Please be advised that during the Regular Board Meeting of the Board of Directors of the Videogram Regulatory Board held on the 24th day of June, 1996 at the Conference Room, 11th Floor Agustin I Building, Emerald Avenue, Pasig City, the Board has approved the following guidelines and procedures to be observed in the inventory labeling of laser discs and compact discs video:

I

Submission to the Board of a Statement of Existing Inventory

Within the deadline of December 31, 1996, all video establishments are required to submit to this Board a statement of existing Inventory.

II

Processing of Inventories Declared in the Statement of Existing Inventories

The Board shall review the statement of Existing Inventories for the purpose of determining whether, under the Board's program of legitimization, the declared inventories may be allowed and issued Inventory Labels.

A. Videograms for which there is a Philippine Home-Viewing Licensee or Distributor.

The Statements of Existing Inventories filed with the Board shall be delisted by the representatives of the registered and licensed distributors of title/s duly registered with the Videogram Regulatory Board. Declarant shall be advised of the titles delisted and claimed by a licensed distributor.

It is mandatory that declared titles in inventory claimed and delisted by a particular licensed distributor shall first be cleared with the latter. Licensed distributors shall be required to manifest their individual allowances in writing before the Board to titles claimed for purposes of the issuance of Rating Labels to the said titles. Cleared titles shall be issued Rating labels in accordance with the approved rating given by the Board to such videograms.

B. Videograms for which there is no Philippine Home-viewing Licensee or Distributor.

After the appropriate clearances from the various distributors for the issuance of the appropriate rating labels shall have been secured the Board shall process all declared videogram inventories for which there is no Philippine Home-viewing Licensee or Distributor. In turn, the Board shall delist titles denied commercial permit by the Board; titles of films approved by the Board as Restricted with voluntary deletions effected by the distributor; and those falling under Section 3, subsection (2) of Presidential Decree No. 1987.

If no title is delisted by any licensed distributor from the declared inventory, the Board shall immediately proceed with the processing stated in the immediately preceding paragraph.

III

Procedure for Affixing VRB Inventory Labels

Inventory labels shall be affixed on all approved videograms only in the presence of an authorized VRB personnel.

A. All video establishments based in Metro Manila shall bring their inventories to the Offices of the Board for affixing of Inventory Labels.

B. Forthe benefit of video establishments based outside of Metro Manila, the Board shall dispatch teams of authorized VRB personnel to strategic places all over the country to supervise the affixing Inventory Labels on approved videograms.

IV

Conditions for Issuance of Inventory Labels

Although Inventory Labels are sometimes referred to as "Amnesty Stickers", it must be stressed that Inventory Labels do not provide for amnesty.

Simply, Inventory Labels shall be valid only for such period of time when no Philippine Home-viewing Licensee or Distributor exists for the subject videograms. Upon receipt of his/its approved videograms affixed with inventory labels, the video establishment shall execute an undertaking with the tenor and substance in Annex "A^* ".

V

Disposition of inventories Not Issued Inventory Labels

A. All titles declared and not issued rating or inventory labels shall not be allowed for commercial disposition.

B. Pornographic videograms shall be subjected to outright confiscation by the Board.

VI

Confiscation of Undeclared Inventories

A. Before the onset of the Deadlines for Submitting Statements of Existing Inventory

Undeclared inventories that shall come into possession by the Board through its enforce ment operations shall be treated as if they were declared without prejudice to the proper administrative sanction for the erring video establishment.

B. After the Deadlines

All inventories without the requisite Inventory Labels shall be confiscated without prejudice to the imposition of administrative fines and other sanctions against the erring video estab lishment, inclusive of closure proceedings.

This Memorandum Circular shall take effect immediately.

Adopted: 15 July 1996

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^* Text Available at Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.