US Proposal to Allow Alternative Fuel-Fed Demonstration Motor Vehicles to Come into the Country Tax and Duty-Free

February 18, 2011 DOF OPINION Mr. Rudy B. Cana Director Special Programs Department Board of Investments Makati City Dear Director Cana : This refers to your request for DOF comments on the US proposal to allow alternative fuel-fed demonstration motor vehicles to come into the country tax and duty-free. We have in the past extended such privilege to importations made by the Department of Energy (DOE) of CNG-operated buses/vehicles in connection with the celebration of the National Energy Week and the Regional/International National Gas Vehicle Industry Development Workshop. We wish to inform you that the release of the above-mentioned demo vehicles was allowed pursuant to Section 105 (q) of the Tariff and Customs of the Philippines (TCCP), as amended, which primarily requires the posting of a bond in an amount equal to twice the ascertained duties, taxes and other charges due thereon. However, in lieu of a bond, it was permitted that a commitment be executed by the DOE Secretary or his duly authorized representative to guarantee the re-exportation thereof within six (6) months from acceptance of the import entry or payment of duties and taxes due thereon. In addition to the conditions set forth under Section 105 (q) of the TCCP, the following rules were also imposed by the DOF prior to the release of the above demo vehicles: 1. That said vehicles shall not be registered with the Land Transportation Office and shall not be used in any public roads/highways; 2. That said vehicles shall be used for field demonstration only and; 3. That this Department may conduct post release inspection in aid of its monitoring activities; aSDCIE 4. That upon arrival of the demo vehicles, the shipping documents, such as bill of lading, packing list, invoice, etc., together with the affidavit of the importer/consignee stating that the articles imported will be exclusively used for demonstration purposes, should be submitted to DOF for processing before the actual release from the Bureau of Customs, may be effected. We hope we were able to provide assistance on this matter. Very truly yours, (SGD.) STELA B. MONTEJO Director IV