Question & AnswerQ&A (Republic Act No. 650)
The primary objective of Republic Act No. 650 is to regulate imports into the Philippines by requiring an import license for commodities, except in cases specifically exempted, to control foreign exchange and importation for public welfare.
No, import licenses are non-transferable and become null and void if not used within thirty days after their issuance, unless extended according to rules and regulations.
Commodities valued up to P5,000 already used abroad by the importer or the importer’s family for personal use, gifts from abroad valued not more than P100 each, and commodities brought by returning Filipinos not exceeding P1,000 in value and not for commercial purposes, unless there is abuse in the use of privileges.
First priority for foreign exchange allocation is given to government agencies stockpiling essential goods and their essential needs, second priority to bona fide producers for capital equipment and raw materials not produced locally, and the balance distributed among business firms and bona fide importers proportionate to their 1949 import average.
Violations may be punished with fines ranging from P2,000 to P20,000, imprisonment from two to five years, or both. Additional penalties include forfeiture of imported goods, deportation for aliens, revocation of business licenses for foreign juridical persons, and perpetual disqualification for public officers committing offenses.
Yes. The President may by executive order authorize the importation of any commodity without a license when public welfare demands it.
The importer must account for the investment of the balance; otherwise, the allocation for the unexpended balance shall be canceled.
Yes. Import licenses issued to non-producers must include a condition that at least 50% of their imports be sold to bona fide Filipino merchants at the same mark-ups.
A license fee of 2% of the face value of the import license is collected to defray licensing expenses, with unexpended balance accruing to the general funds.
Disputes are decided exclusively by the board or government instrumentality that issues the license, subject to appeal to the President.
Any unconstitutional sections shall not affect the validity or operation of the remaining provisions of the Act.
The President may bar them for material misrepresentation in documents, violation of the Act or regulations, or payment of illegal fees or compensations related to import licenses or quotas.
Essential imports include machinery, equipment, raw materials, agricultural products, chemicals, metals, textiles, vehicles, medical supplies, and other classified essential commercial goods listed specifically in Appendix A.