Electrical and electronic products, mechanical, building and construction products and chemical, consumer and other products and systems
- 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 DTI-BPS operates mandatory product certification for a number of electrical and electronic products, mechanical, building and construction products and chemical, consumer and other products and systems. There are 82 listed Philippine National Standards under the BPS Mandatory Certification Scheme covering some 111 products and systems.
The DTI-BPS subjects these products to sampling, inspection and testing based on specific PNS prior to distribution and sale in the Philippine market with the necessary Philippine Standard (PS) or Import Commodity Clearance (ICC) marks.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
These schemes are the Philippine Standard (PS) Quality Scheme and/or Safety Certification Scheme and the Import Commodity Clearance (ICC) Scheme.
Under the Philippine Standard (PS) Quality or Safety Mark Scheme (DAO 4:2008), the DTI-BPS issues a license to allow a company to affix the PS Quality or Safety Mark to its products, after audit, inspection, sampling and testing to determine that such products meet the relevant PNS. The certificate is valid for three years subject to at least annual surveillance. The BPS assesses a manufacturer's production processes and product. For cement, steel and plywood, aside from sourcing the products from PS License holders, all importations must secure a Statement of Confirmation (SOC) on a per shipment, per Bill of lading, per product basis (see DAOs on cement and steel). SOC must also be secured for ceramic tiles and ceramic plumbing fixtures if these are sourced from PS License holders.
On the other hand, the Import Commodity Clearance (ICC) is applicable to products that are not PS certified (not applicable to steel, cement and plywood products which is subjected to mandatory PS Scheme). The ICC certificate is issued on a per shipment, per Bill of Lading, per product basis.). The products are subject to relevant audit, inspection, sampling and testing. DAO 05:2008 specifies that importers are offered four options for their applications to be processed, which include: (1) an application without a Product Test Report but with a Quality Management System (QMS) based on the ISO 9001 and its future amendments; (2) an application with a Product Test Report and with a QMS based on the ISO 9001 and its future amendments; (3) an application without a Product Test Report and without a QMS; and (4) an application with the Philippine Standard (PS) license from a foreign supplier.
Please see Products for the list of products and respective HS Codes.
Q3. The system applies to goods originating in and coming from which countries?
The system applies to goods originating from any country and the prospective importers decide from what country they wish to import goods.
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 rationale behind the mandatory product certification is to protect consumers from trade malpractices and from sub-standard and/or hazardous products.
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?
Laws/Regulations/Administrative Orders - please see Legislations for electrical and electronic products.
Further information can be accessed through this link: http://www.bps.dti.gov.ph/
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)?
For the PS, application must be submitted as early as practicable as the system requires audits both factory and product, inspection, sampling and testing of products.
For the ICC, there are four options provided and the application may be filed before the arrival of the shipment as long as the required shipping documents are already available.
Q7.b. Can a licence be granted immediately on request?
The licence can be released immediately provided that all documentary and technical requirements are complied with.
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.
Applications may be filed on any working day of the year.
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?
The DTI implements the scheme through the BPS.
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?
Are the reasons for any refusal given to applicants?
In the event of denial or disapproval by the DTI-BPS of an application for a PS and/or an ICC application, the applicant is informed of the reason for such disapproval.
Have applicants a right of appeal in the event of refusal to issue a licence?
The applicant is given the right to make a written appeal for reconsideration of the decision.
If so, to what bodies and under what procedures?
The appeal procedure is stipulated in the DTI Administrative Orders issued.
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?
There is no registration system.
Under the DTI-BPS process, all persons, firms and institutions, are eligible to apply for license provided that they meet the requirements/criteria laid down by the DTI-BPS.
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 applications includes the following: name and address of importer, business of importer, name and address of exporter/shipper, country of origin, means of transport, description and amount of goods to be imported.
What documents is the importer required to supply with the application?
The documents required to support the application are:
a) Packing list
b) Import Entry (will be filed upon claiming the certificate
c) Commercial Invoice
d) Summary of batch numbers/serial numbers of products
e) Securities and Exchange Commission (SEC) registration certificate for corporations and f) partnerships and Notarized Board/Partner Resolution/Secretary Certificate
f) DTI Certificate of Business Registration for single proprietorship and Special Power of Attorney
g) Audited Financial statements;
h) Quality Management System (QMS) of Manufacturer
i) Valid Test report (ICC), if applicable
j) Surety Bond
k) Importer Certificate of Accreditation
l) BIR Importers Clearance Certificate/COR
m) Proof of billing for warehouse address or proof or ownership or contract of warehouse
n) Others
Please see Annexes H and I for the application forms.
Q11. What documents are required upon actual importation?
Upon importation, the documents required include: (a) commercial invoice; (b) bill of lading; (c) clearance certificate from pertinent administrative bodies; (d) formal customs entry; (e) valid license to operate; and (f) valid certificate of registration for imported finished products in original packaging.
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.
What is the amount of the fee or charge?
Please see Annex J for BPS related fees and charges.
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.
There is no deposit or advance payment requirement associated with the issuance of licenses.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
For products that fall under the DTI-BPS' product certification schemes, certificates under the Import Commodity Clearance (ICC) are valid per bill of lading only, while licenses under the Philippine Standards Safety and/or Quality Licenses (PS) are valid for a three year-period subject to annual surveillance audits.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are made in the name of the applicant manufacturer (except for steel, cement, plywood, ceramic tiles and ceramic plumbing fixture where both the applicant manufacturer and importer are included in license) 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?
A PS license, SOC and/or ICC Certificate contain terms and conditions which the license holder/importer must comply with. Any infraction thereof shall constitute grounds for the cancellation, suspension, revocation, and withdrawal of licence.
Other Procedural Requirements
Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Prior to the release of PS certified products from the BOC’s custody, certificates of exemptions shall be secured by the importers per bill of lading basis. While, a SOC shall be secured per product, per shipment, per bill of lading basis for steel, cement, plywood, ceramic tiles and ceramic plumbing fixture products.
For products which require the issuance of Import Commodity Clearance (ICC), the DTI-BPS issues a Certificate of Conditional Release for the release of the shipment from the BOC's custody which stipulates that such products should be stored in the declared warehouse where product inspection, inventory and sampling shall take place and cannot be transferred and sold in the market until the issuance of the ICC.