Donations for social welfare and development
- 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.
To ensure that foreign donations extended to intended beneficiaries are managed and processed smoothly, licensed and/or accredited social welfare and development agencies (SWDAs) are eligible to avail of the duty-free entry of foreign donations in accordance to the "DSWD Memorandum Circular No. 21 series of 2019 or the "Guidelines in the Management and Processing of Donations for Duty-Exempt Importation Under Section 800(m) of the Customs Modernization and Tariff Act.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The certification for duty-exempt importation applies to food and non-food items, except used clothing in accordance to Republic Act No. 4653, which prohibits the commercial importation of textile articles commonly known as used clothing and rags, intended for use in social welfare and development programs, including relief.
Q3. The system applies to goods originating in and coming from which countries?
The certification for duty-exempt importation applies to products coming from all 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?
The government has institutionalized a mechanism to allow the duty-free entry of donations consigned to social welfare and development agencies (SWDAs). This is provided with the aim of further strengthening partnership with the said agencies in their effort to undertake relief, rehabilitation, and development work.
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?
The Section 800(m) of the Republic Act (RA) No. 10863, otherwise known as the Customs Modernization and Tariff Act (CMTA) retains the role of DSWD (along with the Department of Education and Department of Health) in certifying partners for the importation of goods for free distribution among the needy. Through the DSWD Memorandum Circular No. 21, series of 2019, entitled "Guidelines in the Management and Processing of Donations for Duty-Exempt Importation Under Section 800 (m) of the Customs Modernization and Tariff Act," the Department has set guidelines in the processing and management of imported goods consigned to licensed and accredited social welfare and development agencies (SWDAs) pursuant to section 800(m) of RA 10863.
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)?
Three weeks prior to the scheduled arrival of donation in the country.
Q7.b. Can a licence be granted immediately on request?
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.
Application can be filed at the discretion of the applying party, and may be filed on any working days.
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?
Generally, consideration of application for duty-free entry of imported goods is effected by the respective DSWD Field Office where the intended distribution of goods shall take place.
The application is then endorsed at the DSWD Standards Bureau, located at the DSWD Central Office, Batasang Pambansa Complex, Batasan Hills, Quezon City 1126, Philippines for final review and evaluation prior to the final approval of the DSWD Secretary or his/her authorized representative.
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?
In the following cases, the application is no longer considered for certification:
a. When goods have already been released by BOC to SWDA;
b. When goods have already arrived and have been in BOC warehouse for more than one week, unless all the attendant costs such as storage fees, wharfage, demurrage, among others, shall be shouldered by the consignee/applicant for duty-exempt importation of foreign donation; and
c. When the consignee is not licensed and/or accredited SWDA, and/or has an expired license/accreditation from DSWD.
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?
What persons or firms are eligible to apply for a licence?
Licensed and/or accredited social welfare and development agencies (SWDAs) may be eligible to availing of duty-free entry of foreign donations.
Is there a registration fee?
The applicant shall be charged a non-refundable facilitation fee of PhP1.000.00.
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?
What information is required in applications?
The information required in the applications is provided in the page 6, section VI requirements of DSWD Memorandum No. 21, series of 2019.
What documents is the importer required to supply with the application?
The licensed and/or accredited SWDA applicant shall submit two copies of the following documents (provided in the same issuance) to the concerned DSWD Field Office for assessment.
Q11. What documents are required upon actual importation?
Upon release of the goods, the endorsement certification from the DSWD shall accompany the shipment.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
There is no other administrative charge for applications other than the PhP1,000.00 fee.
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.dswd.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?
The certification is intended only for a particular shipment of the goods.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a certification.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Certifications are made in the name of the applicant-importer only and are non-transferable.
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?
Certification is issued upon compliance with conditions/requirements imposed by the DSWD.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
In case of medicines, a certification from the Food and Drug Administration (FDA) of the Philippines that the commodities are allowed for free distribution and use by the intended beneficiaries without the need of a prior prescription and that these are safe for human consumption.