MALACAÑAN PALACE
MANILABY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER No. 70
REDUCING THE RATES OF DUTY ON CAPITAL EQUIPMENT, SPARE PARTS AND ACCESSORIES IMPORTED BY BOARD OF INVESTMENTS (BOI)-REGISTERED NEW AND EXPANDING ENTERPRISES
WHEREAS, Executive Order No. (EO) 528 (s. 2006), provided for zero percent duty on certain articles imported by BOI-registered new and expanding enterprises for a period of five (5) years from the date of its effectivity or until the enactment of a law amending EO 226, otherwise known as the Omnibus Investments Code of 1987, as amended, whichever comes earlier;
WHEREAS, the five-year effectivity of EO 528 has expired and a law amending EO 226 remains to be enacted;
WHEREAS, there is a need to extend zero percent duty on importation of capital equipment, spare parts and accessories currently being enjoyed by BOI-registered enterprises located within economic zones and freeports;
WHEREAS, importation of capital equipment is one of the major cost burdens of business enterprises in their start-up operations;
WHEREAS, allowing zero percent duty importation will make the Philippines...
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Executive Orders
Reducing The Rates Of Duty On Capital Equipment, Spare Parts And Accessories Imported By Board Of Investments (Boi)-Registered New And Expanding Enterprises
Executive Order No. 70
Summary of Executive Order No. 70
Zero Percent Duty on Capital Equipment, Spare Parts and Accessories (Section 1)
- Any importation of capital equipment, spare parts and accessories by BOI-registered enterprises shall be subjected to zero percent duty.
Coverage (Section 2)
- Zero percent duty shall be granted to BOI-registered new and expanding enterprises on articles or equipment classified under specific chapters of the Tariff and Customs Code of the Philippines (TCCP), upon issuance of a Certificate of Authority by the BOI.
- The importation must comply with the following conditions:
a. The items are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices. (Section 2a)
b. The items are reasonably needed and will be used exclusively by the enterprise in its registered activity, unless prior BOI approval is secured. (Section 2b)
Prohibition to Sell, Transfer, or Dispose (Section 3)
- The BOI-registered enterprise cannot sell, transfer or dispose of the imported capital equipment, machinery, spare parts and accessories without prior BOI approval within five (5) years from the date of importation.
- Violation will result in the enterprise being solidarily liable to pay twice the amount of the duty foregone or five hundred thousand pesos (Php 500,000.00), whichever is higher, without prejudice to other applicable penalties under EO 226.
Implementing Rules and Regulations (Section 4)
- The BOI shall promulgate the implementing rules and regulations (IRRs) governing the implementation of this Executive Order.
Repealing Clause (Section 5)
- All issuances, orders, rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.
Separability Clause (Section 6)
- If any provision of this Executive Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.
Effectivity Clause (Section 7)
- This Executive Order shall take effect thirty (30) days following its complete publication in a newspaper of general circulation in the Philippines.
- It shall be availed for a period of five (5) years from the date of effectivity or upon enactment of a law amending EO 226, otherwise known as the Omnibus Investment Code of 1987, as amended, whichever is earlier.
Zero Percent Duty on Capital Equipment, Spare Parts and Accessories (Section 1)
- Any importation of capital equipment, spare parts and accessories by BOI-registered enterprises shall be subjected to zero percent duty.
Coverage (Section 2)
- Zero percent duty shall be granted to BOI-registered new and expanding enterprises on articles or equipment classified under specific chapters of the Tariff and Customs Code of the Philippines (TCCP), upon issuance of a Certificate of Authority by the BOI.
- The importation must comply with the following conditions:
a. The items are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices. (Section 2a)
b. The items are reasonably needed and will be used exclusively by the enterprise in its registered activity, unless prior BOI approval is secured. (Section 2b)
Prohibition to Sell, Transfer, or Dispose (Section 3)
- The BOI-registered enterprise cannot sell, transfer or dispose of the imported capital equipment, machinery, spare parts and accessories without prior BOI approval within five (5) years from the date of importation.
- Violation will result in the enterprise being solidarily liable to pay twice the amount of the duty foregone or five hundred thousand pesos (Php 500,000.00), whichever is higher, without prejudice to other applicable penalties under EO 226.
Implementing Rules and Regulations (Section 4)
- The BOI shall promulgate the implementing rules and regulations (IRRs) governing the implementation of this Executive Order.
Repealing Clause (Section 5)
- All issuances, orders, rules and regulations, or parts thereof, which are inconsistent with this Executive Order are hereby repealed, amended or modified accordingly.
Separability Clause (Section 6)
- If any provision of this Executive Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.
Effectivity Clause (Section 7)
- This Executive Order shall take effect thirty (30) days following its complete publication in a newspaper of general circulation in the Philippines.
- It shall be availed for a period of five (5) years from the date of effectivity or upon enactment of a law amending EO 226, otherwise known as the Omnibus Investment Code of 1987, as amended, whichever is earlier.