Question & AnswerQ&A (BOC CUSTOMS ADMINISTRATIVE ORDER NO. 4-97)
The primary objectives are to prevent abuse of duty free importation privileges at Free Ports and Special Economic Zones and to protect local industries from unfair competition.
All goods imported into the Philippines bound for duty free shops/outlets and trading warehouses catering to duty free shops/outlets in the Freeports and Special Economic Zones.
All imported goods bound for duty free shops or trading warehouses catering to such shops must undergo pre-shipment inspection (PSI) by the Societe Generale de Surveillance (SGS) in the country of exportation, except goods with LC opened or bill of lading/airwaybill dated prior to the Order's effectivity.
Yes. DFS goods with Letters of Credit opened prior to the Order’s effectivity, and goods financed by means other than LC whose Bill of Lading or Airwaybill date prior to the Order's effectivity are exempted.
DFS goods must be declared based on the Clean Report of Findings (CRF) issued by SGS.
Such goods are subject to provisions in Joint Order No. 1-91, CMO 9-95, Customs Administrative Order No. 4-94, and sanctions against willful circumvention, possibly including suspension or cancellation of operations of the concerned duty free shop/outlet.
The importer/consignee is responsible. The fee is 0.6% of the FOB value declared in the final invoice but not less than US$225.00, except when the invoice value is below US$2,500 FOB, then the fee is fixed at US$150.00.
They must present the original SGS Clean Report of Findings (CRF) and proof of payment of the PSI fee.
Importers must obtain the I.A.N. through the authorized agent bank for LC-covered shipments, through Bangko Sentral ng Pilipinas for Non-LC transactions, or directly from SGS Manila Liaison Office.
It took effect 15 days after its approval on October 14, 1997.