DTI Certificate of Exemption: Requirements and Application Process

The Department of Trade and Industry (DTI) in the Philippines regulates both domestic and imported goods to ensure they meet quality and safety standards. One way they do this is by issuing a DTI Certificate of Exemption. This certificate allows businesses and importers to operate without mandatory product certification, given that specific conditions are met. This is especially relevant for products not on the List of Products Under Mandatory Certification, which includes products with potential safety or health risks that need certification to ensure they meet Philippine National Standards (PNS) or other international standards.

The DTI Certificate of Exemption requires an application with product details like technical specifications, intended use, and supporting documents showing compliance with standards. The DTI evaluates the application and may conduct inspections or testing. The certificate is valid on a per-shipment basis and must be obtained for each specific product dispatched, as it is a requirement for the release of that particular shipment.

Understanding the Purpose of DTI Certification Schemes

The DTI’s certification schemes play a crucial role in safeguarding consumer welfare by ensuring that products meet stringent quality and safety standards. These programs are designed to protect the public from substandard and potentially dangerous products that could otherwise find their way into the market. Through rigorous testing and standardization, the DTI helps maintain the integrity of the marketplace and ensures that consumers can trust the products they purchase.

By mandating that certain products undergo certification, the DTI effectively creates a barrier to entry for products that fail to meet established benchmarks. This not only protects consumers from harm but also fosters fair competition among businesses, as all products must adhere to the same rigorous standards. Moreover, these certification programs help build consumer confidence, as they provide assurance that products have been independently verified to be safe and reliable.

In the absence of such measures, the market could be flooded with inferior and potentially hazardous products, posing significant risks to public health and safety. Consumers would have no way of knowing whether the products they were buying were safe or not, and unethical businesses could exploit this lack of information to sell substandard goods. The DTI’s certification schemes therefore, play a vital role in maintaining market order and protecting the public interest.

Types of Mandatory Product Certification Schemes

The Bureau of Philippine Standards (BPS) under DTI implements two types of mandatory product certification schemes:

1. Philippine Standard (PS) Quality and/or Safety Certification Mark Licensing Scheme

• This certification applies to local and foreign manufacturers.
• To obtain a PS Mark, a product must comply with PNS ISO 9001 and other applicable product standards.
• Once a product is approved, it receives a PS Mark, which serves as a seal of approval from the Bureau of Philippine Standards.
  

2. Import Commodity Clearance (ICC) Certification Scheme

• This certification is specifically for importers.
• Products must undergo testing and inspection at a BPS Testing Laboratory or a BPS-accredited third-party laboratory.
• If the product meets Philippine standards, it receives an ICC sticker, signifying that it has been approved by the Bureau of Philippine Standards.

These certification schemes ensure that imported and locally manufactured goods meet safety and quality benchmarks, preventing the sale of substandard products in the country.

What is a DTI Certificate of Exemption?

A DTI Certificate of Exemption is issued to businesses or importers who qualify for an exemption from mandatory product certification. This means that certain products, under specific conditions, do not require the PS Mark or ICC sticker. The Certificate of Exemption allows businesses to operate without the need for a full certification process, provided they meet the criteria set by the DTI.

Who Needs a DTI Certificate of Exemption?

The following entities are eligible to apply for a DTI Certificate of Exemption:

• Importers of goods not covered by mandatory product certification: This includes products that do not fall under the jurisdiction of the Bureau of Philippine Standards (BPS) or are not listed as requiring mandatory certification.
• Companies handling limited quantities for specific purposes: This covers businesses that import or deal with limited quantities of specific products for research, testing, evaluation, or other non-commercial purposes. These activities should not involve the sale or distribution of the product in the open market.
• Businesses meeting BPS exemption criteria: Certain businesses may be exempt from mandatory product certification if they meet specific criteria set by the BPS. These criteria may include the type of product, the nature of the business, or the intended use of the product.

Additional Considerations:

• Product Classification: It is crucial to correctly classify your product to determine whether it requires mandatory certification. The Bureau of Philippine Standards (BPS) provides a list of products under mandatory certification, which may be accessed directly through the DTI website, and you should consult this list to see if your product is included.
• Exemption Process: The exemption process may vary depending on the specific product and the reason for the exemption. It typically involves submitting an application to the DTI, along with supporting documents, and paying the required fees.
• Consultation with DTI: If you are unsure whether your product or business activity requires an exemption, it is strongly recommended that you consult with the DTI or the BPS before importing or distributing your product. They can provide guidance on the requirements and help you determine the appropriate course of action.

Remember that importing or distributing products without the necessary certifications or exemptions may result in penalties, fines, or confiscation of the goods. Therefore, it is essential to comply with the regulations to avoid any legal consequences.

Documentary Requirements for a DTI Certificate of Exemption

To apply for a DTI Certificate of Exemption, which is required for importing products not included in the List of Products Under Mandatory Certification, applicants must prepare and submit several documents. These documents serve to verify the legitimacy of the business and the details of the products being imported. The specific requirements are as follows:

Basic Documentary Requirements

1. Packing List: This document provides a detailed list of the contents of the shipment, including the type and quantity of each product.
2. Import Entry: While not required during the initial application, this document is essential for the release of the Exemption Certificate. It serves as proof that the goods have been legally imported into the country.
3. Commercial Invoice: This is a bill that outlines the details of the transaction between the buyer and seller. It includes information such as the price of the goods, the terms of payment, and the shipping details.
4. Bill of Lading or Airway Bill: This document serves as proof of shipment and contains details such as the carrier, the origin and destination of the shipment, and the date of shipment.
5. Summary of Batch Numbers or Serial Numbers of Products: This information is used to track specific batches or lots of products, which can be important for quality control and recall purposes.
6. DTI Business Name Registration: This is required for sole proprietorships and serves as proof that the business is registered with the Department of Trade and Industry.
7. SEC Certificate of Incorporation: This is required for corporations and serves as proof that the business is legally incorporated.
8. Special Power of Attorney (SPA): This is required for sole proprietorships when an authorized representative is applying on behalf of the owner. It grants the representative the legal authority to act on behalf of the owner.
9. Board or Partner’s Resolution: This is required for corporations and partnerships and authorizes a specific individual to apply for the certificate on behalf of the company.
10. BIR Importers Clearance Certificate or BOC Importer Certificate: These certificates verify that the importer is compliant with tax and customs regulations.
11. Current Proof of Billing: This is required for both the office and warehouse locations and serves as proof of the company’s address.
12. Surety Bond: This may be required for certain types of products and serves as a guarantee that the importer will comply with all relevant regulations.

By carefully preparing and submitting these documents, importers can ensure a smooth and efficient process for obtaining a DTI Certificate of Exemption.

Additional Notes:

• All photocopied documents must be certified true and correct by an authorized signatory of the applicant company.
• Some products may require additional supporting documents based on their nature and use.