EXECUTIVE ORDER NO. 589

Legal Basis: This Executive Order is issued under the authority of Republic Act No. 7844, the Export Development Act of 1994, which promotes export development as a national policy.
Purpose: The Executive Order aims to facilitate the participation of exporters in international trade fairs and missions, recognizing the importance of these activities in promoting Philippine exports.

Exemption Scope: Exporters are exempt from paying travel tax when traveling for specific purposes related to export promotion.
Key Activities Covered: • Participation in outbound business matching and selling missions organized by the Bureau of Export Trade Promotion (BETP), Department of Trade and Industry (DTI). • Attendance at international trade fairs and exhibitions endorsed by the Center for Trade Expositions and Missions (CITEM), the Export Development Council (EDC), or accredited exporter organizations. • Participation as official members of the Philippine delegation in trade negotiations and international conferences endorsed by the Bureau of International Trade Relations (BITR), DTI. • Involvement of agents in marketing Philippine products internationally. • Attendance at DTI-endorsed seminars focused on technology and competitiveness enhancement. • Participation in international conferences relevant to international trade endorsed by the DTI.

Endorsement Requirement: Exporters must secure an endorsement from the EDC to avail of the travel tax exemption.
Process: • The request for exemption must be recommended by the relevant organization (BETP, CITEM, or accredited umbrella organization). • The EDC processes and issues the necessary certificates based on the recommendations.

Steps to Claim Exemption: • Exporter secures a Recommendation for Travel Tax Exemption from an appropriate organization. • The organization submits the approved Recommendation to the EDC Secretariat. • The EDC Secretariat endorses the Recommendation to the Philippine Tourism Authority (PTA). • The exporter presents the Travel Tax Exemption Certificate issued by the PTA to the ticketing agent.

Cap on Exemption: The total travel tax exemption granted shall not exceed Twenty Million Pesos (₱20,000,000) annually.

Separability Clause: If any part of this Executive Order is declared unconstitutional, the remaining provisions shall still be valid and enforceable.
Repeal of Inconsistent Rules: All previous executive orders or regulations that conflict with this Executive Order are revoked or amended accordingly.
Effectivity: This Executive Order takes effect immediately upon publication in a national newspaper of general circulation.

Exporters can benefit from a travel tax exemption for specific export-related activities, promoting Philippine exports.
The process requires an endorsement from relevant trade organizations and involves multiple steps to obtain the exemption certificate.
The exemption is capped at ₱20 million annually, ensuring fiscal responsibility.
The Executive Order ensures continuity of its provisions even if parts are found unconstitutional, indicating a robust legal framework.