Reducing Under Certain Conditions And For A Limited Period Customs Duties Due On Importations Of Certain Hospital/Medical Equipment, Machinery, Implements And Supplies
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Reducing Under Certain Conditions And For A Limited Period Customs Duties Due On Importations Of Certain Hospital/Medical Equipment, Machinery, Implements And Supplies
Presidential Decree No. 1258
December 2, 1977
Case Overview and Summary
PRESIDENTIAL DECREE No. 1258Reducing Customs Duties on Certain Hospital/Medical Equipment and Supplies
- Rationale: Promote health of citizens, assist hospitals in providing affordable services, especially to the poor. (Preamble)
- Customs duties reduced to 10% ad valorem for importation of specified hospital/medical equipment, machinery, implements, and supplies by hospitals engaged in treatment and care of the sick. (Section 1)
- Enumerates items covered, including X-ray films, developers, catheters, surgical gloves, electrocardiograph paper, sterilizer parts, resuscitators, etc. (Section 1)
- Additional items may be added upon determination of tariff classification by Tariff Commission and Department of Finance. (Section 2)
- Conditions for reduced duties: (Section 3)
- Imported goods must be directly and actually needed, and used exclusively for treatment and care of the sick, as certified by the Department of Health.
- Shipping documents must be in the name of the hospital-importer, and goods delivered directly to them.
- Additional requirements: (Section 4)
- Imported goods must not be available locally in sufficient quantities and comparable quality/cost, as certified by the Board of Investments.
- Only hospitals licensed by the Department of Health, accredited by the Philippine Medical Care Commission, with at least 25 beds, and providing free services to indigents, may qualify.
- Penalties for misuse or violation: (Section 5)
- Imprisonment of 5-10 years, fine of ₱10,000-₱200,000, and forfeiture of imported goods.
- Same penalties for government officials conniving in the violation.
- For juridical entities, liable officials are those who consented to or tolerated the violation.
- Hospitals may choose between this incentive or other existing exemption privileges, but not both simultaneously. (Section 6)
- Rules and regulations to be prepared by the Department of Health within 15 days, and approved by the Department of Finance within another 15 days. (Section 7)
- Inconsistent laws, decrees, orders, rules, and regulations are repealed or modified accordingly. (Section 8)
- Effective upon approval until December 31, 1980. (Section 9)
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Reducing Under Certain Conditions And For A Limited Period Customs Duties Due On Importations Of Certain Hospital/Medical Equipment, Machinery, Implements And Supplies
Presidential Decree No. 1258
•December 2, 1977
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1258
REDUCING UNDER CERTAIN CONDITIONS AND FOR A LIMITED PERIOD CUSTOMS DUTIES DUE ON IMPORTATIONS OF CERTAIN HOSPITAL/MEDICAL EQUIPMENT, MACHINERY, IMPLEMENTS AND SUPPLIES
WHEREAS, the promotion, protection and preservation of the health of the citizenry is the concern of the government as ordained in the Constitution;
WHEREAS, hospitals, medical centers and other similar entities play a vital role in maintaining a healthy citizenry so much so that their continued operation should not be hampered by reason of the rise in costs of acquisition of necessary equipment and implements;
WHEREAS, there is a need to provide a government assistance to these entities to ensure that their services to the masses, especially to the poorer segment of the citizenry, shall be accorded at least cost and optimum efficacy.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order:
Section 1. The provisions of Republic Act No. 1937, as amended, to the contrary...
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