QuestionsQuestions (EXECUTIVE ORDER NO. 561)
The Regional/Provincial Director determines this in the opinion of the Director. If it will adversely affect health or safety, the Director endorses the product to the concerned government agency for examination and technical evaluation. If found unfit or a menace, the Director orders its destruction under Section 2.
Destruction/condemnation must be done in the presence of representatives of the apprehending unit and the Commission on Audit. A certification shall be issued by all present. The place, date, and time are set by the Regional/Provincial Director, and notice is given to all interested parties.
The Regional/Provincial Director may dispose of the product in one or more of these modes: (a) sale at public auction, (a.1) sale through negotiation (after failed auction), (b) donation to government agencies/LGUs (including barangays), (c) donation to charitable/relief institutions, (d) exportation/return to country of origin, (e) recycling, or (f) other modes authorized by the Secretary or authorized representative.
If value does not exceed PHP 50,000, notice must be posted conspicuously in the Regional/Provincial Office and at the Provincial Capitol/City Hall where seizure was made for at least seven (7) days. If value exceeds PHP 50,000, notice must be published in a newspaper of general or local circulation.
It must indicate the date, time and place of sale, a description of the goods for sale, and a statement that DTI reserves the right to reject any or all bids, waive defects or informality in bids, and accept bids considered most advantageous to the department.
For public auction, the price set is the floor price or starting bid. For negotiation after failed auction, the agreed price shall not be lower than the floor price or the highest offer submitted at the failed auction—whichever is higher.
Negotiation may be undertaken by a committee (Provincial Director as Chairman; representatives of COA and Financial Management Service) in cases including: failure of public auction. Public auction is considered a failure if there is only one sealed offer (in which case that offer/bid shall not be opened), or if all offers/tenders are non-complying/unacceptable due to noncompliance with legal, technical, and financial prequalification requirements.
A record of the negotiation proceedings must be maintained. Negotiation must allow due communication between offerors and the Regional/Provincial Office to ensure best price, and a member of the private sector preferably the People’s Economic Council (PEC) should witness the negotiation.
The proceeds of the sale shall be deposited with the National Treasury through the Cashier’s Office of the Regional/Provincial Office.
They are considered abandoned in favor of the Regional/Provincial Office. The office may dispose of the products without need of notice to the owner.
Disposition of counterfeit and substandard products follows Sections 1, 2, and 3, but they shall not be sold in any manner that DTI will not acquire the reputation of being a seller of counterfeit/substandard products.
Disposition may be made only when the administrative case decision expressly states the products are forfeited in favor of the Government and the decision has become final and executory.
If perishable and there is no easy/inexpensive way to preserve until termination, the Regional/Provincial Director may order ordinary sale within 60 days from seizure, with notice at least seven (7) days prior. If the respondent files a written objection within two days from notice and pays preservation expenses, no such disposition will be made. Preservation expenses are for the respondent regardless of outcome.
In highly exceptional cases with declaration of calamity or acute shortage in supply, the Regional/Provincial Director may immediately order ordinary sale to the consuming public at legal prices through retailers, under terms/conditions he determines. Proceeds less sale expenses are held in trust by the Regional/Provincial Office Cashier until final administrative proceedings. If respondent is found not to have violated the laws, proceeds are given to respondent; otherwise, proceeds are forfeited to the Government.
Disposition must be done in the presence of a Commission on Audit representative who witnesses the proceedings and signs the report together with members of the Enforcement Team.
Apprehending Officers must issue a receipt for every seizure/confiscation signed by Enforcement Team members and the owner/representative. If the owner/representative refuses, the refusal must be duly noted and signed by Team members. The receipt is made in five copies distributed: Original to owner/occupant/person in charge (or posted if none), Duplicate to Regional/Provincial Director, Triplicate to the Auditor/representatives, Quadruplicate to receiving officer (storage), and Quintuplicate kept by apprehending officer. Distribution must be within 24 hours.
It must include: (a) description of products, (b) quantity, (c) estimated value, (d) date/place/mode of acquisition, and (e) location or where stored. Dispositions during the month must also be indicated. The report must be submitted within ten (10) days of the following month.