Mining companies and mineral traders are now required to get a mineral ore export permit (MOEP) from the Department of Environment and Natural Resources (DENR) before they are allowed to ship out all kinds of minerals and their byproducts outside the country.

DENR Secretary Lito Atienza said that from now on shipments of mineral products, including gold bullions and mine tailings, will be confiscated if the shipper or transporter could not show the MOEP issued by his office as well as the proof of payment of the required excise tax. Atienza issued the guidelines for the MOEP under Administrative Order No. 2008-20 entitled ``Issuance of Mineral Ore Export Permit (MOEP) for Transport/Shipment Outside the Philippines of Mineral Ores, Including Tailings’’ which takes effect 15 days after publication in a general circulation newspaper. The order is pursuant to the Mining Act (RA 7942) and Executive Order 469 as amended. The order said the requirement for an MOEP ``will eradicate undervaluation, misdeclaration and red tape in the exportation of mineral ores and improve the collection of excise tax on minerals’’.

Atienza said that the MOEP ``will be able to address many of the issues that seem to defeat the purpose of the revitalization of the mining industry. This MOEP establishes a mechanism to monitor the shipment of mineral products, to ensure that they are extracted legitimately, pay the proper taxes, and declare the correct tonnage, grade and volume of the shipment.’’ Mining firms and traders used to seek an export clearance from the government before shipping out mineral products, but this requirement was eliminated after the government pursued a policy of export liberalization.

The order said the requirement for an MOEP ``will eradicate undervaluation, misdeclaration and red tape in the exportation of mineral ores and improve the collection of excise tax on minerals’’.

Atienza said that the MOEP ``will be able to address many of the issues that seem to defeat the purpose of the revitalization of the mining industry. This MOEP establishes a mechanism to monitor the shipment of mineral products, to ensure that they are extracted legitimately, pay the proper taxes, and declare the correct tonnage, grade and volume of the shipment.’’

Mining firms and traders used to seek an export clearance from the government before shipping out mineral products, but this requirement was eliminated after the government pursued a policy of export liberalization.

Atienza said that an export permit is now necessary ``in the wake of widespread undervaluation, misdeclaration, and outright illegal exportation. The MOEP will also help track down illegal mining activities, particularly large-scale operators who hide behind small-scale mining permits to ship out large volumes of mineral products without paying the correct taxes.’’

The MOEP will also improve the image of the Philippines as a country that taps its mineral resources and exports the same in a competitive and responsible manner, the DENR chief said.

Under the MOEP guidelines, prospective shippers of mineral ores are required to apply for a permit from the DENR Secretary’s office 60 calendar days before the actual date of shipping. During those 60 days, the DENR Secretary ``shall cause for an inter-agency validation … to determine, among others, the grade, volume, and value of the mineral ores, including tailings, to be exported. The inter-agency validation report shall be the basis for the computation of the 2% excise tax on minerals and the issuance of the MOEP.’’

The order also covers even small-scale miners, the AO states. Before applying for an MOEP, the exporter is required to submit he following:

• ore transport permit (OTP or delivery receipt in the case of sand and gravel permit holders;
• marketing contract/sales agreement with the purchaser;
• copy of the permit/contract issued to the permit holder/contractor, and/or accreditation of traders, retailers, processors, whichever is applicable;
• other supporting papers as the DENR secretary may require or the applicant may submit.

Failure by the shipper to present the MOEP upon demand by authorized personnel and other deputies ``shall be considered as prima facie evidence of illegal mining/theft of minerals and shall be sufficient cause for the seizure/confiscation of the said materials and the tools and equipment, including the conveyances used in the transport/shipment of the materials.’’