Question & AnswerQ&A (EXECUTIVE ORDER NO. 510)
The purpose of Executive Order No. 510 is to promulgate rules and regulations implementing section 13 of Republic Act No. 650, which regulates imports and mandates the reservation and sale of a certain percentage of imported goods to bona fide Filipino merchants.
A bona fide Filipino merchant is defined as (a) any natural person of legal age who is a Filipino or American citizen, or a juridical entity with at least 60% Filipino and/or American capital, duly registered and licensed to engage in wholesale or retail trade, with a definite business location and facilities to store merchandise; and (b) cooperative associations and Filipino retailers associations registered with respective government agencies. Certain government and public institutions are also considered bona fide Filipino merchants.
Cooperative associations registered with the Cooperatives Administration Office and Filipino retailers associations registered with the Bureau of Commerce, as well as government entities and public institutions such as the Armed Forces of the Philippines, National Development Company, and Price Stabilization Corporation, among others.
Importers are required to reserve not less than 50% of their imported goods for sale to bona fide Filipino merchants as per the periods specified based on the classification of the goods.
Yes, importers of explosives, fertilizers, agricultural machinery, gasoline, kerosene, diesel and their parts, and certain spare parts are excluded from the necessity of selling 50% of their imports to Filipino merchants.
For goods under class A, 10 days; class B, 20 days; class C, 30 days; and for non-perishables, 40 days.
Importers must send a written notice to the Import Control Commission, Price Stabilization Corporation, Cooperatives Administration Office, Bureau of Commerce, and its provincial agents, containing details about the goods, selling price, and samples when required. The Commissioner of Customs must also notify certain agencies upon receipt of importation.
Importers found violating the rules shall be banned from further participation in the import business and subjected to other penalties provided by law. Regulatory agencies have powers to examine documents and inspect premises related to importations.
The Price Stabilization Corporation has the first priority in acquiring the entire 50% portion of imported goods reserved for bona fide Filipino merchants.
The Price Stabilization Corporation prepares and publishes a list every two weeks, detailing commodities disposed of and available for disposal, including importers’ names, descriptions, quantities, purchasers, and prices paid.
Yes, these rules and regulations may be changed or amended by the President of the Philippines when public interest so demands, upon recommendation of the Import Control Commission, Price Stabilization Corporation, and the Department of Commerce and Industry.
Importers are enjoined to request the Bureau of Commerce, Cooperatives Administration Office, and the Chamber of Commerce of the Philippines to certify a list of bona fide Filipino merchants as prospective customers, to ensure compliance with reservation requirements.