Due to problems being encountered by manufacturers/exporters and their representatives in the requirements on Textile Export Clearance inspection as manifested by the numerous appeals raised with the Board, matters for clarification are hereby presented in order to clarify certain points.

Basic Requirements

There are three (3) requirements for the physical verification/inspection of shipments covered by TEC applications.

1. Goods must be available for inspection on the designated date of inspection as indicated in the TEC application.
   
   
2. Goods must be available for inspection on the designated place of inspection as indicated in the TEC application.
   
   
3. Goods must be substantially complete (at least 70% of the declared quantity) and presented for inspection to the GTEB Spotcheck Team on the date and place of inspection specified on the TEC application.

A proposed shipment is considered substantially completed if at the time of inspection, the goods are in the latter stages of production (i.e. sewing of accessories, trimming, buttoning or ironing).

Fines/Penalties

Manufacturer/Exporter whose proposed shipments are found not substantially complete as represented in their TEC applications shall be liable to pay the following penalties:

1. A fine of P1,000.00 for each TEC for first offense.
   
   
2. A fine of P5,000.00 for the second offense and for each offense thereafter.

Clarificatory Guidelines
I.        Manufacturers/Exporters must meet the (3) three basic requirements for the physical verification/inspection of shipments covered by TEC applications in order to avoid fines/penalties.

II.       Date of inspection and place of inspection must be legibly indicated in the certification portion of the TEC application.

III.      Time of inspection is from morning to afternoon.  Any indicated time of inspection on the TEC will be disregarded.

IV.     In cases where the date of inspection is not indicated in the TEC application, inspection of shipments will be done the next working day after the date of filing of the TEC application.

Example:

Date filed: May 14 (Friday)

GTEB inspection: May 17 (Monday)
V.      In cases where the place of inspection is not indicated in the TEC application, the shipments will be inspected at the factory address of the firm.

VI.     In cases of amendments to the inspection date and place, the Manufacturer/Exporter must, inform/relay to the Audit and Inspection Division in the following manner, the export permit number, description/category of goods, quantity and corresponding changes in the date and/or place of inspection.

1. By way of an amendment letter one (1) day before the designated date of inspection.
   
   
2. By way of a telephone call early in the morning of the designated date of inspection (7:30 to 9:00 A.M.) which must be supported by a follow-up amendment letter to be submitted to GTEB before the end of the day.
   
   
3. By way of fax machine early in the morning of the designated date of inspection (7:30 to 9:00 A.M.) GTEB Fax Number is 817-43-39.

VII.    TEC applications with inspection dates falling on Sundays and Holidays as indicated in the TEC application shall be inspected/verified on the next working day.


Adopted: 13 May 1993

(Sgd.) THELMA K. JOVER
Chief Operating Officer