Core definitions under the order
- BPS means the Bureau of Product Standards of the Department of Trade and Industry.
- Priority products are products that affect life, health, safety and property, including (by example) electrical and firefighting equipment, construction materials, medical oxygen, and consumer goods (Section 1).
- Mandatory standards are standards imposed by BPS on priority products, whether manufactured locally or imported (Section 1).
- PS license is the license issued by BPS to manufacturers or importers of priority products that have compiled with mandatory standards (Section 1).
- PS Mark is the mark required by BPS to be placed on priority products manufactured or imported under a PS license (Section 1).
- Markings refer to standard mark, logo, symbol, manufacturer’s name, trademark, product type or class, and other imprinting or embossing intended to convey relevant information about the product (Section 1).
Coverage and covered actors
- Manufacturers and importers of any priority product must comply with licensing and marking requirements before sale or disposal (Section 2 and Section 3).
- Distributors, wholesalers, and retailers of priority products must sell or offer for sale only products bearing required licensing and markings (Section 4).
- The prohibitions and investigation-related obligations apply to persons, companies, or entities involved in prohibited acts relating to priority products and their compliance documentation (Section 5 and Section 6).
- Enforcement is carried out through DTI Provincial Directors and DTI Regional Directors, as prescribed in the procedures (Section 6).
PS license requirement for sale
- Manufacturers and importers of any priority product must secure a PS License prior to selling, offering for sale, or otherwise disposing of their product(s) (Section 2).
- Sales or disposal of priority products by manufacturers or importers is conditioned on prior acquisition of the PS License (Section 2).
PS mark and required markings
- Manufacturers and importers of any priority product must use the PS Mark or other marking(s) mandated by BPS or other concerned agencies prior to selling, offering for sale, or otherwise disposing of their product(s) (Section 3).
- Distributors, wholesalers, and retailers must ensure sale or offering for sale only of priority products bearing PS License, PS Mark, and other required markings (Section 4).
Prohibited acts and investigation misconduct
- The order prohibits selling, offering for sale, or disposing of any priority product without the required PS License and a certification from BPS that the product conforms to the mandatory standards (Section 5(a)).
- The order prohibits selling, offering for sale, or disposing of any priority product without PS Mark or other markings required by Republic Act No. 4109 and the implementing rules and regulations issued by the Department of Trade and Industry (Section 5(a)).
- The order prohibits selling, offering for sale, or disposing of any priority product under a “take PS License of Mark” arrangement (Section 5(a)).
- The order prohibits abetting shipment abroad or facilitating discharge, distribution, or sale for domestic consumption of any priority product in violation of Section 6 of Republic Act No. 4109, or in violation of rules issued with it (Section 5(a)).
- The order prohibits issuance of customs export entry, import entry, declaration, release certificate, manifest, clearance, import permit, or permit to ship abroad, or discharge, without an inspection conducted in accordance with Subsections (b), (c), (d) or (e) of Section 4 of Republic Act No. 4109 (Section 5(a)).
- In any BPS investigation relative to issuance of PS License or certifications, the order prohibits:
- Failure or refusal to comply with a legal summons, subpoena, or subpoena duces tecum issued by BPS;
- Refusal to be sworn in, prior to giving testimony;
- Refusal to answer pertinent questions;
- Giving of false or misleading data or information; and
- Willful concealment of a material fact (Section 5(a)).
Enforcement procedures and timelines
- DTI Provincial Directors must file and institute a formal charge against any person, company, or entity found—upon verified complaint/reports supported with documents and other papers—to have committed any act or activity violating trade and industry laws (Section 6).
- DTI Provincial Directors must designate an employee under their supervision to act as the Investigation/Mediation/Prosecution Officer where needed (Section 6).
- During mediation, if the respondent admits the violation, the Provincial Director must issue the decision and impose administrative penalties provided under Executive Order No. 913 (Section 6).
- If the respondent does not admit the violation during mediation, the Provincial Director must file a Statement of Violation with the Regional Office concerned (Section 6).
- The Regional Director must conduct a formal investigation and render a decision in accordance with Executive Order No. 913 (Section 6).
- For formal hearing and prosecution, the Provincial Director who instituted the formal charge/statement of violation must prosecute the case himself or through a duly authorized representative (Section 6).
- A written decision must be served on the complainant and the respondent (by mail or personal service) within fifteen (15) days from the termination of the administrative proceedings (Section 6).
- A decision becomes final and executory unless:
- a motion for reconsideration is filed within fifteen (15) days from receipt of the decision by the party adversely affected; or
- an appeal is made to the undersigned within the same fifteen (15) days period (Section 6).
- The decision becomes final and executory after fifteen (15) days from receipt of the decision, if no motion for reconsideration or appeal is filed in time (Section 6).
Administrative penalties for violations
- Any violation of Republic Act No. 4109, P.D. No. 187, P.D. No. 748, B.P. Blg. 8, or this Order must be punished with any or all penalties set under Executive Order No. 913, Series of 1983 (Section 7).
- The penalties that may be imposed include:
- Issuance of a cease-and-desist order (Section 7);
- Condemnation or seizure of products that are the subject of the offense (Section 7);
- Seizure and forfeiture of paraphernalia and all properties, real or personal, used in committing the offense (Section 7);
- Closure of the business establishment, warehouse, building, shop, or any other structure used in committing the offense; closure must be for a minimum of five (5) days, without prejudice to permanent closure if warranted (Section 7);
- Administrative fines determined by the Chief Hearing Officer/Adjudication Officer, with a required range of not less than five hundred pesos (P500.00) and not more than one hundred fifty thousand pesos (P150,000.00), plus not more than one thousand pesos (P100,000.00) for each day of continuing violation (Section 7);
- Administrative fine authority applies regardless of the limits of the criminal fine fixed in the violated trade and industry law (Section 7);
- Cancellation of any permit, license, authority, or registration granted by the Department, or suspension of validity for such period as the Secretary deems reasonable, but not exceeding one year (Section 7);
- Censure (Section 7).
- Filing an administrative case before the DTI is without prejudice to filing appropriate criminal charges for violations of Republic Act No. 4109, P.D. No. 187, P.D. No. 748, and B.P. Blg. 8 (Section 7).
Repeal and effectivity
- All DTI administrative orders inconsistent with DTI Administrative Order No. 9 are repealed or modified accordingly (Section 8).
- The order’s effectivity is governed by Section 9, taking effect fifteen (15) days after publication in two (2) newspapers of general circulation (Section 9).