THE Board of Investments (BoI) on Friday issued rules for an executive order (EO) that extended duty-free privileges of equipment and spare parts importers for another year.
Enterprises qualified to avail “of zero percent (0%) duty importation of capital equipment, spare parts and accessories shall submit an application with the BOI,” the agency said on its website.
EO No. 57 or the “Reducing the Rates of Duty on Capital Equipment, Spare Parts, and Accessories Imported by Board of Investments — Registered New and Expanding Enterprises” was signed by President Rodrigo R. Duterte in June.
For companies to qualify for the incentive, the products it will be importing must not be “manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices,” and are “reasonably needed and will be used exclusively by the qualified enterprise in its registered activity.”
Reasonability of prices will be determined by the BoI according to import cost of the imported capital equipment, spare parts and accessories, taking into consideration “all applicable taxes and duties to be paid thereon, and a fifteen percent (15%) mark-up.”
A certificate of authority (CA) valid will be given by the BoI to qualified enterprises that will benefit from duty-free importations.
The enterprises are also required to communicate with the Department of Finance (DoF) for official import documents and the Bureau of Customs (BoC) for an import entry declaration.
The new policy is set to take effect for one year after complete publication of the IRR in a newspaper. — Denise A. Valdez