Bonded Warehouses for Exploration Supply Bases

The Philippine National Oil Company (PNOC) is directed to establish and operate bonded warehouses pursuant to Sections 1901-1909 of the Revised Tariff and Customs Code.
These warehouses will be converted into internationally acceptable Exploration Supply Bases.
PNOC may operate directly or designate qualified operators.

PNOC can prescribe rules and regulations governing ESB operations.
PNOC may fix rates and charges for usage and services provided within ESBs.
Responsible for providing all necessary facilities, services, and appurtenances to promote, market, and develop the ESBs.
May grant authority to various entities engaged in energy-related operations to establish offices and do business within the ESBs, including permission to erect necessary structures, subject to conditions:
- Permissions are not vested rights and can be revoked.
- Operations must not conflict with public use.
- Entities must first be licensed to do business in the Philippines.
Authorized to enter into contracts to ensure efficient administration and management.
Empowered to exercise all necessary powers incidental to ESB operations.

Exercises technical supervision over ESB operations.
Ensures compliance with relevant provisions on bonded warehouses under the Tariff and Customs Code and its amendments.
Enforces specific procedures including:
- Performance bond and guarantee letters required from operators to secure duties, taxes, and charges.
- Special permits allowing transfer of articles from port of entry to warehouses with required documentation within 30 days.
- Waiver of consular invoice and Certificate of Origin for transfers.
Warehousing periods:
- Standard: 2 years from port arrival.
- Extensions: Up to 3 additional years on approval, not exceeding 5 years total.
- Articles not withdrawn within the period become subject to duties, taxes, forfeiture, and auction.

Withdrawal for consumption in the Philippines is allowed duty- and tax-free if sold to tax-exempt entities holding specific service or production sharing contracts, upon presentation of a Certificate of Tax Exemption from the Energy Development Board.
Emergency withdrawals allowed without prior certificate, subject to subsequent submission or payment within 15 days.
Articles sold to non-tax exempt entities face seizure and double duties/taxes or forfeiture and public auction.
Withdrawal for re-exportation allowed on compliance with export laws and submission of a certificate confirming articles are no longer needed.
Returned articles require a Certificate of Authority from the Energy Development Board.
Tax exemption privileges under existing laws remain fully intact for qualified entities.

Ensures importation applications for machinery, equipment, and materials (except banned categories) are processed by authorized agent banks.
Requires certification from the Energy Development Board confirming authorization of service companies and no foreign exchange payment drawn from local banking system.
Processes issuance of release certificates subject to submission of shipping documents.
Restricts foreign exchange sales for imports to those sourced from foreign currency deposits of non-residents in compliance with Central Bank Circular No. 343.

Facilitates entry of alien technical and specialized personnel, including immediate family members, for ESB operations upon Energy Development Board endorsement.
Employment termination triggers application of immigration laws to affected aliens and their families.

Other government agencies and offices, including government-owned or controlled corporations (Bureau of Quarantine, Philippine Coast Guard, Philippine Constabulary, Telecommunication Control Bureau, Civil Aeronautics Administration, Philippine Port Authority), are directed to assist PNOC in implementation and enforcement.