DUTY FREE PHILIPPINES WALKING TOUR | SARAP MAG IKOT

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 or trading centers throughout the country for a period of twenty-five (25) years. However, this franchise was revoked by Executive Order No. 24 dated 27 June 1986.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.

On March 1, 1987, a twelve-man task force headed by Mr. Jose N. Esteban III, was created to lay down DFP’s initial operations with only $91,000 in the capital. On 28 March 1987, Customs Administrative Order No. 3-87 (CAO 3-87) was issued, prescribing the rules, regulations, and procedures for the establishment, operation, and control of duty and tax-free stores and warehouses.

The first duty-free outlet located at the Arrival Area of Ninoy Aquino International Airport (NAIA) started its operations on 2 May 1987, initially offering liquor, tobacco, fragrances, and confectionery. A month after, the Departure shops at NAIA became operational, boasting sleek and modern designs. By the end of 1987, a third outlet was opened at the Mactan International Airport in Cebu while the Manila Hotel and Manila Garden Order Centers were added in 1988.

April 2, 1989, saw the birth of DFP’s first off-airport shop and its largest duty-free outlet --- the Fiesta Shopping Center. The FSC, a take-off from the Department of Tourism’s Fiesta Islands Philippines promotion, was an 8,000 sq.m. facility right across NAIA and the country’s biggest duty-free store. More new shops were opened in 1992: the DFP Arrival store at Fort Ilocandia in Laoag, Ilocos Norte; departure and arrival outlets in the new terminal building of the Mactan International Airport in Cebu; and an off-airport store at the Paskuhan Village in San Fernando, Pampanga. A downtown shop opened in 1993 in Davao. April 1997 marked the opening of DFP’s flagship store on a 5-hectare lot, purpose-built for duty-free retailing. The new Fiestamall boasts a 24,000 sq.m. selling area and state-of-the-art facilities.

The Tourism Act of 2009 (Republic Act No. 9593) was signed into law in 2009 and reorganized DFP to become the Duty-Free Philippines Corporation. As a body corporate, DFPC is tasked to operate the duty-and tax-free merchandising system in the Philippines aimed to augment the service facilities for tourists and to generate foreign exchange and revenue for the government as mandated by E.O. No. 46.

At present, DFP operates the following off-airport stores: Fiestamall - Parañaque City and Luxe Duty Free - MOA, Pasay City; and international airport outlets: NAIA Terminals 1, 2 & 3; Kalibo, Davao, Mactan - Cebu, Iloilo, Silay - Bacolod and Clark - Pampanga.

MISSION
In the service of Philippine Tourism, the DFPC is committed to making duty and tax-free goods and local goods available to international travelers and Balikbayans, by operating retail outlets in international points of entry and other major tourism areas.