Export Procedure under the Yen Escrow Agreement

August 27, 1956 CBP MEMORANDUM TO : Authorized Agent Banks No. 18-56 SUBJECT : Export Procedure under the Yen Escrow Agreement Philippine exporters of D-1 sugar and muscovado shall please observe the following procedure involved in the export shipments of the above sugar to Japan within the Yen Escrow Agreement between the Philippines and Japan: 1. If a new exporter (individual or corporation) he should accomplish, under oath, CB:ED Form 105 (Application for Registration to Trade with Japan) to which should be attached the following supporting papers: a. Bureau of Commerce Registration b. BIR Business Registration Certificate c. Privilege Tax Receipt C-14 d. BIR Tax Clearance e. Registration with the Securities & Exchange Commission 2. As a new exporter he is likewise required to accomplish CB:ED Report No. 2 (required of all exporters) which is available from authorized agent bank or the Information & Assistance Unit of the Export Department, Room 201, Central Bank. The Yen Escrow Agreement relates to the trade with Japan arising out of the shipment of D-1 sugar and muscovado to Japan. Other shipments to and from Japan are under the Open Account embodied in the Financial and Trade Agreement with Japan (which is separate from the Yen Escrow Agreement). The only Authorized Agent Bank for transactions under the Yen Escrow Agreement with Japan and the Philippines is the Philippine National Bank. Shipping documents therefore should be negotiated only with this bank. cdlex CB : ED Form 101 (Report of Foreign Sales ) Within twenty-four (24) hours after he has closed a contract of sale for D-1 sugar and/or muscovado, the Philippine exporter shall accomplish CB Form 101 (Report of Foreign Sales), obtainable at his bank, to cover the sugar proposed to be exported to Japan under the Yen Escrow Agreement. This is submitted to the Central Bank of the Philippines for approval thru the Philippine National Bank. (Note: The Central Bank does not deal directly with the public; hence Form 101 must be filed with the PNB which, in turn, submits it to the Export Department). To the Sales Report, the exporter shall attach a copy of his contract with the Japanese buyer, duly authenticated by the Philippine Consulate at Tokyo, and copy of an Export Control Committee clearance (obtainable from the Export Control Committee, Department of Agriculture and Natural Resources). The sales report shall contain the following as minimum information: 1. Date the contract of sale was closed. 2. The sales report No. which shall be numbered consecutively. 3. The name and full address of the party or firm making the sale. 4. The name and full address of the buyer-consignee, indicating the port of discharge. 5. The description of the commodity, unit, class or grade. 6. The unit price, such as the f.o.b. value, marine insurance premium, freight, cost and insurance or cost, insurance and freight; total value, either the f.o.b. or c.i.f. basis, as the case may be. 7. The origin of the commodity, shall be the name of the town or province from whence the product was produced or grown. 8. The method of payment, which shall be by an irrevocable letter of credit available for drawing at sight. 9. The approximate date of shipment and point of loading, which shall be indicated. 10. Other information, which the exporter has to supply in order to expedite processing of the sales report; such as, reference to an expired report of foreign sale or contract. 11. Where the covering letter of credit had been utilized once, the bank certification of the unused balance available for further use to cover the sales report shall likewise be attached. Should the report of foreign sales be favorably considered by the CB Export Department, the original and two signed copies will be released to the authorized agent bank representative and the Agent Bank in turn shall advise the exporter of the action taken and status of the sales report. The Japanese buyer of the D-1 sugar and muscovado shall establish an irrevocable letter of credit expressed in United States Dollar currency in favor of the Philippine exporter duly qualified that the transaction falls under the Yen Escrow Agreement. Against the approved report of foreign sales, the Philippine National Bank shall issue the export license (Form 102) for the quantity applied for. The shipment must be covered by an Export Control Committee clearance and an irrevocable letter of credit, and that the quantity is within the approved sales report, The ECC clearance is obtainable at the Export Control Committee, Department of Agriculture and Natural Resources. CB : ED Form 102 (Export License ) The export license (IE Form 102) will be endorsed by the Philippine National Bank to the Collector of Customs for clearance of the shipment by Customs. The CB License is technically known as Export Declaration. They are loosely used interchangeably. The export license contains other information as to name of the carrying vessel, the Steamship Company or shipping agent, letter of credit number and amount, aside from other information appearing in the sales report. After the cargo has been accepted on board the vessel the exporter shall secure from the Master of the boat a receipt for the merchandise loaded on board which receipt the exporter shall surrender to the Office of the Steamship Company in exchange for the negotiable bill of lading. Not more than five (5) days after the exporter has received the set of negotiable bill of lading, with non-negotiable copy, he must draw against his buyer expressed in United States Dollar currency to be surrendered to the Philippine National Bank with copies of commercial and consular invoices, packing list, marine insurance policy and government inspection certificate, certificate of weight and negotiable bill of lading for negotiation. Under the Yen Escrow Agreement the Philippine exporter shall be paid in Philippine currency against the shipping documents, and the Yen value of the draft surrendered by the exporter at a fixed exchange rate shall be credited in the books of the Bank of Tokyo to the Central Bank of the Philippines. After the above sequence of procedure has been undertaken by the Philippine exporter, he shall be in a position to apply to the Import Department of the Central Bank for authorization to import from Japan the commodities specified by the Agreement. dctai (SGD.) R. MARINO CORPUS Special Assistant to the Governor