Suspension of Operation of LOI No. 1409 (s. 1984) Re: Reopening of the Barter Trade in Zamboanga del Sur

August 7, 1985

LETTER OF INSTRUCTIONS NO. 1476

WHEREAS, the re-opening of the barter trade in Zamboanga del Sur on May 9, 1984 pursuant to Letter of Instructions No. 1409 has caused problem in the surveillance of movement of goods in commercial quantities imported under barter trade;

WHEREAS, the unrestrained movement of goods imported under barter trade beyond the Sulu archipelago and Zamboanga del Sur has affected the domestic industries and revenue collection of the government; cdt

WHEREAS, while the Government is cognizant of the dependence on the residents of Southern Philippines in barter trade as source of livelihood, the Government has to protect the domestic industries in other areas of the Philippines and safeguard the enforcement of the rules pertaining to the collection of taxes and duties on imported goods;

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

1. Letter of Instructions No. 1409 authorizing the conduct of barter trade in the province of Zamboanga del Sur and authorizing the participation of the KKK Processing Center Authority in barter trade is hereby suspended.

2. That barter trading shall, henceforth, be governed by Presidential Decree No. 93, except that barter trading is authorized only in the Sulu archipelago.

3. Merchandise goods or articles in commercial quantities removed or taken out from the Sulu archipelago shall pay the necessary taxes and duties and any individual in possession of untaxed merchandise goods or articles outside of the Sulu archipelago shall be held liable pursuant to the provisions of existing laws.

4. The Ministry of Finance and the Ministry of Trade and Industry are hereby directed to prepare the necessary implementing regulations for the conduct of barter trading and the effective monitoring thereof. acd

5. The rules and regulations promulgated to implement Presidential Decree No. 93 which are not inconsistent with the provisions of this Letter of Instructions shall continue to be enforced.

6. This Letter of Instruction shall take effect immediately.

DONE in the City of Manila, this 7th day of August, in the year of Our Lord, Nineteen Hundred and Eighty-Five.