Supplement to Revenue Regulations No. 8-78

July 15, 1978 REVENUE REGULATIONS NO. 09-78 SUBJECT : Supplement to Revenue Regu lations No. 8 -78 TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope. Pursuant to Section 326 in relation to Section 4 both of the National Internal Revenue Code of 1977, as amended, the following regulations supplementing certain provisions of Revenue Regulations No. 8-78, are hereby promulgated and shall be known as Revenue Regulations 9-78. SECTION 2. Section 2 of Revenue Regulations No. 8-78 is hereby supplemented by adding a new paragraph (f) to read as follows: aIcDCA "xxx xxx xxx (f) Locally manufactured articles For purposes of Sections 197, 201, and similar sections imposing a different tax rate for locally manufactured articles, 'locally manufactured articles' means articles manufactured or processed in a manufacturing enterprise which alters the exterior texture or form or inner substance of any raw material or manufactured or partially manufactured product in such manner as to prepare it for a special use or uses to which it could not have been put in its original condition, or who by any such process alters the quality of any such raw material or manufactured or partially manufactured product so as to reduce it to marketable shape or prepare it for any of the uses of industry, or who by any such process combines any such raw material or manufactured or partially manufactured products with other materials or products of the same or of different kinds and in such manner that the finished product of such process or manufacture can be put to a special use or uses to which such raw material or manufactured or partially manufactured products in their original condition could not have been put, and who in addition alters such raw material or manufactured or partially manufactured products, or combines the same to produce such finished products for the purpose of their sale or distribution to others and not for his own use or consumption: Provided, However, That in the case of articles covered by any local content or rationalization program of the Board of Investments under Sec. 16(1) of Republic Act 5186, said Board shall determine the percentage of local content or the number of parts or components required to be locally manufactured or processed to qualify an article as locally manufactured." SECTION 3. BOI Certification, a Condition Precedent to Qualification of an Article as Locally Manufactured in the Case of Articles Covered by any Local Content or Rationalization Program. No article shall be qualified as "locally manufactured" without the certification from the Board of Investments that the article satisfies the percentage of local content or the number of locally manufactured parts or components required (to be locally manufactured) under any existing program of the Board of Investments. SHAcID SECTION 4. Repealing Clause. All existing rules and regulations not consistent with these Regulations are hereby repealed. (SGD.) CESAR VIRATA Minister of Finance RECOMMENDED BY: (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-P4519-F2828-A-8