PITC MEMORANDUM CIRCULAR NO. CT-AFP/98-05-01, May 27, 1998
APPLICABLE PERIODS AND RATES TO BE ADOPTED IN ALL COUNTERTRADE AGREEMENTS TO BE SIGNED IN COMPLIANCE WITH THE ITB FOR THE SUPPLY OF THE MULTI-ROLE FIGHTER PLANES (MRF’S) AND OFF…
National Administrative Register May 27, 1998
The following are the applicable periods and rates to be adopted in all countertrade agreements (whether for offset, counterpurchase or a combination thereof) to be signed in compliance with the ITB for the supply of MRF’s and OPV’s to the Philippine Air Force and Philippine Navy, respectively.
I
Period Performance for Countertrade Obligations
Value of CT Obligation In
US
Primary Period Grace Period Total 1 M-50 3 years 2 years 5 years over 50M-100 M 4 years 2 years 6 years over 100 M-150 M 5 years 2 years 7 years over 150 M-200 M 6 years 2 years 8 years over 200 M-400 M 7 years 2 years 9 years over 400 M 8 years 2 years 10 years
II
PITC Monitoring/Management Fees
Value of CT FEES Obligation in US$ (% of CT Obligations) 1M-50M 1.5% over 50 M-100 M 1.25% over 100 M-150 M 1.00% over 150 M-200 M 0.75% over 200 M-400 M 0.50% over 400 M 0.25%
III
Penalty for Non-Performance and Guarantees
A. PENALTY: Penalty shall be 10% of the unfulfilled CT obligations.
B. GUARANTEE: The guarantee shall secure the payment of penalty for non-performance. The following guarantees shall be provided:
50% of the penalty — to be secured by Bank Guarantee
50% of the penalty — to be secured by Corporate Guarantee
(not comfort letter)
The terms/conditions of the aforementioned bank and guarantee and Corporate Guarantee shall be approved by PITC.
Adopted: 27 May 1998
(SGD.) ISMAEL B. CRUZ
President