Regulation of Imports in the Philippines

Import licenses are issued by the President through an appointed board or government instrumentality.
No other government agency can question the validity of the license.
Legal questions regarding licenses are resolved exclusively by the designated board or instrumentality with appeal to the President.

The President shall issue enforcement rules, formulate policies on quotas and licenses, budget available foreign exchange, alter Appendix "A" items, and reduce or ban importation of non-essential or sufficiently locally produced commodities.

Foreign exchange is prioritized first to government agencies responsible for essential stockpiling and price stabilization, and government instrumentalities for essential needs.
Second priority is for bona fide producers needing capital equipment and raw materials not adequately produced locally.
Remaining foreign exchange is allocated to business firms and bona fide importers proportional to their 1949 import averages, including allowances for new Filipino importers.
Definition of "producers" includes agricultural, industrial producers and other economic development institutions.

The Monetary Board of the Central Bank certifies and publishes available foreign exchange values for imports every six months or as deemed necessary.

No license shall be issued without available foreign exchange to cover it, except as allowed in section 10.

Upon presentation of a valid import license, the Bureau of Customs must allow the entry of the covered import items.

Import licenses not used within 30 days are void unless extended by regulations.
Licenses are non-transferable.

Importers must account for foreign exchange use; unexpended balances lead to cancellation of allocations.
Unused foreign exchange from licenses may be reallocated under rules.

Personal used goods up to PHP 5,000 value and gifts up to PHP 100 value may be imported without license unless abused.
Returning residents can bring in goods up to PHP 1,000 without license unless abused and not for commercial purposes.

Import license granted for goods imported without foreign exchange for investment, proceeds must be deposited in banks and reinvested in the Philippines.
Imports under barter trade agreements are also granted licenses.

Quotas and licenses for non-producer importers of essential commodities may be subject to control and rationing by Price Stabilization Corporation.

Importers not producers must reserve at least 50% of imports for bona fide Filipino merchants at same mark-ups.
Authority required to release unused portions.
United States rights under the 1946 Executive Agreement remain unaffected.

All applications, licenses, policies, decisions, and rules under the Act must be publicly disclosed.
Rules published at least 10 days before effectiveness with opportunity for public comment.

Firms or individuals may be summarily barred for:
- Material misrepresentation.
- Violations of the Act or rules.
- Illegal payments to public officials related to quotas/licenses.

Valid quotas and licenses approved before this Act’s effectivity are recognized and given full effect.

Penalties include fines between PHP 2,000 to PHP 20,000, imprisonment from 2 to 5 years, or both.
Offenses include material misrepresentation, violations by enforcement officers, undue payments to public officials, and other breaches.
Alien offenders face fines and immediate deportation.
Violations committed by agents make employers liable.
Revocation of license is penalty for foreign juridical person violations.
Additional penalties and perpetual disqualification may apply.
Imported goods violating the Act are subject to forfeiture.

Includes items like rice, tinned fish, textbooks, used clothing, paper materials for books, and items decontrolled by previous executive orders.

Long detailed list covering categories such as animal products, grains, textiles, minerals, metals, machinery, vehicles, chemicals, medical supplies, and many others essential for import.
Specifies classifications and items eligible for controlled importation under the licensing system.