Attached for your information and strict compliance is the reply of Department of Finance Secretary Edgardo B. Espiritu to Mr. Winston Wang to his request for clarification as to whether or not importation of towels from China and Hong Kong by duty free shops in the special economic zones such as Subic and Clark is subject to anti dumping duty pursuant to DOF decision #11-96.

Adopted: 28 Sept. 1998

(SGD.) JULITA S. MANAHAN
Deputy Commissioner
Internal Administration Group


Mr. WINSTON WANG
President
Towel Manufacturers' Association
of the Philippines, Inc.
225 Sto. Domingo Ave.,
Quezon City

Dear Mr. Wang,

We refer to your letter dated 08 September 1998 requesting clarification as to whether or not importation of towels from China and Hong Kong by duty free shops in the special economic zones such as Clark and Subic is subject to anti-dumping duty imposed in the Department of Finance anti-dumping decision No. 11-96 dated 30 August 1996.

In reply, please be informed that pursuant to Section 3 of Department Order No. 150-95 the following shipments and/or consignment are not subject to anti-dumping protest:

1. Article imported by or consigned to government agencies not organized for profit and particularly designated by law or proper authorities to import directly or through awardees, such commodities as would stabilize and/or supplement shortage, and

2. Conditionally duty-free importations allowable under Section 105 of the Tariff and Customs Code, as amended."

Since the importation by duty free shops in the special economic zones is not one of the consignments above mentioned, the same is therefore subject to anti-dumping duty imposed in DOF Anti-Dumping Decision NO. 11-96.