Question & AnswerQ&A (EXECUTIVE ORDER NO. 64)
The MBC is a council established to oversee barter activities in the Southern Philippines. Its functions include facilitating an enabling environment for barter, formulating rules for registration of qualified traders, issuing guidelines on barter management, reviewing related government policies, and other functions as assigned by the President.
The Mindanao Barter Council is attached to the Department of Trade and Industry (DTI) for policy and program coordination.
The MBC is chaired by the DTI Secretary and includes Vice-Chairpersons such as the Chairperson of the Mindanao Development Authority and Commissioner of the Bureau of Customs. Members include representatives from the Department of Finance, Department of Foreign Affairs, Department of Agriculture, DTI-ARMM, Maritime Industry Authority, Philippine Coast Guard, and Philippine Ports Authority, all at the rank of at least Assistant Secretary.
Barter Ports are designated ports in Sulu and Tawi-Tawi where barter goods may enter or be exported only. They facilitate the streamlined processing of goods and help regulate allowable barter goods while excluding private ports from barter activities.
No, goods traded under the barter system must enter Philippine territory only through accredited Barter Ports established for this purpose.
Allowable barter goods are those permitted under the barter system and must comply with laws on tariff protections and restrictions. Products such as rice, corn, and sugar remain regulated by existing laws and are excluded from free barter entry.
While the ASEAN Trade in Goods Agreement (ATIGA) promotes zero tariff on allowable goods, national and local tax laws still apply to goods whose valuation exceeds the de minimis value of Ten Thousand Pesos or an adjusted threshold, per existing laws including RA No. 10863.
All existing laws on countertrade, dumping protests, countervailing measures, safeguards, and other trade remedies remain in full force and effect despite the zero-tariff benefits under ATIGA.
Funding for the MBC's operations shall come from sources determined by the Department of Budget and Management and appropriations incorporated in the DTI budget. Registration fees collected from traders shall accrue to the National Government's general fund and be remitted to the National Treasury.
The MBC shall continue to perform its functions until the Bangsamoro Government is organized and its office on barter becomes fully operational, after which its functions will likely be assumed by the Bangsamoro Government as provided in RA No. 11054.
The MBC is mandated to issue comprehensive guidelines including mechanisms for valuation of barter goods and measures expressly aimed to prevent smuggling and circumvention of customs laws in barter trade.
The Mindanao Development Authority (MinDA) provides technical, administrative, and secretariat support to the MBC.
No, Barter Ports exclude ports owned or operated by private individuals or entities and only include government-accredited ports in specific locations.
Executive Order No. 427 (s. 1990), Memorandum Orders No. 160 (s. 1993), No. 304 (s. 1995), and other orders or regulations inconsistent with this Executive Order are repealed, amended, or modified accordingly.