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I.
Objectives

1. To further prevent the abuse of the duty free importation and shopping privilege at the duty free shops.

2. To support the stabilization of the Philippine currency and to attract the inflow of foreign currencies.

II.
Administrative

1. Only foreign currencies shall be used for purchases of imported duty free goods at duty free shops.

2. Sale of any duty free goods at all duty free shops in commercial quantity shall be prohibited.

3. Stamping of "NOT FOR RESALE, IMPORTED DUTY FREE" and/or color coded spray shall be made on the outer packaging and on the labels of the imported duty-free goods to indicate that the same were sold and purchased from duty free shops.

III.
Operational Provisions

1. Foreign currencies shall be used for purchases of balikbayan and travellers, however, for purposes of price and sales monitoring, the duty free shop operators shall denominate the price of duty free goods as well as their reports of sales in US dollars.

2. Limitations on Duty Free Purchases

In addition to the limitations set forth under existing laws, the following qualitative restrictions/limitations are hereby adopted; purchases over and above the same shall be considered as commercial in nature.

a. Fresh produce ……………………………….............................	10 kilos of each kind
b. Canned/bottled consumable goods…	1 box of each kind
c. Wearing Apparel and other wearable items………………………	12 pieces of each kind
d. Non-wearable products such as towels, Bed linens, table covers, etc.....	12 pieces of each kind
e. Other consumer items not falling under The category light and heavy durables With values less than $200.00...................................................................	12 pieces of each kind

3. To effectively comply with the requirement to place special permanent labels on duty free items to indicate that the same are imported duty free and not for resale, spraying and/or printing of color coded paints on the outer packaging and on the labels of the duty free goods. Hence, it is enjoined that the zone authorities and the government-run duty free shops adopt different color codes to identify the areas from where the goods have been purchased.

IV.
Repealing Clause

All Orders, rules and regulations or any provision(s) thereof inconsistent with this Order are hereby deemed repealed and/or modified accordingly.

V.
Effectivity Clause

This Order shall take effect 15 days from approval hereof.

Adopted: 06 Oct. 1998

(SGD.) PEDRO C. MENDOZA, JR.
Commissioner

APPROVED:

(SGD.) SOLOMON S. CUA
Acting Secretary of Finance