Authorizing The Tourist Duty-Free Shops, Inc. To Establish And Operate Duty And Tax Free Shops And Requiring It To Pay Franchise Tax In Lieu Of All Other Taxes
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Authorizing The Tourist Duty-Free Shops, Inc. To Establish And Operate Duty And Tax Free Shops And Requiring It To Pay Franchise Tax In Lieu Of All Other Taxes
Presidential Decree No. 1193
September 6, 1977
Case Overview and Summary
Summary of Presidential Decree No. 1193:Authorizes Tourist Duty-Free Shops, Inc. to establish and operate duty and tax-free shops
• Allows duty and tax-free shops in international airports, seaports, selected hotels, tourist resorts, and commercial/trading centers throughout the country. (Section 1)
• Requires establishing a Customs Bonded Warehouse in each port of entry for storage and safekeeping of imported duty and tax-free merchandise. (Section 2)
• Importations of merchandise for sale require prior approval from the Central Bank of the Philippines. (Section 3)
• Imported articles must be entered under warehousing entry and remain under customs control until sold, exported, or disposed of. (Section 4)
• Exempts Tourist Duty-Free Shops, Inc. from Section 1908 of the Tariff and Customs Code, allowing unsold goods to be exported, auctioned, or destroyed after 3 years. (Section 5)
Duty and tax-free sales are allowed to:
• Foreign embassies, legations, consular offices, international agencies, etc., without prior approval. (Section 6a)
• Passengers of international flights or sea voyages, subject to rules and regulations. (Section 6b)
• Foreign delegates, participants, and observers at government-accredited international conferences/conventions. (Section 6c)
• Airlines and shipping companies for air/sea stores for flights/voyages outside the Philippines. (Section 6d)
• Tourist Duty-Free Shops, Inc. can sell and deliver imported merchandise to authorized persons outside airports/seaports. (Section 7)
Other provisions:
• Allows duty and tax-free importation of equipment, fixtures, and materials necessary for operations. (Section 8)
• Licensed hotels and restaurants can purchase food and beverages from Tourist Duty-Free Shops, Inc., subject to Central Bank approval and payment of duties, taxes, and charges. (Section 9)
• Tourist Duty-Free Shops, Inc. shall pay 7% of annual net sales as franchise tax: 5% to the Nutrition Center of the Philippines or similar projects, and 2% to the national government, in lieu of all business and income taxes. (Section 10)
• Grants Tourist Duty-Free Shops, Inc. exclusive authority for a period of 25 years. (Section 11)
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Tags
Executive Issuances
Presidential Decrees
duty-free shops
tax-free shops
franchise tax
customs bonded warehouse
importation
foreign exchange
tourism
airports
seaports
hotels
resorts
commercial centers
embassies
legations
consular offices
international agencies
international flights
sea voyages
international conferences
airlines
shipping companies
equipment
fixtures
restaurants
Nutrition Center of the Philippines
exclusive authority
25-year period
Law
Authorizing The Tourist Duty-Free Shops, Inc. To Establish And Operate Duty And Tax Free Shops And Requiring It To Pay Franchise Tax In Lieu Of All Other Taxes
Presidential Decree No. 1193
•September 6, 1977
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1193
AUTHORIZING THE TOURIST DUTY-FREE SHOPS, INC. TO ESTABLISH AND OPERATE DUTY AND TAX FREE SHOPS AND REQUIRING IT TO PAY FRANCHISE TAX IN LIEU OF ALL OTHER TAXES
WHEREAS, duty-free stores serves as an effective resource base of accelerated tourism development in our country;
WHEREAS, duty-free stores will earn for our country substantial amounts of foreign exchange which, in turn, will help accelerate our country's socio-economic development.
WHEREAS, the nature of the traditional items that are scheduled in duty-free shops will not, in any way, offer competition to locally manufactured products but to the contrary, duty-free shops serve as a very effective showcase for such locally manufactured products;
WHEREAS, Tourist Duty-Free Shops, Inc. has proven itself to be possessed of such financial, technical and managerial capabilities that make it a very efficient operator and manager of duty-free stores;
WHEREAS, in order to stabilize and standardize the services of duty and tax free stores in qualified air and sea passenger terminals in the country, and other...
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Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
duty-free shops
tax-free shops
franchise tax
customs bonded warehouse
importation
foreign exchange
tourism
airports
seaports
hotels
resorts
commercial centers
embassies
legations
consular offices
international agencies
international flights
sea voyages
international conferences
airlines
shipping companies
equipment
fixtures
restaurants
Nutrition Center of the Philippines
exclusive authority
25-year period
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1193
AUTHORIZING THE TOURIST DUTY-FREE SHOPS, INC. TO ESTABLISH AND OPERATE DUTY AND TAX FREE SHOPS AND REQUIRING IT TO PAY FRANCHISE TAX IN LIEU OF ALL OTHER TAXES
WHEREAS, duty-free stores serves as an effective resource base of accelerated tourism development in our country;
WHEREAS, duty-free stores will earn for our country substantial amounts of foreign exchange which, in turn, will help accelerate our country's socio-economic development.
WHEREAS, the nature of the traditional items that are scheduled in duty-free shops will not, in any way, offer competition to locally manufactured products but to the contrary, duty-free shops serve as a very effective showcase for such locally manufactured products;
WHEREAS, Tourist Duty-Free Shops, Inc. has proven itself to be possessed of such financial, technical and managerial capabilities that make it a very efficient operator and manager of duty-free stores;
WHEREAS, in order to stabilize and standardize the services of duty and tax free stores in qualified air and sea passenger terminals in the country, and other...
Login to see full content