Bureau of Local Government Finance Opinion

March 8, 2010 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 1st Indorsement Respectfully returned to the Municipal Treasurer, Dingras, Ilocos Norte, the herein attached letter dated January 21, 2010 inquiring whether the following line of businesses are considered Barangay Micro Business Enterprises pursuant to R.A. 9178 otherwise known as the Barangay Micro Business Enterprises (BMBEs) Act of 2002: 1. Production and manufacturing of Office Modular Partitions, Modular Tables, Cabinets and other upholstered materials and products. 2. Offering window treatment, office chairs and office cabinets as trading services. In this connection, reference is made to the provision of Section 3 (a) of the said R.A. 9178 quoted hereunder: SEC. 3. Definition of Terms . As used in the Act, the following terms shall mean: (a) "Barangay Micro Business Enterprise," hereinafter referred to as BMBE, refers to any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00). The above definition shall be subject to review and upward adjustment by the SMED Council, as mandated under Republic Act No. 6977, as amended by Republic Act No. 8289. "xxx xxx xxx." It is clear from the aforequoted provision of law that the key consideration that that Office should take into account in determining whether an enterprise shall be considered as a BMBE is the total asset which shall not be more than Three Million Pesos (P3,000,000.00). Accordingly, any person, natural or juridical, or cooperative, or association may apply for registration as a BMBE, provided the qualifications as defined in the aforementioned Section 3 (a) are complied with. EScHDA Be guided accordingly. (SGD.) MA. PRESENTACION R. MONTESA Executive Director