Definition and Scope of Importers
- Importers are those who import goods for wholesale or retail.
- Exclusive distributors under contract with importers assume compliance with Section 13 of RA 650.
- Excluded from the 50% Filipino merchant sales obligation are importers of explosives, fertilizers, agricultural machinery, gasoline, kerosene, diesel, and their parts.
Notice Requirements Upon Release of Imported Goods
- Importers and exclusive distributors must send written notice with acknowledgment to the Import Control Commission, PRISCO, Cooperatives Administration Office, Bureau of Commerce, and provincial commercial agents.
- Customs Commissioner or representatives must notify Commerce Director, PRISCO, Cooperatives Office of any importation.
- Notice must contain detailed goods description, selling price, and other key details.
- Samples required for textiles and certain other goods, with specified textile staples exempted from sample requirements.
Allocation and Sale of Reserved 50% Goods
- 50% of imported goods held in reserve must be sold to cooperative associations, retailers associations, and bona fide Filipino merchants.
- PRISCO has first priority to acquire this 50% for allocation and distribution with representatives of Filipino merchants.
- For capital equipment and raw materials not locally produced in adequate quantities, priority is given to Filipino producers or manufacturers.
Reserved Goods Sale Periods
- Class A goods: 10 days
- Class B goods: 20 days
- Class C goods: 30 days
- Non-perishables: 40 days
Computation of Sales Period
- Periods run from customs release date if prior notice was received.
- Otherwise, counting begins from actual receipt of notice by relevant entities or persons.
Reporting and Application for Release of Unsold Goods
- Importers must report sales details of reserved goods to the Import Control Commission.
- Failure to sell the reserved 50% requires filing applications for release of unsold goods from Section 13.
- Authorization granted by the Import Control Commission for goods to be sold through regular outlets after 20 days unless acted on sooner.
- For Class A commodities, automatic release occurs if no action is taken within 10 days.
Publication of Commodity Lists
- PRISCO to prepare and publish biweekly lists of disposed and available commodities under Section 13.
- Lists include importers, commodity descriptions, quantities, purchasers, and prices.
- Pamphlets sold at cost to interested parties.
Importers Encouraged to Comply in Good Faith
- Importers lacking sufficient bona fide Filipino merchant customers may request certified lists from Bureau of Commerce, Cooperatives Administration, and Chamber of Commerce.
- Bureau and Chamber of Commerce to mediate between importers and Filipino merchants to enforce Section 13 effectively.
Amendments and Changes to Rules
- Rules may be amended by the President upon recommendation from the Import Control Commission, PRISCO, and Department of Commerce and Industry.
Penalties and Enforcement Power
- Violators barred from import business and subject to other penalties.
- Authorized agencies empowered to examine related documents and inspect premises, with search warrant if necessary.
Effectivity
- The order takes effect immediately upon promulgation.