Health and Safety Evaluation (Section 1)
- Regional/Provincial Director may endorse products suspected to affect health or safety to appropriate government agencies for examination.
- If found unfit or hazardous, destruction ordered immediately following prescribed procedure.
Destruction of Hazardous Products (Section 2)
- Destruction/condemnation conducted in presence of apprehending unit and Commission on Audit representatives.
- Certification of destruction issued by all present.
- Timing and place determined by the Regional/Provincial Director with notice given to interested parties.
Disposition of Non-Hazardous Seized Products (Section 3)
- Modes of disposition include:
- Sale at public auction.
- Sale through negotiation following failed auction.
- Donation to government agencies/local government units prioritizing disaster areas.
- Donation to registered charitable or relief institutions.
- Exportation to country of origin at respondent's expense.
- Recycling if feasible and economical.
- Other modes as authorized by the Secretary.
- Auction procedures include appraisal with Commission on Audit, setting floor price, and proper notice depending on value threshold (P50,000).
- Negotiation conducted by a committee after failed auction with safeguards to avoid collusion and ensure government obtains best price.
- Counterfeit product donations require removal or defacement of infringing marks.
Handling of Products Bought by DTI Agents or Abandoned (Section 4)
- Disposition governed by Sections 1 to 3.
- Products unclaimed four months after administrative case execution are considered abandoned and may be disposed of by Regional/Provincial Office without further notice.
Special Provisions on Counterfeit and Substandard Products (Section 5)
- Must follow Sections 1 to 3 for disposition.
- Absolute prohibition against sales that could harm DTI’s reputation by appearing to sell counterfeit/substandard products.
Conditions for Disposition of Seized Products (Section 6)
- Disposition allowed only after final and executory decision forfeiting products to the Government.
- Perishable products may be sold within 60 days of seizure if preservation is impractical.
- Notice required seven days prior; respondent may object and pay preservation costs within two days of notice.
- Preservation costs charged to the respondent irrespective of case outcome.
Exceptional Cases for Immediate Sale (Section 7)
- For price-controlled goods in states of calamity or acute shortage, immediate sale to public at legal prices allowed.
- Proceeds held in trust pending case resolution.
- Proceeds returned to respondent if no violation found; otherwise forfeited to Government.
Oversight During Disposition (Section 8)
- Commission on Audit representative must witness and co-sign disposition reports alongside enforcement team members.
Receipt Issuance and Documentation (Section 9)
- Apprehending officers to issue receipt for every seizure, signed by enforcement team and owner/representative.
- Receipt made in five copies distributed to owner, Director, Auditor, storage officer, and apprehending officer.
- Copies distributed within 24 hours of seizure.
Accounting for Proceeds (Section 10)
- Specific accounts established for seized goods inventory, liabilities, and income from sales.
Custodian Appointment and Responsibilities (Section 11)
- Regional/Provincial Director to designate a custodian for seized/confiscated products and evidence.
- Custodian responsible for safekeeping, valuation, recording returns, and recording disposition of products.
Reporting Requirements (Section 12)
- Monthly reports to Commission on Audit including description, quantity, value, acquisition details, storage location, and disposition.
- Reports due within ten days of following month.
Disposition for DTI-NCR Cases (Section 13)
- Products seized/forfeited by DTI-NCR cases elevated to the Office of Legal Affairs disposed of by DTI-NCR.
Compliance with Accounting and Auditing Rules (Section 14)
- All dispositions must conform with applicable accounting and auditing regulations.
Exclusion of Real Properties (Section 15)
- Law does not cover seized/forfeited real properties.
- Such properties disposed of according to existing laws and rules.
Repeal and Effectivity (Sections 16 and 17)
- Conflicting orders/directives modified or revoked.
- Effective fifteen days after publication in two newspapers of general circulation.
This comprehensive framework ensures transparency, due process, and proper accountability in managing seized and forfeited products managed by DTI.