Ownership Requirements
- Philippine Suppliers must be at least 51% owned or controlled by Filipino citizens.
- Exceptions apply where required products/services are sourced only from Filipino-owned or controlled suppliers that align with government priorities certified by PITC.
Nature of Business Criteria
- Eligible Philippine Suppliers must be legally registered and belong to one of the following categories:
- Manufacturers or producers of exportable Philippine products.
- Service contractors locally or for export.
- Exclusive marketing or exporting agents of Philippine manufacturers or producers.
Capitalization and Production Capacity
- Minimum authorized capitalization required is PHP 1,000,000.
- Must demonstrate a minimum production capacity of US$50,000 worth of products or services per transaction.
Local Content Requirements
- Products and services offered must have at least 51% local content.
- For offset transactions, the minimum local content threshold is 25%.
Track Record and Credit Standing
- Suppliers must have at least one year of experience in manufacturing and exporting the relevant product/service.
- If less than one year, a credit line or performance guarantee must be presented to PITC.
- A good credit standing evidenced by a credit line with a major Philippine commercial bank is required.
Accreditation Procedures
- Interested suppliers must obtain and complete the Accreditation Form from PITC's Countertrade and Offset Group.
- Submission of specified documentary requirements is mandatory, including:
- Secretary's Certificate authorizing signatory.
- Company profile.
- Audited financial statements for two years.
- Business name registration.
- SEC registration and governing documents.
- BOI registration if applicable.
- Export track record if available.
- Current mayor's permit.
- A non-refundable processing fee must accompany the application.
- Processing time for accreditation is ten (10) working days.
- Upon approval, an Accreditation Certificate is issued.
Fees for Accreditation
- Non-refundable processing fee: PHP 2,500.
- Annual renewal fee: PHP 1,500.
- PITC may amend fees as necessary.
Renewal of Accreditation
- Accreditation is renewable annually based on performance review.
- Payment of corresponding renewal fees is required.
- Renewal may be refused or accreditation revoked for valid reasons.
Cancellation, Revocation, and Withdrawal
- Grounds for cancellation or non-renewal include:
- Failure/refusal to meet supply or delivery commitments not excused by force majeure or agreed terms.
- Being blacklisted or charged with legal violations by government bodies.
- Revocation or expiration of relevant government licenses/permits.
- Bankruptcy, insolvency, or business closure.
- Failure to meet accreditation requirements.
- PITC shall notify suppliers upon validation of grounds.
- Suppliers may voluntarily withdraw with written notice, provided all commitments are fulfilled and withdrawal is not to circumvent rules.
Countertrade Supply Network Obligations
- Accredited suppliers must enter supply or marketing agreements with PITC within 30 days of accreditation certificate issuance.
- Failure to sign such agreements results in automatic nullification of accreditation.
- PITC integrates these suppliers into its supply network and promotes their products for export or utilization.
- PITC may levy agreed commissions on concluded transactions.
Sourcing and Compliance Requirements for Foreign Suppliers
- Foreign suppliers or designated countertraders with Philippine countertrade obligations must source products/services from PITC-accredited Philippine Suppliers.
- Purchases from unaccredited suppliers do not count toward counterpurchase commitments unless prior approval and certification by PITC are obtained.
Administrative and Legal Provisions
- PITC issues updates and advisories to accredited suppliers.
- This Memorandum Circular supplements the Implementing Rules and Regulations of E.O. 120 and is integral to it.
- Effective immediately from 17 April 1997 as promulgated by PITC President Jose Luis U. Yulo, Jr.