G/LIC/Q/PHL/7  
 
29 March 2022  
(22-2574) Page: 1/2 
Committee on Import Licensing  Original: English  
 
IMPORT LICENSING SYSTEM OF THE PHILIPPINES  
QUESTIONS FROM THE UNITED STATES TO THE PHILIPPINES  
The following submission, dated 22 March 2022, is being circulated at the request of the delegation 
of the United States.  
 
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The United States looks forward to the Philippines ' complete response to G/LIC/Q/PHL/5 and 
G/LIC/Q/PHL/6 regarding its Sanitary and Phytosanitary Import Clearance (SPSIC) regime. 
The United States urges  the Philippines to comply with its obligations to the Agreement on Import 
Licensing Procedures, General Agreement on Tariffs and Trade, Agreement on Agriculture, and 
Agreement on the Application of Sanitary and Phytosanitary Measures.  
The United States remains concerned that the SPSIC syste m may be  used to restrict the flow of 
trade. On 22 February 2022, Philippine Department of Agriculture (DA) Secretary William Dar 
announced that DA "aims to address the concerns of the onion industry to manage onion importation 
while ensuring its availabil ity for the local market, thus additional guidelines and requirements shall 
be implemented on the issuance of [SPSIC] " and "that the issuance of SPSICs for fresh onion will be 
based on the importation period specified in the Certificate of Necessity to Imp ort (CNI), which shall 
include the volume to be imported and the specific period for import arrival. "1 This measure is cited 
to be based on the 14 December 2021 Department Circular No. 08, series of 2021 or the Additional 
Guidelines on the Importation of Fresh Onions.  
Question 1: Please explain the CNI requirement  and its relationship to the issuance of SPSIC s.   
Question 2: How  is the establishment of "import necessity" prior to issuance of SPSICs different from 
a quantitative restriction ? 
Question 3: What is the phytosanitary justification  for limiting the volume of product for which 
SPSICs will be issued to the CNI  volume?  
Question 4: Has 2021 Department Circular No. 08, Series of 2021, or the Additional Guidelines on 
the Importation of Fresh Onions been notified to the appropriate World Trade Organization 
committee(s), and could the Philippines provide a copy to members?  
Question 5: What is the volume of the CNI and how is it determined?  
On 7 March 2022, Philippine Nationa l Economic and Development Authority (NEDA) Secretary Karl 
Kendrick Chua recommended during a present to use the  release of SPSICs for rice  to facilitate 
continuous supply , especially for shipments arriving during  the "lean season " starting in July.2 
 
1 "DA, onion growers agree to continue making local onion industry more competitive, " DA, 
23 February  2022, https://www.da.gov.ph/da -onion -growers -agree -to-continue -making -local-onion -industry -
more-competitive/ . 
2 "Put PH under Alert Level 1 to revive economy — NEDA, " Inquirer.net, 7 March 2022, 
https://www.youtube.com/watch?v=aa_w3dV 4gG0 .  G/LIC/Q/PHL/7  
 
- 2 - 
 
  Question 6: Please explain the comment from Secretary Chua on the seasonal practice of SPSIC 
issuances for rice.  
The United States notes that on  25 January 2022,  the DA issued Administrative Order No. 2, Series 
of 2022, temporarily extend ing the validity peri od of SPSICs for meat and poultry imports from 60 
days to 90 days until 31 December 2022.3 The United States appreciates the extension of the validity 
period and notes that the extension contributes to trade facilitation.  
Question 7: Why does the Philippi nes not make the extension permanent and lengthen the validity 
period for meat and poultry SPSICs  as well ? 
Question 8: How are SPSIC validity periods for commodities determined and why are SPSIC validity 
periods for other commodities, such as fish and plan t products, shorter than for meat and poultry 
SPSICs?  
The United States also notes that the distribution of certain imported agricultural commodities is 
restricted to specific venues or geographic locations.  
Question 9: Please explain the basis and justif ication for restricting the distribution of  certain 
imported fruits and vegetables to "high-end markets " only, as published by the Philippine Bureau of 
Plant Industry (BPI).4  
Question 10: What is the definition of "high-end market " as it applies to the "List of Allowable Fresh 
Fruits and Vegetables "5 on the BPI webpage ? 
Question 11: According to Memorandum Circular No. 23 Series of 2021, imported pork products for 
sale under the Minimum Access Volume Management Committee Resolution No. 01, Series of  2021, 
were originally restricted to distribut ion in only the Philippine National Capital Region.6 Why were 
importers not allowed to distribute pork to all areas of the Philippines , and what is the legal basis 
for this condition?  
 
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3 Administrative Order No. 2 Series of 2022, DA, 25 January 2022, https://www.da.gov.ph/wp -
content/uploads/2022/01/ao02_s2022.pdf . 
4 "List of Allowable Fresh Fruits and Vegetables, " DA,  https://npqsd.bpi -npqsd.com.ph/import/ .  
5 Ibid. 
6 Memorandum Circular No. 23 Se ries of 2021, DA, 14 October 2021, https://www.da.gov.ph/wp -
content/uploads/2021/10/mc23_s2021.pdf .