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NTC Memorandum Circular No.

9-8-91
______________________________________________________________________________

Guidelines in the Sale, Purchase and


Importation of Various Radio Communications Equipment Intended for Use in Private and
Government-Owned Radio Communications Networks
______________________________________________________________________________

Prescription(s) / Requirements:

2. A Permit to Import valid for a period of ninety (90) days from the date of issuance thereof
shall be issued by the Commission only under the following circumstances:
a. To duly accredited radio equipment manufacturers and dealers with valid Radio
Dealers and Manufacturers Permit intending to import TYPE-ACCEPTED AND/OR
APPROVED radio communications equipment and their accessories and spare parts as part of
their respective stocks.

Explanation: 2.a states that a Permit to Import can be granted with validity of 90 days from
issuance by the Commission to accredited radio equipment manufacturers and dealers provided
these dealers and manufacturers have the Radio Dealers and Manufacturers Permit. This is done
so that out-of-stock spare parts and accessories for a certain radio communications equipment
can be made available again; however, these certain equipments must be approved and type-
accepted. In laymans term the equipment should have passed the Quality Control. For example,
the company SONY Philippines, needs to import a certain radio equipment because due to high
demand for the product, it went out-of-stock, so to be able to replenish their stocks of that item
they need to import the said equipment but they can only do this if they have already
accomplished their Radio Dealers and Manufacturers Permit which is stating that they want to
import approved accessories, equipments and spare parts since there is no more available in the
country. Accomplishing the permit required will grant them the Permit to Import issued by the
Commission which means they need to import within 90 days upon which the permit was issued
and released because after 90 days, the permit to import is forfeited.

b. To duly accredited radio equipment manufacturers and dealers with valid Radio
Dealers and Manufactures Permit intending to import radio communications equipment FOR
PURPOSES OF TYPE APPROVAL AND/OR ACCEPTANCE, provided such Permit to Import
is issued for not more than five (5) sample units which are subject to re-export should such radio
communications equipment fail type approval and/or acceptance evaluations conducted by this
Commission.

Explanation: 2.b states that a Permit to Import can be granted with validity of 90 days from
issuance by the Commission to accredited radio equipment manufacturers and dealers provided
these dealers and manufacturers have the Radio Dealers and Manufacturers Permit. Stated
therein is the intention to import radio communications equipment for purposes of type approval
and/or acceptance. The Permit to Import is only limited to a maximum of 5 sample units. These
sample units are subject to re-export if they fail the evaluations done to the said equipment. For
example, there is a new radio communication equipment manufactured by company ABC but the
said equipment was not yet evaluated by the Commission here in the Philippines, thus they need
to import 5 samples for evaluation so that it would be approved. If these samples failed the
evaluation, they are brought back to the place where they are imported from.

c. To duly authorized and/or corporation who have been authorized by this Commission
to install, operate and maintain their respective radio communications network. In this case, the
Permit to Purchase shall serve as the Permit to Import and radio communications equipment to
be purchased must be a previously TYPE APPROVED AND/OR ACCEPTED model. SHOULD
RADIO COMMUNICATIONS EQUIPMENT PROCURED NOT BE OF A PREVIOUSLY
TYPEAPPROVED AND/OR ACCEPTED MODEL, SUCH UNIT SHALL BE RE-EXPORTED
TO ITS COUNTRY OF ORIGIN WITHOUT THE BENEFIT OF UNDERGOING TYPE
APPROVAL AND/OR ACCEPTANCE PROCEDURES CONDUCTED BY THIS
COMMISSION.

Explanation: 2.c states that a Permit to Import can be granted with validity of 90 days from
issuance by the Commission to corporations who were authorized by them, who happened to
install, operate and maintain their radio communications network, having the Permit to Purchase
serves as a Permit to Import given that any equipment to be purchased must previously be an
accepted model. Failure of the companies to comply with purchasing a previously approved
model must have their purchased equipments be brought back to the place where it is imported
from without undergoing evaluation from the Commission. For example, the company XYZ,
wants to install their new radio communications network here in the Philippines, thus they
bought materials and equipment from a certain country but prior to this action they already have
their Permit to Purchase. Now, these equipment are to be imported to the Philippines, thus the
Permit to Purchase serves as the Permit to Import; however the equipment they must buy are all
previously approved models by the Commission here in the Philippines. If company XYZ, failed
to buy equipment approved previously by the Commission then the equipment bought must be
brought back to the country where it is imported from and thus, no evaluation is done on the
materials and equipment bought.

3. Grantees of Permits to Import shall only radio communications equipment, spare parts and/or
accessories as contained in the Permit to Import and only in the quantities as authorized by this
Commission.

Explanation: Permit to Import encompasses radio communications equipment and the like.
Quantities specified therein shall be the only ones given a permit. For example, company
PLANTS, was entrusted by the Commission to have a Permit to Import which entitles them to
purchase what are listed only on the. Otherwise, they should apply again for another permit to
have the privilege to purchase what is needed that is not listed on the previous permit.

4. Grantees of Permit to Import shall present evidences of tax payment and corresponding
customs duties of all items imported under such Permit to Import issued by this Commission.

Explanation: Documents like tax payment and corresponding duties of all items imported under
such permit should be provided. For example, after company CDR was granted the Permit to
Import a digital transmitter, the documents listed above should be presented so that the
Commission can monitor or check whether the company did his obligations and the items stated
in the permit are the ones bought and lastly to ensure that the process of importing these
equipments are legal and documented. These documents can serve as a proof if the Commission
will have inquiries about the said transaction.

5. Radio Equipment dealers and manufacturers must reflect the radio communications equipment
and/or accessories imported in their regular Sales and Stock Reports submitted to this
Commission for the next reporting period covering the actual date of import.

Explanation: All equipment and/or accessories should be listed on an inventory. For example,
company WMM imported a new telephone patch and a stereo speaker for their new station, the
quantity and brand of each item imported are to be listed in the inventory. The items in the
inventory should be the same with the items written on the report submitted to the Commission.
This is to show the transparency of the assets of the company and for them to monitor the
changing or modifying of equipment is beneficial and efficient for the company and its
customers/subscribers. This will also serve as a record for the number of all items imported by
the company.

6. All radio communications equipment, spare parts and/or accessories covered by a Permit to
Import shall be subject to the inspection of the Commissions authorized representative at the
port of entry.

Explanation: Every item imported should be check upon the arrival at the port of entry. For
example, company GKL imported new a console and a module for their radio station. This is to
change the damaged ones. Before claiming it from the port of entry (e.g. airports/ seaports) a
personnel assigned from the Commission should inspect it first to ensure that the items on the
Permit to Import are the ones received and to check also for the quality of the products, so that if
the equipment received has damages on it they can notify the buyer to ask for a replacement
from the importer as soon as possible. This inspection is documented by the inspector and is
compiled at the Commission which can be retrieved whenever there are clarifications of the
importer, buyer or the Commission.
______________________________________________________________________________

Statutory Construction:
1st: D.O No. 88, Sec. 1, states that An applicant for a radio station construction permit shall
submit to the Radio Control Office for the necessary approval an application therefore in the
prescribed form supported by engineering plan(s) and design(s) with corresponding
specifications of the radio station to be constructed or to be modified and the justifications of the
project or system duly signed and sealed by a registered Electronics and Communications
Engineer, in addition to the required administrative and legal requirements. Thus, after
reviewing the said application and the required equipment is not available here in our country the
Radio Control Office will allow importation of radio equipments. Therefore, this department
order is an indirect construction of NTC Memorandum No. 9-8-91.

2nd: P.D. No. 576 - A, Sec. 1, states that No radio or television channel may obtain a franchise
unless it has sufficient capital on the basis of equity for its operation for at least one year,
including purchase of equipment. Thus, every radio or television channel shall have sufficient
budget so that if necessary equipments needed to be imported, they would be able to buy it.
Therefore, this presidential decree is an indirect construction of NTC Memorandum No. 9-8-91.

3rd: R.A No. 7925, Sec. 5, Responsibilities of the National Telecommunications Commission.
Ensure quality, safety, reliability, security, compatibility and inter-operability of
telecommunications facilities and services in conformity with standards and specifications set by
international radio and telecommunications organizations to which the Philippines is a signatory.
Thus, for us to satisfy this said condition importation of equipments is necessary especially if the
needed equipments are not available in our country. Importation aims to help us meet the
standards and specifications of our country same with that of our neighboring countries.
Therefore, this Republic Act is an indirect construction of NTC Memorandum No. 9-8-91.

4th: Art. II, Sec. 24 of the Phil. Constitution, states that The State recognizes the vital role of
communication and information in nation-building. Thus, to be able to build a nation
equipments needed for communication and gathering information is necessary. If the available
resources in our country are not sufficient we may buy or import from other countries. Therefore,
this specific section of this article is an indirect construction of NTC Memorandum No. 9-8-91.

Reference(s):

(NTC, n.d). Memorandum Circular No. 09-08-91. Retrieved September 16, 2016 from
http://ntc.gov.ph/wp-content/uploads/2015/10/LawsRulesRegulations/MemoCirculars/
MC1991 /MC%2009-08-91.pdf

(NTC , n.d). Department Order No. 88. Retrieved September 16, 2016 from http://ntc.gov.ph
/wpcontent /uploads/2015/10/LawsRulesRegulations/MemoCirculars/MC1973/MC
%2037-73.pdf

(n.d). Presidential Decree No. 576-A. Retrieved September 16, 2016 from http://www.gov.ph
/downloads/1974/11nov/19741111-PD-0576-A-FM.pdf

(n.d). Republic Act No. 7925. Retrieved from http://www.lawphil.net/statutes/repacts /ra1995


/ra_7925_1995.html

(n.d.). The 1987 Constitution of the Republic of the Philippines Article II. Retrieved
September 16, 2016 from http://www.gov.ph/constitutions/the-1987-constitution-of-the-
republic-of- the-philippines/the-1987-constitution-of-the-republic-of-the-philippines-
article-ii/

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