NPM 150-2004

Requesting Entity: Bureau of Customs

Issues Concern: Government-to-Government arrangement on Acquisition of BOCís Non Intrusive Container Inspection System



Whether or not the purchase of X-ray machines from the government of Israel on a soft loan basis with counter trade can be made on a negotiated basis.
The Department of Justice (DOJ) by way of Opinion No. 70 series of 2004 maintains the view that said MOU partakes of an International Agreement of temporary nature i.e., executive agreement, and that the president is not precluded from entering into an executive agreement.

Executive Agreements and/or International Agreements are beyond the province of R.A. 9184 and is clear-cut in its policy to be faithful to and show regard for international obligations to which the government has bound itself.

While the law embraces all procurement activities regardless of source of funds - domestic or foreign - procurement matters in treaties, international agreements and executive agreements are expressly excluded from the ambit of the present procurement law.

The MOU does not stand to run counter to the provisions of R.A. 9184. Its terms shall stand alone and the guidelines it sets shall be the governing law between the two contracting states.