Guidelines on Trade with Socialist and Communist Countries

All present and potential Philippine export products are allowed for trade.
Import priorities are set for:
- Heavy machinery and equipment with technology transfer, especially those not produced locally.
- Raw materials, including fuel, not locally produced.
- Essential consumer products not locally produced.

Export trade managed via normal private commercial channels and government trading firms such as NETRACOR.
Initially, imports are to be conducted solely through NETRACOR under the government’s economic development program.
To prevent harmful competition, all commercial transactions must go through the Department of Commerce and Industry.
Establishment of resident trading representatives from socialist and communist countries requires coordination among the Department of Commerce and Industry, Department of Foreign Affairs, Bureau of Immigration, and other agencies.
Trading travel to these countries will be normalized as per existing travel rules applicable to any country.
Trade communication is allowed.
Commercial vessels from these countries may enter and exit Philippine ports.
Exchange of legitimate trade missions and traders is permitted.

Payments must be made through instruments acceptable to the central banks of the Philippines and the involved socialist or communist countries.
Payments are to be in convertible currencies accepted by central banks; acceptable currencies include US dollar, English pound, German mark, Swiss franc, French franc, Italian lira, Dutch guilder, Canadian dollar, and Japanese yen.
Clearing arrangements with swing credits may be adopted on a case-by-case basis if mutually acceptable.
Normal banking correspondent relations between Philippine and socialist or communist countries' banking institutions are allowed.

Documentation of imported merchandise from these countries will be done by Philippine diplomatic or consular posts until formal relations are established.
Inspections of imported and exported commodities follow normal procedures via independent, internationally acceptable superintendents or surveyors.
Disputes will be submitted for arbitration with mutually agreeable arbitrators.
These guidelines do not exempt trade from applicable Philippine laws, rules, and regulations on trade and foreign exchange.