MEMORANDUM

FOR: CEO
EDO
RLD

From: LD

RE: Complaints on OTC Clearances

DATE: August 13, 2021

The agency had been receiving numerous complaints regarding the delay in the
release of certifications issued to clients who have imported items abroad. To be clear
the legal division uses these categories in clearing certifications:

1. A “one-time” only certification for goods personal in nature

2. Where a client has a pending Import License Application and his license is not
processed on time at no fault of the client, and his goods are already at the point
where it will be prejudiced at the port of entry for being unable to present any
permit from the agency.
3. When the goods are to be used exclusively for Scientific, Spiritual, Medical,
Educational or Artistic purposes.
4. When it involves National Security, e.g. storage devices of voting machines
during elections

The purpose in being strict with certifications is to prevent the use of it by

“enterprising” entities who would choose to skimp the payment and requirements of
acquiring an Import License and Import Permits. We owe it to our stakeholders, (those
who are licensed importers) to protect them from these nefarious individuals who need
not secure any supply contracts from their suppliers abroad and would end up selling
their items cheaper than those who are licensed with us. After all what is the incentive
for those wishing to acquire an Import License when they can easily secure
certifications.

We have encountered numerous instances, where those applying for certification

would always declare the same for personal use even though they are importing
quantities that are obviously commercial in scale, some even apply for certification
multiple times in different dates with different way bills. As an example whatever
happened to those claiming they are merely collectors of Kpop albums who buys
massive quantities of CD’s and had filed numerous complaints for the delay in the
release of their certification? Did they suddenly stopped being collectors? Or is the
demand for Kpop albums down and they suddenly shifted to importing USB hardware
devices for their crypto currencies which is in high demand at the present? These
factors show that most of these certifications are being abused for proprietary gain in
the guise of “personal use” to the chagrin of our legitimate stakeholders.

Applications are Initiated at the RLD wherein they will forward the same to the
EDO. The EDO would in turn approve the LOI and return the same to the RLD, where
the RLD would forward the same to the LD for clearance. Throughout this process
some certification reaches the LD days even weeks since the same was initially received
through the RLD. But whenever clients would follow up on their request, they will
always be directed to follow up the same to the LD, making it appear that the delay all
throughout was due to the LD’s strict screening of these clearances. Hence it now
appears that the LD is responsible for all these incoming complaints.

First of all, prior to reaching the LD, no screening process is being done as to these
applications, it would seem that the RLD and the EDO receives and approves all of
these ministerially without regard for the number of times a particular individual or
entity had applied for the same or as to the quantity being imported in these
certifications. All these applications winds up at the LD regardless of the circumstances
in the certification. That is why the LD took it upon itself to screen the same.

So as to erase the notion that these complaints should be directed at the LD, the
undersigned had advised the staff at the LD to only check if the applicant individual or
corporation has a pending case with the LD there being none the LD will ministerially
issue the necessary clearance for these certifications. Note that this clearance only means
that the subject application has no pending case/s before the LD. Any future complaints
from these applicants or stakeholders should be directed elsewhere.

For your perusal

Atty. Cyrus Paul Valenzuela

Chief-LD