Duty Free Philippines

The exclusive franchise to operate duty and tax free shops was originally granted to Tourist Duty Free Shops, Inc. (TDFS), a private corporation, by virtue of Presidential Decree No. 1193 (P.D. 1193)  and Letter of Instruction No. 595 (LOI 595), both dated 6 September 1977.  TDFS was authorized to establish, operate and maintain duty and tax free stores at all international airports and seaports, selected hotels, tourist resorts, and commercial and trading centers throughout the country for a period of twenty-five (25) years.  However, this franchise was revoked under Executive Order No. 24 dated 27 June 1986.     Executive Order No. 46 (E.O. 46) dated 4 September 1986, authorized the Department of Tourism (DOT), through the Philippine Tourism Authority (PTA), to establish and operate a duty and tax free merchandising system in the Philippines for the purpose of augmenting service facilities for tourists and generating foreign exchange and revenue for the Government.  Under this system the PTA has the exclusive authority to operate shops and stores that would sell tax and duty free merchandise, goods and articles in international airports and seaports throughout the country on its own or by contracting private parties through public bidding. At present, DFP operates the following outlets: Fiestamall in Paranaque City (DFP's flagship store purposely built for duty free retailing), Arrival and Departure stores at the NAIA Terminals 1, 2 and 3, Arrival and Departure outlets at the Cebu Mactan International Airport, a store at the Waterfront Hotel in Lahug, Cebu, another store at the SM Northwing Cebu and the Arrival and Pre-departure shops at the Davao International Airport.