Declaring the Establishment of a Coconut Chemical Industry as a Means to Rationalize the Coconut Industry of the Philippines and Granting Additional Incentives Therefor

Case Overview and Summary

SUMMARY OF EXECUTIVE ORDER NO. 880

Declaring the Establishment of a Coconut Chemical Industry as a National Policy
- The establishment, operation and maintenance of a chemical process plant utilizing coconut oil as its principal raw material is declared vital to the national interest and part of the government's rationalization program for the coconut industry. (Section 1)

Granting of Assistance, Cooperation, Benefits, Incentives and Exemptions
- The government, its agencies and instrumentalities are instructed to extend all assistance, cooperation, benefits, incentives and exemptions to the fullest extent permitted to the Enterprise. (Section 2)

Tax Exemptions for Importation of Technology, Machinery, Equipment and Services
- The purchase abroad and importation into the Philippines by the Enterprise, and the sale by the foreign supplier/contractor of all required, necessary and useful technology, machinery, equipment and services for the establishment of the chemical process plant, are declared non-taxable events and totally exempt from any and all assessable taxes, including income tax, duties, levies, imposts and other similar charges, as well as the ad valorem duty imposed by Executive Order No. 860. (Section 3)

Granting of Additional Incentives
- The Board of Investments is directed to recommend to the President such other additional incentives to be granted to the Enterprise which will aid it in the full and effective implementation of the national policy. (Section 4)