Explosives, explosive ingredients, accessories, controlled chemicals (high and low risk categories), pyrotechnic devices (theatrical effects)

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 importation of all explosives, explosive ingredients, accessories, controlled chemicals (high and low risk categories), and pyrotechnic devices for theatrical effects require the issuance of a license and permit to import to be granted by the Philippine National Police through the Firearms and Explosives Office (PNP-FEO) pursuant to existing implementing rules and regulations of Republic Act (RA) No. 9516, RA No. 7183, and Presidential Decree No. 1866 and other relevant regulations in conformity with the “Customs Modernization and Tariff Act (CMTA)” under RA No. 10863.

Purposes and Coverage of Licensing

Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.

All importations of explosives, explosive ingredients, accessories, controlled chemicals (high and low risk categories), pyrotechnic devices for theatrical effects require a license and permit to import.

Q3. The system applies to goods originating in and coming from which countries?

The requirement applies to goods originating from any country.

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 issuance of license and permit to import aims to uphold public safety, protect national security interest and to provide a fair, reasonable and transparent regulation.

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 issuance of the Import Permit is pursuant to Republic Act (RA) No. 9516, RA No. 7183, and Presidential Decree No. 1866, and other relevant regulations in conformity with the “Customs Modernization and Tariff Act (CMTA)” under RA No. 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):

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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?

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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?

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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.)

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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?

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Q6.V. What are the minimum and maximum lengths of time for processing applications?

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Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?

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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?

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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?

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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?

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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?

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Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?

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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)?

Under normal circumstances, an application for an Import Permit can be granted within 24 working days or sooner, if the requirements are complete, authentic and valid in all respects.

Q7.b. Can a licence be granted immediately on request?

An import permit cannot be granted immediately.

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.

An application for Import Permit, with a valid license, 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 application for an import permit is submitted to the License and Permit (LPS) Section, Explosives Management Division (EMD), Firearms and Explosives Office (FEO) of the Philippine National Police.

Only one administrative body considers the application for a license.

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?

During election period, an applicant must first secure an exemption from the Commission on Elections (COMELEC) to authorize the domestic movement of imported goods from the port of entry to the authorized storage facility of the licensee.

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?

Is there a system of registration of persons or firms permitted to engage in importation?

For certain imports there is a system of registration of persons or firms permitted to engage in importation. This system ensures that only qualified applicants are granted licenses.

What persons or firms are eligible to apply for a licence?

Under the non-automatic licensing system, only firms and institutions duly registered as licensed manufacturers, dealers, distributors, end-users of explosives, explosive ingredients, accessories, and controlled chemicals of high and low risk categories are qualified to apply for an import permit. Import permits may be allowed for pyrotechnic devices, provided, these are intended for theatrical effects only.

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 usually required in applications includes the name and address of the 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, usually include, among others: (a) pro forma invoice covering the importation applied for (b) Securities and Exchange Commission (SEC) registration certificate for corporations and partnerships and Bureau of Domestic Trade registration certification for single proprietorship; (c) financial statements; and (d) a copy of export contract or L/C application.

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?

The licensing fees or administrative charges imposed are as follows:
Permit to Import Firecrackers and Pyrotechnics Devices (FCPD)- P 5,000.00/permit

Permit to Import Pyrotechnics (Theatrical Effects) - P 1,000.00/permit

Permit to Export Firecrackers and Pyrotechnics Devices (FCPD) - No fee

Permit to Import Explosives/Explosive Ingredients - P 6,000.00/permit

Permit to Export Explosives/Explosive Ingredients - No Fee

Permit to Import Controlled Chemicals - P 6,000.00/permit

Permit to Export Controlled Chemicals - No Fee

Other Fees, (to be paid upon arrival of explosives/explosive ingredients/controlled chemicals)

What is the amount of the fee or charge?

Permit to Unload:

Explosives/Explosive Ingredients/Controlled Chemicals in solid form Php 0.10/kg
Explosives/Explosive Ingredients/Controlled Chemicals in liquid form Php 0.10/ltr
Detonating Cords and Safety Fuse Php 0.05/mtr
Blasting Caps and Connectors Php 0.05/pc
Ingredients of Pyrotechnics Php 50.00/kg

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?

If the importer is a manufacturer or dealer, the validity of the Import Permit is one year and the approving authority is the Chief of the Philippine National Police. For end-user or purchaser, the validity of the import permit is one year and the approving authority of the Import Permit is delegated to the Director of the Civil Security Group. It is up to the importer to import goods any time during the validity period of the import permit. Goods should be shipped from the exporting country only after the import permit is issued. Some licenses are issued for a particular shipment only, with a validity period adequate to cover the whole process of importation. Others are issued with a validity period identical with that of the period granted in the permit. The period of validity ranges from one month to one year and in all cases renewable upon written application by interested parties to the concerned agency/bureau.

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 license subject to quota or a portion of it.

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-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?

Import permit/clearance/authority may be issued upon compliance with the requirements and conditions imposed by the FEO.

Other Procedural Requirements

Q18. Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?

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Q19. Is foreign exchange automatically provided by the banking authorities for goods to be imported? Is a licence required as a condition to obtaining foreign exchange? Is foreign exchange always available to cover licences issued? What formalities must be fulfilled for obtaining the foreign exchange?

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