Scope and Coverage
- Applies to all goods imported into the Philippines bound for duty free shops/outlets.
- Includes goods imported for trading warehouses catering to duty free shops/outlets within Freeports and Special Economic Zones.
Pre-Shipment Inspection (PSI) Requirement
- All imported goods for duty free shops/outlets ("DFS Goods") must undergo PSI by Societe Generale de Surveillance (SGS) in the country of export.
- Exceptions to PSI:
- DFS goods with Letter of Credit (LC) opened before the Order's effectivity.
- DFS goods financed by means other than LC with Bill of Lading or Airwaybill dated before the Order's effectivity.
Declaration and Appeal Procedures
- Duty free shop goods must be declared based on the Clean Report of Findings (CRF) from SGS.
- Importers have the right to appeal the CRF as per specified existing regulations (CMO 39-92, Joint Order No. 1-91, CMO 3-95).
Consequences of Non-Compliance
- DFS goods without CRF are subject to sanctions including those outlined in Joint Order No. 1-91, CMO 9-95, Customs Administrative Order No. 4-94.
- Violations may lead to suspension or cancellation of the operation of the concerned duty free shop/outlet as per Section 9 of Executive Order 444.
PSI Fee and Payment
- The importer/consignee bears the PSI fee.
- Fee is 0.6% of the FOB value but not less than US$225, except:
- If shipment FOB value is less than US$2,500, PSI fee is fixed at US$150.
- Fee amount is indicated by SGS on the CRF.
- Detailed fee payment mechanics are to be issued separately by the Commissioner of Customs.
Entry Filing and Documentation Requirements
- Filing, documentation, and clearance of DFS goods follow existing import procedures for Freeports and Special Economic Zones.
- DFS importers must secure an Import Advice Notice (I.A.N.) through:
- Authorized Agent Bank (AAB) for LC-covered shipments.
- Bangko Sentral ng Pilipinas for non-LC transactions.
- Or directly with SGS Manila Liaison Office.
- Upon import entry filing, importers must present:
- Original SGS CRF.
- Proof of PSI fee payment.
Repealing Clause
- All prior orders, rules, or regulations inconsistent with this Order are repealed or modified accordingly.
Effectivity
- The Order takes effect 15 days after its approval on October 14, 1997.