Basic information
Outline of the 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.
Product coverage
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.
Nature of licensing
Automatic
If Automatic, administrative purpose
Automatic licensing to protect public morals; to efficiently and effectively regulate and monitor donations of imported articles to duly registered, licensed and/or accredited Social Welfare and Development Agencies.
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
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.
Questions for products under restriction as to the quantity or value of imports
Not applicable.
The system applies to products originating from which country?
The certification for duty-exempt importation applies to products coming from all countries.
Expected duration of licensing procedure
Ongoing
Legal requirements
Is the licensing statutorily required?
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.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Is it possible for the government to abolish the system without legislative approval?
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
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.
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Department of Social Welfare and Development
Address
Batasang Pambansa Complex, IBP Road, Batasan Hills, Quezon City 1100
Telephone
(+632) 931-81-01 to 07 loc. 108, 109, 110; (+632) 951-71-25; (+632) 355-28-43, (+632) 931-31-81
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Department of Social Welfare and Development
Documentation requirements
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.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Three weeks prior to the scheduled arrival of donation in the country.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Application can be filed at the discretion of the applying party, and may be filed on any working days.
Issuing the license
Can a licence be granted immediately on request?
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Which administrative body is responsible for approving application of licences?
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.
Must the applications be passed on to other organs for visa, note or approval?
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.
Are there any other conditions attached to the issue of a licence?
Certification is issued upon compliance with conditions/requirements imposed by the DSWD.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no other administrative charge for applications other than the PhP1,000.00 fee.
What is the amount of the fee or charge?
There is no other administrative charge for applications other than the PhP1,000.00 fee.
Is there any deposit or advance payment required associated with the issue of licences?
Not applicable.
Please refer to https://www.dswd.gov.ph for further information.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
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.
Are the reasons for any refusal given to applicants?
Have applicants a right of appeal in the event of refusal to issue a licence?
If so, to what bodies and under what procedures?
Importation
Are there any limitations as to the period of year during which importation may be made?
What documents are required upon actual importation?
Upon release of the goods, the endorsement certification from the DSWD shall accompany the shipment.
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.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
The certification is intended only for a particular shipment of the goods.
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.
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.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Not applicable.
Is a licence required as a condition to obtaining foreign exchange?
Not applicable.
Is foreign exchange always available to cover licences issued?
Not applicable.
What formalities must be fulfilled for obtaining the foreign exchange?
Not applicable.