Approval of the 1985 Investment Priorities Plan

April 24, 1985

LETTER OF INSTRUCTIONS NO. 1456

 

In accordance with the specific recommendations stated in the memorandum of the Chairman of the Board of Investments dated 21 March 1985, the proposed 1985 Investments Priorities Plan is hereby approved.

DONE in the City of Manila, this 24th day of April, in the year of Our Lord, Nineteen Hundred and Eighty-Five.

1985 INVESTMENT PRIORITIES PLAN

I.  AGRICULTURE

(NOTE: Agricultural activities listed in the 1985 IPP shall be reviewed further upon approval of the proposed Agricultural Development and Incentives Act of 1985.)

1. Vegetable beans (P/NP)

a. Mungobeans

b. Redbeans

c. Whitebeans

d. Kadios

e. Others

2. Rootcrops (P/NP)

Note: May include processing if integrated with production.

a. Cassava

b. Sweet potatoes

c. Peanuts

d. Others

3. Spices* (P/NP)

Note: May include processing if integrated with production.

a. Cloves

b. Garlic

c. Ginger

d. Pepper

e. Onion

f. Mints

g. Others

4. Edible nuts (excluding coconut) (P/NP)

a. Cashew

b. Macademia

c. Pili Nuts

d. Others

5. Fruits (P/NP)

Note: Includes replanting and/or interplanting with fruit trees land presently planted to traditional crops.

a. Avocado

b. Citrus

c. Mango

d. Papaya

e. Pineapple

f. Strawberry

g. Melon

h. Grapes

i. Passion fruits

j. Other fruits

6. Cereals

a. Palay (P/NP)  

Note: Production includes developing new fields and/or improvement of existing ones by establishing new irrigation systems with drying, milling and storage facilities.

b. Wheat (P)

c. Barley (P)

7. Other vegetable crops (P/NP)

a. Mushrooms

b. Asparagus

c. Okra

d. Tomato

e. Cacao beans

PRODUCTION OF FEED GRAINS

1. Yellow corn (P/NP)

2. Sorghum (P/NP)

3. Soybeans (P/NP)

4. Winged beans (PN/P)

PRODUCTION OF FEED INGREDIENTS AND FEEDS

1. Animal feeds (ruminant feeds) (P/NP)

2. Feeds for aquaculture (P/NP)

3. Other feed ingredients (P/NP)

PRODUCTION OF OTHER CROPS

1. Coconut (hybrid variety) (NP)

Note: May be integrated with copra production which shall supply the copra requirements of existing oil mills.

2. Oil Palm (NP)

Note: May include processing if integrated with growing.

3. Cotton (P/NP)

Note: May be integrated with ginning.

4. Abaca fiber (P/NP)

5. Bast fibers such as jute, kenaf and ramie (P/NP)

6. Rubber (latex) (P/NP)

Note: May include processing latex into crumb rubber.

7. Sericulture (P/NP)

Note: May be integrated with mulberry growing up to spinning.

8. Hydrocarbon bearing trees and other plants (P)

9. Medicinal herbs and plants (P/NP)

10. Essential oil-bearing plants (P/NP)

a. Sesame

b. Citronella

c. Others

PRODUCTION OF SEEDS (Breeder's Foundation. Registered and Certified Seeds)

1. Soybeans (P/NP)

2. F1 Corn (P/NP)

3. F1 Corn (P/NP)

4. Vegetables (such as those crops which belong to the families of eggplants, squash, cabbage, etc., (P/NP)

5. Production of quality seeds/seedlings of fruit trees (P/NP)

PRODUCTION OF ORNAMENTAL PLANTS*

1. Orchids (P/NP)

2. Cut flowers (P/NP)

3. Landscape/indoor plants (P/NP)

PRODUCTION/PROCESSING OF AGRICULTURAL INPUTS

1. Organic fertilizers (P/NP)

PRODUCTION OF LIVESTOCK AND POULTRY (Including Dairy)

1. Beef cattle (NP)

2. Hogs (NP)

3. Poultry (NP)

a. Day-old chicks (must start with grandparents in the production process)

b. Meat

c. Table eggs

d. Others (other poultry species)

4. Goats (NP)

5. Dairy (P/NP)

PRODUCTION OF BREEDERS

Note: Includes natural method and artificial insemination and embryo transfer technology.

1. Beef and dairy cattle (P/NP)

2. Hogs (P/NP) cd

3. Poultry (P/NP)

4. Goats (P/NP)

5. Frozen semen and embryos (P)

AGRICULTURAL SERVICES

1. Pest and disease control (P)

2. Irrigation (NP)

3. Tractor pool (NP)

4. Other specialized services such as:

a. Refrigeration/storage services for farm and fishery products (NP)

b. Meteorological research weather modification including, but not limited to cloud seeding (NP)

c. Post harvest technological services such as picking, handling, packing and transportation (NP)

5. Flower induction services for fruit and vegetable crops (NP)

6. Artificial insemination and embryo transfer services (P)

II.  FORESTRY

TREE FARMS/PLANTATIONS

1. Fast growing species for timber and pulpwood (P/NP)

2. Rattan (P)

3. Bamboo (P/NP)

4. Others (P/NP)

III.  FISHERY

1. Fish and other marine products (Deepsea fishing) (NP)

2. Aquaculture (such as prawns, oysters, mussels, etc.) (P/NP)

IV.  MINING

PRIORITY ACTIVITIES TO SUPPORT THE MINING INDUSTRY (P/NP)

1. Exploitation and mine developments

2. Mining and quarrying of metallic/non-metallic minerals (excluding riverbed operations)

3. Processing of minerals such as beneficiation and other metallurgical methods

V.  MANUFACTURING

PROCESSED FOOD

1. Meat (NP)

Note: May include processing of by-products

2. Fruits, vegetables and root crops(P/NP)

a. Purees, concentrates and others (such as mangoes, guava, papaya, tomato, guyabano, banana, citrus, etc.)

b. Dehydrated products (such as mangoes, papaya pineapple, banana, coconut, etc.)

c. Other preservers such as ube, sweet potatoes, tomato paste, pickled cucumber, canned asparagus, etc.)

3. Leguminous and other vegetable based protein (texturized, pelletized, powdered or liquid) (P/NP)

4. Fish and other marine products

a. Fish (NP)

Note: Diversification of existing capacity to include other types of processing techniques and raw materials as an expansion project.

b. Seaweeds and other algae-based foods (P/NP)

5. Vegetable oils (except coconut oil) (P/NP)

a. Castor oil (NP)

b. Palm oil (NP)

c. Peanut oil (NP)

d. Rice bran oil (NP)

e. Sunflower and soybean oil (P/NP)

6. Starch (for food or industrial use from indigenous raw materials) (P/NP)

7. Spices (P/NP)

8. Processed coffee *(NP)

9. Other processed foods* (P/NP)

Manufacturers of processed fruits are encouraged to set up processing plants integrated with the suppliers of raw materials so that they are assured of steady and continuous supplies for manufacturing. Those integrated may be plantations wholly-owned by the manufacturing plant or by a cooperative venture with groups of growers or in the form of a contractual agreement with growers to supply raw materials.

WOOD PRODUCTS

1. Builder's woodwork, including prefabricated and sectional building and other components of wood* (NP)

2. Plywood (NP) Note: Limited to expansion/modernization of existing plywood plants except when part of a processing center or for processing of timber from plantations.

3. Veneer (NP) Note: Limited to sliced veneer and/or expansion only of existing rotary-cut veneer plants except when part of a processing center/complex for processing of timber from plantations or for rehabilitation/modernization

4. Blackboard* (NP) Note: must be integrated with primary wood processing plants.

5. Particle board* (NP)

6. Furniture* (NP)

7. Other wood products such as toys, chopsticks, lacquered wood products, etc., including combinations of wood and other materials* (NP)

PAPER PRODUCTS

1. Fiberboard from indigenous raw materials * (NP)

2. Packing containers* (NP)

3. Paper products such as notebooks, diaries, albums stationeries, etc. (NP)

4. Printed matters such as books, pamphlets, magazines etc. (NP)

TEXTILE PRODUCTS

1. Spun yarn and woven textile and intermediate products thereof made of natural and/or synthetic materials (specialized or integrated) (NP)

2. Spun yarn and circular knitted fabrics and intermediate products thereof made of natural and/or synthetic materials specialized or integrated) (NP)

3. Textile finishing (NP)

4. Non-woven textiles (NP)

5. Specialty fabrics (NP)

6. Tire cord fabrics (P)

7. Abaca yarns and ropes* (NP)

8. Fish nets (NP)

9. Garments* (NP)

10. Made-up articles of textile (NP)

FOOTWEAR* (P/NP)

1. Footwear (made of leather, rubber, plastic, wood and other materials, or combination thereof)

LEATHER PRODUCTS* (P/NP)

1. Leather

2. Made-up articles of leather (such as travel goods, handbags, wallets, purses, camera and lens cases, gloves and mittens, coats and garment items, etc.)

CHEMICAL PRODUCTS

1. Basic industrial chemicals

a. Caustic soda (NP)

b. Salt (edible and industrial) (P/NP)

c. Nicotine sulfate* (NP)

d. Refined glycerine* (NP)

e. Ethanol (P/NP)

f. Pigments

(i) Chrome yellow and molybdate orange pigment (P)

(ii) Color pellet resins (colorants) (NP)

(iii) Colorants and color masterbatch (NP)

(iv) Others (P/NP)

g. Cocochemicals (such as esters, fatty alcohols and derivatives thereof from coconut oil) (P/NP)

h. Sucro-chemicals (such as ribonucleic acid, citric acid and sorbitol) (P/NP)

i. Acetic acid (P)

j. Polyglycols and glycol ethers (P)

k. Stearic acid (P)

l. Xanthates (P)

m. Furfural (P)

n. Blowing agent for rubber and plastic compounds (P)

o. Ethylene from ethanol naptha or liquefied petroleum gas (P)

p. Modified starch as sizing agent (NP)

q. Di-octyl phthalate* (P/NP)

r. Acetylene black (NP)

s. Sodium sulfate (NP)

t. Various lacquers and sanitary liners (P)

u. Tellurium dioxide* (P)

2. Chemical fertilizers

a. Nitrogenous fertilizer (P/NP)

Note: The Fertilizer and Pesticide Authority shall determine the size and location of plants.

3. Synthetic resins

a. Polypropylene (P)

b. Low density polyethylene (P)

c. High density polyethylene (P)

d. Other derivatives of ethylene and propylene (P)

e. Synthetic rubbers (Such as styrene, butadiene rubber, polybutadiene rubber and polyisoprene rubber) (P)

f. Recycled acrylic resins* (NP)

4. Synthetic yarns and fibers

a. Nylon tire cords (P)

b. Nylon yarn for fish nets (P/NP)

c. Nylon yarn and fiber (P/NP)

d. Acrylic fiber* (P)

e. Polyester staple fiber and filament yarn (P/NP)

5. Miscellaneous chemical products

a. Essential oils* (NP)

b. Activated carbon* (P/NP)

c. Chemicals for metallurgical use (P/NP)

d. Biotechnological/biosynthetic chemicals (P/NP)

e. Palm oil chemicals (P/NP)

PHARMACEUTICALS

1. Antibiotics (P)

a. Penicillins

b. Streptomycins

c. Tetracyclines

2. Acetylsalicylic acid (P)

3. Other pharmaceuticals (P/NP)

4. Parenteral therapy systems and components thereof (P/NP)

5. Hard gelatin capsules* (P)

PETROLEUM PRODUCTS

1. Petroleum wax (P)

2. Basic/intermediate petrochemicals (P/NP)

a. Vinyl chloride monomer

b. Methanol

c. Other basic/intermediate petrochemicals* (such as plystyrene)

RUBBER PRODUCTS

1. Crumb rubber* (NP)

2. Reclaimed rubber* (NP)

3. High pressure and hydraulic rubber hoses (P/NP)

4. Rubber belts (NP)

5. Rubber rollers for rice mills (NP)

6. Made-up articles of rubber (such as inner tubes, latex round rubber, gloves, etc.)* (NP)

PLASTIC PRODUCTS

1. Made-up articles of plastic (such as plastic containers, raincoats, housewares, hooks, coat hangers, office and school supplies and plastic sheets/tapes/films)* (NP)

2. Polyethylene film bags* (NP)

3. Plastic twine* (NP)

4. Other plastic products (P/NP)

NON-METALLIC MINERAL PRODUCTS

1. Processed gypsum products (P/NP)

a. Commercial grade chemical gypsum

b. Gypsum board

c. Plaster of paris

d. Other processed gypsum products

2. Continuous filament glass fiber (reinforcement materials) (P)

3. Silicon/silica powder (P)

4. Abrasives (P/NP)

STRUCTURAL MATERIALS /CONSTRUCTION /HOUSING COMPONENTS

1. Pre-cast reinforced walls and trusses (NP)

2. Ceramic bathroom accessories (NP)

3. Others (P/NP)

MACHINERY AND EQUIPMENT

1. Manufacture of process machinery and equipment, their related spare parts, accessories and supplies for the following industries (P/NP):

a. Agriculture

(i) For crop production and post harvest

(i) For livestock and poultry

b. Forestry and logging

c. Fishery

d. Mining and quarrying

e. Textile

f. Food processing

g. Wood processing including furniture and fixture)

h. Paper, paper products, printing, publishing and allied industries

i. Chemical, petroleum, coal, rubber and plastics

j. Non-metallic mineral products like ceramics, glass, cement

k. Basic metals (iron and steel; non-ferrous)

l. Fabricated metals

m. Other manufacturing industries

n. Construction

2. Manufacture of intermediate (ancillary) machinery/equipment (P/NP)

a. Materials handling

b. Measuring and controlling devices

c. Packaging

d. Precision tools, molds, dies

e. Prime movers (internal combustion engine)

f. Electrical machinery such as electric motor, generator, switch gear

ELECTRONIC PRODUCTS MACHINERY/EQUIPMENT THEIR RELATED SPARE PARTS ACCESSORIES AND SUPPLIES (P/NP)

1. Citrus elements

a. Semiconductor devices

b. Electron tubes

2. Computer and computer systems including software

3. Electronic machinery/equipment and/or parts/components thereof such as:

a. Industrial automation, instrumentation, process control equipment, robotics, etc.

b. Telecommunication systems and information handling systems

c. Medical electronics

d. Automotive electronics

4. Office automation electronic data processing systems)

5. Measuring and controlling devices

6. Raw materials and supplies (direct and indirect) used in the processing of semiconductor devices such as lead frames, goldwires, gold preform, finger cots, shipping tubes. etc.

ELECTRICAL MACHINERY/EQUIPMENT THEIR RELATED SPARE PARTS, ACCESSORIES AND SUPPLIES (P/NP)

1. Prime movers

a. Electric Motor

b. Generators

2. Transformers

a. Power

b. Distribution

c. Specialty

3. Power transmission and/or distribution products

a. Switchgears

b. Power capacitor

4. Circuit elements

a. Coils

b. Capacitors

c. Resistors

d. Rhoestat

5. Measuring and controlling devices

SHIPBUILDING AND SHIPREPAIR (P/NP)

1. Coastwise and ocean-going vessels and the repair thereof

2. Pleasure boats*

MISCELLANEOUS MANUFACTURED PRODUCTS* FOR THE FOLLOWING INDUSTRIES: (P/NP)

1. Apparel

2. Footwear/leathergoods

3. Processed food

4. Giftwares, handicrafts, and accessories

5. Furniture

6. Health care

7. Sporting goods

8. Metalworking

9. Scientific instruments

RATIONALIZATION/REHABILITATION/MODERNIZATION OF INDUSTRIAL PLANTS

1. Plywood plants (NP)

Note: Limited to expansion/modernization of existing plywood plants except when part of a processing center or for processing of timber from plantations.

2. Veneer plants (NP)

Note: Limited to sliced veneer and or expansion only of existing rotary-cut plants except when part of a processing center/complex for processing of timber from plantations or for rehabilitation/modernization.

3. Pulp and papermills (P/NP)

4. Powdered milk plants (NP)

5. Textile mills (NP)

6. Cement plants (NP)

Note: Prior approval of the Philippine Cement Industry Authority is a required.

7. Metalworking shops such as:

a. Foundries (P/NP)

b. Forge plants (P/NP)

c. Metal fabrication and machine ships (P/NP)

d. Heat treating plants (P/NP)

e. Metal finishing (plating) plants (P/NP)

8. Products test laboratories (P/NP)

9. Nickel smelting/refining (P/NP)

10. Shipbuilding and shiprepair (P/NP)

11. Nasic chemical plants, e.g. methanol, caustic soda, synthetic resins, sucro-chemicals, plasticizers, nylon yarn, rubber processing, etc. (P/NP)

12. Conversion of detergent manufacturing facilities to coconut fatty alcohol feedstock (in line with the rationalization program of the coconut oil industry) (P)

13. Components for the Progressive Car and Truck Manufacturing Programs

a. Automotive gasoline engines* (P)

b. Camshafts for engines (P)

c. Heavy-duty motor vehicle transmissions (P)

d. Crankshafts and connecting rods (P)

e. Heavy vehicle axles (P)

f. Automotive grade iron casting (P)

g. Ignition coils (P/NP)

h. Cylinder liners (P/NP)

i. Piston rings (P)

j. Automotive gauges and instruments (NP)

k. Oil, air and fuel filters for automotive/industrial applications (P/NP)

l. Electric motors for automotive use* (NP)

Note: For the domestic market, only motors for trucks are allowed

m. Automotive lighting and signaling equipment (P/NP)

(i) Headlamps

(ii) Rear turn signal lights

(iii) Rear turn signal/tail/stop lights*

(iv) Turn signal light indicator assembly*

(v) License plate light assembly*

(vi) Flasher units*

(vii) Interior lighting

(viii) Horns*

(ix) Switches

n. Other automotive parts and components* (P/NP)

14. Components for the Progressive Motorcycle Manufacturing Program

a. Rims for bicycles and motorcycles (NP)

b. Spokes and nipples for bicycles and motorcycles (NP)

c. Sprockets for bicycles and motorcycles (NP)

d. Roller chains for bicycles and motorcycles (NP)

e. Other motorcycle parts and components* (P/NP)

15. Other industrial plants as determined by BOI after thorough study (P/NP)

VI.  ENERGY - RELATED PROJECTS (P/NP)

1. Alcohol production for fuel, with or without integration with agricultural production of raw materials therefor.

2. Production of fuel or energy through the conversion or transformation of biomass materials, coal and charcoal into more usable forms of fuel, such as briquettes, powders or pellets, gaseous and liquid fuels, including handling activities and facilities related.

3. Establishment of any manufacturing plant substantially using coal as fuel geothermal and other non-conventional fuels, or conversion of existing manufacturing plants/equipment for the use of coal and non-conventional fuels, subject to certain conditions. aisa dc

4. Manufacture of equipment necessary of the production and/or utilization of solar energy, power, alcohol, biogas, geothermal steam or geothermal hot water, wind, coal-derived fuels, and other fuels certified by the Ministry of Energy to be of non-conventional nature.

5. Manufacture of mini-hydro-electric systems.

6. Any manufacturing plant essentially using non-conventional energy device, process or system certified by the Ministry of Energy to be relevant to the Energy Program of the Government, subject to certain conditions.

PROJECTS PROMOTING THE CONSERVATION AND MORE EFFICIENT USE OF ENERGY

1. Installation of new equipment or modernization of existing equipment leading to improvements if the efficiency with which energy is used (e.g. high efficiency boilers, with furnaces, co-generation of steam and electricity and instrumentation and control devices)

2. Installation of new equipment or conversion of existing equipment to enable the replacement of one form of energy with another to promote the national interest (e.g. from electricity to direct fuel or vice-versa, from gasoline or diesel powered to bunker or coal-powered)

3. Installation of new manufacturing plant or process, or modernization of existing manufacturing plant or process, resulting in more efficient utilization of energy than currently achieved (e.g. new chemical plants requiring less energy inputs)

4. installations of waste energy recovery system (e.g. recycling of waste hot water)

5. installation of equipment and materials to improve energy, utilization in building (e.g. more energy-efficient lighting system or air-conditioning system)

6. Manufacture of equipment for specific use in the energy conservation projects listed above.

VII.  PUBLIC UTILITIES (P/NP)

1. Interisland shipping and directly related facilities essential to the efficient operation of ships.

2. District cooling systems.

VIII.  EXPORT TRADERS

IX.  SERVICE EXPORTERS

Notes:

1. Existing producers of non-traditional export products whether or not listed in the Investment Priorities Plan, may be registered for limited incentives under PD. 1789.

2. *The registration of products with asterisk is subject to certain conditions.