2004-07-02

NPM 093-2004

Requesting Entity: National Power Corporation

Issues Concern: Prohibition on the Issuance of Letters of Credit Under Section 42.5 of the Implementing Rules and Regulations Part A of Republic Act 9184

 

Details

While it is true that IRR-A prohibits the issuance of a letter of credit in favor of a Philippine entity and its foreign manufacturer or supplier, the same is not true when a procuring entity directly contracts with a foreign manufacturer or supplier as in the case of importation. Consequently, unless SBMA is procuring directly from a foreign supplier or manufacturer, the exemption being sought for under Section 42.5 of IRR-A of R.A. 9184 cannot be granted to your office. (quoting NPM 009-2004, dated February 6, 2004 and NPM 014-2004, dated February 18, 2004)