Basic information
Outline of the system
Customs Modernization and Tariff Act (CMTA): Section 101 of the CMTA expressly states the government’s policy to protect and enhance government revenue, institute fair and transparent customs and tariff management that will efficiently facilitate international trade, prevent and curtail any form of customs fraud and illegal acts, and modernize customs and tariff administration. Generally, all goods may be freely imported into and exported from the Philippines without need for import and export permits, clearances provided that no law or regulation says otherwise. The same law also provides that goods which do not fall under the general rule or those which are “regulated” require securing the necessary goods declaration, clearances, licenses and any other requirements, prior to importation.
Presidential Decree No. 1869 (PD 1869), otherwise known as the PAGCOR Charter, as amended by Republic Act No. 9487: Under PD 1869, PAGCOR exercises two functions, as gaming operator and regulator of all persons primarily engaged in gaming. As such, PAGCOR and its affiliates or Licensees may import items/ commodities necessary for their gaming operations as may be permitted by law, subject to legal and customs requirements for this purpose.
The latest importation procedures revised and approved by the PAGCOR Board of Directors last 3 April 2019.
The term "license" interchangeably used with the term "clearance" pertains to the permission issued for the importation of regulated commodities administered by PAGCOR. It is different from the license or authority being issued by PAGCOR to private entities for them to be able to operate casinos, traditional and electronic bingo parlours, electronic gaming outlets, sports betting kiosks and poker rooms. The Casino Regulatory Manual (CRM) contains the regulations and guidelines for these gaming operations.
Product coverage
The updated Regulated Items/Commodities List and corresponding Evaluating Departments are indicated in enclosed Annex V. See "Products"
Annex V - Gaming amusement.pdfNature of licensing
Automatic
If Automatic, administrative purpose
Automatic licensing for the Casino Regulatory Manual
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
Licensing in importation of gaming items/ commodities is not created to restrict the quantity or value of imports. It is primarily dependent on necessity and practicality. Importation of these commodities is regulated for reasons of public order, public interest, national security and development.
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 requirement applies to goods originating from any country for as long as the Licensee-importer satisfies the requirements of accreditation standards set forth by PAGCOR Procurement Department for suppliers and validly registered with it in pursuant to its regulation.
Expected duration of licensing procedure
Ongoing
Legal requirements
Is the licensing statutorily required?
The following pertinent laws are available and laid down as basis with regard to Importation procedures:
a) Chapter 3, Section 117 and Section 119, (b) of Republic Act No. 10863, otherwise known as the “Customs Modernization and Tariff Act (CMTA)” dated 30 May 2016, provides the primary legal bases for the regulation of imports in the Philippines.
b) Presidential Decree No. 1869 promulgated in July 11, 1983 assigned to PAGCOR:
• The power to import, buy, sell, or otherwise trade or deal in merchandise, goods, wares and objects of all kinds and descriptions that may be necessary or proper to carry out the purposes for which it (PAGCOR) has been created and;
• Regulatory functions to certify and monitor importations of any entity with existing contractual arrangements with the Corporation (PAGCOR).
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?
All persons firms and institutions with existing contractual relationship with PAGCOR are eligible to apply for importation clearance.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Gaming Licensing and Development Department (GLDD)
Address
PAGCOR MAIN CORPORATE OFFICE, 1330 Pagcor House,
Roxas Boulevard, Pasay City, 1300, Manila, Philippines
Telephone
+632 5211542
Fax
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
Gaming Licensing and Development Department (GLDD)
Documentation requirements
What information is required in applications?
See attached Shipment Clearance Request and Approval Form (Form 17) which is downloadable from the PAGCOR website. All required information and documents that is needed to be supplied with is stated in the Form 17.
What documents is the importer required to supply with the application?
The requesting party submits Form 17, copy of the Official Receipt (OR) of shipment processing fee, Commercial Invoice and Packing List (if applicable) to the Evaluating Department (ED). The ED forwards thru email the approved form 17, certification and attached documents back to the requesting party as well as copy furnished LMD. The requesting party or its registered broker coordinates with PAGCOR Logistics Management Department (LMD) for processing of tax exemption. The LMD advises the requesting party or its registered broker to pick-up the exemption documents for submission to the Department of Finance (DOF).
Window of submission of an application
How far in advance of importation must application for a licence be made?
Under PAGCOR’s Casino Regulatory Manual (http://www.pagcor.ph/regulatory/casinos.php), clearance to import should first be obtained by the Licensee prior to actual shipment. Shipment clearance and approval (Form 17) has a six-month validity period and must be secured prior to departure of shipment from place of origin.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
Issuing the license
Can a licence be granted immediately on request?
Under normal circumstances, clearance can be obtained within 72 hours barring any default caused by requesting party.
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?
License/clearance application is submitted and effected by the evaluating department and passed on to the Logistics Management Department which informs the Requesting Party if the exemption documents are available and may be picked up for submission to the Department of Finance.
Must the applications be passed on to other organs for visa, note or approval?
The Licensee shall submit documents to any of the following Evaluating Department appropriate for the item being shipped in order to obtain clearance to import and other necessary permits and documents that may be asked by other government agencies:
(a) Bingo Department (BD)
(b) Table Games Department (TGD)
(c) Information Technology Department (ITD)
(d) Slot Machine Department (SMD)
(e) Surveillance Department (SD)
(f) Treasury Department (TD)
(g) Offshore Gaming Licensing Department (OGLD)
Are there any other conditions attached to the issue of a licence?
There are no other conditions attached to the issue of a clearance aside from those previously stated above.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
The requesting party submits duly accomplished PAGCOR Form 17 to PAGCOR cashier for payment of a non-refundable processing fee and is issued an Official Receipt (OR).
What is the amount of the fee or charge?
Ph₱ 1,000.00
Is there any deposit or advance payment required associated with the issue of licences?
There is no advance payment requirement associated with the issue of licences.
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?
Under no circumstances will a complete and duly accomplished application for a clearance be refused other than failure to meet the criteria that the items for importation are for the exclusive use of the Licensee in their authorized gaming operations.
Are the reasons for any refusal given to applicants?
Reasons for any refusal are given to the applicant.
Have applicants a right of appeal in the event of refusal to issue a licence?
Applicants may appeal to the same evaluating department that refused it.
If so, to what bodies and under what procedures?
Applicants may appeal to the same evaluating department that refused it.
Importation
Are there any limitations as to the period of year during which importation may be made?
There are no limitations as to the period of the year during which application for licence and/or importation may be made.
What documents are required upon actual importation?
The following documents are required upon actual importation:
(a) Duly accomplished Shipment Clearance Request and Approval Form (Form 17).
(b) Copy of Commercial Invoice or Pro-forma Invoice
(c) For slot machines, electronic table games, game conversion kits and casino management system hardware and software, a certification from an international gaming laboratory duly recognized by PAGCOR shall be submitted by the Licensee. The game name and version number indicated in the certification shall correspond to the game name and version number indicated in the Commercial Invoice or Pro-forma Invoice.
(d) The Licensee shall submit the name and specimen signature of its authorized signatories to the Shipment Clearance Request and Approval Form to PAGCOR‘s licensing department on a yearly basis.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
Yes, suppliers and brokerages that are being utilized by the importer must be registered with PAGCOR Procurement Department (PD).
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
The license/clearance is valid for six months per request. It may not be extended.
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.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are non-transferrable.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
By virtue of Section 11 (2), Title V of PD 1869, PAGCOR has the authority to purchase and/or utilize foreign exchange needed or useful for the successful operation of the gambling casino without securing license from the banking authorities.
Is a licence required as a condition to obtaining foreign exchange?
As such, PAGCOR affiliates or licensees may utilize the foreign exchange necessarily for the importation of gaming equipment or paraphernalia provided necessary permits/authority have been issued by PAGCOR.