Requiring Government Offices, Agencies, Instrumentalities And Government Owned Or Controlled Corporations, Persons And Entities Enjoying Tax Exemption, Incentive Or Subsidy From The Governm

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PRESIDENTIAL DECREE No. 894 February 26, 1976

REQUIRING GOVERNMENT OFFICES, AGENCIES, INSTRUMENTALITIES AND GOVERNMENT OWNED OR CONTROLLED CORPORATIONS, PERSONS AND ENTITIES ENJOYING TAX EXEMPTION, INCENTIVE OR SUBSIDY FROM THE GOVERNMENT TO UTILIZE IN INTERNATIONAL TRANSPORTATION THE SERVICES OF THE PHILIPPINE FLAG AIR CARRIER AND SHIPPING LINES AND FOR OTHER PURPOSES

WHEREAS, it is necessary for our national economic development that every effort is exerted by all to save and conserve our foreign exchange reserves;

WHEREAS, payment of transportation fares to foreign airlines and shipping lines, even if made in Philippine Currency, constitutes a heavy drain to our foreign exchange reserves in view of the fact that such foreign airlines and shipping lines remit abroad their receipts in excess of their local expenses;

WHEREAS, the Philippine flag air carrier and shipping lines operating international transportation perform transportation services of vital importance to the foreign commerce and trade of the Philippines including its balance of payments, to the Postal Service, and to the national security and defense;...

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Summary of Presidential Decree No. 894

Objective: To conserve foreign exchange reserves and support Philippine flag air carriers and shipping lines.

Provisions:
- Government agencies, instrumentalities, and government-owned or controlled corporations must use Philippine flag air carriers and shipping lines for international transportation whenever available. (Section 1)
- Entities enjoying tax exemptions, subsidies, incentives, government loans, or government contracts must use Philippine flag air carriers and shipping lines for international transportation whenever available. They can use foreign carriers only upon certification from the Civil Aeronautics Board or Board of Transportation that Philippine carriers are unavailable. (Section 2)
- The Auditor General shall disallow expenditures for foreign carriers if there is no satisfactory proof of necessity. (Section 3)
- Violation of Section 2 will result in withdrawal, revocation, cancellation, or acceleration of payment of the tax exemption, subsidy, incentive, loan, guarantee, or contract. (Section 4)
- Inconsistent laws, decrees, orders, rules, and regulations are repealed or modified accordingly. (Section 5)
- The decree takes effect immediately. (Section 6)