging material
or container 10.00Seeds, cuttings, rhizomes, bulbs, corms, grafts, scions
and other materials capable of propagation/m.t. or
fraction thereof 15.00
Plant products and other materials capable of harbouring
plant pests (animals) 10.00G/LIC/N/3/PHL/4
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Import Regulating Agency Fees and Charges  (in Pesos)
Department of Environment and Natural Resources
/Protected Areas and Wildlife Bureau
1. Wildlife Collector's Permit 1,000.00
2. Wildlife Farm Permit 1,000.00
3. Local transport (wild fauna and 50.00/document
propagated fauna
4. Inspection and processing fees for
Export/re-export of wildlife
A. Commercial purposes
1. Fauna (CITES and non-CITES species)
a) Capital-bred specimens/ 10% of export value
progenies and derivatives
b) By-products 10% of the value of wildlife
material use
2. Flora (propagated plants/
parts/derivatives)
a) CITES species
First 50pcs. and below 250.00
Each additional  piece 2.00
b) Non-CITES species 100.00/document
B. Non-commercial purposes
Lives, derivatives or by-products including specimens covered by gratuitous/research
permits
1. CITES species 250.00/document
2. Non-CITES species 100.00/document
5. Import Permit
(both CITES and Non-CITES Species) 300.00/document
6. Re-issuance of expired permit
CITES permit 150.00/document
Wildlife certification 50.00/document
__________