Coal
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
The Energy Resource Development Bureau (ERDB) through the Coal and Nuclear Minerals Division (CNMD), issues a Certificate of Compliance (CoC) for Coal Importation to all registered coal end-users and accredited coal traders who file an application for every importation of coal from foreign countries, whether for trade or for its own use and requirement.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
ERDB maintains the issuance of CoC for the following coal products with the following HS Codes:
| ASEAN Harmonized Tariff Nomenclature (AHTN) | Commodity |
|---|---|
| 2701.11.00 | Anthracite |
| 2701.12 | Bituminous |
| 2701.12.10 | Coking Coal |
| 2701.12.90 | Other Coal |
| 2701.19.00 | Subbituminous Coal |
Q3. The system applies to goods originating in and coming from which countries?
The system applies to coal imported from foreign countries.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
No, it is not intended to restrict the quantity or value of imports. It is intended for the ERDB's monitoring of the country's coal supply and demand data for energy planning and policy formulation purposes as well as energy audits of the non-power industries which utilize coal.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
For coal importation, DOE issued Department Circular No. 2012-05-0006 otherwise known as "Guidelines on the Accreditation of Coal Traders and Registration of Coal End-Users" to limit the importation of coal only to registered coal end-users and accredited coal traders.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Application for CoC should be filed at least ten days prior to the declared Estimated Time of Arrival (ETA).
Q7.b. Can a licence be granted immediately on request?
No, the CoC cannot be granted immediately. It follows a standard procedure and processing time as indicated in the agency's Citizen's Charter.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
There are no limitations.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Consideration of applications is only effected by a single administrative organ.
The applicant does not need to approach more than one administrative organ.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Approval of the application for CoC may be refused if the applicant does not submit the required Post Import Documents (PIDs) from its previous importation. It may also be refused if the ETA of the application precedes the date of the filing of application.
Are the reasons for any refusal given to applicants?
A letter of deferment/denial is given to the applicant.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
Yes, there is a system of registration for companies permitted to engage in importation. Registered business entities engaged in coal trading, transportation, and distribution activities must first apply for an accreditation as coal trader. Likewise, registered business entities engaging in the utilization/consumption of coal must first apply for registration as coal end-user.
Only registered coal end-users and accredited coal traders may apply for CoC.
Application fee for coal trader's accreditation is Php 3,500.00 while coal end-user registration requires an application fee of Php 5,000.00.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
Please see Annex C for the Checklist of Requirements (CoR) needed for the application.
Q11. What documents are required upon actual importation?
It is required to present the approved CoC to the Bureau of Customs.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Is there any licensing fee or administrative charge?
Yes, there is a fee
What is the amount of the fee or charge?
PHP 1,300.00 for every CoC application.
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
Not applicable.
Please refer to https://www.doe.gov.ph for further information.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
It is valid for two months. It can be extended by filing an application for amendment of the previously applied CoC.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
None.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
No, it is not transferable between importers.
Q17. Are any other conditions attached to the issue of a licence? a) for products subject to quantitative restriction? b) for products not subject to quantitative restriction?
Submission of Post Imports Documents (PIDs) of the previously approved CoC is required.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
The importer should be an accredited coal trader or a registered coal end-user. If not, they should initially apply for a Coal Trader's Accreditation or Coal End-user Registration prior to the application for CoC.