PRESCRIBING A SCHEDULE OF FEES AND CHARGES FOR SALES PROMOTION ACTIVITIES

Pursuant to Title X, Book IV of E.O. 292, otherwise known as the
Administrative Code of 1987 and to have a uniform and more effective
implementation of Title III, Chapter I, Article 54; Chapter VI, Articles
109 and 116 of RA 7394 otherwise known as the Consumer Act of the
Philippines and Chapter VI, Rule IX, Section 8, of Department
Administrative Order No. 2, Series of 1993, Implementing Rules and
Regulation of R.A. 7394, the Department of Trade and Industry-BTRCP and
the Department of Health-BFAD, hereby prescribe and promulgate the
following fees and charges for the information, guidance and compliance
of all concerned.

ARTICLE I – Title

SECTION 1. This Joint Administrative Order shall be referred to as ‘The Schedule of  Fees and Charges for Sales Promotion.”

ARTICLE II – Scope

SECTION 1. The Department of Trade and Industry
covers fees relative to the issuance of permit in the conduct of sales
promotion activities for Goods and Services under Act No. 2333 as
amended by Act 3740 and as implemented by Ministry Order No. 33, series
of 1985, Republic Act 7394 as implemented by Department Administrative
Order No. 2, Series of 1993, including Beauty Contest under Letter of
Instruction No. 1376 as implemented by Department Administrative Order
No. 1, Series of 1985;

SECTION 2. The Department of Health covers fees
relative to the issuance of permit in the conduct of sales promotion of
products classified as food, drugs, cosmetics, devices and hazardous
substances in accordance with RA 7394.

ARTICLE III – Coverage of Fees

SECTION 1. There shall be collected permit fees for the conduct of the following activities as follows:

A.    Beauty Contest (only those national in character, sponsored & promoted by manufacturing enterprises     P2,000.00

B.    Home Solicitation Sale

NCR only or in several regions including Metro Manila or nationwide                        750.00
More than one region but excluding Metro Manila                                                     750.00
Several provinces/cities/municipalities within a single region                                        500.00
Single province/city/municipality                                                                                250.00

SECTION 2. a) Sales promotions (other than Beauty Contest and Home Solicitation Sales) — the permit fees for the conduct of sales promotion schemes shall be as follows:

NCR only or in several regions including Metro Manila or nationwide                     P1,000.00
More than one region but excluding Metro Manila                                                    750.00
Several provinces/cities/municipalities within a single region                                       500.00
Single province/city/municipality                                                                               250.00

b) Blanket approval for recurring sales promotions (covering a
period of one [1] year as prescribed by the Consumer Act) shall be
charged the same permit fees as the above schedule plus additional 50%.

c) Application for each variable (mechanics that is not fixed
like duration, title, coverage, prizes, advertising material) covered
under the blanket authority shall be charged as follows:

NCR only or in several regions including Metro Manila or nationwide                     500.00
More than one region but excluding Metro Manila                                                  500.00
Several provinces/cities/municipalities within a single region                                     500.00
Single province/city/municipality                                                                              100.00

The amount of fees for sales promotions (except for discount
scheme type of promotion) which include variables covered by blanket
approval shall be in accordance with the schedule enumerated hereunder
or in accordance with geographical areas, whichever is higher:

AMOUNT OF PRIZES
Up to P50,000.00	P250.00
P50,001.00-P150,000.00	500.00
P150,001.00-P300,000.00	1,000.00
P300,001.00-P500,000.00	2, 000.00
P500,001.00-P1,000,000.00	3,000.00
Above P1,000,000.00	5,000.00

Minor charges such as a change in date or venue of draw shall be
subject to P100.00 fee and P300.00 for extensions and other major
changes requiring re-evaluation.

For applications covering more than one scheme, each scheme will
be subject to a separate permit fee based on the above schedule of fees.

ARTICLE IV – Miscellaneous Provisions

SECTION 1. Crediting of Payments . — Payments
made by mistake (e.g. excess payments) for any of the fees covered by
this Order, shall be refunded to the payor, not directly but by way of
crediting the mistake payments to future financial obligations of the
payor to the concerned agency/office.

SECTION 2. Separability Clause. — In the event
that any provision/s of these rules and regulations or the application
of any such provision/s to any person or circumstances is declared
invalid, all other provisions unaffected shall continue to remain in
full force and effect.

SECTION 3. Repealing Clause. — All Orders, rules and regulations or parts thereof inconsistent herewith are hereby repealed or amended accordingly.

SECTION 4. Publication of Effectivity . — This
Order shall be published in two (2) newspapers of general circulation in
the Philippines and shall take effect fifteen (15) days after said
publication.

Adopted: 20 July 2000

Approved by:
(SGD.) MANUEL A. ROXAS II Secretary, Department of Trade & Industry	(SGD.) ALBERTO G. ROMUALDEZ, JR., MD Secretary, Department of Health
Recommending Approval:
(SGD.) MARIA TERESA ARAO-MAHIWO Director, BTRCP	(SGD.) WILLIAM D. TORRES, Ph.D. Director, BFAD