History: Duty Free Philippines Corporation

The exclusive franchise to operate duty and tax free shops was originally granted to Tourist Duty
Free Shops, Inc. (TDFS), a private corporation, by virtue of Presidential Decree No. 1193 (P.D.
1193) and Letter of Instruction No. 595 (LOI 595), both dated 6 September 1977. TDFS was
authorized to establish, operate and maintain duty and tax free stores at all international airports
and seaports, selected hotels, tourist resorts, and commercial or trading centers throughout the
country for a period of twenty-five (25) years. However, this franchise was revoked by Executive
Order No. 24 dated 27 June 1986.

Executive Order No. 46 (E.O. 46) dated 4 September 1986, authorized the Department of
Tourism (DOT), through the Philippine Tourism Authority (PTA), to establish and operate a duty
and tax free merchandising system in the Philippines for the purpose of augmenting service
facilities for tourists and generating foreign exchange and revenue for the Government. Under
this system, the PTA has the exclusive authority to operate shops and stores that would sell tax
and duty free merchandise, goods and articles in international airports and sea ports throughout
the country on its own or by contracting private parties through public bidding.

On March 1, 1987, a twelve-man task force headed by Mr. Jose N. Esteban III, was created to lay
down DFPs initial operations with only $91,000 in capital. On 28 March 1987, Customs
Administrative Order No. 3-87 (CAO 3-87) was issued, prescribing the rules, regulations and
procedures for the establishment, operation and control of duty and tax free stores and
warehouses.

The first duty free outlet located at the Arrival Area of Ninoy Aquino International Airport (NAIA)
started its operations on 2 May 1987, initially offering liquor, tobacco, fragrances and
confectionery.

A month after, the Departure shops at NAIA became operational, boasting of sleek and modern
designs. By the end of 1987, a third outlet was opened at the Mactan International Airport in
Cebu while the Manila Hotel and Manila Garden Order Centers were added in 1988.

April 2, 1989 saw the birth of DFPs first off-airport shop and its largest duty free outlet --- the
Fiesta Shopping Center . The FSC, a take-off from the Department of Tourisms Fiesta Islands
Philippines promotion, was an 8,000 sq.m. facility right across NAIA and the countrys biggest
duty free store. More new shops were opened in 1992: the DFP Arrival store at Fort Ilocandia in
Laoag, Ilocos Norte; departure and arrival outlets in the new terminal building of the Mactan
International Airport in Cebu; and an off-airport store at the Paskuhan Village in San Fernando,
Pampanga. A downtown shop opened in 1993 in Davao. April 1997 marked the opening of DFPs
flagship store on a 5-hectare lot, purpose built for duty free retailing. The new Fiestamall boasts
of a 24,000 sq.m. selling area and state-of-the-art facilities.

The Tourism Act of 2009 (Republic Act No. 9593) signed into law in 2009, reorganized DFP to
become the Duty Free Philippines Corporation. As a body corporate, DFPC is tasked to operate
the duty-and tax-free merchandising system in the Philippines aimed to augment the service
facilities for tourists and to generate foreign exchange and revenue for the government as
mandated by E.O. No. 46.

At present, DFP operates the following off-airport stores: Fiestamall- Paraaque City; Manila
Ocean Park; Resorts World Manila; Embarcadero de Legazpi; Puerto Princesa City, Palawan;
Waterfront Hotel-Lahug, Cebu; and international airport outlets: NAIA Terminals 1, 2 & 3; Kalibo,
Davao, Laoag, Cebu-Mactan , Iloilo, Laguindingan-Misamis Oriental and Clark-Pampanga.