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Status of Duty Free Philippines
« on: March 31, 2018, 03:29:01 PM »
REP. SALVADOR B. BELARO, JR.
1-Ang Edukasyon Party-list
Assistant Majority Leader
Member, Higher and Technical Education and 10 other committees

REP. BELARO: DOWNGRADE DUTY FREE PHILIPPINES TO AN OFFICE OR MERGE WITH TIEZA

Given the current and future economic environment in the country, Duty Free Philippines Corporation (DFPC) can even be considered a competitor of local businesses, especially the shops catering to tourists foreign and domestic.

It is a competitor with built-in duty-free advantages—a situation that is unfair to local merchandise shops which are after the same tourists as customers and clients.

Minus the irrelevant purposes and diminished roles, what remains of some value is its support role in tourism promotions and tourist services.

Now that the duty free shops are in support role mode, I am inclined, as Member of the House Committee on the Revision of Laws, to support its merger into the TIEZA (Tourism Infrastructure and Enterprise Zone Authority) or its downgrading to an office attached to the Tourism Promotion Board.

Recent developments at the DFPC have made me support House Resolution 1742. Serious allegations of bidding irregularities, supply and delivery contract extensions involving millions of pesos made a number of House Members, including this Representation, call for an investigation of DFPC.

Recurring audit findings by the Commission on Audit also compel the House to undertake a very detailed probe of Duty Free Philippines' operations. DFPC is supposed to remit earnings to the Department of Tourism. The audited reports show remittance problems year after year. (END)

BACKGROUNDER: http://www.officialgazette.gov.ph/2009/05/12/republic-act-no-9593-s-2009/

Chapter VI
SECTION 90.         Mandate. — The DFPC shall be a body corporate to operate the duty- and tax-free merchandising system in the Philippines to augment the service facilities for tourists and to generate foreign exchange and revenue for the government, as established by the Department under Executive Order No. 46.

Rep. Salvador Belaro, Jr. is one of the authors of House Resolution No. 1742 urging the House Committee on Good Government and Public Accountability to conduct an investigation in aid of legislation into the supply and delivery agreements allegedly entered into by Duty Free Philippines Corporation without public bidding close to the end of the Noynoy Aquino administration.

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