Question & AnswerQ&A (BOC MEMORANDUM CIRCULAR NO. 332-98)
The subject is the prohibition by Indonesia on the exportation of certain commodities subsidized by the Indonesian government, including fish flour, rice, wheat, meslin, flour of black wheat, rice flour, soybeans, sugar, and kerosene.
The Department of Trade and Industry (DTI), specifically the Bureau of Trade Regulation & Consumer Protection and the Bureau of International Trade Relations, as well as the Department of Foreign Affairs (DFA) are involved.
The prohibited commodities are fish flour, rice, wheat, meslin, flour of black wheat, rice flour, soybeans, sugar, and kerosene.
Philippine traders must comply with the prohibition set by Indonesia and refrain from engaging in the importation or trade of the listed commodities subsidized by Indonesia, as they are banned from export from Indonesia.
The BOC is informed of the directive to ensure that relevant import and customs procedures take into account the Indonesian exportation prohibition, preventing the entry of these commodities when imported from Indonesia.
The memorandum circular itself does not specify penalties, but violations would likely be subject to existing customs and trade laws concerning import/export violations.
The memorandum represents an official communication and recognition of Indonesia's export policies that the Philippines must observe, which may impact trade flows and negotiations regarding the affected commodities.
The memorandum serves as a notice for guidance, implying that importers must be informed of the prohibition and comply by avoiding transactions involving the listed commodities subsidized by the Indonesian government.
Atty. Ma. Teresa Arao-Mahiwo is the Director of the Bureau of Trade Regulation & Consumer Protection at the DTI, who endorsed the communication directing attention to the export prohibition from Indonesia.