Amending Department Order No. 2005-12-022 and Adopting Interim Procedures for the Final Approval and Clearance for the Issuance of Tax Exemption Certificates

November 29, 2006 DOE DEPARTMENT ORDER NO. DO-2006-11-0012 AMENDING DEPARTMENT ORDER NO. 2005-12-022 AND ADOPTING INTERIM PROCEDURES FOR THE FINAL APPROVAL AND CLEARANCE FOR THE ISSUANCE OF TAX EXEMPTION CERTIFICATES Further to Department Order No. 2005-12-022, in the light of the scheduled maintenance activities of the Malampaya Deep Water Gas-to-Power Project, the authority for the issuance of tax exemption certificates (TECs) needed for the Malampaya shutdown is hereby delegated to the Energy Resource Development Bureau (ERDB) Director, for the purpose of ensuring that the scheduled maintenance activities proceed in the most expeditious manner: Provided, That the clearance of the Secretary shall still be required for TECs covering the following: HTcADC (i) transport vehicles and fuel; and (ii) those that, upon determination of the Bureau or Office accountable for such evaluations, do not clearly satisfy the condition of being for the actual, direct, and exclusive use for the activity/purpose allowed under applicable law. In addition to regular quarterly reports on TECs submitted by the ERDB Director, the ERDB Director shall likewise prepare specific report covering TECs issued for the Malampaya shutdown to be submitted to the Office of the Secretary specifying, among others, the following: (i) TEC number; (ii) Date of application, as received by the DOE; (iii) Description of the items/goods for import/export; (iv) Estimated value of the items/good and tax waived; (v) Brief description of intended use and basis for endorsement/approval; (vi) Action taken, including conditions for approval, if applicable; (vii) Date of final action on application; and (viii) Office/bureau/individuals which evaluated/endorsed the issuance of the TEC. For TECs in relation to other service contracts, the relevant provisions of Department Order No. 2005-12-022 still apply. This Department Order shall take effect immediately and shall remain in effect during the duration of the Malampaya shutdown until otherwise amended or revoked by the Secretary. All previous issuances otherwise inconsistent with this Department Order are hereby modified or revoked accordingly. CAIHTE Issued this 29th day of November 2006 in Fort Bonifacio, Taguig City. (SGD.) RAPHAEL P.M. LOTILLA Secretary