1

CBC 1389 - DR. LUZ DASMARINAS

 PRESENTATION OUTLINE
2

 Basic of Central  International Trade

Banking  The Role of BSP in
 Bank Supervision International Trade
 Monetary and Fiscal (IT)
Instruments  CB Circular 1389

Reserve  Balance of Payment

Requirement
Open Market
Operations

CBC 1389 - DR. LUZ DASMARINAS

 PRESENTATION OUTLINE
3

 Modes of Payment in IT
 Letters of Credit/ (L/C)
 Other Modes

 Classification of Imports
 Classification of Exports
 ICC Uniform Customs and Practice for
Documentary Credits (UCP 500)

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
4

 BSP Objective:
 PRICE STABILITY conducive to a balanced and
sustainable economic growth
 R.A. 7653 (The New Central Bank Act)
 Bank Supervision
 R.A. 8791 (The General Banking Law of 2000)

 R.A. 7906 (The Thrift Banks Act of 1995)

 Other laws

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
5

 BSP Financial Assistance to Distressed

Banks
 BSP may granted emergency loans to banks up
to 50% of their deposit liabilities
 Banks may avail of the BSP Rediscounting Facility

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
6

 Bank Closure
 The Monetary Board of the BSP may place
banks under receivership on grounds provided
in Section 30 of R.A. 7653
 Under RECEIVERSHIP, a bank is prohibited from
conducting business and PDIC is appointed as
receiver.

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
7

 Two (2) Phases of Closure

 RECEIVERSHIP - within 90 days from closure,
PDIC determines whether the bank can be
rehabilitated
 LIQUIDATION - bank’s assets are sold and debts
are paid if there is no prospect of rehabilitation

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
8

 Fiscal and Monetary Instruments

 Reserve Requirement
 Interest Rates

 Open Market Operations

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
9

 Reserve Requirement
 percentage of banks deposit liabilities is
maintained with BSP
 to mop up/reduce liquidity in the banking system,
BSP may increase the required reserves
 to increase liquidity, rate of reserve is raised

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
10

 Open Market Operations

 to control money supply
 to siphon off money in circulation, BSP may sell
treasury bills
 to provide liquidity, BSP buys T-Bills

CBC 1389 - DR. LUZ DASMARINAS

 CENTRAL BANKING
11

 To defend peso, BSP may sell dollars and other

international currencies
 Defending the peso is costly because Philippine
international reserves are being used

CBC 1389 - DR. LUZ DASMARINAS

 INTERNATIONAL TRADE
12

TRADE

• exchange of transactions between two

persons or entities usually the buyer and the
seller

INTERNATIONAL TRADE

• when the exchange of transactions crosses

national boundaries

CBC 1389 - DR. LUZ DASMARINAS

 FEATURES OF
INTERNATIONAL TRADE
13

• parties come from more than one (1) country

• more complicated documentation

• more parties to the transaction: buyer, seller, transport

company, insurance company, government, customs, banks,
chambers, professional entities

CBC 1389 - DR. LUZ DASMARINAS

 The Role of BSP in IT
14

• Manages external payment system of the

Philippines

• Requires commercial banks to submit

reports on import and export transactions

• Collates data for the Balance of

Payments (BOP) account

CBC 1389 - DR. LUZ DASMARINAS

BALANCE OF PAYMENTS (BOP)
15

Systematic record of the country’s receipts

from, or payments to, other countries.

systematically summarizes, for a specific

period, the economic transactions of an
economy’s residents with the rest of the
world.

CBC 1389 - DR. LUZ DASMARINAS

 BALANCE OF PAYMENTS
16

CLASSIFICATION RECORDING

Merchandise DEBIT
• the funds are leaving
• visible the country

Service CREDIT
• the funds are
• invisible enteringing the country

CBC 1389 - DR. LUZ DASMARINAS

 COMPONENTS OF BOP
17

CURRENT ACCOUNT CAPITAL ACCOUNT

 payments or receipts  include private

from: (1) goods investments and
(visible) and services transactions of central
(invisibles) and foreign bank which are long- or
aid short-term capital
transfers into and out
of a country.

CBC 1389 - DR. LUZ DASMARINAS

 BALANCE OF PAYMENTS
18

SURPLUS
• the net result of current and capital
accounts yields more credits than debits

DEFICIT
• if net result yields more debits than
credits

CBC 1389 - DR. LUZ DASMARINAS

 CB CIRCULAR 1389
19

• Consolidated Foreign Exchange Rules and Regulations

1

• Issued April 1993 as a result of the liberalization of foreign

exchange in 1992
2

• FX rules/regulations on current accounts, capital accounts,

FCDU, OBUs and representative offices of foreign banks were
3 consolidated

CBC 1389 - DR. LUZ DASMARINAS

 Features of FX Liberalization
20

• most existing controls on FX transactions were removed after more than

1 four (4) decades of controls

• prior approval of BSP is removed, parties may transact directly with

2 banks

• fx proceeds from exports are no longer remitted to the Phils.

3

• modes of payment liberalized. Before: L/C was required. Now: buyer

4 may choose mode of payment

• now only 3 kinds of commodities: freely importable, regulated, or

5 prohibited

CBC 1389 - DR. LUZ DASMARINAS

 CB CIRCULAR 1389
21

• CHAPTER I – NON-TRADE FOREIGN EXCHANGE RECEIPTS AND DISBURSEMENTS,

PART I TRANSFERS OF LOCAL CURRENCIES AND GOLD TRANSACTIONS
CURRENT • CHAPTER II – FOREIGN TRADE TRANSACTIONS
ACCOUNT

• CHAPTER I – FOREIGN CURRENCY LOANS & GUARANTEES

PART II
CAPITAL
• CHAPTER II – FOREIGN INVESTMENTS
ACCOUNT

• CHAPTER I – OFFSHORE BANKING UNITS OF FOREIGN BANKS

PART III • CHAPTER II – REPRESENTATIVE OFFICES OF FOREIGN BANKS
OBU • CHAPTER III – FOREIGN CURRENCY DEPOSIT SYSTEM
FCDU

PART IV • GENERAL PROVISIONS

GEN.
PROVI

CBC 1389 - DR. LUZ DASMARINAS

Purchases of Foreign Exchange by
Non-Residents
22
(sec. 3)

• Non-residents may purchase foreign exchange from AABs

only to the extent of the amount shown to have been sold by
them for pesos to AABs.
• Departing non-residents may reconvert at airports or other
ports of exit unspent pesos of up to a maximum of US$200
or an equivalent amount in any other foreign currency
calculated at prevailing exchange rates, without need of
showing proof of previous sale by them of foreign exchange
to AABs.

• Non-residents shall pertain only to individual tourist or

balikbayan.

CBC 1389 - DR. LUZ DASMARINAS

Import/Export of Philippine Currency (sec 4)

23

No person may import or export nor bring

with him into or out of the country, or
electronically transfer legal tender Philippine
notes and coins, checks, money order and
other bills of exchange drawn in pesos against
banks operating in the Philippines in an
amount exceeding P10,000 without
authorization by the Central Bank.

CBC 1389 - DR. LUZ DASMARINAS

 Import Trade Transactions
24

All commodities can be imported EXCEPT those

REGULATED or PROHIBITED for reasons of :
1. public health and safety,
2. national security,
3. international commitments, and
4. development/rationalization of local industry.

CBC 1389 - DR. LUZ DASMARINAS

CLASSIFICATION OF IMPORTS
25

Freely Importable

Regulated

Prohibited

CBC 1389 - DR. LUZ DASMARINAS

 PROHIBITED IMPORTS
26

Absolutely Prohibited

Relatively Prohibited

CBC 1389 - DR. LUZ DASMARINAS

 PROHIBITED IMPORTS
27

Those specifically listed under Section

101 of the Tariff and Customs Code

Used clothing and rags (R.A. 4653)

Toy guns (LOI 1264 dated July 31, 1982)

CBC 1389 - DR. LUZ DASMARINAS

 Sec. 101. Prohibited Importations
Conditionally Prohibited
Importations

Dynamites, gunpowder
ammunitions and other
explosives, firearms
and weapons of war,
and parts thereof,
except when authorized
by law
CBC 1389 - DR. LUZ
28
DASMARINAS
 Conditionally Prohibited Importation
Roulette wheels, gambling outfits, loaded
dice, marked cards, machines , apparatus
or mechanical devices used in gambling
or in the distribution of money, cigars,
cigarettes or other articles when such
distribution is dependent on chance,
including jackpot and pinball machines or
similar contrivances, or parts thereof

CBC 1389 - DR. LUZ

29
DASMARINAS
Conditionally Prohibited Importations

Lottery and
sweepstakes
tickets except
those authorized
by the Philippine
Government,
advertisements
thereof and lists
of drawings
therein
CBC 1389 - DR. LUZ
30
DASMARINAS
Any article manufactured in whole or in part
of gold, silver, metals or alloys thereof, the
stamps, brand or marks of which do not
indicate the actual fineness of quality of said
metals or alloys.

CBC 1389 - DR. LUZ

31
DASMARINAS
 Conditionally
Prohibited

Marijuana, opium, poppies, coca leaves, heroin

or any narcotics or synthetic drugs which are
or thereafter be declared as habit forming by
the President of the Philippines or any
compound, manufactured salt, derivative or
preparation thereof, except when imported by
the Government of the Philippines or any
person duly authorized.

CBC 1389 - DR. LUZ

32
DASMARINAS
Absolutely Prohibited Importation

Written or printed articles in any

form containing any matter
advocating or inciting treason, or
rebellion, insurrection, sedition or
subversion against the Government
of the Philippines or forcible
resistance to any law of the
Philippines, or containing any threat
to take the life of, or inflict bodily
harm upon any person in the
Philippines

CBC 1389 - DR. LUZ

33
DASMARINAS
 Written or printed
articles, negatives or
cinematographic film,
photographs,
engravings,
lithographs, objects,
paintings, drawings
or other
representation of an
obscene or immoral
character .
 Absolutely Prohibited Importation

Articles, instruments,
drugs and substances
designed , intended or
adapted for producing
unlawful abortion, or
any printed matter
which advertises or
describes or gives
directly or indirectly
information where, how
or by whom unlawful
abortion is produced

CBC 1389 - DR. LUZ

35
DASMARINAS
 Any adulterated or
misbranded articles
of food or any
adulterated or
misbranded drug in
violation of the Food
and Drugs Act

CBC 1389 - DR. LUZ

36
DASMARINAS
Opium pipes and parts thereof, of
whatever37 material

CBC 1389 - DR. LUZ DASMARINAS

 PROHIBITED - SEC. 101, TCCP
38

 All other articles and parts thereof, the importation

of which is prohibited by law or rules and regulations
issued by competent authority.

CBC 1389 - DR. LUZ DASMARINAS

 REGULATED IMPORTATION
39

Acetic Anhydride
• Dangerous Drugs Board (DDB)

Rice
• National Food Authority

Sodium Cyanide, Chlorofluorocarbon

• Environmental Management Bureau

Ozone Depleting Substances

• Environmental Management Bureau

CBC 1389 - DR. LUZ DASMARINAS

 REGULATED IMPORTATION
40

All commodities originating from Socialist and

other centrally planned economy countries
• PITC

Warships of all kinds

• MARINA

Radioactive materials
• PNRI

CBC 1389 - DR. LUZ DASMARINAS

 REGULATED IMPORTATION
41

Legal tender Philippine currency in excess of

P10,000
• BSP

Penicillins/derivatives
• Bureau of Food & Drug (BFAD)

Coal and Coal Derivatives

• Energy Regulatory Board

Color Reproduction Machine

• NBI and Cash Dept. of Bangko Sentral

CBC 1389 - DR. LUZ DASMARINAS

 REGULATED IMPORTATION
42

Various chemicals for the manufacture of explosives

• PNP Firearms and Explosives Office

Motor Vehicles, Parts and Components

• DTI/BOI

Truck and automobile tires and tubes, used of all sizes

• DTI

No-dollar imports of used motor vehicles

• DTI

CBC 1389 - DR. LUZ DASMARINAS

DELISTED REGULATED IMPORTATION
43

• PREVIOUSLY PROHIBITED/REGULATED BUT ARE

NOW FREELY IMPORTABLE

• BSP Circular No. 109 dtd. 5.16.96

• List of Agricultural Products Liberalized under R.A.

8178 (“Agricultural Tariffication Act”) dated March 28,
1996 (Delisted From Prohibited/Regulated Import
Commodity List)

CBC 1389 - DR. LUZ DASMARINAS

Delisted from the Regulated Commodities
44

• Corn

• Onions, garlic, potatoes and cabbage, for seedling

purposes

• Agricultural products produced locally in sufficient

quantity, namely: corn (and its substitutes, including
wheat used for feeds), poultry and poultry products,
hogs and pork products, and meat and meat products,
except beef and beef products

CBC 1389 - DR. LUZ DASMARINAS

Delisted from Prohibited Commodities
45

• Onions, garlic, potatoes and cabbage, except

for seedling purposes (R.A. 1296)

• Coffee (R.A. 2712)

• Refined petroleum products (ERB)

• Delisted by BSP Circular No. 112 dated 8.2.96

CBC 1389 - DR. LUZ DASMARINAS

MODES OF PAYMENT FOR IMPORTS
46

LC • Letter of Credit (L/C)

DP • Documents Against Payment (D/P)

DA • Documents Against Acceptance (D/A)

OA • Open Account Arrangement (O/A)

DR • Direct Remittance (DR)

CBC 1389 - DR. LUZ DASMARINAS

OTHER IMPORT ARRANGEMENTS
47

• No- Dollar Imports

• Self-Funded Imports

• Consignment Imports

• Intercompany Open Account/Offset Arrangement

CBC 1389 - DR. LUZ DASMARINAS

 LETTER OF CREDIT
48

• A credit instrument issued by banks

• on behalf of client/importer

• in favor of a beneficiary

• to whom payment is effected at sight or at usance

• against stipulated documents provided all the conditions of the L/C are
complied with.

CBC 1389 - DR. LUZ DASMARINAS

 LETTER OF CREDIT
49

ADVANTAGES TO ADVANTAGES TO
SELLER SELLER

• Eliminates credit risk • Protection on Pre-

shipment Risk
• Reduces exchange and
political risks • Facilitates
• Reduces need for credit
financing
checking
• Immediate
• Exporter knows all
requirements for payment
payment

CBC 1389 - DR. LUZ DASMARINAS

 LETTER OF CREDIT
50

Advantages to the Buyer

• Payment only after compliance

• Expert examination of documents
• Easier financing
• No tie-up of cash

CBC 1389 - DR. LUZ DASMARINAS

 TYPES OF L/C
According to Form:
51

REVOCABLE IRREVOCABLE

 Can be amended or  A definite undertaking of

canceled by the issuing the issuing bank to effect
bank up to such time as payment provided the
credit terms are complied
the documents are
with.
presented to the
 It cannot be amended or
advising bank without
canceled without the
prior notice to the agreement of the issuing
beneficiary bank and the beneficiary.

CBC 1389 - DR. LUZ DASMARINAS

 TYPES OF L/C
According to Form:
52

CONFIRMED UNCONFIRMED
CREDIT CREDIT

 Gives the seller a double  An advising bank does

assurance of payment not add its own
since the obligation to pay to
advising/paying bank
the beneficiary.
has added its obligation
to pay to that of the
issuing bank

CBC 1389 - DR. LUZ DASMARINAS

 TYPES OF L/C
According to Term:
53

SIGHT CREDIT USANCE CREDIT

 payment is effected  payment will be made

after presentation of at some specified time
the draft and after presentation of
documents and after the draft and
review that they documents.
conform to the terms
of the L/C

CBC 1389 - DR. LUZ DASMARINAS

 TYPES OF L/C
According to Term:
54

NEGOTIATION
STRAIGHT CREDIT CREDIT
 beneficiarycan only  beneficiary can deal with
either a specifically
deal with the nominated bank (or any bank,
nominated bank if the words “freely
negotiable by any bank”
 are used in the credit), to
check the documents and, if
they are in order,
 to pay them less interest for
the time it will take to obtain
reimbursement from the
issuing bank.
CBC 1389 - DR. LUZ DASMARINAS
 PARTIES TO L/C TRANSACTION
55

 Beneficiary - the party in whose favor the L/C is

issued, i.e., the exporter

 Account Party - one who applied for an L/C, i.e., the

importer

CBC 1389 - DR. LUZ DASMARINAS

 PARTIES TO L/C TRANSACTION
56

Opening/Issuing Bank PayingBank

• may also be the Advising
• bank that opens the L/C
Bank which is authorized to
on behalf of the importer pay the exporter
and assumes
responsibility for Negotiating Bank
payment
• a purchaser of exporter’s draft
Advising/Notifying Bank
Confirming Bank
• informs the beneficiary • an advising or paying bank
that an L/C has been which adds its own
opened in his favor commitment to the L/C.

CBC 1389 - DR. LUZ DASMARINAS

 PHASE I -”ISSUING A CREDIT”
57

Seller Buyer

Advising/
Confirming Issuing
Bank Bank

Informs that the credit

instruments have been issued Application to credit
has been issued
CBC 1389 - DR. LUZ DASMARINAS
 PHASE 2 - “PRESENTATION”
58

Seller Buyer

Advising/ Issuing
Confirming Bank
Bank

CBC 1389 - DR. LUZ DASMARINAS

 PHASE 3 - “SETTLEMENT”
59

Seller Buyer

Advising/
Confirming Issuing Bank
Bank

CBC 1389 - DR. LUZ DASMARINAS

SPECIAL TYPES OF LETTER OF CREDIT
60

STANDBY L/C
• issued to cover a “nonperformance” (default) by one party to
the credit, stipulating that a sum of money will be paid to the
beneficiary upon demand in the event the beneficiary submits
assigned statement setting forth that there has been a default
or nonperformance

TRANSFERABLE CREDIT
• allows proceeds of the L/C to be transferred by the original
beneficiary (transferor) to another party (second beneficiary
or transferee). The second beneficiary is not allowed to
transfer to another or third beneficiary.

CBC 1389 - DR. LUZ DASMARINAS

SPECIAL TYPES OF LETTER OF CREDIT
61

BACK TO BACK CREDIT

• also referred to as a counter credit, opened by an exporter or
beneficiary of an export L/C who assumes the role of middleman
between the actual supplier of the goods and the ultimate buyer.

REVOLVING CREDIT
• where the terms and conditions of the L/C state that the amount
is renewed or automatically reinstated without specific
amendments required.
• This credit is used when there is regular shipments of the same
type of goods.

CBC 1389 - DR. LUZ DASMARINAS

SPECIAL TYPES OF LETTER OF CREDIT
62

RED CLAUSE CREDIT

• bears a clause which allows the
beneficiary to obtain preshipment
advance from the advising or confirming
bank. Such advance is used by beneficiary
to finance purchase of raw
materials/manufacture of goods or to
make cash payments to another supplier.

CBC 1389 - DR. LUZ DASMARINAS

 LETTER OF CREDIT
63

• Must be opened on or before date of shipment

• Valid for one (1) year

• Only one L/C should be opened for each import

transaction

• Amended can be made w/ BSP approval (extension of

LC i.e. 1 yr period).

CBC 1389 - DR. LUZ DASMARINAS

Documentary Requirement in LC Opening
64

• Duly accomplished L/C application

1

• Firm Offer/Proforma Invoice

2

• Permit/clearance from appropriate gov’t agency

3

• Duly accomplished Import Entry Declaration (IED)

4

CBC 1389 - DR. LUZ DASMARINAS

 Comparative Presentation of
D/P, D/A,
65
& O/A
Mode of Original Payment Report
Payment Shipping Terms
Docs.
DP Release to the Immediate advises importer of receipt of
importer Payment original shipping documents
remit payment to
seller/supplier thru
correspondent bank abroad
D/A Release to the Some future By the seller’s bank upon the
importer time acceptance of the importer of
the seller’s bill of exchange
O/A Send directly Some future Docs. Not coursing thru the
to the time Bank
importer

CBC 1389 - DR. LUZ DASMARINAS

Reporting and Registration Requirements
D/A and O/A Imports
66

• Importers shall submit to BSP thru AAB duly accomplished Record of

Goods Imported (RGI), commercial invoice, import permit, etc. within 2
days from availment but not later than maturity date of D/A or O/A.

• Reported DA/OA importation is deemed registered only if the same has

been assigned a registration number by the BSP.

• Payment sourced from banks shall not be effected for unregistered

DA/OA imports

CBC 1389 - DR. LUZ DASMARINAS

 DIRECT REMITTANCE
67

 Complete original shipping documents and import

clearance, when necessary, must be presented to the
AAB.

CBC 1389 - DR. LUZ DASMARINAS

 NO-DOLLAR IMPORTS
68

 Shipment of goods with no foreign exchange

remittance of payment to supplier.

 Section 105, TCCP - “Conditionally- Free

Importations”

CBC 1389 - DR. LUZ DASMARINAS

 NO-DOLLAR IMPORTS
69

 Personal Effects
 Exhibit Goods
 Samples
 Gifts and Donations
 Short-Shipments
 Replacement of Damaged/Defective Parts

CBC 1389 - DR. LUZ DASMARINAS

 SELF-FUNDED IMPORTS
70

 Imports funded from importer’s own foreign

currency deposit account or prepaid abroad

CBC 1389 - DR. LUZ DASMARINAS

 CONSIGNMENT IMPORTS
71

 Importations of materials by export producers sent

by foreign suppliers for manufacture of export
products to be exported to said foreign supplier

CBC 1389 - DR. LUZ DASMARINAS

 INTERCOMPANY OPEN ACCOUNT
72

 Method of offsetting foreign exchange payable to,

against receivables from, parent/affiliate companies
on a continuing basis

CBC 1389 - DR. LUZ DASMARINAS

 EXPORT TRADE TRANSACTIONS
73

 To generate FX earnings for the country, commodity

exports are allowed without restrictions except for
certain commodities which are regulated or
prohibited for reasons of national interest or
provision of law

CBC 1389 - DR. LUZ DASMARINAS

 74
• Export Development Council Res. No.2 Series of 1996
• DTI Administrative Order No. 3 Series of 1996
• Subject : Prescribing a New ED Form and Implementing New Rules
and Regulations on Export Procedures

• Central Bank Circular 1389

• Subject : General Guidelines and Policies on Import and Export

• PD No. 930 as amended by EO No. 1016

• Subject : Revised Rules and Regulations Further Simplifying Export
Procedures and Documentation

• Republic Act No. 7844

• Subject : Export Development Act of 1994

CBC 1389 - DR. LUZ DASMARINAS

 Types of Export
75

General Export Constructive Export

 Traditional Export  Non-Traditional Export
 Those that are  Bonded Manufacturing

manufactured, grown, Warehouses

 Export/Economic Zone
produced either partially of
Locators
fully in the Philippines
 BOI registered enterprises
examples ; tropical products,  Those under Sec. 105
native produce, aquatic  Empty containers made by
products, etc. shipping lines
 Diplomatic mission
 Duty Free Philippines
 Foreign Buyers

. CBC 1389 - DR. LUZ DASMARINAS

CLASSIFICATION OF EXPORTS
76

Freely Exportable Commodities

Regulated Commodities

Prohibited Exports

CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED REGULATED OFFICE
Abaca and Ramie Natural fibers, Fiber Industry
Seeds, seedlings abaca, ramie, Development
suckers and root salago, maguey, Authority (FIDA
socks, Buri seeds & sisal, kenaf, coir,
seedlings buntal, cabo negro,
cotton kapok,
sabahon, pina,
banana fiber, silk,
loofah, pacol, musa
specie, RSA
(Secondary abaca
fiber), canton,
rafflea, tkong and
cocoon

77 CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED REGULATED OFFICE
Bakawan Logs, poles, and Forest
(mangrove) poles including log Management
core and Bureau (FMB),
fitches/railroad ties DENR

Lumber

78 CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED REGULATED OFFICE
Wild terrestrial Wild terrestrial Bureau of Fisheries
species whether live, species to include & Aquatic
stuffed of by live, stuffed by Resources (BFAR)
products e.g. products &
derivatives e.g.
Mammals Mammals (Phil.
(tamaraw, tarsier, Monkeys, cloud
deers [calami rats, ant eater, Phil.
deers], sea cow, Tarsier and
fruit bats Skunk

79 CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED REGULATED OFFICE
Aves, (i.e. eagles, Aves (i.e bleeding heart Bureau of
red vent, cockatoo, pigeon, java sparrows, tree Fisheries &
sparrow, parrot finches, Phil.
Palawan peacock, White eye, Phil. Starlings,
Aquatic
pheasant, mynah, hanging parakeets, brush, Resources
horn bills, nicobar cuckoo, plaintive cuckoo, (BFAR)
pigeon, peregrine, amethyst fruit dove, blue
falcon spotted, detailed bee-eater, crested
mynah, pink necked green
green shank, kotch’s pigeon, painted quail, button
pitta giant scops owl quails, bended rail, plain
and eastern sarus swamp0hen, green winged
crane) dove, slender bured cuckoo,
white eared brown dove,
kingfishers, black napped
monarch, rednadevar,
guiabeo

80 CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED REGULATED OFFICE
Reptiles, (i.e. Reptiles (i.e. gecko, Bureau of Fisheries
crocodiles, marine monitor and sad & Aquatic
turtles, python finned lizards, land Resources (BFAR)
turtles

Flora (i.e. lady Flora (i.e. all

slipper orchid, species of
vanda sanderiana, butterflies)
pitcher plant
dendrobium

Exotic wildlife Exotic wildlife i.e.

species i.e. bufloon parrots, macaw
macaw, scarlet
macaw
81 CBC 1389 - DR. LUZ DASMARINAS
PROHIBITED OFFICE
Bangus Fry BFAR
Mother bangus (sabalo)

Prawn-Spawner and Fry

Shells: Trumphet shells (triton); helmet

shells (cassis), live specimens, raw
shells, meat and by products of giant
clams under the family tridacnidae
{tridacnidae gigas, T. derass, T.
squamusa, T. maxima, T. crocea,
Hippopus porceilanus}

82 CBC 1389 - DR. LUZ DASMARINAS

PROHIBITED OFFICE
Wildlife species: wild marine species e.g. BFAR
precious, semi precious and all ordinary coral
raw and by products

Matured coconuts and coconut seedlings PCA

Raw materials for cottage industries (bamboo) DENR
Monkey pod (acadia) DENR
Buri (fiber) FIDA

RAFFIA FIBERS)

Semi-finished or semi-processed capiz shells BFAR

83 CBC 1389 - DR. LUZ DASMARINAS
REGULATED OFFICE
Wildlife species: wild marine species e.g. water BFAR
snakes, seasnakes live, skin or product from
the skin or meat. Frog live, skin or products
from skin or meat
Copper Concentrates BOI
Animals, animal products & animals effects BAI
Sugar and Molasses SRA
All plants, planting materials and plant BPI
products capable of harboring pests, insects
specimens, live and dead

Antiques, cultural and historical relics National

84 Museum
CBC 1389 - DR. LUZ DASMARINAS
REGULATED OFFICE
Shells: Undersized raw shells of Trocas, gold BFAR
lip, black lip, turbo mamoratus and kapis
Firearms, ammunitions and explosives PNP/FEO
Gold from small scale mining or panned gold BSP
Legal tender Philippine notes and coins , BSP
checks, money orders and other bills of
exchange drawn in pesos against banks
operating in the Philippines greater than
Php10,000
Grains & Grains products NFA
Motion Pictures/TV Films and related publicity MTRCB
Materials
Radio Active Materials PNRI
85 CBC 1389 - DR. LUZ DASMARINAS
 DOCUMENTS REQUIRED
86

Export Declaration

Bill of Lading/Airway Bill

Commercial Invoice

Packing List

Other documents (i.e. CO, CI, CIL)

CBC 1389 - DR. LUZ DASMARINAS

MODES OF PAYMENT FOR EXPORTS
87

LC • Letter of Credit (L/C)

DP • Documents Against Payment (D/P)

DA • Documents Against Acceptance (D/A)

OA • Open Account Arrangement (O/A)

DR • Direct Remittance (DR)

CBC 1389 - DR. LUZ DASMARINAS

OTHER MODE OF PAYMENT IN EXPORT
88

• No- Dollar Imports

• Self-Funded Imports

• Consignment Imports

• Intercompany Open Account/Offset Arrangement

CBC 1389 - DR. LUZ DASMARINAS

 DISPOSITION OF EXPORT PROCEEDS
89

 FX receipts, acquisitions or earnings of residents

from export may, at the option of said exporter, be
sold for pesos to AABs or outside the banking system,
retained, or deposited in foreign currency accounts,
whether in the Philippines or abroad and may be
used freely for any purpose

CBC 1389 - DR. LUZ DASMARINAS

DISPOSITION OF EXPORT PROCEEDS
90

FX receipts, acquisitions or earnings of

residents from export may, at the option of
said exporter,
1. be sold for pesos to AABs or outside the
banking system,
2. retained, or
3. deposited in foreign currency accounts,
whether in the Philippines or abroad and may
be used freely for any purpose

CBC 1389 - DR. LUZ DASMARINAS

 Export Cycle
91

Optional
Compliance
Registra of the ff Registra- Sourcing Negotia- Prepara-
tion w/ Mayor’s tion w/ of tion w/ tion of
DTI or Permit,
BOI, Foreign Foreign Export
BIR , Other Buyer Docs.
SEC PEZA, Buyer
Clearance
BETP

CBC 1389 - DR. LUZ DASMARINAS

Negotiating for an Export Contract
92

• Packing
• 4 P’s
• Shipment

• Internal • Availability
Environment
• Payment
• External • Reference
Environment

CBC 1389 - DR. LUZ DASMARINAS

 1. Water

2. Air

3. Land
Exports may either be actual/
physical
CBC 1389 - DR. LUZ or constructive in nature 93
DASMARINAS
 94

 Sea Freight
 Types of Shipping
 Conference Line Vessel
 Non-conference Line Vessel
 Tramp or Chartered Ships
 Industrial Carriers

 Freight Rate
 Basic rate
 Surcharge
 Other Surcharges
 LCL Container Service Charges
 FCL Discount

CBC 1389 - DR. LUZ DASMARINAS

 95
 AIR FREIGHT
 Special uses of air transportation
 To ship products with high value relative to their weight
 To ship products that are perishable
 To ship products at a greater speed

 FREIGHT FORWARDING

 INSURING OF GOODS

 SHIPPING OF GOODS

CBC 1389 - DR. LUZ DASMARINAS

 96

 Export Declaration
 Commercial Invoice
 Packing list
 Inspection, Commodity & Export Clearance
 Authority to Load
 Bill of Lading/Air waybill
 Other documents
 Certificate of Origin
 Certificate of Shipment

CBC 1389 - DR. LUZ DASMARINAS

 INCOTERMS 2000
97

Group E Group F

Group C Group D
CBC 1389 - DR. LUZ DASMARINAS
 REMOVAL OF FOUR (4) TERMS FROM
INCOTERMS 2000
98

The following terms were removed

DAF, DES, DEQ and DDU

Introduction of two (2) new terms

DAP – Delivered at Place
DAT – Delivered at Terminal
These terms may be used irrespective
of the agreed mode of transport

CBC 1389 - DR. LUZ DASMARINAS

TWO (2) CLASSES OF INCOTERMS
99
Rules for any mode or Rules for sea and
modes of transport inland waterway
(sea, road, air, rail)
EXW
FAS
FCA FOB
CPT CFR
CIP CIF
DAP
DAT
DDP

CBC 1389 - DR. LUZ DASMARINAS

 INCOTERMS
100

Port to Port Point to Point

FOB FCA

CFR CPT

CIF CIP

CBC 1389 - DR. LUZ DASMARINAS

 101

Ø Confirmation of purchase order,

Ø Filing of duly accomplished Export Declaration
Ø One Stop Shop Export Documentation Center
Ø Export Division of the BOC
Ø Issuance of the Authority to Load.

CBC 1389 - DR. LUZ DASMARINAS

 102
v The OSEDC/BOC-ED shall assign the ED
numbers for identification purposes using
the following format:

Ø AAA Acronym of the BOC processing

unit
Ø MM DDYY Date of receipt of the ED
Ø 999 Sequence Number of Receipt
Ø Example
Ø POM0910010001

CBC 1389 - DR. LUZ DASMARINAS

Segregation of the Four (4) Copies
of the Export
103 Declaration

 Original - BOC Copy is the

working copy which will be given back to
the exporter accompanying goods for
loading
 Duplicate - Exporter’s Copy
 Triplicate - NSO Copy
 Quadruplicate - DTI Copy

CBC 1389 - DR. LUZ DASMARINAS

 104

 The exporter-broker-agent pays the

necessary arrastre/wharfage/storage dues.

 The Stuffing-Loading Inspector of the CCD

or the Inspector on Board will receive the
loading copy of the ED and prepare
sequence of loading

CBC 1389 - DR. LUZ DASMARINAS

 Pre- Loading/Shipment
Documentation
105

Certificate of Origin

Ø General Certificate of Origin

Ø Certificate of Origin Form A
Ø Certificate of Origin Form C
Ø Certificate of Origin Form D

CBC 1389 - DR. LUZ DASMARINAS

 Post Loading Documentation
106

Ø Certificate of Loading/Shipment/Non
Shipment

Ø Certificate of Re-exportation/Landing

CBC 1389 - DR. LUZ DASMARINAS

 107

Customs Laws - TCCP Vol. 2 Dr. Luz Dasmarinas

 Thank you very much…..
108

Customs Laws - TCCP Vol. 2 Dr. Luz Dasmarinas