SOP Exhibits

Title:

Annex 1-NFA Requirements - Operate a Franchised Bonded Warehouse

SOP Number : BR-QM03

ANNEX 1

NFA Requirements for Licensing/Issuance of Franchise
to Operate a Franchised Bonded Warehouse
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A. Individual - Three copies of each of the following:

*1. Passport size pictures of applicant
2. Police Clearance
3. BIR Clearance
4. RTC Clearance where the applicant resides or has his principal place of business.
*5. Income Tax Return for immediately preceding 3 years with BIR official receipt and
bank confirmation receipt.
*6 Financial Statement for immediately preceeding 3 years.

a. if capitalization is P25,000.00 or more it should be certified by a CPA
b. if capitalization is below P25,000.00, financial statement submitted to and
duly stamped received by BIR is sufficient.

B. Entities (Corporation, Partnership, Cooperatives, Associations, etc.) - Three copies of each
of the following:

*1. Passport size pictures of authorized representative
2. Police Clearance of authorized representative
3. RTC Clearance of authorized representative
4. BIR Clearance of the corporation
*5. Corporate Financial Statement for immediately preceding 3 years duly certified by a CPA,

a. For cooperative with capitalization below P25,000.00
Financial Statement should be certified by the President of the Cooperative
*6. Corporate Income Tax Return for the last 3 years.
*7. Certified true copy or photostat copy of:

a. Articles of incorporation/articles of partnership/articles of cooperative and all
amendments thereto if any with specific provision to engage in warehousing
and enter into loan agreement
b. Constitution and by-laws and all amendments thereto if any
c. Registration Certificate from SEC/MLG/BCOD/FSDC
*8. Resolution of the Board of Directors and/or stockholders (where stockholding vote is
required by law) certified under oath by the Corporate Secretary, listing the incumbent
officers and principal stockholders.

C. Additional Requirements

*1. Proof of citizenship of applicant
*2. If applicant is an estate, Court Order appointing the Special Administrator/Administrator/
Executor and Court Order authorizing the duly appointed Special Administrator/Administrator/
Executor to contract loan.
*3. Proof of ownership and/or leasehold rights over warehouse/mill such as Transfer Certificate of
Title, Tax Declaration, Contract of Lease.

3.1 If property is owned by several individuals, Special Power of Attorney to be executed
by co-makers authorizing applicants (co-owner) to manage warehouse/ricemill and apply
for franchise.
4. Blue print, drawn to scale, warehouse plan (floor plan, front and side elevation plan) of all
bonded warehouses utilized in the grains business duly certified by a registered engineer/architect.
Indicate on the floor plan the materials used, actual space occupied by machine, office space other
merchandise storage, etc., and the portion applied for quedan financing, if not completely bonded.

5. Drawn to scale sketch plan (floor front side) of other warehouses utilized in the grains business
indicating therein the portion not utilized as grain storage.

6. Location/vicinity plan of warehouses utilized in the grains business.

7. Two (2) postcard size pictures of warehouse/mill.

8. Schedule of charges for storing grains and grains substitute

9. Duly calibrated weighing scale.

10. Moisture tester

11. Dry seal/impression of dry seal to be submitted by applicant after approval of franchise.

12. Adequate pest control measures to maintain the quality of the grains and their substitutes.

13. Fire extinguisher

14. Solar drier or mechanical drier

15. Warehouse should be rodent and birdproof

16. Fixed partition with separate doors from outside of the warehouse to prevent the comingling
of bonded and non-bonded stocks. Fixed partitions made of strong materials shall not be
limited concrete partitions but may also be a wall or separating medium made of wood,
galvanized iron, lawanit, hog wire, sawali, or similar materials with no door or opening except
slats with narrow spaces in between for ventilation purposes. (Ref. IDM No. DGBR-E-209).

17. Walled partitions segregating the different commodities i.e. grains and grains substitute
stored in one warehouse.

18. Signboard measuring at least 75 cm. in width and 135 cm in length, bearing his name or
business name, license number and certificate of franchise number (to be secured after
approval of application for franchise).

19. Bonds and insurance for storage in favor of NFA per Revised Rules and Regulations (to be
secured after approval of franchise)

20. Franchise fee of P300.00 per warehouse.

D. To be prepared by RLO/Provincial Investigator/QGFB - Operations Officer and submitted together with
the application for franchise.

1. Certified xerox copies of application for license for immediately preceeding three (3) years
of duplicate copies of license of bonded warehouseman. (N.B. If previously non-bonded,
require applicant to fill up Annex for warehousing-bonded and note down payments made
in non-bonded warehousing and attach to xerox copies of application form.

*2. Facility Inspection Report.

*3. Comprehensive background/credit investigation complete with bank verification.

4. Inspection sketch of warehouse showing fixed partition (if any) and portion applied for quedan
financing.

5. Statement of accounts/Provincial Clearance from the Provincial Auditor and signed by
Provincial Manager if Miller Contractor.


* To be forwarded to DELA

(Note: Xerox copies - Certified True Copes)