Legal Framework and Regional Trade Agreements
- RA No. 10863 (Customs Modernization and Tariff Act) mandates duties on imported goods, except as otherwise provided.
- ASEAN Free Trade Agreement and ATIGA promote elimination of import duties on many products within ASEAN members, with exceptions like rice, corn, and sugar.
- Bangsamoro Organic Law (RA No. 11054) authorizes Bangsamoro Government to exercise authority over barter and countertrade, subject to Presidential supervision.
Objectives and Executive Authority
- Revival of barter in Mindanao aligns with the socio-economic agenda promoting rural and value chain development.
- The President holds control over executive functions and ensures faithful execution of laws under the 1987 Constitution.
Creation, Mandate, and Functions of the Mindanao Barter Council (MBC)
- MBC established to supervise, coordinate, and harmonize barter policies and activities in Southern Philippines.
- Functions include:
- Facilitating enabling environment for barter growth.
- Formulating rules on trader registration/accreditation and imposing fees.
- Issuing guidelines on barter mechanisms and preventing smuggling.
- Reviewing and recommending policy changes affecting barter.
- Performing additional presidential-assigned functions.
- MBC attached to the Department of Trade and Industry (DTI).
- Principal office in Jolo, Sulu.
Composition of the Mindanao Barter Council
- Chairperson: DTI Secretary.
- Vice-Chairpersons: Chairperson of Mindanao Development Authority (MinDA) and Bureau of Customs Commissioner.
- Members: Representatives (Assistant Secretary level or higher) from various agencies including Finance, Foreign Affairs, Agriculture, DTI-ARMM, Maritime Industry Authority, Coast Guard, and Ports Authority.
- Invitation to representatives of major Muslim ethno-linguistic groups for participation.
Secretariat Support
- MinDA provides technical, administrative, and secretariat support to MBC.
Establishment and Regulation of Barter Ports
- Barter Ports established in Siasi and Jolo (Sulu) and Bongao (Tawi-Tawi).
- Additional Barter Ports require Presidential approval based on MBC recommendation.
- Barter Ports exclude private ports.
- BOC and Bureau of Internal Revenue to maintain offices in Barter Ports for processing barter goods entry/exit.
Regulation of Allowable Barter Goods
- Barter goods enter the Philippines only through designated Barter Ports.
- Tariff-protected and regulated goods (rice, corn, sugar, etc.) remain subject to applicable laws.
- Traders must secure necessary declarations, licenses, and clearances before import or export.
- Late submission of importation documents allowed before customs release, per existing regulations.
Applicability of Existing Laws
- Countertrade laws, anti-dumping measures, safeguards, and other trade remedies remain applicable.
- National and local tax laws apply to imported goods exceeding a de minimis value of P10,000 (subject to adjustment).
Funding and Financial Provisions
- MBC operational funds sourced as determined by Department of Budget and Management, subject to government accounting rules.
- Annual appropriations included in DTI’s regular budget.
- Registration fee proceeds accrue to the National Government’s general fund and are remitted monthly to the National Treasury.
Duration and Sunset Clause
- MBC functions until the Bangsamoro Government is organized with a fully operational barter office.
- President may dissolve the MBC sooner.
Legal Provisions on Separability and Repeals
- Invalidity of any provision does not affect the rest of the Order.
- Previous inconsistent orders and administrative issuances (Executive Order 427, MO No. 160, MO No. 304) are repealed or modified accordingly.
Effectivity
- Order takes effect upon publication in the Official Gazette or a newspaper of general circulation.