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Carlos, Marie Rose C. Chianpian, Crisanta Fajutag, Ardy Madrigal, Ronald Napiza, Rootbeer Patajo, Maureen Romano, Ryan Caezar Sakkalahul, Basri Yumang, Jel Kristine Zaraspe, Gerard
PRESIDENT BENIGNO "NOYNOY" AQUINO III
This is why. There are many opportunities available in our country. 2013] ***** All of these only set the stage for the next chapter—one that we envision will bring us even closer to our goal of lasting. enhance irrigation systems. I would like to give you an update on the three sectors that remain our priority: agriculture. as of last year. Makati City. among others. This will fund the construction and rehabilitation of farm to market roads.4 to 75 billion pesos. on March 12. and provide support services.Excerpts from the speech of His Excellency Benigno S. but. President of the Philippines [Delivered at Manila Peninsula Hotel. we have increased our agriculture budget by 22 percent from 61. inclusive growth. and I am here to invite you to play an even bigger role in the years to come. and infrastructure.1 million individuals. Aquino III. . in particular. for this year. Agriculture remains one of our priorities precisely because it is the source of livelihood and employment for so many Filipinos—12. tourism.
Tourism is another sector in which we are heavily invested. If there is anyone interested out there in being a part of the rise of the Philippine agricultural sector. we hope to strengthen our position as regards rice self-sufficiency. From the 4. and regain our footing in the export markets by exporting 100 metric tons of high quality rice in 2013.3 million international tourists who visited the Philippines in 2012. and for good reason—one only need visit Boracay or the beautiful islands of Palawan. or walk around the walled city of Intramuros to understand the attraction that has kept visitors flocking to the country.5 million Filipinos who traveled around our country in 2011 alone. . May I also add that 37 broke the original 35-million target for 2016. to the 37. attend Cebu’s Sinulog Festival. The new target for domestic tourism is now at 56 million. our Agribusiness Lands Investment Center (ABLIC) will be more than happy to conduct briefings for you.Weather permitting. so many agree: it is indeed more fun in the Philippines.
This will fund the development of our road network. we expect the number of travelers to the Philippines to spike over the next few years. Both public and private construction activities expanded in 2012. we increased the infrastructure budget by 18 percent. and enhancing the quality of our infrastructure. In support of tourism. the overall viability of the Philippines as an investment destination. ports. Right now. especially since we’re offering competitive fiscal and non-fiscal incentives for tourism enterprises.We want you to join in on the fun. it appears that we will need an estimated additional 37. To sustain this. to 242. despite the great number of hotel inaugurations I’ve attended as President. and .000 rooms by 2016. agriculture. contributing to the growth of industry and our GDP.33 billion pesos in 2012. for example. and in fact. So. rehabilitating.3 billion in 2013. we have also been working on constructing. This presents a good opportunity to anyone in the hotel or real estate industry—or even for entrepreneurs wanting to try their luck. from 205.
those of you interested in partnering with us will be happy to know that there are two other major projects that will be rolled out namely: the Cavite-Laguna Expressway. . This is why we continue to open some of our biggest infrastructure projects to the participation of the private sector.Even as we are working on this. we also know that harnessing the expertise and resources of the private sector can complement government efforts to get bigticket projects done. Again. and the NLEX-SLEX link connector road—both of which are meant to cut travel time and enhance connectivity among our cities in Luzon.
it was very evident that the government recognizes the importance of foreign investments in the success of our economy.INTRODUCTION The Euromoney Investment Forum was convened to keep investors and business leaders in the Philippines abreast of the strategies. plans and reforms of the government in order to continue the growth trajectory of the country in the face of global economic uncertainty. and in the enhanced value of Filipino labor. . in the political front. in the responsible exercise of the power of taxation. In this speech delivered by President Aquino on March 12. This was manifested in the many references made to the advances gained by the Philippine economy as shown in numerous international surveys. at the Euromoney Investment Forum. All of these references were made to encourage foreign investors to engage in business in the country. 2013.
namely. It is in this light that I am inviting all of you to listen to our report as we discuss the following topics: .INTRODUCTION It is also important to note that the President has identified three important sectors. among others are deemed as crucial to our economic growth and development. These sectors. tourism and infrastructure currently being given priority by the government. agriculture.
INTRODUCTION • Investment Plans Priorities 2013 • Book 1 of EO 226 (Investments with Incentives) • Books 3 and 4 of EO 226 (Incentives to Multinational Companies) .
investors. civil society organizations. The IPP is prepared by the Department of Trade and Industry’s Board of Investments (BOI) based on net value-added. the academe. wherein specific industries are identified for fiscal incentives as well as non-fiscal incentives. and measured capacity as provided under the Omnibus Investments Code. The crafting of the IPP is a widely accepted process that involves rigorous inter-agency consultations as well as nationwide public consultations. development partners. .OVERVIEW INVESTMENT PRIORITY PLAN The IPP is the framework for the investment in the Philippines. the IPP is examined in terms of value for incentives – their contribution to employment. product mix. and other aspects of industry development and social goals. job generation. and after consultation with other agencies overseeing various sectors of development. All consultations are attended by representatives from national government agencies. and local government units (LGUs). During these consultations.
226 or the Omnibus Investments Code of 1987.INVESTMENT PRIORITY PLAN The BOI issues the IPP annually which is a list of promoted areas of investments eligible for government incentives.O. under Book I of E. The plan is issued annually by the BOI and contains the list of areas of investments eligible for government incentives. . a qualified enterprise may enjoy certain benefits and incentives provided it invests in preferred areas of investments enumerated in the Investment Priorities Plan (IPP). Generally.
Modified duty rate for capital equipment by virtue of E. impost and fees. Exemption from wharfage dues and export tax. and Additional deductions from taxable income. duty. A QUALIFIED ENTERPRISE IS ENTITLED TO THE FOLLOWING FISCAL AND NON-FISCAL INCENTIVES: Fiscal Incentives Income tax holiday.UPON REGISTRATION WITH BOI. Exemption from taxes and duties on imported spare parts.O. 313*. Tax credits. .
doe.htm .UPON REGISTRATION WITH BOI.gov.O. 528 Source and Reference: http://www.mb. *Modified by E.com.ph/microsites/ipo%20web/ipp. A QUALIFIED ENTERPRISE IS ENTITLED TO THE FOLLOWING FISCAL AND NON-FISCAL INCENTIVES: Non-fiscal incentives Employment of foreign nationals.ph/boi-implements-carry-over-investment-priorities-plan/ http://www. and The privilege to operate a bonded manufacturing/trading warehouse subject to custom rules and regulations. Importation of consigned equipment. Simplification of customs procedures.
Cebu. . the academe. approving the Investment Priorities Plan (“IPP”) for the year 2013. The consultations were attended by members of various chambers of commerce. For the 2013 IPP. local government units (LGUs). nongovernment organizations (NGOs) and consumer organizations. 2013.THE 2013 INVESTMENT PRIORITIES PLAN On November 13. President Benigno Simeon Aquino III signed Memorandum Order No. the members of the inter-agency committees. and Davao. Manila. the BOI held simultaneous public consultations in the cities of Angeles. 59.
The 2013 IPP has the same priority areas as 2012 IPP with improvements based on consultations with stakeholders. agri-business and fisheries. strategic projects. It is composed of four main areas as follows: 1) The Preferred Activities. mass housing. energy. services exports and activities in support of exporters. iron and steel. creative industries or knowledge-based services. the agriculture. . green projects. 2) The Mandatory list with nine (9) different sectors. mitigation and recovery projects. enumerating therein thirteen (13) different sectors. and disaster prevention. shipbuilding. infrastructure. 458. and lastly 4) The ARMM List which covers activities that have been identified by the Regional Board of Investments of ARMM (RBOIARMM) in accordance with EO No. 3) The export activities which covers the manufacture of export products. research and development. hospital and medical services. motor vehicles.
where various sectoral roadmaps developed by the private sector will be integrated into a broader Manufacturing Industry Roadmap (MIR). The roadmaps will help government identify critical supply chain gaps that will move industries up the value chain or allow deeper participation in the global supply chain. Inputs and insights from the industry roadmaps developed by industry associations. The BOI has initiated the process in developing the 2014 IPP.The 2013 IPP will be in effect until the government comes up with the 2014 IPP in the first quarter of next year. such as value chain gaps. The industry roadmap project forms part of the Strategic Industry Development Program. The roadmaps are about building and enhancing competitiveness of Philippine industries. an input to the Comprehensive National Industrial Strategy (CNIS) stated in the Philippine Development Plan (PDP). will be considered as the list is developed. .
One of these laws is the Omnibus Investment Code (EO No. 226) In general. Filipino and Non Filipino investors may avail of the incentives for as long as the project is registered with the pertinent agency of the government authorized to grant and administer such incentives. Special economic zone activities grant location specific incentives such as when a firm has to locate its business operations in the pertinent economic zone to qualify for registration with incentive under the governing incentive law. .INVESTMENT WITH INCENTIVES The Philippines enacted various laws which offer fiscal and non fiscal incentive provisions which are important features of investment laws intended to attract prospective investors.
Book III of the Omnibus Investments Code. Book III is divided into five (5) chapters. as amended by RA 8756. As defined by law. covers the incentives to multinational companies establishing regional or area headquarters and regional operating headquarters in the Philippines.INCENTIVES TO MULTINATIONAL COMPANIES “Incentives to Multinational Companies” is governed by Book III (as amended by RA 8756) and Book IV of the Omnibus investments Code. . On the other hand. components. discussing the licensing requirements and incentives granted to such multinational companies. Multinational Company shall mean a foreign company or a group of foreign companies with business establishments in two or more countries. semifinished products and raw materials to the Asia-Pacific Region and Other Foreign markets. Book IV covers incentives to multinational companies establishing regional warehouses to supply spare parts.
production.DISCUSSION OF THE TOPIC shall contain a listing of specific activities that can qualify for incentives under the Omnibus Investments Code. duly supported by the studies of existing and prospective demands for such products and services in the light of the level and structure of income. . trade. prices and relevant economic and technical factors of the regions as well as existing facilities.
1. and measured capacity. job generation. such as assistance in employment permits and work visas for foreign staff. . based on net value-added. In consultation with other agencies overseeing the sectors that are in the IPP.1 Purpose The Philippine Investment Priorities Plan (IPP) identifies industries entitled to government fiscal incentives such as income tax holiday. the Department of Trade and Industry’s Board of Investments (DTI-BOI) prepares the annual plan. Each year new sectors are awarded incentives to help stimulate investment. as well as non-fiscal incentives.
(e) The market and technical aspects and considerations of the activity proposed to be included. the economic soundness of the specific activity as shown by its economic internal rate of return.The Board shall take into account the following: (a) Primarily. (d) Measured capacity as defined in Article 20 (of the Omnibus Investments Code). and. . (b) The extent of contribution of an activity to a specific developmental goal. (c) Other indicators or comparative advantage.
The President shall proclaim the whole or part of such plan as in effect. bureaus. No government body shall adopt any policy or take any course of action contrary to or inconsistent with the plan. return the whole or part of the plan to the Board of Investments for revision. Upon the effectivity of the plan or portions thereof. . the President shall issue all necessary directives to all departments. the IPP must be submitted to Malacañang not later than the end of March of every year.1. the Omnibus Investments Code. agencies or instrumentalities of the government to ensure the implementation of the plan by the agencies concerned in a synchronized and integrated manner.3 HOW IS IT APPROVED? Under Executive Order 226. or alternatively.
add additional areas in the plan.1. the Board of Investments may. The Board shall not accept applications in an area of investment prior to the approval of the same as a preferred area nor after approval of its deletion as a preferred area of investment . however. In no case. or terminate the status of preference. alter any of the terms of the declaration of an investment area or the designation of measured capacities. shall any amendment of the plan impair whatever rights may have already been legally vested in qualified enterprises which shall continue to enjoy such rights to the full extent allowed under this Code. at any time.4 AMENDMENTS Subject to publication requirements and the criteria for investment priority determination.
in whole or in part.5 PUBLICATION Upon approval of the plan. or upon approval of an amendment thereof. or until the Board approves registration of enterprises which fill the measured capacity. . specifying and declaring the preferred areas of investment and their corresponding measured capacity shall be published in at least one (1) newspaper of general circulation and all such areas shall be open for application until publication of an amendment or deletion thereof.1. the plan or the amendment.
it is organized under Philippine laws and that at least sixty percent (60%) of its capital is owned and controlled by citizens of the Philippines. or in case of a corporation or a cooperative.REGISTRATION OF ENTERPRISES 2. or in case of a partnership or any other association. and at least sixty per cent (60%) of the members of the Board of Directors are citizens of the Philippines. it is organized under Philippine laws and that at least sixty per cent (60%) of the capital stock outstanding and entitled to vote is owned and held by Philippine nationals as defined under Article 15 of this Code. in case the applicant is a natural person.1 Qualifications of Registered Enterprises 1. He is a citizen of the Philippines. If it does not possess the required degree of ownership as mentioned above by Philippine nationals. the following circumstances must be satisfactorily established: .
. which. processes. if the applicant is exporting at least seventy per cent (70%) of is total production. the export requirement herein provided may be reduced in meritorious cases under such conditions and/or limited incentives as the Board may determine. is in the opinion of the Board of such a nature that the available measured capacity thereof cannot be readily and adequately filled by Philippine nationals. or. considering the nature and extent of capital requirements. technical skills and relative business risks involved.(a) That it proposes to engage in a pioneer projects as defined in Article 17 of this Code.
(c) That the pioneer are it will engage in is one that is not within the activities reserved by the Constitution or other laws of the Philippines to the Philippine citizens or corporations owned and controlled by Philippine citizens. . within thirty (30) years from the date of registration or with such longer period as the Board may require taking into account the export potential of the project: Provided. as defined in Article 15. That a registered enterprise which exports one hundred percent (100%) of its total production need not comply with this requirement.(b) That it obligates itself to attain the status of a Philippine national.
if not so listed. professional or other services or in exporting television and motion pictures and musical recordings made or produced in the Philippines. either directly or through a registered trader. . or the enterprise in engaged or proposing to engage in rendering technical.2. at least fifty percent (50%) of its total production is for export or it is an existing producer which will export part of production under such conditions and/or limited incentives as the Board may determine. or that the enterprise is engaged or proposing to engage in the sale abroad of export products bought by it from one or more export producers. The applicant is proposing to engage in a preferred project listed or authorized in the current Investment Priorities Plan within a reasonable time to be fixed by the Board or.
and profits or losses of each preferred project undertaken by the enterprise separately from the aggregate investment. and 4. it has installed or undertakes to install an accounting system adequate to identify the investments. The applicant is capable of operating on a sound and efficient basis of contributing to the national development of the preferred area in particular and of the national economy in general. costs and profits or losses of the whole enterprise or to establish a separate corporation for each preferred project if the Board should so require to facilitate proper implementation of this Code.3. revenues. If the applicant is engaged or proposes to engage in undertakings or activities other than preferred projects. costs. . revenues.
3 Approval and Registration Procedures The Board is authorized to adopt rules and regulations to facilitate action on applications filed with it. recorded in a registration book and the date appearing therein and stamped on the application shall be considered the date of official acceptance. Applications filed shall be considered automatically approved if not acted upon by the Board within twenty (20) working days from official acceptance thereof. prescribe criteria for the evaluation of several applications filed in one preferred area.2 Application Applications shall be filed with the Board. devise standard forms for the use of applicants and delegate to the regional offices of the Department of Trade and Industry the authority to receive and process applications for enterprises to be located in their respective regions.2. . 2.
The economic rates of return. The amount of foreign exchange earned.2.4 Criteria for Evaluation of Applications The extent of ownership and control by Philippine citizens of the enterprises. materials and other resources obtained from indigenous sources are utilized. and Such other criteria as the Board may determine. That estimates of measured capacities shall be regularly reviewed and updated to reflect changes in market supply and demand conditions. The amount of equity and degree to which the ownership of such equity is spread out and diversified. used or saved in their operations. Further. . The measured capacity Provided. That measured capacity shall not result in a monopoly in any preferred area of investment which would unduly restrict trade and fair competition nor shall it be used to deny the entry of any enterprise in any field of endeavor or activity. Provided. The extent to which labor. The extent to which technological advances are applied and adopted to local condition.
The certificate shall be in such form and style as the Board may determine and shall state. Within the said period of thirty (30) days. said order or decision shall be final and executory ninety (90) days after the perfection of the appeal. unless reversed.2. The preferred area of investment in which the registered enterprise is proposing to engage. said order or decision may be appealed to the Office of the President. and the registered capacity of the enterprise. Where an appeal has been filed. The nature of the activity it is undertaking or proposing to undertake.5 Appeal from Board's Decision Any order or decision of the Board shall be final and executory after thirty (30) days from its promulgation. whether pioneer or non-pioneer.6 Certificate of Registration A registered enterprise under this Code shall be issued a certificate of registration under the seal of the Board of Investments and the signature of its Chairman and/or such other officer or employee of the Board as it may empower and designate for the purpose. 2. and The other terms and conditions to be observed by the registered enterprise by virtue of the registration. among other matters: The name of the registered enterprise. .
Right to Remittance of Earnings. . In the case of foreign investments. the right to repatriate the entire proceeds of the liquidation of the investment in the currency in which the investment was originally made at the exchange rate prevailing at the time of repatriation. Among other rights recognized by the Government of the Philippines are the following: a.BASIC RIGHTS AND GUARANTEES All investors and registered enterprises are entitled to the basic rights and guarantees provided in the Constitution. b. such as may be necessary to meet the payment of interest and the principal on foreign loans and foreign obligations arising from technological assistance contracts. The right to remit. Right to Repatriation of Investments. at the exchange rate prevailing at the time of remittance.
such as may be necessary to meet the payment of interest and the principal on foreign loans and foreign obligations arising from technological assistance contracts. Right to Foreign Loans and Contracts.BASIC RIGHTS AND GUARANTEES c. d. at the exchange rate prevailing at the time of remittance. The right to remit. Right to Freedom from Expropriation. . foreign investors or enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. There shall be no expropriation by the government of the property represented by the investments or of the property of enterprises except for public use or in the interest of national welfare and defense and upon payment of just compensation. In such cases.
Requisition of Investment There shall be no requisition of the property presented by the investment or of the property of enterprises. .BASIC RIGHTS AND GUARANTEES e. Right to Non. Just compensation for the requisitioned property may be remitted in the currency in which the investment was originally made and the exchange rate prevailing at the time of remittance. except in the event of war or national emergency and only for the duration.
job generation.2013 INVESTMENT PRIORITIES PLAN The coverage. multiplier effect and measured capacity. description and entitlement to incentives of the following listed activities shall be defined and clarified in the General Policies and Specific Guidelines to be issued by the Board of Investments (BOI). The extent of entitlement to incentives shall be based on the project's net value added. .
Iron and Steel 6. Research and Development 9. PREFERRED ACTIVITIES 1. Infrastructure 8. Creative Industries / Knowledge-Based Services 3.I. Shipbuilding 4. Strategic Projects 12. Agriculture / Agribusiness and Fishery 2. Mitigation and Recovery Projects . Hospital/Medical Services 13. Energy 7. Mass Housing 5. Motor Vehicles 11. Green Projects 10. Disaster Prevention.
Quarrying and Processing of Minerals 3. Ecological Solid Waste Management 6. Storage. Clean Water Projects 7. Renewable Energy 9. Industrial Tree Plantation 2. Exploration. Self-Development and Self-Reliance of Persons with Disability 8. Rehabilitation.II. Refining. Publication or Printing of Books / Textbooks 4. Mining. Marketing and Distribution of Petroleum Products 5. Tourism . MANDATORY LIST This covers activities that require their inclusion in the IPP as provided for under existing laws. 1.
Logistics I. BIMP .III. Export Activities 1. Agribusiness / Aquaculture & Fishery C. Support Activities for Exporters B. Halal Industry . Export Trader and Service Exporters 2.EAGA Trade and Investment Enterprises J. Agriculture. Basic Industries D. Tourism K. Industrial Service Facilities G. Engineering Industries H. Healtj and Education Services and Facilities L. Infrastructure and Services F. EXPORT ACTIVITIES IV. Consumer Manufactures E. ARMM LIST A.
DIFFERENCE OF IPP 2013 WITH PAST YEAR? .
It shall provide medical. maternity newborn and childcare. 2012-0012 RULES AND REGULATION GOVERNING THE NEW CLASSIFICATION OF HOSPITALS AND OTHER HEALTH FACILITIES IN THE PHILIPPINES Classification of Hospitals General Hospital – refers to a hospital with Levels 1. surgical. . 2. It shall employ Boardcertified/ eligible medical specialists and other licensed physicians. 0r 3 that provides services for all kind of illnesses. diseases. injuries or deformities.DEPARTMENT OF HEALTH ADMINISTRATIVE ORDER NO.
exclusive for maternity patients and newborns Isolation facilities with proper procedures for the care and control of infections and communicable diseases Separate dental section/clinic Blood station DOH licensed secondary clinical laboratory with services of a consulting pathologist DOH licensed level 1 imaging facility with the services of a consulting radiologist DOH licensed pharmacy . rooms.General Hospital Level 1 – refers to a hospital that has the following: Staff of qualified medical and administrative personnel headed by a physician duly licensed by Professional Regulatory Commission Operating room with standard equipment and provision for sterilization of equipment and supplies Post-operative recovery room Maternity facilities consisting of wards. a delivery room.
GENERAL HOSPITAL LEVEL 2 – REFERS TO A HOSPITAL THAT HAS. AS MINIMUM. ALL OF LEVEL 1 CAPACITY INCLUDING THE FOLLOWING: An organized staff of qualified and competent personnel with Chief of Hospital/Medical Director and appropriate certified clinical department heads General ICU for critical ill patients Provision of Neonatal Intensive Care Unit Provision of High Risk Pregnancy Unit Provision of respiratory theraphy services DOH licensed tertiary clinical laboratory DOH licensed level 2 imaging facility with mobile xray inside the institution and capability for contrast examinations .
Pediatrics. AS MINIMUM. Obstetrics and Gynecology and Surgery Provision of physical medicine and rehabilitation unit Provision of ambulatory surgical clinic Provision of dialysis facility Provision of blood bank DOH licensed tertiary clinical laboratory with standard equipment/reagents/supplies necessary for the performance of histopatholgy examinations DOH licensed level 3 imaging facility with interventional radiology .GENERAL HOSPITAL LEVEL 3 – REFERS TO A HOSPITAL THAT HAS. ALL OF LEVEL 2 CAPACITY INCLUDING THE FOLLOWING: Teaching and/or training hospital with accredited residency training program for physicians in the four (4) major specialties namely: Medicine.
SPECIALTY HOSPITAL – REFERS TO THAT SPECIALIZES IN A PARTICULAR DISEASE OR CONDITION OR IN ONE TYOE OF PATIENT. A SPECIALIZED HOSPITAL MAY BE DEVOTED TO TREATMENT OF ANY OF THE FOLLOWING:
Specialty Hospital – refers to that specializes in a particular disease or condition or in one tyoe of patient. A specialized hospital may be devoted to treatment of any of the following: Treatment of particular types of illness for a particular condition requiring a range of treatment. Examples of these hospitals are Philippine OrthopedicCenter, National Center for Mental Health, San Lazaro Hospital, and hospital dedicated to the treatment of cancer Treatment of patients suffering from diseases of a particular organ or group of organs. Examples of these hospital are Lung Center of the Philippines, National Kidney and Transplant Institute, and hospitals dedicated to the treatment of eye disorders Treatment of patients belonging to a particular group as children, women, elderly and others. Examples of these hospitals are Philippine Children’s Medical Center, National Children’s Hospital and Dr. Jose Fabella Memorial Hospital.
CASES: NATIONAL ECONOMIC PROTECTIONISM ASSOCIATION V. ONGPIN G.R. NO. 67752 APRIL 10, 1989
Facts: A day before President Ferdinand E. Marcos signed Proclamation No. 2045 announcing the lifting of Martial Law in the Philippines, he, pursuant to his legislative or decree-making power under both the 1935 Constitution and the transitory provisions of the 1973 Constitution, issued P.D. No. 1789 otherwise known as the Omnibus Investment Code, revising, modifying and amending R.A. No. 5186 and R.A. No. 6135, both enacted by the Congress of the Philippines. He also issued P.D. No. 1892, suspending for a period of one year from date of its effectivity the nationality requirement of at least 60% Philippine Nationals for non- pioneer industries entitled to registration under the Omnibus Investment Code. NEPA, suing as citizens of the Philippines, taxpayers, businessmen, officers and members of said association, who allegedly stand to be adversely affected by the enforcement or continued enforcement of the aforementioned presidential decrees filed the instant petition in this Court, seeking to enjoin public respondents from enforcing said decrees as well as "The Investment Priorities Plan" actually a memorandum of the Minister of Trade to the President, consisting of preferred areas of economic activity that are entitled to investment incentives under P.D. No. 1789 and Executive Order No. 676, entitled "Approving the 1981 Investment Priorities Plan," on the ground that they are unconstitutional; and after hearing declare them as such.
They also maintain the position that the President of the Philippines has no absolute legislative power during martial law but only limited to the decree- making power relative to the suppression and prevention of the ground for its imposition which is manifestly evident from Section 26, Artide VI of the 1935 Constitution.
Issue: W/N The Omnibus Investment Code and The Investment Priorities are unconstitutional.
NEPA merely complied with the third requisite. . and (4) the necessity that the constitutional question be passed upon in order to decide the case. that of raising the issue of constitutionality at the earliest instance in their pleadings. the power of judicial review is limited to the determination of actual cases and controversies. Otherwise stated.Ratio: YES. which are obviously absent in the instant case. It is a well-settled rule that no constitutional question will be heard and resolved unless the following requisites of a judicial inquiry are present: (1) the existence of an appropriate case. (3) the plea that the function be exercised at the earliest opportunity. (2) an interest personal and substantial by the party raising the constitutional question. The petition is deficient as to the other three criteria.
D. exploitation of the country's natural resources by foreign investors under the decrees. such as considerable rise in unemployment. 676 quoted earlier.D. Yet. No actual conflict has been alleged wherein the petitioner could validly and possibly say that the increase in foreign equity participation in non-pioneer areas of investment from the period of December 1983 to December 1984 had any direct bearing on them. the 1981 Investment Priorities Plan and Executive Order No. 1892 in relation to P. unfair competition with Philippine nationals. not even one of the petitioners has been adversely affected by the application of those provisions. real increase in foreign investment. and seek to prohibit respondent Minister of Finance from implementing said laws. . as being violative of the due process and equal protection clauses of the 1973 Constitution as well as Sections 8 and 9 of Article XIV thereof.Petitioners question the constitutionality of Sections 1 and 3 of P. 1789.
1984. while P. synthesis and projection of data collected by the Board from public and private sources which are measurements and indicators in areas of production. production capacities and possibilities in areas of economic activities from which investors might select (Article 28. 226.D. They are by no means violative of the Constitution nor were they successfully shown to be inimical to public interest. 1892 ipso jure ceased its effectivity on December 4. and to the extent that it is directly and necessarily involved in justiciable controversy and is essential to the protection of the rights of the parties concerned.D. such that he has sustained or will sustain. 1789). 676 if but an approval of said plan. 1789 has been expressly repealed by Executive Order No. P.D. while Executive Order No.As a general rule. But more than that. . direct injury as a result of its enforcement. the constitutionality of a statute will be passed upon only if. it will be noted that P. The unchallenged rule is that the person who impugned the validity of a statute must have a personal and substantial interest in the case. The 1981 Investment Priorities Plan which is an over-all plan prepared by the Board of Investments is simply an analysis. otherwise known as the Omnibus Investments Code of 1987.
) No. Masbate. while its administrative office was then located in Cebu City before it was subsequently relocated to Calong-Calong. for locating in a less-developed area in accordance with Article 40 of Executive Order (E.PHILLIPS SEAFOOD (PHILIPPINES) CORPORATION VS. 2009 Facts: Phillips Seafood Corporation is a domestic corporation engaged in the export of processed crabmeat and other seafood products. It registered with respondent Bureau of Investments (BOI) as an existing and expansion producer of soft shell crabs and other seafood products.O. Petitioner was incorporated on 20 October 1992 and registered under its previous corporate name of Phillips Seafood Masbate. 578 SCRA 113. on a non-pioneer status and its plant was situated in Piña. BOARD OF INVESTMENTS. Inc. Bacolod City. otherwise known as The Omnibus Investments Code of 1987. Airport Subdivision. . FEBRUARY 04. Phillipines was granted an Income Tax Holiday (ITH) for six (6) years beginning July 1993 to July 1999. 226.
before the latter’s closure due to financial difficulties. Inc. PSPI eventually stopped operations. In 1999. Unable to recover from its financial reverses. pursuant to Article 39 (a) (1) (ii) of Executive Order No. including its picking facilities in Cebu City.). equipment and other assets belonging to PSPI. Philips acquired the title to the plant. It acquired the right to use the canning facility of PSPI in Bacolod City during the temporary suspension of PSPI’s operations. (PSPI). EP 93-219 would be extended until 12 August 2000. In October 1999. Roxas City. an affiliate corporation also engaged in the export of seafood products. Petitioner informed respondent BOI of said transfer. the BOI informed petitioner that the latter’s ITH under Certificate of Registration No.Petitioner used to supply semi-processed raw materials to Phillips Seafood (Phils. . Petitioner also filed with respondent BOI an application for registration of its new plant having an expanded capacity of 155. 226. facilities.205 kilograms a year. petitioner relocated its plant and office in Bacolod City to Barangay Banica.
petitioner filed with respondent BOI an application for an ITH for taxable year 1999 under Certificate of Registration No.On 06 January 2000. It filed another application for an ITH for the year 2000 under Certificate of Registration No. respondent BOI granted petitioner’s application for registration of its new plant in Roxas City under Certificate of Registration No. VI EP 2000002. VI EP 2000-002 covering its crabmeat products and under Certificate of Registration No. On 22 June 2000. Petitioner changed its corporate name from PS-Masbate to its current name of Phillips Seafood (Philippines) Corporation. On 04 May 2000. Petitioner’s registration was categorized as a new producer on a nonpioneer status with an ITH for four years beginning January 2000. XI EP 2000-74 with an ITH for four years beginning April 2000. respondent BOI approved the registration of petitioner as a “New Producer of Processed Fish” under another Certificate of Registration No. EP 93-219. XI EP 20000-74 covering its processed fish products. . which was approved by respondent BOI on 16 February 2001.
Petitioner received a copy of the order on 01 April 2005.In a letter dated 25 September 2003. Petitioner elevated the matter to the Office of the President. The Office of the President likewise denied petitioner’s motion for reconsideration in an Order dated 14 March 2005. Issue: W/N review by the Office of the President of the decisions of BOI must be allowed . respondent BOI informed petitioner that the ITH previously granted would be applicable only to the period from 13 August 1999 to 21 October 1999 or before petitioner’s transfer to a “not less-developed area.” Petitioner wrote respondent BOI requesting for a reconsideration of its decision. which dismissed petitioner’s appeal on the ground of lack of jurisdiction in a Decision dated 22 September 2004. On 03 May 2004. petitioner received by fax BOI’s letter denying its motion for reconsideration.
No. E. 226 apparently allows two avenues of appeal from an action or decision of the BOI. the cancellation of registration or suspension of the enjoyment of certain incentives under E.O. There is no doubt that the resolution of petitioner’s claim that it is entitled to the ITH in the instant case calls for the exercise of the BOI’s regulatory functions. and the resolution of controversies arising from the implementation of E. Among the regulatory functions of the BOI are the processing of applications for registration.O. . No. 226. and second. One mode is to elevate an appeal to the Office of the President when the action or decision pertains to either of these two instances: first. 226 that may arise between registered enterprises or investors and government agencies under Article 7. in an action of the BOI over applications for registration under the investment priorities plan under Article 36. in the decisions of the BOI over controversies concerning the implementation of the relevant provisions of E.O No. depending on the nature of the controversy.O.Ratio: No. No. 226.
226. No. 226. 22 is the catch-all provision allowing the appeal to the courts from all other decisions of respondent BOI involving the other provisions of E.O.O.O. The intendment of the law is undoubtedly to afford immediate judicial relief from the decision of respondent BOI. Article 82 of E. 226. Under Article 50. No. which. No. authorizes the direct appeal to the Supreme Court from any order or decision of respondent BOI “involving the provisions of E. Nevertheless. No. a party adversely affected by the issuance of a license to do business in favor of an alien or a foreign firm may file with the proper Regional Trial Court an action to cancel said license. 226.O. No. in its broad phraseology. E. .Another mode of review is to elevate the matter directly to judicial tribunals. 226 contains no provision specifically governing the remedy of a party whose application for an ITH has been denied by the BOI in the same manner that Articles 7 and 36 thereof allow recourse to the Office of the President in certain instances. Then. No. E.O.” E. there is Article 82.O. save in cases mentioned under Articles 7 and Article 36.
E. From the letter dated 09 October 2003 of respondent BOI.In relation to Article 82. Section 1 of Rule 43 of the 1997 Rules of Civil Procedure expressly includes respondent BOI as one of the quasi-judicial agencies whose judgments or final orders are appealable to the Court of Appeals via a verified petition for review. petitioner appealed to the Office of the President. including petitioner’s entitlement to an ITH. In the instant case. under the requirements and conditions in Rule 43 which was precisely formulated and adopted to provide for a uniform rule of appellate procedure for quasi. This enumeration is exclusive so that other controversies outside of its purview. Petitioner cannot invoke Article 36 to justify its appeal to the Office of the President. along with Article 7. a recourse that is not sanctioned by either the Rules of Civil Procedure or by the Omnibus Investments Code of 1987. namely.judicial agencies. No. Thus. 226. applies to specific instances. controversies between a registered enterprise and a government agency and decisions concerning the registration of an enterprise. the denial of petitioner’s application for an ITH is not within the cases where the law expressly provides for appellate recourse to the Office of the President. Appeals from judgments and final orders of quasi-judicial agencies are now required to be brought to the Court of Appeals on a verified petition for review. petitioner should have elevated its appeal to the Court of Appeals under Rule 43. which allows recourse to the Office of the President. which informed petitioner that its ITH would be extended only from 13 August 1999 to 21 October 1999. .O. petitioner should have immediately elevated to the Court of Appeals the denial by respondent BOI of its application for an ITH. That being the case. Article 36. can invoke only the appellate judicial relief provided under Article 82. respectively.
1 Fiscal Incentives Income Tax Holiday.fully exempt from income taxes levied by the National Government .INVESMENT WITH INCENTIVES 1. Pioneer firms .four (4) years New registered firms .For six (6) years from commercial operation Non-pioneer firms .
that during the period within which this incentive is availed of by the expanding firm it shall not be entitled to additional deduction for incremental labor expense NOTE: The provision of Article 7 (14) notwithstanding. registered firms shall not be entitled to any extension of this . the project meets the prescribed ratio of capital equipment to number of workers set by the Board 2. Provided. utilization of indigenous raw materials at rates set by the Board 3. the net foreign exchange savings or earnings amount to at least US$500. For a period of three (3) years from commercial operation 2. subject to the following guidelines: 1.00 annually during the first three (3) years of operation exemption from income taxes levied by the National Government: 1.income tax exemption will be extended for another year but not to exceed eight (8) years. Shall be proportionate to their expansion 3.000.
ADDITIONAL DEDUCTION FOR LABOR EXPENSE For the first five (5) years from registration a registered enterprise shall be allowed an additional deduction from the taxable income of fifty percent (50%) of the wages corresponding to the increment in the number of direct labor for skilled and unskilled workers if the project meets the prescribed ratio of capital equipment to number of workers set by the Board: Provided. 40. . NOTE: That this additional deduction shall be doubled if the activity is located in less developed areas as defined in Art.
within 5 years from the effectivity of EO 226. of comparable quality and at reasonable prices.TAX AND DUTY EXEMPTION ON IMPORTED CAPITAL EQUIPMENT. Importations of machinery and equipment and accompanying spare parts of new and expanding registered enterprise shall be exempt to the extent of one hundred percent (100%) of the customs duties and national internal revenue tax payable. . unless prior approval of the Board is secured for the part-time utilization of said equipment in a non-registered activity to maximize usage thereof or the proportionate taxes and duties are paid on the specific equipment and machinery being permanently used for non-registered activities. equipment and spare parts. and (3) The approval of the Board was obtained by the registered enterprise for the importation of such machinery. (2) They are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products. subject to conditions: (1) They are not manufactured domestically in sufficient quantity.
000. transfer or disposition of the said items within the said period of five (5) years if made: . transferee. The Board shall allow and approve the sale. transfers or disposes of these machinery. Board may require international canvassing but if the total cost of the capital equipment or industrial plant exceeds US$5. If the registered enterprise sells. the registered enterprise and the vendee.000. or assignee shall be solidarily liable to pay twice the amount of the tax exemption given it. equipment and spare parts without prior approval of the Board within five (5) years from date of acquisition. the Board shall apply or adopt the provisions of Presidential Decree Numbered 1764 on International Competitive Bidding.
(aa) to another registered enterprise or registered domestic producer enjoying similar incentives. (bb) for reasons of proven technical obsolescence. or (cc) for purposes of replacement to improve and/or expand the operations of the registered enterprise. .
had these items been imported shall be given to the new and expanding registered enterprise which purchases machinery. . transfers or disposes of these machinery. equipment and spare parts. provided that: (1) That the said equipment. equipment and spare parts. and (4) that the purchase is made within five (5) years from the date of effectivity of the Code. the provisions in the preceding paragraph for such disposition shall apply. (2) that the equipment would have qualified for tax and duty-free importation under paragraph (c) hereof. equipment and spare parts from a domestic manufacturer. (3) that the approval of the Board was obtained by the registered enterprise. machinery and spare parts are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products. If the registered enterprise sells.TAX CREDIT ON DOMESTIC CAPITAL EQUIPMENT. unless prior approval of the Board is secured for the part-time utilization of said equipment in a non-registered activity to maximize usage thereof. 100% of the value of the national internal revenue taxes and customs duties that would have been waived on the machinery.
whether national or local. and (3) approved by the Board. . The registered enterprise shall be exempt from the payment of contractor's tax. The importation of breeding stocks and genetic materials within ten (10) years from the date of registration or commercial operation of the enterprise shall be exempt from all taxes and duties.Exemption from Contractor's Tax. Exemption on Breeding Stocks and Genetic Materials. (2) reasonably needed in the registered activity. provided that such breeding stocks and genetic materials are: (1) not locally available and/or obtainable locally in comparable quality and at reasonable prices.
provided: 1) That said breeding stocks and generic materials would have qualified for tax and duty free importation under the preceding paragraph. 2) that the breeding stocks and genetic materials are reasonably needed in the registered activity. and 4) that the purchase is made within ten (10) years from date of registration or commercial operation of the registered enterprise.TAX CREDIT ON DOMESTIC BREEDING STOCKS AND GENETIC MATERIALS. 100% of the value of national internal revenue taxes and customs duties that would have been waived on the breeding stocks and genetic materials had these items been imported shall be given to the registered enterprise which purchases breeding stocks and generic materials from a domestic producer. . 3) that the approval of the board has been obtained by the registered enterprise.
TAX CREDIT FOR TAXES AND DUTIES ON RAW MATERIALS. exported directly or indirectly by the registered enterprise: Provided.manufactured products domestically purchased are indicated as a separate item in the sales invoice. . NOTE: Nothing herein shall be construed as to preclude the Board from setting a fixed percentage of export sales as the approximate tax credit for taxes and duties of raw materials based on an average or standard usage for such materials in the industry. processing or production of its export products and forming part thereof. Every registered enterprise shall enjoy a tax credit equivalent to the National Internal Revenue taxes and Customs duties paid on the supplies. raw materials and semi-manufactured products used in the manufacture. that the taxes on the supplies. raw materials and semi. however.
. Registered export oriented enterprises shall have access to the utilization of the bonded warehousing system in all areas required by the project subject to such guidelines as may be issued by the Board upon prior consultation with the Bureau of Customs.ACCESS TO BONDED MANUFACTURING/TRADING WAREHOUSE SYSTEM.
that all such spare parts and supplies shall be used only in the bonded manufacturing warehouse of the registered enterprise under such requirements as the Bureau of Customs may impose. that such spare parts and supplies are not locally available at reasonable prices. Importation of required supplies and spare parts for consigned equipment or those imported tax and duty free by a registered enterprise with a bonded manufacturing warehouse.EXEMPTION FROM TAXES AND DUTIES ON IMPORTED SPARE PARTS. sufficient quantity and comparable quality. 2. that at least seventy percent (70%) of production is exported. 3. . provided: 1.
EXEMPTION FROM WHARFAGE DUES AND ANY EXPORT TAX, DUTY, IMPOST AND FEE. The provisions of law to the contrary notwithstanding, exports by a registered enterprise of its non- traditional export products shall be exempted of its nontraditional export products shall be exempted from any wharfage dues, and any export tax, duty, impost and fee.
a. Simplification of Customs Procedure. Customs procedures for the importation of equipment, spare parts, raw materials and supplies, and exports of processed products by registered enterprises shall be sampled by the Bureau of Customs. b. Employment of Foreign Nationals. a registered enterprise may employ foreign nationals in supervisory, technical or advisory positions for a period not exceeding five (5) years from its registration, extendible for limited periods at the discretion of the Board (Section 29 of Commonwealth Act Number 613, as amended), provided that: When the majority of the capital stock of a registered enterprise is owned by foreign investors, the position of president, treasurer and general manager or their equivalents may be retained by foreign nationals beyond the period set forth herein. Foreign nationals under employment contract within the purview of this incentive, their spouses and unmarried children under twenty-one (21) years of age, who are not excluded by Section 29 of Commonwealth Act Numbered 613, as amended, shall be permitted to enter and reside in the Philippines during the period of employment of such foreign nationals. A registered enterprise shall train Filipinos as understudies of foreign nationals in administrative, supervisory and technical skills and shall submit annual reports on such training to the Board.
Unrestricted Use of Consigned Equipment.
shall not be subject to restrictions as to period of use of such machinery, equipment and spare parts Provided, that the appropriate re-export bond is posted unless the importation is otherwise covered under subsections (c) and (m) of Article 39 of EO 226. Provided, further, that such consigned equipment shall be for the exclusive use of the registered enterprise. NOTE: If such equipment is sold, transferred or otherwise disposed of by the registered enterprise the related provision of Article 39 (c) (3) shall apply. Outward remittance of foreign exchange covering the proceeds of such sale, transfer or disposition shall be allowed only upon prior Central Bank approval.
their respective spouses. and unmarried children under twenty-one years of age. extendible yearly upon submission to the Commission on Immigration and Deportation of a sworn certification by a responsible officer of the regional or area headquarters. if accompanying them or if following to join them after their admission into the Philippines as non.1 Multiple entry visa. Foreign personnel of regional or area headquarters of multinational companies. that its license to operate remains valid and subsisting .Incentives to Expatriates 1.INCENTIVES TO MULTINATIONAL COMPANIES 1.immigrant for a period of 1 year The admission and stay shall be co-terminus with the validity of the multiple entry special visa.
and obtaining immigration clearance certificates. as well as their respective spouses and dependents. shall be exempt from: 1.2 Withholding Tax of 15 %. Aliens employed by regional or area headquarters of multinational corporations shall be subject for each taxable year upon their gross income received from the regional or area headquarters established in the Philippines . and all types of clearances required by any government department or agency 1. the payment of all fees due under the immigration and alien registration laws. securing alien certificates of registration. 3. Non-immigrant who have been admitted under the multiple entry special visa. 2.
as certified to by the Board of Investments.3 Tax and Duty Free Importation. An alien executive of the regional or area headquarters of a multinational company shall enjoy tax and duty free importation of personal and household effects as provided for under Section 105 (h) of the Tariff and Customs Code. and Section 169 (b) (4) of the Internal Revenue Code.4 Travel Tax Exemption. Personnel of multinational companies performing technical and supervisory functions with regional headquarters at. 1.1. as amended. . as amended. but not engaged in business in the Philippines and the dependents of such foreign personnel if joining them during the period of their assignment in the Philippines.
Regional or area headquarters established in the Philippines by multinational corporations and which headquarters do not earn or derive income from the Philippines and which act as supervisory. communications and coordinating center for their affiliates. are exempted from the contractor's tax. Exemption from Contractor's Tax.Incentives to Regional Headquarters Exemption from Income Tax. . subsidiaries. including their alien executives. The regional or area headquarters established in the Philippines by multinational corporations. or branches in the Asia-Pacific Regional shall not be subject to income tax.
The regional or area headquarters of multinational companies shall be exempt from all kinds of local licenses. Needed for the functions of the regional or area headquarters and which are not locally available subject to the prior approval of the Board of Investments. Importation of Motor Vehicles. . fees. The regional or area headquarters of multinational companies shall be exempt from the provisions of Book II of this Code. That such motor vehicles shall be for the exclusive use of its expatriate executives and that the number thereof shall not exceed the number of its expatriate executives and that such motor vehicles may be replaced every three (3) years from their importation. dues. Exemption from Registration Requirements. imposts or any other local taxes or burdens. Exemption from all Kinds of Local Licenses Fees. Tax and Duty Free Importation of Training Materials. Dues.
All real estate taxes accruing to the Authority as herein provided shall be expanded for such community facilities. operation or production inside the zone be exempt from the payment of any and all local government imposts. fees. utilities and/or services as the Authority may determine. processing or for industrial purposes shall not be subject to the payment of real estate taxes for the first three (3) years of operation of such machineries: 2.Incentives of Export Processing Zone Enterprises Fiscal a. provided that: 1. Tax Treatment of Merchandise in the Zone. zone registered enterprise shall. . That fifty percent (50%) of the proceeds of the real estate taxes collected from all real properties located in the Zone and such other areas owned or administered by the Authority shall be remitted to the Authority by the province/city/municipality responsible for the collection of such taxes under the provisions of the Real Property Tax Code. Exemption from Local Taxes and Licenses. b. licenses or taxes except real estate taxes which shall be collected by the Province/City/Municipality responsible for the collection thereof under the provisions of the Real Property Tax Code. machineries owned by zone registered enterprises which are actually installed and operated in the Zone for manufacturing. to the extent of their construction.
used directly or indirectly. may employ foreign nationals in supervisory. assembly or manufacture of the registered product of the zone registered enterprise shall be exempt from real property taxes. in the production.Non-Fiscal a. Employment of Foreign Nationals. not attached to real estate. . technical or advisory positions for a period not exceeding five (5) years from its registration. Production equipment or machineries. extendible for limited periods at the discretion of the Authority shall be issued multiple entry visa which is valid for a period of 3 years b.
importers. exporters. Spare part A spare part is an item of inventory used to replace failed parts. etc. transportbusiness es. Warehouse A warehouse is a commercial building for storage of goods.INCENTIVES TO MULTINATIONAL COMPANIES DEFINITION OF TERMS Multinational company A multinational corporation or multinational enterprise is a corporation that is registered in more than one country or that has operations in more than one country. customs. Warehouses are usedby manufacturers. wholesalers. .
. The basic material that can be used to make or create something. Raw Material The basic material from which a product is made.Manufactured Components One assembled in a manufacturing facility.
A CERTIFICATION FROM THE FOREIGN TRADE OFFICER In the absence of such an official. a Philippine Consul in the foreign firm's home country that said foreign firm is engaged in international trade and supplies or will supply spare parts or manufactured components and raw materials to its distributors or markets in the Asia-Pacific Region .MINIMUM REQUIREMENTS 1.
affiliate or branch office it might have in the Philippines. labelling and cutting or altering to customer's specification. The said locally purchased goods for export may be stored in the regional warehouse only after they have been cleared for export in accordance with the laws and regulations. SPECIFYING THAT: 1. nor enter into any contract for the sale or disposition of goods in the Philippines. The activities of the regional warehouse shall be limited to serving as a supply depot for the storage.2. The regional warehouse shall not directly engage in trade nor directly solicit business. deposit. The regional warehouse will not derive any income from the sources within the Philippines and its personnel will not participate in any manner in the management of any subsidiary. to fill up transactions and sales made by its head offices or parent companies and to serving as a storage or warehouse of goods purchased locally by the home office of the multinational for export abroad 2. mounting and/or packaging into kits or marketable lots thereof. covering. 4. putting up. promote any sale. 3. including those of the Central Bank and simplified procedures governing exports. The personnel of the regional headquarters shall be responsible for the . safekeeping of its spare parts or manufactured components and raw materials including the packing. A CERTIFICATION FROM A PRINCIPAL OFFICER OF THE FOREIGN COUNTRY TO THE EFFECT THAT SAID FOREIGN ENTITY HAS BEEN AUTHORIZED BY ITS BOARD OF DIRECTORS OR GOVERNING BODY TO ESTABLISH ITS REGIONAL WAREHOUSE IN THE PHILIPPINES. marking.
APPLICATION for the establishment of a regional warehouse SHALL BE MADE IN WRITING to the BOI upon recommendation of the Bureau of Customs. 5. 6. LOCATION and CAPACITY of the regional warehouse and the purpose for which the building is to be used. The application shall describe the PREMISES. The jurisdiction and responsibility of supervising the regional warehouse shall be vested on the Bureau of Customs. in consultation with the Regional Director of Customs of the district where the warehouse will be situated shall cause an examination of the premises to be made with reference particularly to the location.3. 4. construction and means provided for the safekeeping of its articles and if found satisfactory. PAY LICENSE FEES AND STORAGE FEES to the BOI and Appropriate Regional Collector. . 7. EXAMINATION OF THE PREMISES The Board of Investments.
SUBJECT TO THE FOLLOWING CONDITIONS: a) b) c) d) e) f) g) h) That the articles to be stored in the warehouse are spare parts or manufactured components and/or raw materials of the multinational company That the entry or importation. storage or re-export of the goods destined for or to be stored in the regional warehouse will not involve any dollar outlay from Philippine sources readily identifiable for re-export That they shall be allowed provisional entry expeditiously by means of a pro forma invoice of the parent company. examined and appraised by the Regional Collector of Customs they shall be directly delivered to and kept in the regional warehouses and released there from only in accordance with Article 69 paragraphs (a) and (b) and the guidelines implementing Book IV of this Code Each shipment of goods which will be stored in the regional warehouse shall be covered by an affidavit setting forth that said articles shall be exclusively used as supply for its Asia-Pacific markets and stating the C & F price thereof That it shall file an ordinary warehousing bond in an amount equal to ONE HUNDRED PER CENT (100%) of the ascertained customs duties on the articles imported The percentage of annual allowable withdrawal for domestic use shall be subject to the approval of the Board of Investments . identified.IT MAY AUTHORIZE ITS ESTABLISHMENT WITHOUT COMPLYING WITH THE REQUIREMENTS OF ANY OTHER GOVERNMENT BODY AND AIMED AT PROVIDING SPEEDY PROCEDURE FOR ITS ESTABLISHMENT.
TAX INCENTIVES for Qualified Goods Destined for Reexportation to the Asia-Pacific and other Foreign Markets. and eventually re-exported shall not be subject to customs duty. the provisions of law to the contrary notwithstanding Exception: Those prohibited by law. raw materials and other items including any packages. export tax nor to local taxes. As a rule: imported spare parts or manufactured components. internal revenue tax. brands and labels and warehouse equipment as may be allowed by the Board of Investments for the use exclusively on the goods stored. brought into the regional warehouse from abroad . coverings.TAX TREATMENT OF IMPORTED ARTICLES IN THE REGIONAL WAREHOUSE a.
Payment of Applicable Duties and Taxes on Qualified Goods subject to Laws and Regulations Covering Imported Merchandise if destined for the Local Market. manufactured components. released or taken from the regional warehouse to the local market in accordance with the guidelines implementing Book IV of this Code . delivered. SUBJECT TO THE PAYMENT OF CUSTOM DUTIES. raw materials and other items sent.b. TAXES AND OTHER CHARGES Any spare parts.
SUBJECT TO FORFEITURE Those that are sold. . tax or other charge which would have been due and payable at the time of entry if the articles had been entered without the benefit of this decree. And the importation shall constitute a fraudulent practice against customs revenue punishable under Section 3602. hired or used for purposes other than they were intended for without prior compliance with the guidelines implementing Book IV of this Code and without prior payment of the duty. of the Tariff and Customs Code of the Philippines. bartered. as amended.
release or removed contrary to the provisions of said guidelines shall be forfeited pursuant to the provisions of Article 69.DURATION OF ARTICLES DULY ENTERED FOR WAREHOUSING Articles may remain in the regional warehouses for a period of two (2) years from the time of their transfer to the regional warehouse. paragraph (b) hereof. Prohibition: Any article. . which period may be extended with the approval of the Board of Investments for an additional period of one (1) year upon payment of the corresponding storage fee on the unexported articles. withdrawn.
. release for re-exportation and for the safekeeping. manipulation and packaging. handling. warehousing. Such rules and regulations shall be formulated in consultation with the applicants/operators of regional warehouses in order to be responsive to the objective of providing a procedure for the speedy inflow and outflow of the qualified goods. delivery. recording. classifications.RULES AND REGULATIONS ON THE JURISDICTION. examinations. entry. inventory and liquidation of said qualified goods. storage. OPERATION AND CONTROL OVER QUALIFIED GOODS STORED IN THE REGIONAL WAREHOUSE The Board of Investments and the Bureau of Customs shall jointly issue special rules and regulations On the receiving. custody.
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