Duty Free Philippines Corporation.
Section 89
SEC. 89. Duty Free Philippines Corporation. — The Duty Free Philippines shall be reorganized to become the Duty Free Philippines Corporation (DFPC), which shall be attached to the Department.
RA 9593 (The Tourism Act of 2009) CHAPTER VI
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.・Read the official text ↗
Mandate.
Section 90
SEC. 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. In the performance of its functions, the DFPC shall have all the general powers of a corporation established under the Corporation Code, in furtherance of its charter. The DFPC shall have the exclusive authority to operate or franchise out stores and shops that would sell, among others, duty- and tax-free merchandise, goods and articles, in international airports and seaports, and in TEZs and ports of entry throughout the country in a manner that: Is competitive with international standards; Effectively showcases Philippine culture, craftsmanship and industry; and Efficiently and effectively generates foreign exchange. Such merchandise, goods and articles shall only be sold to persons departing for abroad. Under such limitations, rules and regulations that may be provided by the Department and in consultation with the Department of Finance (DOF), such merchandise, goods and articles may be sold to passengers arriving into the Philippines from abroad, including those covered by the existing Balikbayan Program, under Republic Act No. 6768, as amended. The DFPC shall likewise be authorized to operate stores and shops within the immediate vicinity of international airports and seaports to service the requirements of the international duty-free market. The DFPC shall operate without prejudice to any privatization in the future, subject to existing laws on privatization and procedures on public bidding.
The DFPC Board of Directors.
Section 91
SEC. 91. The DFPC Board of Directors. — The DFPC shall be governed by a Board of Directors, composed as follows: The Department Secretary, as Chairperson; The Chief Operating Officer of the DFPC, as Vice Chairperson; The DOF Secretary; The DTI Secretary; and Three (3) representative directors, to be appointed by the President, upon the recommendation .of the Tourism Congress, who must be Filipinos with recognized competence in business management, marketing, finance, tourism and other related fields and shall serve a term of office of three (3) years, which term may be extended for a period not exceeding three (3) years: Provided, That there shall be no conflict of interest in any matter concerning the operations of the DFPC. The Secretaries of the DOF and the DTI shall each designate a permanent representative in the Board, who must possess relevant experience. The permanent representative shall be duly authorized to act on behalf of the Secretary in his or her absence. The Chairperson of the DFPC Board shall have voting rights in case of a tie. The DFPC Board shall appoint a corporate secretary whose functions shall include the preparation of agenda for board meetings, in consultation with the Chairperson.
The Chief Operating Officer.
Section 92
SEC. 92. The Chief Operating Officer. — The DFPC shall have a Chief Operating Officer who must be a Filipino, with a bachelor's degree in any of the following fields: business, law, tourism, public administration or other relevant fields and have demonstrated expertise therein. He or she must have been engaged in a managerial capacity for at least five (5) years prior to his or her appointment. He or she shall be elected by the Board from a list of qualified applicants and appointed by the Secretary, and shall have a term of office of six (6) years, unless removed for cause in accordance with law.
Capitalization and Funding.
Section 93
SEC. 93. Capitalization and Funding. — The DFPC shall have an authorized capitalization of Five hundred million pesos (Php500,000,000.00) which shall be fully subscribed by the national government. A minimum of fifty percent (50%) of the annual net profits of the DFPC shall be remitted automatically to the Office of the Secretary to fund tourism programs and projects, in lieu of its statutory remittance to the national government under Republic Act No. 7656, seventy percent (70%) of which shall be given to the TPB.
General Powers and Functions of the DFPC.
Section 94
SEC. 94. General Powers and Functions of the DFPC. — The DFPC Board shall have the power to sue and be sued; to contract and be contracted with; to own and hold such real and personal property as shall be necessary for corporate purposes; to receive real and personal property by gift, devise or bequest; to adopt a seal and alter the same; to adopt bylaws, rules and regulations; to exercise all the general powers of a corporation under the Corporation Code; and to perform all such acts as may be necessary to carry out this section.
Duty and Tax Exemptions.
Section 95
SEC. 95. Duty and Tax Exemptions. — Consistent with the nature of its operations and primary function to operate as a tax- and duty-free merchandising system, and to enable it to compete in the international tax- and duty-free market, DPPC shall be entitled to exemption from the following: Duties and taxes, including excise and VAT, relative Local taxes and fees imposed by the LGUs; and Corporate income taxation. to the importation of merchandise for sale;
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Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).