Question & AnswerQ&A (PITC MEMORANDUM CIRCULAR NO. CT- 97.4/01)
The Circular establishes the rules for the accreditation of Philippine manufacturers, exporters, and contractors under Executive Order No. 120 s. 1993 to participate as suppliers in government countertrade transactions, making accreditation by PITC a mandatory condition.
Philippine manufacturers, exporters, and contractors who wish to participate as suppliers of Philippine products and services in countertrade transactions under EO 120 s. 1993 must be accredited by PITC.
The Philippine Supplier must be at least 51% owned or controlled by Filipino citizens, unless the products or services are government-prioritized and can only be sourced from Filipino-owned or controlled suppliers as certified by PITC.
The supplier must be engaged in manufacturing Philippine products for export, service contracting locally or for export, or act as an exclusive marketing or exporting agent of a Philippine manufacturer or producer, duly registered under Philippine laws.
The Philippine Supplier must have a minimum authorized capitalization of PHP 1,000,000.00.
A minimum production capacity equivalent to USD 50,000 worth of products or services per transaction.
Products and services must have at least 51% local content, except for offset transaction products/services where the minimum local content is 25%.
A track record of at least one year in manufacturing and exporting the required product and/or service is required; if under one year, the supplier must present a credit line and/or performance guarantee for PITC consideration.
Documents include Secretary's Certificate authorizing representative to sign, company profile, audited financial statements for last two years, business name registration, SEC registration and articles of incorporation, BOI registration if applicable, export performance track record if applicable, and current mayor's permit.
There is a non-refundable processing fee of PHP 2,500.00 for accreditation and an annual renewal fee of PHP 1,500.00, subject to changes by PITC management.
Grounds include failure to meet supply/delivery commitments (except force majeure), blacklisting or legal charges, revocation or loss of permits/licenses, bankruptcy or insolvency, business closure, failure to meet accreditation requirements, and analogous causes.
They must sign a supply and/or marketing agreement with PITC confirming priority commitments of their products or services under the Program; failure to do so results in automatic nullification of their accreditation.
No, foreign suppliers or their designated countertraders must source products/services only from PITC-accredited Philippine Suppliers; exemptions must be approved by PITC if products/services cannot be sufficiently sourced from accredited suppliers.
An accredited supplier may voluntarily withdraw upon written notice, provided all pending orders and commitments are fulfilled and the withdrawal is not to circumvent established rules.
Processing and validation must be completed within ten (10) working days from submission.