The Department of Finance, through Secretary Roberto F. de Ocampo, in a letter dated 25 March 1997 has approved the release of fertilizer importations without prepayment of customs duties and other charges pursuant to Sec. 12 of the General Appropriations Act of 1996 otherwise known as R.A. 8174 in relation to DOF-DBM Joint Circular No. 2-91. In connection therewith, the following rules, guidelines and procedures are hereby adopted:

1. All fertilizer importations made in support of the Gintong Ani Program and other related programs of the Department of Agriculture that are geared toward increased food production and achieving food security shall enjoy an import duty incentive under the automatic appropriations provision of the General Appropriations Act of 1996 otherwise known as R.A. 8174.

2. To avail of the incentive, all eligible fertilizer importers shall indicate DA as consignee in all pertinent importation documents.

3. All endorsements to the Department of Finance for availment of the import duty incentive shall be signed by the Secretary of the Department of Agriculture or in his absence, by the Undersecretary for Field Operations, Domingo F. Panganiban.

4. The Fertilizer and Pesticide Authority (FPA) shall be furnished copies of all endorsements and other related documents for monitoring and record purposes.

5. As an agency attached to the DA, tasked to oversee and regulate the fertilizer industry, the FPA shall assist DA in the implementation of the import duty incentive program and shall particularly perform the following functions:

a) Receive, evaluate and process relevant import documents for endorsement/signature of the Secretary of Agriculture or the Undersecretary for Field Operations.

b) For budgetary purposes, come up with an estimate of allocation for the incentive program, through import projection from importers, for a particular period.

c) Prepare the corresponding endorsement to the Department of Finance, Certificate of Undertaking, and Certificate of Official Importation for the respective shipment/application, and forward the same to the Secretary of Agriculture for consideration and approval.

d) If requested, to advise DA if a particular fertilizer import application is relevant to the food security program of DA.

e) Designate official liaison officer who shall be responsible for the transmittal to and from DA and other concerned agencies, of documents related to the importation of fertilizer.

f) Collect appropriate processing fees for each tax incentive application.

This Order takes effect immediately.

Adopted: 29 May 1997

(SGD.) SALVADOR H. ESCUDERO III
Secretary