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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.

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 PI 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

2.2 BETP - Bureau of Export Trade Promotion

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

2.4 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).

2.5 Mediation Officer - the technical and/or supervisory staff of the Export Trade Facilitation Division who is assigned to process and evaluate a particular export trade complaint, as per the provisions of this DAO.

2.6 Trade Representative - an officer of the Foreign Trade Service Corps (FTSC), DTI, assigned to a specific overseas post, who may carry any of these titles: Senior Commer- cial Attache, Special Trade Representative, Trade Service Officer, Commercial Counselor, Commercial Attache, Consul (Commercial), Assistant Commercial Attache.

2.7 PTIC - Philippine Trade and Investment Center, the overseas post where the trade representative is assigned.

2.8 Regional Director/Provincial Director - head of a DTI Regional Office or Provincial Office.

2.9 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 BETP.

2.10 Supervising Undersecretary - the DTI undersecretary designated by the Secretary of Trade and Industry to supervise the BETP.

2.11 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.

2.12 Services-refers to the supply of service for export as defined in Rule III, Section 1.a of the Rules and Regulations to Implement the Export Development Act of 1994 (R.A. 7844)

3. Composition of the Export Trade Complaints Committee (EfCC):
3.1 Chairperson - The director or designated head of the BETP 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, officers-in-charge of the BETP.

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 (EC) 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 fas 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, BFAD, 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 act on the following complaints:

4.1.1. The ETCC shall act on the following complaints:

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

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

4.1.3 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;

4.1.4 Export trade-related complaints which, if unresolved, will seriously affect the image of the Philippines as a reliable source of export products and services.

4.2 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 FTSC 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.

4.3 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.

4.4 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 and 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 trade dispute account officers who shall act as mediation officers;

5.1.4 Prepare the meeting agenda, notice of meeting containing the information on schedule, venue and agenda, 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 Disseminate information on export trade related resolutions and watch list via all means possible (media including but not limited to website, radio, print and TV) with discretion; 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 a month or more, as required, such requirement to b determined and decided by the Chairperson of the Committee, in consultation with th other members. An affirmation of this schedule shall be made during the meeting of thp previous month and shall be included in the minutes of said meeting.

6.2 Additional meetings shall be scheduled not later than two (2) weeks after the regular monthly meeting.

6.3 Postponement of the regular scheduled meeting shall only be for a valid cause and efforts shall be made to reset the postponed meeting also within the month. In case however, such is not possible, an additional meeting shall be convened before the next scheduled regular monthly meeting.

6.4 The presence of one (1) member of the ETCC and a representative of the DTI-Office of Legal Affairs 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 and signed by the complain ant or e-mailed. The ETCC, however, may require the submission of the signed letter of complaint together with supporting documents and that the complaint be sworn to.

7.2 Export trade complaints may be filed with the BETP, any DTI regional/provincial office or with any PTIC abroad. If received by a DTI regional/provincial office or by a PTIC, the export trade complaint shall be immediately endorsed to BETP's EXPONET for appropri ate action, unless the same can be resolved expeditiously at their level. 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. Whenever any DTI bureau/ office/agency receives an export trade complaint for referral to EXPONET, said referral must be done within five (5) working days from receipt thereof.

7.3 If the written export trade complaint involves a foreign entity, EXPONET shall request in writing the concerned Philippine trade representative/consul 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 the DTI regional director/provincial director 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 BETP official courier, about the export trade complaint within three (3) working days from the receipt of the signs which to submit a written answer while a foreign respondent is given twenty (20) working 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 respon dent 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 trade representative with a copy of the notice sent to the foreign respondent. In the absence of a trade representative, the said copy shall be sent to the Consul.

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

7.6 The EXPONET shall elevate all cases to the ETCC, processed and evaluated by the Mediation Officer 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 to watchlist the respondent

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 copy of supporting docu ments, the duplicate/triplicate copies, xerox copies, 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. Classification of ETCC Recommendations:
9.1 Watchlisting - respondent is found to be liable as per guidelines of DAO No. 11, series of 1999, as amended.

9.2 Closed - either the complainant has lost interest in pursuing the case or the complain-ant 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, or when notices were not adequately refuted the allegations made by the complainant or when notices were n served because the ETCC Secretariat could no longer locate nor communicate with the respondent.

9.4 Settled - an amicable settlement between the parties was reached because of ETCC intervention.

10. Penalties and Sanctions:
10.1 Any party included in the Watchlist, cannot avail of the following assistances/ser vices from DTI:

10.1.1 Recommendation to any private entity, local or foreign, for the giving of a loan, guarantee, gratfit, 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;

10.1-4 Participation in any DTI-sponsored fair, exhibit and selling mission;

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 and licenses 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

11. Appeals:
11.1 The recommendation of the ETCC maybe 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. Administrative Remedies (Delisting):
12.1 The Mediation Officer may recommend to the ETCC the delisting of respondents from the Watchlist.

12.2 The ETCC will present for approval to the Supervising Undersecretary for BETP, its recommendation to delist respondent from the Watchlist

12.3 Delisting may be considered if:

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

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

12.3.3 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 Or der; and

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

13. Respondents Penalized/Issued Sanctions Under Previous DAOs:
13.1 Respondents included in the watchlist under DAO No. 4, series of 1993, DAO No. 1, series of 1995 and DAO No. 11, Series of 1999 shall continue to be watchlisted until such time that moves have been made by their respective complainants to have them deiisted or if they qualify for delisting pursuant to applicable provisions of this DAO.

13.2 Penalties and sanctions imposed on respondents under DAO No. 4, series of 1993, DAO No. 1, series of 1995 and DAO No. 11, series of 1999 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.

14. Transparency of Information:
14.1 The DTI Watchlist of Philippine Exporters and Foreign Buyers shall be made accessible to the public during office hours at the ETCC Secretariat, BETP Office.

14.2 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:

14.2.1 Foreign Trade Service Corps Coordinating Office (FTSC-CO)
14.2.2 Centerfor International Trade Expositions and Missions (CITEM)
14.2.3 Product Development and Design Center of the Philippines (PDDCP)
14.2.4 DTI Business Name Registration System
14.2.5 Bureau of Small and Medium Enterprise (BSMED)
14.2.6 Bureau of Domestic Trade (BDT)

14.3 The ETCC Secretariat shall also be responsible for disseminating the list on a regular basis to other government and private agencies for their information and guidance. These agencies include, but not limited to. CIBI, Department of Agriculture, Department of Science and Technology.

14.4 The Watchlist shall be included in the BETP Website and other DTI websites where similar Watchlist are provided.

15. Repealing Clause:
The provisions of Department Administrative Order No. 4, series of 1993, Department of Administrative Order No. 1, Series of 1995, and Department Administrative Order No. 11, Series of 1999 which are inconsistent with the provisions of this DAO are hereby repealed.

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

Adopted: 22 Feb. 2008

(SGD.) PETER B. FAVILA
Secretary

Recommended by:

(SGD.) DR. THOMAS G. AQUINO
Senior Undersecretary