February 24, 2014

DTI DEPARTMENT ADMINISTRATIVE ORDER NO. 14-01, S. 2014

 

WHEREAS, the Department of Trade and Industry is mandated to oversee the country's export trade program;

WHEREAS, the DTI continuously receives export trade complaints from either foreign buyers, exporters or local suppliers of Philippine goods and services, and from other sources;

WHEREAS, one of the services of DTI is to match Philippine suppliers/exporters with potential foreign buyers and vice-versa and promote ethical business practices among the same to further enhance the image of the Philippines as a reliable supplier of products and services in the global market;

WHEREAS, the complaint if it remains unresolved will seriously affect the image of the Philippines as a reliable source of export products and services;

WHEREAS, DTI seeks to promote speedy resolution of export trade complaints amicably thru out-of-court settlement or mediation.

NOW THEREFORE, premises considered, the following guidelines are hereby prescribed for the compliance and information of all concerned:

1. Scope

This Department Administrative Order provides the rules and procedures for the resolution of export trade complaints received by DTI national offices, regional, provincial and PTIC offices involving Philippine-based suppliers of goods and services.

2. Definition of Terms:

For the purpose of this Department Administrative Order, the following definitions shall apply:

2.1 DTI — Department of Trade and Industry, the primary coordinative, promotive, facilitative and regulatory arm of the Executive Branch of government in the area of trade, industry and investments.

2.2 EMB — Export Marketing Bureau, formerly Bureau of Export Trade Promotion (BETP), the export marketing arm of the government under the Department of Trade and Industry. It provides frontline assistance, information, and specialized consultancy services to the general public and to all exporters — both potential and established. It seeks to enable Philippine exporters to compete with world-class products and services in the international market.

2.3 ETCC — Export Trade Complaints Committee, an inter-agency committee created to recommend specific actions on export trade complaints filed with any bureau or office of DTI which are referred to the EMB.

2.4 EXPONET — Export Assistance Network, the EMB unit under the Export Trade Facilitation Division, which receives and processes export trade complaints received by DTI, for mediation and/or settlement, or resolution. aIcCTA

2.5 Export Trade Complaints — all complaints arising from export trade-related transactions including but not limited to Non-Payment of Delivery (NPD), Non-Delivery of Paid Order (NDPO), Cancelled L/C Order (CL/C), Short Shipment (SS), Quality Specification (QS), and other nature of complaints not elsewhere classified (OTH).

2.6 Goods — the supply of a commodity, or a physical, tangible item for export, produced from agricultural, construction, manufacturing or mining activities.

2.7 Mediation Officer — the technical and/or supervisory staff of the EXPONET who is assigned to process and evaluate a particular export trade complaint, as per the provisions of this DAO.

2.8. PTIC — Philippine Trade and Investment Center, the DTI overseas post where the trade representative is assigned. The PTIC is an agency under the Embassy of the Philippines and the Department of Trade and Industry that provides commercial representation for the Philippines to foreign countries.

2.9 Regional/Provincial Office — DTI offices operating in the regions and provinces.

2.10 Services — the supply of service for export, in the following areas such as: information technology services, construction services, consultancy and professional services and other services.

2.11 Supervising Undersecretary — the DTI Undersecretary designated by the Secretary of Trade and Industry to supervise the EMB.

2.12 Watchlist — list of Philippine exporters, manufacturers, suppliers, foreign buyers who are respondents in export trade complaints whose inclusion in said list is based on the resolutions of the ETCC and as approved by the supervising undersecretary.

3. Composition of the Export Trade Complaints Committee (ETCC):

3.1 Chairperson — The director or designated head of the EMB shall act as the Chairperson of the ETCC. Should a need arise, the Supervising Undersecretary may designate an Alternate Chairperson from among the assistant directors or caretakers, or officers-in-charge of the EMB.

3.2 Members:

3.2.1 The director or designated head/alternate of the DTI Office of Legal Affairs;

3.2.2 A representative of the organization of exporters which has a subsisting accreditation from the Export Development Council (EDC) under Section 12 of the Export Development Act (R.A. 7844); and

3.2.3 A representative of the CIBI Information, Inc.

 In instances, however, when the designated alternate attends an ETCC meeting, he or she may only sign the resolution if his or her designation (as alternate) has been authorized by the agency/organization/office concerned and has been recognized by the ETCC, otherwise the principal shall still sign.

3.3 The Committee may call upon any of the following to attend any Committee meeting and give pertinent information, advice and such other assistance as may be needed by the Committee in resolving the complaints:

3.3.1 A representative of each of the other government agencies involved in the case (e.g., DENR, DA, FDA, BOC, etc.);

3.3.2 The President or representative of the trade association where one of the parties belongs; and

3.3.3 The parties to the case and other entities or individuals who may shed light on the case.

4. Jurisdiction, Powers and Functions of the ETCC:

4.1 The ETCC shall not act on a complaint if there is already a pending civil/criminal case against the same respondent arising from the same export trade related activity subject of the complaint.

4.2 The ETCC shall act on the following complaints:

4.2.1 Export trade complaints from foreign buyers, exporters and local suppliers of Philippine goods and services, and from other sources;

4.2.2 Export trade complaints against foreign buyers, agents, exporters and local suppliers of Philippine goods and services; aAEHCI

4.2.3 Export trade complaints involving/affecting the promotion of ethical business practices among Philippine suppliers/exporters, to further enhance the image of the Philippines as a reliable supplier of products and services in the global market.

4.3 The ETCC shall be authorized to demand the submission of documents, reports and evidences resulting from initial investigation(s) and/or mediation conducted by DTI regional/provincial offices, DTI bureaus, offices and attached agencies, and by PTIC offices abroad on the export trade complaint they have referred, endorsed or elevated to the ETCC. All communication to this effect shall be addressed to the head of agency concerned.

4.4 The ETCC shall likewise be authorized to demand the presence of any DTI officer and/or staff in any of its meetings to shed light on the export trade complaint referred, endorsed or elevated to the ETCC by his or her respective bureau/office/agency. The DTI officer and/or staff concerned shall however be given sufficient time to prepare for the meeting and he or she shall be given reasonable time to be informed of the schedule and venue of such meeting. All communication to this effect shall be addressed to the head of agency concerned.

4.5 The ETCC shall serve as the dispute settlement body for all export trade complaints lodged with the Department of Trade and Industry by foreign buyers, exporters, suppliers of Philippine goods and services, and those export trade complaints which were referred to DTI by other government agencies, instrumentalities and entities, whether local or foreign.

5. ETCC Secretariat:

5.1 The EXPONET shall serve as the Secretariat of the Committee. It shall perform the following functions:

5.1.1 Receive and process export trade disputes;

5.1.2 Prepare and send correspondences required under this Order;

5.1.3 Designate mediation officers who will act on the trade complaints;

5.1.4 Prepare the meeting agenda, notice of meeting containing the information on schedule, venue and agenda, updates of the cases in process, inform the ETCC of said facts and secure confirmation of the attendance of all the members of the ETCC;

5.1.5 Prepare the draft and finalize the orders, decisions, resolutions and documents approved and issued by the ETCC;

5.1.6 Prepare the draft and finalize the minutes of the ETCC meetings;

5.1.7 Implement an efficient and user-friendly system of managing the files, records and documents generated in connection with the work and responsibility of the ETCC;

5.1.8 Furnish copies of the watchlist to ETCC members and other DTI Offices. Provide information, upon request, to concerned parties; and

5.1.9 Perform other functions that shall be assigned and as may be required by the ETCC.

6. Meetings of the ETCC:

6.1 The ETCC shall meet once (1) a month or more as required.

6.2 If there are no cases to be deliberated upon by the committee during the month, the ETCC may opt not to meet.

6.3 The presence of the DTI Chairperson/Alternate, a representative of the DTI-Office of Legal Affairs and another member of the ETCC shall constitute a quorum, and the vote of majority of the members present there being a quorum shall be necessary for the adoption of any act, order or decision.

7. Procedures to be Observed in Handling Export Trade Complaints:

7.1 All export trade complaints must be submitted in writing, sworn to and signed by the complainant and with verification of non-forum shopping or e-mailed with scanned copy of the same documents. The ETCC, will require the submission of copies of pertinent documents to support the complaint.

7.2 Export trade complaints may be filed with the EMB, any DTI regional/provincial office, PTIC, or Philippine Embassy/Consulate. Unless the same can be resolved expeditiously at their level, the export trade complaint shall be immediately endorsed to EXPONET for appropriate action. DCASEc

 However, the complainant/respondent may appeal the resolution of the regional/provincial office or PTIC to the ETCC within ten (10) working days from receipt thereof.

7.3 If the written export trade complaint involves a foreign entity, EXPONET shall request in writing the concerned DTI office or Philippine Embassy/Consulate to provide background information on the company and its business operations and verify the pertinent allegations in the complaint.

7.4 If the export trade complaint involves a Philippine entity, the EXPONET shall request in writing the concerned DTI office to provide background information on the company and its business operations and verify the pertinent allegations in the complaint.

7.5 The EXPONET shall inform the respondent, through the EMB official courier, about the export trade complaint within three (3) working days from the receipt of the signed written complaint. A Philippine-based respondent is given ten (10) working days within which to submit a written answer while a foreign respondent is given twenty (20) working days within which to submit written answer from receipt of the official notice.

7.5.1 If the respondent refutes the allegation(s) in the complaint, the respondent shall submit to the ETCC his written answer, duly supported by documents.

7.5.2 In case the respondent is located outside the Philippines, EXPONET shall furnish the PTIC or Philippine Embassy/Consulate with a copy of the notice sent to the foreign respondent.

7.5.3 If the respondent fails to answer within the prescribed period, he shall be given another ten (10) or twenty (20) days, as the case may be. If he still fails to respond despite due notice, the Mediation Officer shall prepare a resolution declaring him in default and directing complainant to present substantial proof or documentary evidence, on a date set in the order. The ETCC shall rule in favor of the complainant.

7.6 The EXPONET shall elevate to the ETCC all cases which have been processed and evaluated by the Mediation Officers for resolution. The ETCC shall not act on a complaint if there is already a pending civil/criminal case against the same respondent arising from the same export trade related activity subject of the complaint.

7.7 The ETCC shall submit for approval to the Supervising Undersecretary its recommendation on the complaint.

7.8 Once approved, both the complainant and the respondent shall be informed thereof in writing within seven (7) working days.

8. Acceptable Documents:

8.1 Complainants and respondents shall be advised to submit original and clear copies of documents to support their respective claims/counterclaims.

8.2 In instances when they are unable to submit the original copies of supporting documents, the duplicate/triplicate copies, photocopies, scanned copies or other electronically produced copies shall be accepted, provided all printed and written entries shown are clear and readable. Certified true copies of documents may be required for verification purposes.

9. Classifications of ETCC Recommendations:

9.1 Watchlisting — respondent is found to be liable as per guidelines of this Department Administrative Order (DAO).

 In cases, a respondent used a fictitious name or address or is involved in two (2) or more export trade complaints, these shall constitute sufficient reasons for watchlisting.

9.2 Closed — either the complainant has lost interest in pursuing the case or the complainant could no longer be located or any form of communication has ceased.

9.3 Dismissed — complainant has failed to substantiate the allegations to establish liability of the respondent for the acts being complained of or respondent has satisfactorily and adequately refuted the allegations made by the complainant.

9.4 Dismissed without prejudice — when the respondent is involved in one (1) export trade complaint and notices cannot be served by reasons other than using a fictitious name or address.

9.5 Settled — an amicable settlement between the parties was reached through the intervention of ETCC

10. Penalties and Sanctions:

10.1 Any party included in the Watchlist, cannot avail of the following assistance/services from DTI:

10.1.1 Recommendation to any private entity, local or foreign, for the giving of a loan, guarantee, grant, subsidy, equity, benefit, exemption, privilege, assistance and the like;

10.1.2 Any loan, guarantee, grant, subsidy, equity, benefit, exemption, privilege, assistance and the like from DTI and its attached agencies;

10.1.3 Referral to any domestic supplier or foreign buyer; DaTICc

10.1.4 Participation in any DTI-sponsored fair, exhibit, selling and buying missions;

10.1.5 Inclusion in any supplier listing, e.g., exporters directory, supplier catalog, promotional brochure and industry situationers prepared by DTI which are disseminated here and abroad; and

10.1.6 Assistance or services on product design and development; exporters' training; common service facilities; business advisory services; and library and information services.

10.2 Revocation of all DTI permits, registration and accreditation including, but not limited to, business name registration, Export Development Act (EDA) accreditation.

10.3 Delisting in any supplier listing, e.g., exporters directory, supplier catalog, promotional brochure and industry situationers prepared by DTI which are disseminated here and abroad.

11. Appeals:

11.1 The recommendation of the ETCC may be appealed to the Secretary of Trade and Industry by the aggrieved party.

11.2 The decision of the Secretary of Trade and Industry on the appeal made by the aggrieved party shall be final and executory.

12. Conditions for Delisting:

12.1 Delisting may be considered if:

12.1.1 The complainant submits a notice in writing, E-mail or Fax that the respondent can be delisted; or

12.1.2 Both parties have agreed in writing to settle the case amicably; or

12.1.3 The DTI Office of Legal Affairs (OLA) has advised the ETCC to delist the respondent from the DTI Watchlist for reasons consistent with the spirit of DAO No. 11, Series of 1999, as amended, and this Department Administrative Order; or

12.1.4 The decision on the appeal as per Section 11.2 of this DAO instructs delisting.

12.2 The Mediation Officer may recommend to the ETCC the delisting of respondents from the Watchlist.

12.3 The ETCC will present for approval to the Supervising Undersecretary for EMB, its recommendation to delist respondent from the Watchlist.

13. Conditional Delisting

A respondent to an export-related case who has been included in the DTI Watchlist may be delisted therefrom conditionally, provided that all of the following exist:

13.1 The respondent has been watchlisted and is willing to settle the case with the complainant and requested in writing to be delisted from the DTI Watchlist.

13.2 The complainant cannot be located following internal procedure by EXPONET, despite the passage of reasonable period of time and efforts exerted by the EXPONET and the respondent to communicate such request for delisting.

13.3 That acting on the request/query of the ETCC, the Office of Legal Affairs (OLA) renders an opinion recommending conditional delisting of the concerned respondent.

However, in case the complainant appears and formally objects to the delisting, the respondent will again be included in the said watchlist until the issues are finally settled.

14. Respondents Penalized/Issued Sanctions under Previous DAOs:

Respondents included in the watchlist under DAO No. 4, Series of 1993, DAO No. 1, Series of 1995, DAO No. 11, Series of 1999, and DAO No. 6, Series of 2008 shall continue to be watchlisted until such time that moves has been made by their respective complainants to have them delisted or if they qualify for delisting pursuant to applicable provisions of this DAO.

Penalties and sanctions imposed on respondents under DAO No. 4, Series of 1993, DAO No. 1, Series of 1995, DAO No. 11, Series of 1999, and DAO No. 6, Series of 2008 shall continue to be imposed until such time that such penalties and sanctions have been lifted, on a case to case basis, as per the provisions of this DAO.

15. Transparency of Information:

15.1 The DTI Watchlist of Philippine Exporters and Foreign Buyers shall be made accessible to the public during office hours at the ETCC Secretariat, EMB Office.

15.2 The ETCC Secretariat shall be responsible for disseminating the list on a regular basis to the following DTI agencies whose assistance/services cannot be availed of by watchlisted persons/firms:

15.2.1 Foreign Trade Services Corps Coordinating Office (FTSC-CO)

15.2.2 Center for International Trade Expositions and Missions (CITEM)

15.2.3 Design Center of the Philippines (DCP) formerly Product Development and Design Center of the Philippines (PDDCP)

15.2.4 DTI Business Name Registration System

15.2.5 Bureau of Micro Small and Medium Enterprise (BMSMED) EDIHSC

15.2.6 Bureau of Domestic Trade (BDT)

15.2.7 Philippine Trade Training Center (PTTC)

15.2.8 Concerned Foreign Embassies and Chambers of Commerce and Industries

 The ETCC Secretariat shall also be responsible for disseminating the list on a regular basis to ETCC members, other DTI Offices, other relevant government agencies and upon request of private entities for their information and guidance.

16. Repealing Clause

The provisions of DAO No. 1, Series of 1995, DAO No. 4, Series of 1993, DAO No. 11, Series of 1999, and DAO No. 6, Series of 2008 which are inconsistent with the provisions of this DAO are hereby repealed.

17. Effectivity

This Order shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation.

Makati City, February 24, 2014.

 

(SGD.) GREGORY L. DOMINGOSecretary

Recommended by:

(SGD.) PONCIANO C. MANALO JR.Undersecretary

Published in The Philippine Star on July 7, 2014.