Licensing Certain BOI-Registered Firms To Receive Materials and Accessories on Consignment Basis

March 13, 1982

LETTER OF INSTRUCTIONS NO. 1213

WHEREAS, under the provisions of Republic Act 3137, otherwise known as the Embroidery Law, only firms licensed by the Embroidery and Apparel Control and Inspection Board can be authorized to receive materials and accessories on consignment basis, for manufacture into garments for export; cd

WHEREAS, by virtue of a directive from the Office of the President in 1970 (Memorandum No. 44-70 dated October 14, 1970) the licensing of garment companies under the Embroidery Law was suspended except for companies located in resettlement areas;

WHEREAS, our accession to the recently re-negotiated Multi-fiber Agreement governing the exports of garments from textile exporting countries like the Philippines to the importing countries, brings to focus the need to review our present policy of limiting the number of firms licensed under the Embroidery Law;

WHEREAS, the present Multi-fiber Agreement allows arrangements, whereby fabrics consigned from an importing country to an exporting country for processing into garments would be permitted to enter the importing country over and above the levels of restraints (ex-quota) agreed upon in bilateral textile agreements;

WHEREAS, the Philippines intends to make use of these types of arrangements as part of its strategy to increase foreign exchange earnings from garment exports;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and direct that: cd i

1. The Garments and Textile Export Board draw up guidelines for endorsing BOI-registered garments companies, with export experience and good reputation for licensing by the Embroidery and Apparel Control and Inspection Board, and cd

2. The Embroidery and Apparel Control and Inspection Board allow the licensing of companies indorsed by the Garments and Textile Export Board pursuant to the guidelines drawn under paragraph one (1) above.

This Letter of Instructions shall take effect immediately.

DONE in the City of Manila, Philippines, this 13th day of March, in the year of Our Lord, Nineteen Hundred and Eighty-Two. cd i