Question & AnswerQ&A (EXECUTIVE ORDER NO. 384)
All present and potential export products of the Philippines shall be allowed for export to socialist and communist countries.
Priority is given to heavy machinery and equipment (especially those bringing technology transfer), raw materials including fuel not produced locally, and essential consumer products not produced locally.
Export trade will be handled through normal private commercial channels and government trading firms such as NETRACOR.
Initially, import trade shall be conducted solely through NETRACOR to support the government's economic development program, with all transactions coursed through the Department of Commerce and Industry to avoid ruinous competition.
The establishment of resident trading representatives shall be referred to the Department of Commerce and Industry, which will coordinate with relevant government agencies like the Department of Foreign Affairs and the Bureau of Immigration.
Payments must be effected through prescribed instruments acceptable to the central banks of the countries and made in acceptable convertible currencies such as the US dollar, pound, mark, franc, lira, guilder, Canadian dollar, or yen; clearing arrangements may be adopted on a case-to-case basis.
Yes, the exchange of legitimate trade missions and traders is allowed.
Documentation will be done by Philippine diplomatic or consular representations designated by the Department of Foreign Affairs. Inspection shall follow normal procedures using an independent international superintendent or surveyor acceptable to both parties.
Disputes shall be submitted for arbitration, by methods mutually acceptable to both parties involved.
No, the guidelines explicitly state that trade with these countries is still subject to all applicable Philippine laws, rules, and regulations, including those on trade and foreign exchange.
Yes, entry into and exit from Philippine ports of commercial vessels belonging to socialist and communist countries is allowed.
The Department of Commerce and Industry coordinates import trade transactions, handles establishment of trading representatives, and ensures orderly conduct of trade to avoid unhealthy competition.