I.          Paragraph III.1 of CAO 4-97, implementing Executive Orders 444 s. 1997, provides:

"1.     All imported goods bound for duty free shops/outlets or trading warehouses catering to duty free shops/outlets in the Freeports and in the Special Economic Zones (""DFS Goods"" from hereon) shall be subject to pre-shipment inspection (PSI) by the Societe Generale de Surveillance (SGS) in the country of exportation, except the following:

For the orderly implementation of this Order, the Clean Report of Findings must be presented for shipments of firms covered by CAO 4-97 as follows:

a.         Shipments Covered by Letters of Credit - When the date of the L/C is on or after 10 November 1997.

b.         For Non - L/C Shipments - When the date of the Bill of Lading is on or after 10 November 1997.

II.          Shipments of fresh, frozen and chilled foodstuff and fruits are exempted from the pre-shipment inspection requirement, in line with Joint Order No. 1-91.

III.         Shipments concerned arriving in the country without the requisite CRF shall be deemed to have been imported contrary to law and shall be proceeded against accordingly.

For strict compliance.

Adopted: 07 Nov. 1997