Informal Entry Free of Duty and Release of Aircraft, etc. Imported by Philippine Airlines

April 4, 1978

LETTER OF INSTRUCTIONS NO. 684

In line with the policy of the Government to support Philippine Airlines, as our national flag carrier, the ownership and control of which have been reacquired by the Government; to enhance the effectiveness of Philippine Airlines in playing its proper role in tourism, commercial aviation, and national security; to expand and improve the scheduled domestic services of Philippine Airlines; to assure our national flag carrier of a favorable competitive position in the international field; and considering that the achievement of said objectives requires the prompt release from customs custody of aircraft, engines, equipment, spare parts, materials, machinery, and supplies, it is hereby ordered that:

1. The importation of aircraft, engines, equipment, machinery, spare parts, commissary and catering supplies, aviation gas, fuel and oil, whether crude or refined, and such other articles or supplies by and for the use of Philippine Airlines as prescribed under its franchise, as amended, shall be allowed informal entry free of duty and released immediately subject to the presentation, within fifteen (15) days from date of release, of a statement under oath stating:

(a) That such articles or supplies are not locally available in reasonable quantity, quality, and price; and

(b) That they are necessary for or incidental to the operation of Philippine Airlines and its other business activities.

2. With respect to the importation of Philippine Airlines of consumable items for its catering and food services, the same shall be transferred directly and immediately to the Customs' bonded warehouse. Philippine Airlines shall be allowed to withdraw the same from the bonded warehouse by requisition slip and such consumable items so withdrawn shall be properly accounted for by presentation of proof of actual use in the airline's operations. All such withdrawals shall be subject to the approval of the Collector of Customs or his duly authorized representative. aisa dc

3. The following requirements are hereby dispensed with:

(a) Prior authority and/or endorsement of qualification for tax exemption from the Department of Finance;

(b) Certification from the Civil Aeronautics Administration that such articles or supplies are not locally available in reasonable quantity, quality, and price, and that they are necessary for or incidental to the proper operation of the scheduled airlines importing the same; and

(c) Central Bank release certificate.

DONE in the City of Manila, this 4th day of April, in the year of Our Lord, Nineteen Hundred and Seventy-Eight. acd