WORLD TRADE
ORGANIZATIONG/LIC/N/3/PHL/3
15 October 1999
(99-4436)
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 11 October 1999, has been received from the Permanent
Mission of the Philippines.
_______________
Outline of system
1. Imports into the Philippines are free unless 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 legal 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 authorized agent banks upon the opening of the letter of
credit for such imports.  The licence holder is requi red to submit the licences to the authorized agent
banks (AAB) and to the Bureau of Customs at th e time of customs declaration.  The licence will
enable the holder to purchase from banks the foreign exchange required for the imports  of regulated
items.  It also authorizes banks to service applications for imports effected through any mode ofpayment.
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 in
the Philippines Standard Commodity Classification Manual.  Commodity groups whose importations
are regulated or prohibited are listed in Annex A.
3. The system applies to goods originating from any country, the choice of the source of thesupply being left entirely to the prospective importers.
                                                     
1See document G/LIC/3, Annex, for the questionnaire.G/LIC/N/3/PHL/3
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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 (P.D. 1464), as amended, and the New Central Bank
Act (R.A. 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 bureaus, the products
they administer, and the fees or charges they collect are shown in Annex A. Central Bank Circular
No. 1389, series of 1993, as amended, consolidates all foreign exchange rules and regulations onvarious foreign exchange transactions including those on imports.  The licensing system is statutorily
required.
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.  They are allocated on a first-come,
first-served basis directly to qualified or registered importers.  Since the quotas are allocated in thename 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.
1. (b) For agricultural products covered under the Tariff 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 during 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 licence 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 yearare put together in a Mid-Year Pool (MYP) which is reallocated to other qualified applicants.
(c) For agricultural product, regular licences are issued on a yearly basis, at the start of the
quota year.  Consequently, such licenses have a validity of one year.  However, special licenses,
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:
(i) 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) thoseG/LIC/N/3/PHL/3
Page 3
which have been irregularly or scarcely imported.  Allocation of licences for regularly
imported agricultural products is based on import shares.  Meanwhile, irregularly
imported products are allocated based on local output shares.  Under this system  of
allocation, a portion of the licences has, by necessity, been allocated to domestic
producers.  Subsequent entrants are accepted on the basis of import history.
(ii) 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 th e 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.
(iii) AO1 provides for a quota utilization threshold of 80 per cent below which
penalties are imposed.  Licensees whose utilization rates fall below this threshold arepenalized by having 50 per cent of their unused and unsurendered 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.
(iv) The list of licensees and their corresponding allocations are published in two
newspapers of national circulation.  Go vernments 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 oryear.  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 application for TRQ licences is about 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 TQR rules, the allocations from the previous year are carried over to the following year
plus the incremental volumes arising from the annu al 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.-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.G/LIC/N/3/PHL/3
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(b) Licences can be granted immediately depending on the urgency of the request.
(c) Applications may be filed on any working day 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 licence
9.(a) Under the non-automatic licensing system, only persons, firms and institutions duly registeredas 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 theproducts 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.
Documentational 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.
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/3
Page 5
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, foreign exchange is automatically provided by
authorized agent banks to a holder of an import licence.G/LIC/N/3/PHL/3
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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/ Government Agency
Commodity Group (PSCC Code) Issuing Permit/Clearance
1. Dangerous Drugs Danger ous Drugs Board (DDB)
2. Rice National Food Authority (NFA)
3. Cyanide Department of Environment & Natural
Resources (DENR)/Environmental
Management Bureau (EMB)
4. Chlorofluorocarbons DENR/EMB
5. Penicillin and its derivatives Department of Health (DOH)/
Bureau of Food and Drugs (BFAD)
6. Mercury and mercury compounds DENR/EMB
7. Color Reproduction machines National Bureau of Investigation
(NBI)/Bangko Sentral ng Pilipinas
(BSP)/Cash Department
8. Various chemicals for the Philippine National Police (PNP)/
manufacture of explosives Firearms and Explosives Office (FEO)
9. Firearms, ammunitions and parts PNP/FEO
10. Pesticides incl. agricultural Fertilizer & Pesticide
chemicals    Authority (FPA)
11. Motor vehicles (used), parts and Department of Trade and Industry
components (DTI)/ Board of Investments (BOI)
Bureau of Import Services (BIS)
12. Truck and automobile tyres and DTI/BOI/BIS
tubes, used, of all sizes
13. All commodities originating Philippine International Trading Center
in Socialist and other centrally (PITC)
planned economy countries
14. Warships of all kinds   Maritime Industry Authority (MARINA)G/LIC/N/3/PHL/3
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15. Coins, banknotes and gold Bangko Sentral ng Pilipinas (BSP)
16. Radioactive materials   Philippine Nuclear Research Institute
(PNRI)
17. Toys guns Philippine National Police
18. Video machines Games and Amusement Board
19. Used clothing Department of Social Welfare and
DevelopmentG/LIC/N/3/PHL/3
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ANNEX B
SCHEDULE OF REGISTRATION FEES/CHARGES (in pesos)
Product Amount
Gamefowl breeders/importers
-  Initial registration (valid for 3 years) 600.00-  Renewal (for another 3 years) 300.00
Feedgrains and feedgrain substitutes 600.00
Dangerous drugs 72.00
Antibiotics (per 5 years) 5,000.00
Pesticides
-  Application fee for the registration of a pesticide
per active ingredient 3,000.00per pesticide product 2,000.00
-  Registration fee
per active ingredient (3 years)
 Category 1 & 2 15,000.00
 Category 3 & 4 10,000.00per pesticide product (3 years)
Category 1 & 2 10,000.00
 Category 3 & 4 5,000.00
Fertilizer 1,000.00
-  Organic and/or specialty products 3,500.00-  New products 5,000.00
-  Old products 4,500.00
Imported logs, lumber, veneer and commercial poles
and piles
-  Application fee 500.00-  Registration fee 400.00
Imported coal
-  Application fee 250.00
-  Permit fee 150.00
(See Annex D for other fees not included here.)G/LIC/N/3/PHL/3
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ANNEX C
LIST OF LICENCE FEES/ADMINISTRATIVE CHARGES
Products Amount
(in pesos)
Carabaos, buffaloes, cattle, horses, ponies, 45.00 per cent
asses, mules, donkeys, swine and goats
Dogs and cats, and other domestic livestock 60.00 per permit
Bull semen and other animal semen; embryo 36.00 per permit
Adult chicken, geese, turkeys, ducks, pigeons, 45.00 per permit
doves, quails and other adult domesticated
fowls, chicks, poults, ducklings, and other
young fowls
Fighting or game birds 20.00 per head
Hatching eggs 40.00 per permit
Hatching eggs of gamebirds 6.00 per egg
For meat, meat products 35.00 per permit
Large-size wild animals and birds 50.00 per permitMedium-size wild animals and birds 40.00 per permit
Small wild animals and birds 40.00 per permit
Colour reproduction machines 50.00 per permit
BOI-regulated products 100.00 per import authority
Firearms, ammunitions and explosives
A.  Permit fee to import firearms, ammunitions, spare
parts, accessories and components for commercial
purposes
Firearms 10.00 per firearm
Ammunition 0.05/pc.Components
-  Shells 0.01/pc.
-  Primers 0.01/pc.
-  Gunpowder 0.25/lb.
-  Spare parts - barrel/frames/slides 5.00/pc
-  Reloading machine 1,000.00
-  Bullet-proof vests 500G/LIC/N/3/PHL/3
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B.  Permit fee to unload
-  Explosive/explosive ingredients (solid form) 0.25/kg.
-  Explosive/explosive ingredients (liquid form) 0.02/l.
-  Detonating cords, safety fuses 0.01/m.
-  Blasting caps, connector 0.01/pc.
Various chemicals for the manufacture
of explosives 300.00 per permit
Fish and fishery aquatic products 100.00 per permit
Antibiotics 5.00 per clearance
Acetic anhydride 30.00 per clearance
(See Annex D for other fees not included here.)G/LIC/N/3/PHL/3
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ANNEX D
FEES AND CHARGES COLLECTED BY IMPORT REGULATING AGENCIES
Fertilizer and Pesticides Authority Fees and charges  (in pesos)
1.  Fertilizer and pesticide product registration
(a)  Fertilizer product registration(i)  Application fees - EUP/product/crop imported 1,000.00
(ii)  Provisional registration (annual) - imported
-  Inorganic fertilizer (new) 1,500.00
-  Inorganic fertilizer (old) 1,500.00
-  Organic 1,500.00
-  Soil conditioner 1,500.00
-  Raw material 1,500.00-  Plant growth promoter 1,500.00
-  Speciality 1,500.00
(iii)  Full registration/renewal - imported (three years' validity)
-  Inorganic fertilizer (old) 4,500.00
-  Inorganic fertilizer (new) 5,000.00-  Organic 3,500.00
-  Soil conditioner 3,500.00
-  Raw material 3,500.00
-  Plant growth promoter 3,500.00
-  Speciality 3,500.00
2.  Licensing of fertilizer and pesticide handlers,
dealers and warehouses
Fertilizer and pesticide handlers other than dealers (annually)
(i)  Over P5M capitalization
-  1st activity 7,000.00-  Additional activities 4,000.00
(ii)  Over P1M to P5M capitalization
-  1st activity 4,500.00
-  Additional activities 3,000.00
(iii)  Over P500 to P1M capitalization
-  1st activity 3,000.00
-  Additional activities 1,500.00
(iv)  P550T and below capitalization
-  1st activity 1,500.00
-  Additional activities 700.00
3.  Processing fees
(a)  Processing fees - fertilizer 500.00(b)  Processing fees - pesticide 500.00
(c)  Import certificate 250.00
(d)  Letter of authority to import 500.00G/LIC/N/3/PHL/3
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National Food Authority Fees and charges  (in pesos)
Application fee/registration fee
-  Single line of activity in rice and/or corn industry 50.00
-  Two or more lines of activity 100.00
Licensing fee for importing 1,500.00Licensing fee for exporting 200.00
Licensing fee for indenting 2,000.00
Registration fee per unit/store/branch outlet
for importers 100.00
Maritime Industry Authority
Fees for importation
Processing fee for importation/charter1.  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 ofP5,000.00/invoice
3.  Importation/renewal of marine engines 300.00/engine
4.  Extension of validity to import spare parts 250.00/invoice
5.  Board of Investment endorsement of tax-free
importation-  Spare parts 500.00/application
-  Vessel 2,000.00
6.  Importation/purchase of vessel for overseas use 5,000.00/vessel
7.  Endorsement to the Bureau of Customs through the
Department of Finance for exemption from importduties and taxes
-  Vessel importation 1,000.00
-  Spare parts 260.00
8.  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
9.  Endorsement to authorized agent banks for foreign
exchange requirement of shipping companies 260.00G/LIC/N/3/PHL/3
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Bureau of Animal Industry Fees and charges  (in pesos)
Livestock and poultry feeds
Importer/indentor
-  Analysis fee/per sample 425.00
-  Registration fee 400.00
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 2,000.00
Bureau of Food and Drugs
Drug importer
Initial registration/one year 2,000.00
Renewal/two years 4,000.00
Food establishment importer
Filing fee 10.00
Fees based on capitalization
-  below P25,000 25.00
-  25,000-50,000 50.00-  50,000-100,000 100.00
-  100,000-200,000 200.00
-  200,000-500,000 500.00
-  500,000-1 million 1,000.00
-  over 1 million 0.01% of capitalization
Dangerous Drugs Board
Import fees for registered importers
- raw materials 360.00
-  finished drug products 500.00
Import fees for persons not registered as importers 30.00
Other fees based on units of measure
-  per 100g or fraction thereof in each package 1.50-  ampules
  -  1ml-5ml 0.10/ampule
  -  10ml 0.20/ampule
-  pack of 100 tablets or less
  -  per 100g or fraction thereof 1.50-  pack of 100 capsules or less
  -  per 100g or fraction thereof 1.50G/LIC/N/3/PHL/3
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Fees and charges (in pesos)
-  vials
  -  0.002g-1.0g vial or 10ml vial 0.20/vial
  -  1.5g (30ml) 0.40/vial
  -  2.5g (50ml) 0.50/vial
Bureau of Import Services
Processing fee for the importation of used motor vehicles
-  motor vehicles 1,000.00/unit
-  used cars 500.00/unit
-  used trucks 500.00/unit
-  used motorcycles 600.00/unit
-  motor vehicle parts 200.00-  government importation 200.00
Bureau of Plant Industry
Permit to import plants and plant products 10.00Inspection and certification fees
Imports
Inspection of imported living plants
-  shipments of ten plants or less 10.00
-  every plant thereafter 1.00
Small living plants in community pots/pot 10.00
Imported seeds, cuttings, rhizomes, bulbs, corms,grafts, scions and other materials capable of propogation/m.t.
or fraction thereof 4.00
Imported plant products and other materials
capable of harbouring plant pests/m.t. or fraction thereof 2.00
Exports
Phytosanitary certification of:
Living plants for a shipment of ten 4.00
In excess of ten pieces, plus/piece 0.40
Plants in community pots or similar packaging material
or container 4.00
Seeds, cuttings, rhizomes, bulbs, corms, grafts, scions
and other materials capable of propogation/m.t. orfraction thereof 2.00
Plant products and other materials capable of harbouring
plant pests (animals) 50.00
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 propagated 50.00/document
faunaG/LIC/N/3/PHL/3
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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 species 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
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