SOP No: GM-IM08

SOP Library

SOP NO: GM-IM08 (List of Exhibits/Attachments)

Mission: Technical Support Services

Area: Grains Marketing (GM)
Area: Grains Marketing (GM)

Activity: Importation (GM-IM)

Title: SOP on Import Operations

Date Approved/Issued: 11/27/1995

Date Effective: 12/01/1995

Digest:

I. TERMS OF REFERENCE

A. Rationale

B. Objective

C. Scope

D. Basis

II. IMPLEMENTING GUIDELINES

Operational Responsibilities of NFA Offices

Office of the Assistant Administrator for International Affairs (OAAIA)

a. OAAIAshall ensure that all offices involved in import operations discharge their functions and responsibilities properly within the required time schedule.

b. It shall monitor and coordinate the activities of each offices/departments involved in import operations to facilitate the whole process from negotiation up to the delivery of stocks to the first

terminal warehouse

Department for Marketing Operations (DMO)

a. DMO shall ensure that marketing operations related to import operation activities are done effectively including evaluation of required reports for management information and decision making function.

b. The Foreign Operations Division (FOD) shall ensure that the required documents and pre-vessel arrival coordination are undertaken particularly the following:

b.1 Ensure that shipping documents are transmitted within reasonable time before vessel arrival.

b.2 Request Department of Finance/Bureau of Customs to honor FAX copies of shipping documents and allow processing of permit with assurance that original copies shall be submitted immediately when available and/or within 30 days after vessel arrival.

b.3 Advise disport the name of vessel agent and/or contact person.

b.4 Update disport of final

despatch

earned/

demurrage

incurred when available.

b.5 Accomplish the Import Entry Declaration for signature of DMO Director.

b.6 Furnish DTBFM prerequisite documents to facilitate payment for importation (cash payment/LC or loan term).

b.7 Immediately inform the DTBFM and other offices concerned of any changes in transaction and terms of agreement (e.g. additional insurance premium for overage vessels) to effect appropriate adjustments.

FOD shall likewise be the central coordinating unit for the whole NFA unloading operations of imported stocks for efficient unloading operations.

c. The Operations Planning Division shall ensure that requests for hauling, handling, warehousing, stevedoring/integrated services, and

arrastre

rates are acted upon immediately (within the earliest possible time) so as not to hamper import operations.

d. The Operations Coordination Division shall coordinate and act on matters pertaining to storage, warehousing, logistics, dispersal and distribution of imported stocks.

e. DMO shall evaluate/recommend for approval fund requirements submitted by NFA Field Offices identified disports.

f. DMO shall recommend authority for payment of

overtime services of personnel involved in the import operations.

Technology Resource and Services Department (TRSD)

3.1 TRSD shall monitor and evaluate compliance of technical services personnel to the quality inspection and assurance procedures during pre-unloading and unloading of imported stocks. It shall submit unloading reports relative to the quality assurance operations for the imported stocks.

TRSD in coordination with DMO shall advise all concerned of a standard Variety code, MTS weight and MTS code to be utilized by the field offices and shall ensure that these are available to the disport prior or during unloading operation. The MTS weight shall be the container weight indicated in the B/L of every vessel loaded for a particular importation that will be provided by DMO.

3.2 TRSD in coordination with the field offices designated as diport for imported stocks shall see to it that weighing equipment like truckscales and platform scales whether NFA owned or private owned, which will be utilized in the unloading operation shall be verified/calibrated before their usage.

Department for Treasury, Budget and Fund Management (DTBFM)

4.1 Secures Certificate of Exemptions from payment of custom's duties and taxes from NEDA/Department of Finance upon receipt of appropriate authorization to import from DMO. Likewise, facilitates availment of tax subsidies for NFA importation, if applicable;

4.2 Ensures that the Performance LC has been posted by the supplier as required in the contract;

4.3 Facilitates prompt payment based on the terms of the contract;

4.4 For foreign loan funded importation, secures approval in principle of the Monetary Board thru the Bangko Sentral ng Pilipinas (BSP);

4.5 Monitors negotiationofLCby the supplier; and

4.6 Ensures that the funds relative to unloading operations of imported stocks are remitted immediately upon receipt of recommendation by DMO.

Department for Accounting (DA)

Evaluation of field office financial reports on actual expenses incurred shall be effected by the DA for subsequent reporting to the Administrator.

Special Projects Office (SPO)

SPO shall be responsible for securing marine insurance coverage for all NFA imported stocks except for those bought under CIF terms.

Regional Office with Import Unloading Operations

The Regional Office shall monitor all preparations for unloading operations of imported stocks as well as related dispersal and distribution activities,budget requirements and all other related activities of the Provincial Offices under its jurisdictions.

It shall also ensure the Provincial Office's prompt and regular compliance to report requirements, documentation and accounting policies/procedures.

Provincial Office with Import Unloading Operations

The provincial offices designated as disport for imported stocks shall efficiently and effectively implement the policies and procedures herein provided relative to unloading, dispersal, warehousing and distribution of imported stocks. It shall also comply promptly with the reporting system required forimport operations. Necessary coordination with offices concerned shall be immediately undertaken to facilitate actions relative to import operations.

Specific Functions of Provincial Ports Operations Group

1. A Ports Operations Group for provincial offices designated as disports for imported stocks shall be created by the Provincial Manager or Officer-In-Charge through an Office Order. Organizational chart of the field office officials and personnel involved in import operations is given in

Annex B

. Composition of the group with specific duties and responsibilities covering all phases of import operations activities shall be as follows:

1.1

Chief Import Operations Officer (Provincial Manager or Officer in Charge)

a. Prepares import operations plans and programs at the provincial level complementary to those set at the national level.

b. Supervises and coordinates directly the overall import operations covering all phases of activities from the pre-arrival up to the post-unloading.

c. Responsible for the preparatory stage of import operations:

c.1 Arranges pre-planning conference with concerned agencies such as Maritime Industry Authority (MARINA), Philippine Ports Authority (PPA), Bureau of Customs (BOC), Bureau of Plant Industry (BPI), Quarantine and other agencies; trucking; labor; and shipping agent representatives;

c.2 Facilitates receipt of contract of sale, Duties and Tax Exemption Certificate and other pre-arrival required documents from DMO;

c.3 Facilitates receipt of formal notification of the Estimated Time of Arrival (ETA) of vessel

carrier

from the shipping company or FOD-DMO;

c.4 Determines the manpower requirement and designates personnel with specific assignments, duties and responsibilities relative to import operations;

c.5 Sets-up an import operation control unit and notifies formally the following:

Arrastre

/Stevedoring Services;

ii. Labor/Trucking Contractor;

iii. Security Services; and

iv. NFA Receiving Warehouses.

c.6 Ensures availability of necessary facilities, equipment, and supplies such as communication, transportation facilities, accountable forms, empty sacks, and others;

c.7 Arranges implementation of necessary quarantine/customs procedures; and

c.8 Signs Consumption Entry and

Notice of Readiness

d. Responsible for overseeing the documentation, unloading and post-unloading operations to ensure efficiency and effectiveness.

Import Operations Officer (Asst. Provincial Manager/Senior Grains Operations Officer - Provincial Operations Officer/Ports Operations Officer)

a. Supervises and coordinates directly the different phases of operations within the port area;

b. Assigns checkers, issuers of unloading receipt, gate pass keeper, security officers and other personnel. Sets their shifting schedules;

c. Facilitates the filing of entries at the Bureau of Customs (BOC) and performs liaison job for the NFA in coordinating with transportation/labor contractors, BOC, PPA and other agencies in the port area;

d. Collects, consolidates and checks the Ports Operation Control Station (POCS) tally sheets with the checker's tally sheets and unloading receipts at the end of every shift. Prepares a progress report for the Provincial Manager on the progress of the unloading operations;

e. Certifies the correctness of the Daily Unloading Report based on tally sheets and URs;

f. Coordinates and witnesses the opening of

hatch

es in the presence of representatives of the private integrated service contractors, shipping company and security escorts, and conducts visual inspection of the cargo;

g. Ensures that all cargoes such as sweepings, damaged stocks, etc... are unloaded before release of the vessel;

h. Notes cases of damaged stocks in the Unloading Receipt;

i. Files protest/advises the concerned party such as vessel'smaster,

carrier

's representative/agent, contracted labor etc... (cc: DMO) cases or conditions observed or encountered during unloading operations which do not conform with the terms of agreement;

j. Ensures that the Letter of Protest is properly logged and received by the party concerned which shall explicitly describe the situation and cite actions required;

k. Checks the Statement of Facts (SOF) prepared by the Shipping Agent and countersigned by the Master of the Vessel and reconciles records between NFA and

carrier

before signing the SOF. In case he does not agree with the contents of the SOF, signs SOF under protest indicating the reasons and makes sure that additional entries to the SOF are countersigned by the Vessel's Master and Agent;

l. Discharges exact quantity allotted at the first disport prior to allowing the vessel to sail to the second disport to avoid acts of underguarding;

m. Reports to the Provincial Manager matters and information such as discovery of damaged stocks and other findings which may negatively affect NFA interest; and

n. Performs other related tasks necessary and that which may be assigned.

NFA Checker (For Pierside Unloading Operations Only)

a. Checks, counts and reconciles the actual number of bags per sling unloaded from the different hatches;

b. Records the actual number of good bags, in bad order and damaged stocks unloaded from the vessel on the tally sheets;

c. Checks and counts the total number of bags loaded to the trucks;

d. Submits accomplished tally sheets to the UR issuer immediately after completion of truck loading;

e. Coordinates with the truck operators for the speedy turn-over of the haulers to and from the customs zone; and

f. Performs other related duties that may be assigned.

Unloading Receipt

Issuer (For

Pierside Unloading

Operations Only)

a. Verifies NFA checker's tally sheets;

b. Prepares unloading receipt; and

c. Performs other duties that may be assigned

Security Officer

a. Maintains file of guard's stubs (unloading receipt portion);

b. Checks gate pass serial number;

c. Counter-checks the truck number and truck driver against the list of authorized trucks/drivers provided by the Integrated Services contractor;

d. Releases and dispatches loaded trucks to the truckscale; and

e. Performs other duties that may be assigned.

Gate Pass Processor

a. Secures cargo gate pass form from the

arrastre

contractor for processing and approval of PPA and BOC; and

b. Presents approved gate pass together with the UR to the security office to release truck.

Posting Clerk

a. Maintains POCS tally sheets;

b. Verifies processed URs, CDPs and GPs issued to the truck driver;

c. Keeps file of checkers' tally sheets for shipside operations verified against

Bill of Lading

;

d. Prepares a Capsule Report of discharged stocks after every end of the shift and/or if when required;

e. Assists in the consolidation and preparation of quantitative reports after every end of the shift; and

f. Performs other duties that may be assigned.

Quality Assurance Officer

a. Coordinates with BPI representatives concerning qualilty inspection prior to unloading; and

b. Responsible for quality inspection prior to unloading and during unloading and post-unloading and ensures that proper procedures on samplingand its submission to the right office/s are carried out per item of this SOP.

Quality Assurance and Inspection Procedures

Prior to Unloading (Upon Arrival of Vessel)

a. The Quality Assurance Officer (QAO) shall coordinate with the Plant Quarantine Officer (PQO) of the Bureau of Plant Industry on the latter's schedule of inspection and sampling. The QAO shall inquire on the total number of

hatch

es and the quantity of stocks per

hatch

. He shall likewise verify the Phytosanitary Certificate covering the shipment;

b. On opening of the hatches, the QAO together with the PQO shall conduct initial inspection on board vessel to check the general condition of the shipment as to presence of:

b.1 live insect pests;

b.2 water damaged stocks;

b.3 molds on the surface of the containers; and

b.4 contaminants.

c. If any of the above conditions have been observed, the QAO shall immediately coordinate and report the findings to the Import Operations Officer who shall file protest/advise the concerned party within 24 hours after detection;

d. If none of the above conditions have been observed and the shipment is generally in good condition, initial samples (primary samples) shall be taken at random from the top portion per

hatch

following the standard sampling procedures;

d.1 All primary samples shall be combined and mixed thoroughly in a container to obtain a composite sample;

d.2 The composite sample shall again be mixed thoroughly and reduced by quartering method to obtain at least a two-kilogram representative sample; and

d.3 The representative sample shall represent the quality of the stocks at the top portion of the

hatch

from where it was taken. Said samples shall be properly labelled and sealed prior to submission for laboratory analysis.

e. From the composite sample, determine the moisture content of the stocks. In the event that the moisture content reading is more than that specified in the contract, the stocks shall be unloaded and segregated and the following courses of action shall be undertaken:

e.1 Immediately coordinate and report the findings to the Import Operations Officer who shall call the attention/file protest/advise the concerned party;

e.2 Prepare a report to be submitted to the Provincial Manager cc: TRSD and DMO; and

e.3 Properly sealed samples shall be submitted to the nearest laboratory capable of analyzing MC using air-oven method.

f. If the presence of any of the mentioned conditions have been observed like:

f.1 Presence of Live Insects

f.1.1 Rejection or fumigation of the cargo by the NFA shall be determined by the identification to be made by Plant Quarantine Officer (PQO) of the insect species, whether exotic or cosmopolitan and extent of infestation.

f.1.2. The Provincial Office shall undertake the following courses of action according to the findings of the Plant Quarantine:

a. If any or all of the

hatch

es are found lighty infested with a cosmopolitan insect specie, the stocks shall be unloaded and re-fumigation shall be done at the warehouse by NFA Pest Control Officers. All expenses incurred during re-fumigation shallbe computed to be charged against the account of the liable party (seller/charter/vessel owner). Fumi-gation costs shall be submitted to DMO/TRSD.

b. If the stocks are found to be moderately to heavily infested, unloading shall be suspended and re-fumigation shall be done on board vessel or

barge

by a licensed third party fumigator appointed by the seller/vessel owner or consignee, if the condition so warrants. All expenses for the account of the seller/vessel owner. Re-fumigation shall be witnessed by NFA Quality Assurance personnel (PCO, QAO).

c. If the insect species present belong to the internationally restricted species, e.g. Trogoderma granarium, the entire shipment shall automatically be rejected.

d. Approval of any of the above courses of action shall be the responsibility of the Provincial Manager/OIC upon recommendation of the QAO.

f.2 Presence of Contaminants

f.2.1. In case the shipment is suspected to be contaminated with chemicals, the QAO shall determine the extent of contamination and gather information from the Master of the vessel as to the nature and kind of chemical contaminant. He may get the technical expertise of the Bureau of Food and Drug or the Department of Health,if available and necessary. The QAO shall take representative samples of the contaminated/affected stocks. He shall immediately coordinate with the Import Operations Officer and report the matter to the Provincial Manager for the latter's information in filing a protest against the vessel owner/agent within 24 hours and in sending a radio message to DMO-FOD and TRSD-QAD;

f.2.2. Regardless of extent of contamination, all the stocks shall be unloaded, isolated and piled "Under Protest" in a single warehouse. No further movement of stocks shall be made until results from laboratory analysis warrant it;

f.2.3. The QAO shall send immediately to TRSD-QAD by fastest means the representative samples of the contaminated stocks complete with the relevant technical information written on the sample label. Upon receipt of the samples, TRSD-QAD shall endorse them for urgent analysis to any ofthe following laboratories: FDA, FDC, BPI or other reliable chemical laboratories;

f.2.4. Based on the results of laboratory analysis, TRSD-CO shall recommend to DMO-FOD the course of action to be taken with regard to proper disposition of the stocks:

a. If the contaminant has toxic and hazardous properties which could endanger human health, example: napthalene, the contaminated stocks shall be rejected; and

b. If the contaminant is non-toxic and/or has no hazardous properties dangerous to human health, all contaminated stocks shall be segregated from unaffected stocks.

f.3 Presence of Water Damaged Stocks

f.3.1. The QAO shall take representative samples from both the affected and unaffected stocks and shall immediately send samples to TRSD-CO, for laboratory analysis. If molds are present on the stocks or on the surface of containers, samples shall be tested for aflatoxin.

f.3.2. If molds are not present on water-damaged stocks, representative samples shall be sent to the Regional laboratory for physical analysis.

f.3.3. The QAO shall determine the cause and extent of damage and the approximate quantity of affected stocks to be reported to DMO/TRSD and Field Offices for the filing of protest/insurance claim.

f.3.4. Damaged stocks shall be segregated from good stocks during unloading.

During Unloading

a. Sampling shall be undertaken in the middle and bottom portions per hatch during the course of unloading and all representative samples shall be submitted to the Regional laboratory for analysis.

b. If during unloading, presence of contaminated, infested or water-damaged stocks has been detected, the QAO shall submit samples for necessary tests and analysis, and shall immediately report to the Manager for proper action.

c. Should there be a problem encountered, the QAO shall prepare a report on the nature, cause, extent of the problem and quantities affected to be reported to DMO and TRSD. Progress reports/wires shall be sent to DMO and TRSD throughout the unloading.

d. At the end of the unloading operations,

unloading reports

(

Exhibit 1

) consisting of Summary of Analysis results of top, middle and bottom layer samples

shall be submitted to TRSD -C.O.

Other Import Operations Principles/Procedures

1. A new MTS code shall be issued by the TRSD for every importation activity to be undertaken by the NFA. Likewise, TRSD shall furnish the field offices the standard weight of MTS to be used for all transaction, which shall be equal to the container declared in the B/L of the first shipment, unless there is a change in the type and size of sacks used in the succeeding shipments.

2. Basis for "Laytime" which is subject to demurrage charges from the shipping company of the carrier shall be the provisions on the vessel's charter party/contract of supply, whichever is applicable. Reckoning of laytime and computation factors for demurrage charges shall follow those stipulated in the charter party/contract of supply.

3. All sweepings resulting from breakage and handling of cereal cargo shall be collected in dry containers and brought to the NFA

Terminal Warehouse

. Partially damaged stocks (sweepings and

bad order

s) shall be properly stated as to the actual number of bags in the corresponding URs.

4. The flow of the cereal cargoes between the Customs Zone to the different NFA

terminal warehouse

s shall be properly coordinated and watched for possible diversion of the loaded cargo. The Port Operations Officer shall determine the maximum running time of truck haulers in delivering cargo from the Port Area to the NFA Warehouses. The distance and proximity between the receiving warehouses and the pier besides the prevailing conditions in the area shall be major considerations in requiring security convoys for the haulers.

5. All personnel in the pier and the

terminal warehouse

s shall be instructed to report to their respective assignments

at least thirty (30) minutes

before the start of their scheduled shifts. Continuity of the operations shall ensure the expeditious discharge of cereal cargo. The outgoing Port Supervisor shall await the incoming Port Supervisor of the next shift before leaving his assigned position.

6. At the end of each shift, the Port Supervisor shall collect all the Checker's Slip with the POCS Tally Sheet and forward to the Port Operations Officer.

7. Criteria for selection of cargo handlers/integrated services to be implemented shall be based on the customary practice of the unloading port.

8. Proper representations to

arrastre

/stevedoring group shall be made as follows:

8.1 Efficient and effective coordination between the two parties;

8.2 Negotiate higher discharging rate than proposed by the group;

8.3 Arrange payment of integrated service fees based on actual quantity discharged or a lesser percentage of advance payment to avoid adjustments of payments; and

8.4 Work out that NFA be provided with discharge slips.

9. Statement of Facts (SOF) (

Exhibit 2

) shall be prepared by the Import Operations Officer for NFA records. It shall be a detailed summary of daily unloading activities per discharge port.

9.1 Each disport shall be required to prepare a daily SOF summarizing the daily unloading activities per vessel;

9.2 The accomplished SOF shall serve as a reference report to authenticate the shipping agent's official SOF prior to signing by the NFA representative;

9.3 The NFA-SOF shall form part of the duly signed report to be submitted to DMO-FOD; and

9.4 All contract deviations and abnormalities shall be indicated in the SOF (cc: DMO-FOD).

SOF preparation procedures in consideration of

despatch

demurrage

claims are detailed in GM-IM06, SOP on Demurrage and Despatch for Foreign Operations issued on January 1, 1989.

10.

Letter Protest

(

Exhibit 3

) shall be filed upon notice of irregularities indicating the condition "Under Protest". This shall cite the abnormalities and/or shortages as reported in the SOF attaching all pertinent documents (cc: DMO-FOD)

11. A

Certificate of Stocks Acknowledgment

(

Exhibit 4

) shall be prepared by the receiving Warehouse Supervisor (SGOO) indicating the name of vessel, B/L No., quantity per B/L, receiving warehouse, dates when stocks were received, quantity received and the details of the stocks received identifying the reference documents used.

Under the remarks column the condition of the stocks shall be indicated whether good, infested or water damaged and other information such as original containers, containers provided by disport, etc...

In cases of conflict in the quantity recorded between disport and warehouse, the dispersal committee shall within 24 hours upon notice of conflicting figures review supporting documents and settle discrepancies.

12. Shipside and

pierside unloading

transfers of imported stocks shall follow the policies, procedures and documentation for a technical (TITO) transactions. These procedures are provided under the SOP No. GM-DL04 on Dispersal Monitoring and Reconciliation System dated December 1, 1991.

Reporting System

Daily Status of Unloading Operations

(

Exhibit 5

)

This shall be accomplished by the disport for submission to DMO-FOD (cc: Regional Office). This shall reflect the rate of unloading from the vessel to the pierside/shipside and the volume of stocks unloaded including irregularities/delays in unloading.

Daily Report of Acknowledged Receipt of Imported Stocks (

Exhibit 6

)

This shall be accomplished by the receiving province based on the Certificate of Stocks Acknowledgment submitted by the warehouses. This shall reflect the quantity received per warehouse and the conditions of the stocks received with references.

Weekly Fund Disbursements Report for Importation Related Expenses

Expenses incurred related to import operations shall be reported in the Weekly Summary of Fund Receipts, Disbursements and Balances submitted to DTBFM.

Vessel Terminal Report

(

Exhibit 7

)

The terminal report shall be a comprehensive narrative report of each vessel which takes into account the activities involved from the vessel's arrival up to the time vessel completed discharging.

This shall be submitted to DMO-FOD within 7 days after completion of unloading/discharging activities.

Importation Terminal Report

This shall be submitted by the DMO - FOD through OAAS to the Administrator within 30 days after completion of all unloading operations. This shall reflect for volume unloaded per disport, discharging period,

demurrage

despatch

, problems encountered and actions taken.

Accounting Treatment

1. The following accounts shall be used to record the importation:

1.1 General Ledger - Inventory : 8-72-360

- Sales : 1-57-700

- Cost of Sales : 3-22-700

1.2 Subsidiary Ledger - Inventory : 8-72-360.--*

- Sales : 1-57-720

(Imported

Cereal)**

- Cost of Sales : 3-22-720

(Imported

Cereal)**

1.3 Activity Code

- For Administrative/ : Activity

Operating expenses: code

assigned
by DA

- For Inventory Cost (Disport

area) Importation : 102

- For Inventory Cost : 109

2. The existing cost accounting procedures shall be followed. All direct expenses (imported cost and transfer-in expenses) such as

arrastre

, stevedoring, handling, freight and other expenses to bring the inventory to the first

terminal warehouse

shall be charged to inventory cost. Disport provinces shall capitalize importation expenses to the Inventory

* Refer to Imported Cereal Numeric Coding to

be assigned by DA

** Refer to Imported Cereal Alpha Coding to be assigned by DA Account while receiving provinces of dispersal transactions shall capitalize transfer-in expenses to the inventory account.

3. The charging of expenses to inventory cost or operating expenses during dispersal shall follow existing procedures. Dispersal expenses shall be chargeable to the issuing province under administrative/operating expense activity code which DA will provide for every importation, and expenses incurred from vessel up to the first

terminal warehouse

s shall be chargeable to the receiving province under activity code 109 (Transfer-In).

4. All administrative and operating expenses pertaining to the importation shall be summarized in the activity code which DA will provide for every importation for monitoring of expenses and preparation of the Profit and Loss Statement.

These expenses shall include personal services, supplies and materials and other expenses incurred for the dispersal, warehousing and distribution of the imported stocks.

5. To ensure immediate disposal (dispersal and distribution activities) of the imported stocks, the provincial office may temporarily suspend local operations and concentrate all operations to the imported stocks. In such case, all administrative/operating expenses (including rentals, light and water, telephone, subscriptions,all expenses on personal services,etc.) incurred by the concerned Provincial Office shall be charged to the Imported stock transactions and classified under it expense activity code. However, expenses directly related to local operations such as rental of warehouses containing local grains and the related expenses on in-warehouse transactions shall be charged to general operations.

6. A separate stockcard shall be maintained for every Imported stock to differentiate it from other imported items.

7. Strict adherence to existing SOP on accrual accounting shall be observed particularly on those accrued expenses affecting the cost of the Imported stock.

8. All incidental expenses incurred in the importation such as commission/opening charges on LCs and marine insurance shall be chargeable to the cost of the imported stock.

9. Pro-forma Journal Entries

9.1

To record the opening of Letters of Credit (LC) and set up of obligation by CO.

DR Marginal Deposits-Foreign LCs

(8-73-400.02) xx

DR Commitment Fees-Opening Charges

on LCs (3-26-200.203) xx

CR Notes, Acceptance and LCs-Sight

(8-81-700.01) xx

9.2

To record payment of obligation.

Central Office

DR Notes, Acceptance and LCs-Sights-

LCs (8-81-700.01) xx

CR Cash in Bank - CA (8-72-300) xx

DR Field Office Account (FOA) (8-71-399.20) xx

CR Commitment Fees-Opening Charges on

LCs (3-26-200.203) xx
CR Marginal Deposits-Foreign LCs (8-73-400.02) xx

9.3

To record arrival of stocks in disport province.

Disport Province

DR Inventory Items for Sale

(8-72-360) xx
CR HOA (8-81-399.20) xx

9.4

To record COs indirect cost chargeable to

inventory account-importation cost.

Central Office

DR Field Office Account (8-71-399.20) xx

CR Cash in Bank/Cash with DO) (8.70.500) xx

Provincial Office Responding Entry

DR Inventory Cost-Importation

(Appropriate Object of Expenses) xx

CR Head Office Account (8-81-399.20) xx

DR Inventory-Items for Sale (8-72-360) xx

DR Inventory Cost-Importation

(Appropriate Object of Expenses) (xx)

9.5

To record indirect expenses incurred by the disport province and chargeable to inventory account-importation cost.

Provincial Office:

DR Inventory Cost-Importation-

Appropriate Object of Expenses xx

CR Cash in Bank (8-70-300) xx

DR Inventory-Items for Sale (8-72-360) xx

DR Inventory Cost-Importation-

Appropriate Object of Expense

(xx)

9.6

To record administrative and operating expenses incurred in the dispersal/distribution/storage of stocks.

DR Administrative/Operating Expenses (102)

Appropriate Object of Expenses xx

CR Cash in Bank-Cash with DO (8-70-500) xx

9.7

To record Dispersal of Stocks

Issuing Province

DR Head Office Clearing Account

(HOCA) (8-81-399.50) xx

CR Inventory-Items for Sale (8-72-360) xx

NOTE: Activity code to be used by issuing province on dispersal activities shall still be 108. The issuing province shall furnish an advance copy of the debit advice issued re: stocks dispersal. This is to enable the receiving province to take up dispersal losses upon receipt of stocks for proper matching of revenues and expenses.

To record receipt of stocks.

Receiving Province

DR Inventory Items for Sale (8-72-360) xx

DR Losses-Spillages/Claims Rec'ble

Carrier

CR Head Office Clearing Account (HOCA)

(8-81-399.50) xx

NOTE: Dispersal Losses (within/outside the province) shall be recorded under the Activity Code that will be assigned by DA.

9.8 To record sale of stocks.

DR Cash with Collecting Officer (8-70-400) xx

CR Sales-Imported Stock (1-56-700) xx

DR Cost of Sales - Imported Stock xx