Question & AnswerQ&A (LETTER OF INSTRUCTION No. 1409)
The primary beneficiaries are the people living in Zamboanga del Sur, especially those dependent on barter trading, as well as export-oriented and essential domestic industries in the region.
Barter trading must be for exporting products of KKK producers and accredited companies, and importing critical consumer items and raw materials needed by export-oriented and essential domestic industries, as certified by the KKK-Processing Center Authority. The importation ratio must be 70% raw materials and 30% finished goods.
The KKK-Processing Center Authority is responsible for certifying export-oriented and essential domestic industries.
A KKK accredited association may designate one major vessel a month to carry its barter trade goods, subject to approval and compliance with KKK-Processing Center Authority requirements.
The KKK-Processing Center Authority is authorized to issue guidelines, establish working relationships, and impose requirements to implement the barter trading program under this LOI.
Yes, rules and regulations promulgated to implement Presidential Decree No. 93, insofar as they are not inconsistent with this LOI, continue to be enforced.
The Administrator of KKK-Processing Center Authority, Commissioner of Bureau of Customs, Governor of Central Bank, Chief of Staff of Armed Forces, Commander of Southwest Command, Commander of Philippine Coast Guard, and General Manager of Philippine Ports Authority.
The importation under barter trading must have a composition of 70% raw materials and 30% finished goods.
The Letter of Instruction No. 1409 took effect immediately on May 9, 1984.