MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 238 July 9, 1973
FURTHER AMENDING SECTION 105 OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, EXEMPTING IMPORTATIONS OF DOMESTIC SCHEDULED AIRLINES AND OF NEW MINES AND OLD MINES WHICH RESUME OPERATIONS FROM CUSTOMS DUTY
WHEREAS, the domestic scheduled airlines had been granted under their respective Congressional Franchises exemption from customs duty and compensating tax in consideration of the franchise tax on gross receipts therein imposed and of the essential air transportation service they provide the public;
WHEREAS, there is a pressing need to rehabilitate our faltering civil aviation industry, to expand and improve the service being provided by the domestic scheduled airlines, to assure a favorable competitive position of our national flag carrier in the international field and to take the operations of our scheduled airlines financially sound and economically viable to effect the desired social and economic development of our country;
WHEREAS, the Philippines is blessed with bountiful mineral resources, the development and exploitation of which is essential...
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Amends
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Amended by
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Presidential Decrees
Further Amending Section 105 Of The Tariff And Customs Code Of The Philippines, As Amended, Exempting Importations Of Domestic Scheduled Airlines And Of New Mines And Old Mines Which Resume
Presidential Decree No. 238
Presidential Decree No. 238
Exemptions from Customs Duty:
• Importations by domestic scheduled airlines operating under Congressional franchises are exempt from customs duty.
- Covers aircraft, equipment, machinery, spare parts, commissary and catering supplies, aviation gas, fuel, oil, and other necessary articles or supplies. (Section 1(u))
- Condition: Articles or supplies must not be locally available in reasonable quantity, quality, and price.
• Importations by new mines and old mines that resume operations are exempt from customs duty for 5 years from the first date of actual commercial production of saleable mineral product.
- Covers machineries, equipment, tools for production, plants to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals, and transportation and communication facilities. (Section 1(v))
- Condition: Articles must not be locally available in reasonable quantity, quality, and price, and must be necessary or incidental for proper operation of the mine.
- Certification required from the Secretary of Agriculture and Natural Resources upon recommendation of the Director of Mines.
Rationale:
• To rehabilitate and expand the civil aviation industry and improve services of domestic scheduled airlines.
• To ensure a favorable competitive position for the national flag carrier in the international field.
• To make scheduled airline operations financially sound and economically viable for social and economic development.
• To develop and exploit the country's bountiful mineral resources, which is essential for economic development.
• To provide tax incentives for the mining industry, which requires large amounts of high-risk capital during initial years of commercial operations.
Exemptions from Customs Duty:
• Importations by domestic scheduled airlines operating under Congressional franchises are exempt from customs duty.
- Covers aircraft, equipment, machinery, spare parts, commissary and catering supplies, aviation gas, fuel, oil, and other necessary articles or supplies. (Section 1(u))
- Condition: Articles or supplies must not be locally available in reasonable quantity, quality, and price.
• Importations by new mines and old mines that resume operations are exempt from customs duty for 5 years from the first date of actual commercial production of saleable mineral product.
- Covers machineries, equipment, tools for production, plants to convert mineral ores into saleable form, spare parts, supplies, materials, accessories, explosives, chemicals, and transportation and communication facilities. (Section 1(v))
- Condition: Articles must not be locally available in reasonable quantity, quality, and price, and must be necessary or incidental for proper operation of the mine.
- Certification required from the Secretary of Agriculture and Natural Resources upon recommendation of the Director of Mines.
Rationale:
• To rehabilitate and expand the civil aviation industry and improve services of domestic scheduled airlines.
• To ensure a favorable competitive position for the national flag carrier in the international field.
• To make scheduled airline operations financially sound and economically viable for social and economic development.
• To develop and exploit the country's bountiful mineral resources, which is essential for economic development.
• To provide tax incentives for the mining industry, which requires large amounts of high-risk capital during initial years of commercial operations.