SECTION III (10) Part I of the GTEB Rules and Regulations as amended provides for penalties to be imposed on shipments without the requisite Textile Export Clearance (TEC).

In line with the policy of relaxing GTEB Rules and Regulations, the Board in its meeting of February 7, 1991 ruled as follows:

1. Non-imposition of penalty on shipments of the following without TEC for the first time.  However, firms shall be issued a stern warning:

1. Exempt items
   
   
2. Minimal quantity of garments (20 doz. - 20 kilos for US shipments; 100 pcs. for EEC and CNS shipments, except in highly-critical categories, where export quotas can be granted as a requisite for issuance of Textile Visa and/or Export License).

2. For second offense, a penalty of P5,000.00

3. For third and subsequent offense, the penalty of 10% of FOB value of the shipment shall be imposed.  (In exceptional cases where the resulting 10% of FOB value is less than P5,000.00, the matter will be decided upon by the Board).

The above penalty schedule shall apply in any given year.

4. The penalty of P1,000.00 on expired TEC and shipments including exports to non-quota countries without TEC but has applied for the requirement shall remain in force.

5. Firm shall be granted a grace period of 15 days from receipt of notice of the assessed penalty within which to reconcile the matter with GTEB, otherwise, the assessment shall be considered final.

Please be guided accordingly.

Adopted: 7 Mar. 1991