Title
DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 07, S. 2005
Date
Dec 27, 2005
The Garments and Textile Import Services Rules and Regulations govern the import-related functions of the Garments and Textiles Export Board, providing requirements and conditions for the operation of BMW and CBMW, accreditation and registration of subcontractors, and import licensing of raw materials.
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Law Summary

1. Introduction

This Administrative Order outlines the devolution of import-related functions from the Garments and Textile Export Board (GTEB) to a newly established Garments and Textile Import Services (GTIS) Division under the Bureau of Export Trade Promotion (BETP), as mandated by Executive Order No. 285.

  • Effective Date: December 27, 2005
  • Context: In line with the deactivation of GTEB by 2005 due to streamlining operations.

2. Establishment of GTIS

The GTIS Division is created to manage import-related functions previously under GTEB.

  • Functions:
    • Issuance of licenses for importing raw materials.
    • Licensing for Bonded Manufacturing Warehouses (BMW) and Common Bonded Manufacturing Warehouses (CBMW).
    • Accreditation of garment exporters and subcontractors.

3. Governance Structure

Two key committees are established for policy-making and oversight.

GTIS Special Committee

  • Composition: Department Secretary (Chair), Supervising Senior Undersecretary for International Trade, and Supervising Undersecretary for Industry and Investments.
  • Role: Acts as the policy-making body for import-related export matters.

GTIS Inter-Agency Executive Committee

  • Composition: Executive Director of the Board of Investments, Assistant Director of BETP, Deputy Executive Director of the Export Development Council.
  • Role: Oversees GTIS operations, ensuring compliance with regulations.

4. Supervision and Administration

The GTIS Inter-Agency Executive Committee has operational supervision over the GTIS Division, while BETP maintains administrative supervision.

  • Authority Flow: The GTIS Inter-Agency Executive Committee derives authority from the GTIS Special Committee.

5. Rules and Regulations on GTIS

Operations of the GTIS Division are governed by specific rules and regulations.

  • Compliance: All actions must adhere to the established rules.
  • Review Authority: The GTIS Special Committee can amend the rules.

6. Transition and Training

A Transition Team from GTEB will assist and train GTIS personnel during the first quarter of 2006.

7. Licensing and Accreditation

Procedures for the issuance of import licenses and accreditation of warehouses and subcontractors are detailed.

Bonded Manufacturing Warehouse (BMW) Licensing

  • Requirements:
    • Minimum annual export sales of $1 million.
    • No prior violations of the Tariff and Customs Code.
  • License Validity: Two years, renewable.

Common Bonded Manufacturing Warehouse (CBMW) Licensing

  • Requirements:
    • Similar to BMW, with additional viability study submission.
  • Fees: P1,000 filing fee and P50,000 upon issuance.

8. Import Licensing Procedures

Import licenses for raw materials are categorized under different schemes.

Job-Order and Liberalized System of Importation

  • Eligibility: BMW operators and accredited CBMW members.
  • Application Documents: Various forms and inventory reports are required.

9. Validity and Reporting

  • Import Licenses: Valid for nine months; must arrive within this period.
  • Report Obligations: Regular reporting on inventory and usage of raw materials is required.

10. Revocation and Penalties

Licenses for BMW/CBMW can be revoked for non-compliance with the set requirements.

  • Consequences: Limited importation rights upon revocation and possible audits.

11. Subcontractor Accreditation

Procedures for accrediting subcontractors are outlined.

  • Requirements: Business registration, compliance with operational standards, and ocular inspections.

12. Key Definitions

Several key terms are defined, including:

  • GTIS Division: Manages import-related functions.
  • Bonded Manufacturing Warehouse (BMW): A facility for processing imported materials under bond.
  • Common Bonded Manufacturing Warehouse (CBMW): Services multiple exporters; requires specific licensing.

Key Takeaways

  • The GTEB's import functions are devolved to the GTIS Division to enhance efficiency.
  • Compliance with new regulations is mandatory for all stakeholders involved in garment manufacturing and export.
  • Regular audits and comprehensive documentation are critical for the continuation of licenses and accreditations.
  • The GTIS Special Committee and Inter-Agency Executive Committee play pivotal roles in policy-making and operational oversight.

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