The Garments and Textile Export Board (GTEB) in a resolution approved and confirmed last April 6, 1999 approved the following guidelines for Over-the-Counter (OTC) allocations (MOU Flexibilities - Categories 338/9, 347/8, & 647/8):

A.        For small firms with 1998 Average FOB sales of not more than $25,000 per month. (Qualified firms are those existing and registered with GTEB as of 31 December 1998)

1.         EA/TEC Applications shall be received every Monday and Tuesday of the week;

2.         Maximum quantity granted is 300 doz./category/month.

3.         Validity of EA/TEC is 30 days.

4.         Proposed shipment must meet at least the Industry Average FOB/LVA* of the category concerned.

*Imported materials locally purchased is not considered local materials for purposes of LVA computation.

5.         Firm must have an in-plant production of the product proposed to be shipped out;

6.         The finished goods and/or the goods under production will be subject to inspection in the firm's manufacturing facilities as well as its accredited sub-contractor/s, if any;

7.         Firms with existing EQ/EA balances on the category concerned are not qualified to participate in the OTC.

8.         Assessment fee of P50/doz. for Cat. 338/9 and 347/8 and P25/doz. for Cat. 647/8.

B.        For other firms:

1.         EA/TEC Applications shall be received every Monday and Tuesday of the week:

2.         Maximum quantity granted is 4,000 doz./month/firm/category.

3.         The maximum quantity may be given one time or on a staggered basis;

4.         Validity of EA/TEC shall be two weeks.

5.         Proposed shipment must meet at least the Industry Average FOB/LVA* of the category concerned.

*Imported materials locally purchased is not considered local materials for purposes of LVA computation.

6.         Firm must have an in-plant production of the product proposed to be shipped out;

7.         The finished goods and/or the goods under production will be subject to inspection in the firm's manufacturing facilities as well as its accredited subcontractor/s, if any;

8.         Firms with existing EQ/EA balances on the category concerned are not qualified to participate in the Over-the-Counter (OTC);

9.         Assessment fee of P50/doz for Cat. 338/9 and 347/8 and P25/doz. for Cat. 647/8.

Adopted: 06 Apr. 1999

(SGD.) FELICITAS R. AGONCILLO-REYES
Executive Director