Title
Supreme Court
EO No. 558: Import Exemption for Embroidery Raw Materials
Law
Executive Order No. 558
Decision Date
Aug 8, 2006
Embroidery raw materials can be imported into the Philippines without an import license, allowing for the processing of the materials into finished products, as long as the wages of embroidery workers are increased.

Q&A (EXECUTIVE ORDER NO. 558)

The Order took effect as of January 1, 1953.

The labor and other work or expenses involved in processing the embroidery products must be duly paid for and received in the Philippines in United States dollar exchange.

No, an import license is not required for the entry of embroidery raw materials on consignment basis as authorized under this Order, subject to compliance with prescribed rules and regulations.

The Commissioner of Customs may prescribe rules and regulations to ensure the return of the embroidery materials, whether finished, unfinished, or in other forms, to the country of origin.

The parties must raise the scale of wages of their embroidery workers to a level higher than their present wages, and this condition is monitored by the Secretary of Labor.

Non-compliance with the wage increase requirement by the employers shall be sufficient grounds for the revocation of the exemption from import license.

The issuance of the Executive Order was upon the recommendation of the Import Control Commission and the Office of Economic Coordination.

The Order covers the entry of embroidery raw materials into the Philippines, specifically for processing within the Philippines and return to the country of origin.


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