Approving the Seventh IPP and Fifth EPP

June 19, 1974

LETTER OF INSTRUCTIONS NO. 196

APPROVING THE SEVENTH IPP AND FIFTH EPP

Upon the recommendation of the NEDA Board and pursuant to the provisions of the Investment Incentives Act (Republic Act No. 6135), as amended, I hereby approve the Seventh Investment Priorities Plan and the Fifth Export Priorities Plan, together with any amendments that may be introduced thereto upon the approval and recommendation of the NEDA Board. cd

SEVENTH INVESTMENT PRIORITIES PLAN

FOREST PRODUCTS
1.	Tree Farming (NP)
	MC (Local): 2,369,000 cu. m.
2.	Lumber Products (NP)
	MC (Export): Variable
	Condition:	Saw milling and kiln-drying operations must be further integrated with wood finishing operations.  aisa dc
3.	Plywood (NP)
	MC	a)	Local : 479,280,000 sq. ft.
		b)	Export: Variable
4.	Veneer (NP)
	MC (Export): Variable
FIBER PRODUCTS
1.	Ramie (P)
	MC (Local): 10 million sq. yd.
	Condition:	Integrated
2.	Pulp from Indigenous Raw Materials (P/NP)
	MC	a)	Local: 95,000 MT
		b)	Export: Variable
	Notes:	1)	Includes dissolving pulp
		2)	Abaca pulp not included in local MC unless it could
			compete with commercial grade long-fibered
			wood pulp.
3.	Paper Integrated with Pulp Mill (P/NP)
	MC	a)	Local: 38,000 MT
		b)	Export: Variable
4.	Processed Abaca Fiber (NP)
	MC	a)	Local: 31,330 MT
		b)	Export: 29,900 MT Note: Integrated or non-integrated
CROP PRODUCTION
1.	PEANUTS (NP)
	MC (Local): 9,000 MT
2.	Sorghum (NP)
	MC (Local): 179,936 MT
3.	Soybeans (NP)
	MC (Local): 149,614 MT
4.	Rice (NP)
	MC (Local): 861,255 MT
	Condition:	Developing new fields and integrated with processing
	facilities.
5.	Corn (NP)
	MC (Local): 358,000
	Conditions:	Developing new fields and integrated with processing
	facilities.
6.	Grain Processing (Rice) (NP)
	MC (Local): 615,000 MT
	Conditions:

 

A.	Centrals in Consumption Areas  1
	Location	Storage Capacity (MT)
1.	Greater Manila	50,000
2.	La Union(San Fernando)	20,000
3.	Zamboanga del Sur (Malangas)	10,000
4.	Cotabato del Sur (Dadiangas)	10,000
5.	Cagayan de Oro City	10,000
6.	Iloilo City	10,000
		110,000
B.	Centrals in Production Areas  2
	Region	Storage Capacity (MT)
1.	Ilocos	7,000
2.	Cagayan Valley	66,000
3.	Central Luzon	101,000
4.	Southern Luzon	10,000
5.	Bicol	25,000
6.	Western Visayas	11,000
7.	Eastern Visayas	31,000
8.	S & W Mindanao	21,000
9.	N & E Mindanao	8,000
		280,000
7.	Cotton Production (growing and ginning) (NP)
	MC (Local): 50,000 MT (lint)
8.	Arrowroot Starch (NP)

 

	MC	a)	Local: 20,000 MT
		b)	Export: Variable Condition: Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
FOOD PROCESSING
	1.	Agar-agar (Processed Seaweeds) (NP)
	MC	a)	Local: 110 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $ 4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	2.	Fruit & Vegetable Processing (P/NP)
	MC	a)	Local: 13,950 MT
		b)	Export: Variable
	3.	Coconut Oil (NP)
		MC (Export): 802,326 MT of copra (resicada)
Conditions:	Milling capacity to be distributed among coconut producing regions in proportion to copra supply.
Note:	Applications for the entire measured capacity have been received and are now under process.
	4.	Palm Oil (NP)
		MC (Export): Variable
	5.	Feed Yeast (NP)
		MC (Local): 15,000 MT
		Condition:	In sugar cane-producing regions
	6.	Processed Meat (NP) MC (Local): 2,300 MT
Condition:	Outside greater Metropolitan Manila Area
	7.	Processed Fish (NP)
	MC	a)	Local: 64,380 MT
		b)	Export: Variable
LIVESTOCK AND FISHING
	1.	Cattle (NP)
		MC (Local): 41,000 MTDW
	2.	Hogs(NP)
		MC (Local): 26,533 MTDW
		Note:	One firm with a capacity of 11,000 MTDW has been approved by the board.
	3.	Poultry (NP)
	MC (Local):	34,487 MT (meat)
			29,276 MT (eggs)
			3,739,000 (chicks)
	4.	Fish (Commercial Deep Sea) (NP)
	MC	a)	Local: 100,000 MT
		b)	Export: Variable
	5.	Fish (Inland) (NP)
	MC	a)	Local: 22,240 MT
		b)	Export: Variable  cdasia
	6.	Shrimps and Shellfish (NP)
	MC	a)	Local: 5,200 MT
		b)	Export: Variable
	7.	Feed Mill and/or Plant for the Manufacture of Ingredients Inputs (NP)
	MC (Local): 287,500 MT
Condition:	In suitable locations and capacities to be determined by the Board (Outside Greater Manila).
METALLIC MINERAL PRODUCTS
	1.	Iron Ore (P/NP)
	MC	a)	Local: 1.5 million MT
		b)	Export: Variable
Conditions:		1.	Beneficiated, including pellet feed, pre-reduced and metallized pellets, sintered ore, magnetite iron sand.
		2.	Production for local market to be phased with establishment of smelting facilities.
	2.	Copper Ore (NP)
	MC	a)	Local: 145,000 MT (copper metal content of concentrates)
		b)	Export: Variable
	3.	Copper Metal (P)
	MC	a)	Local: 15,000 MT
		b)	Export: Variable
Conditions:		1.	Pyrometallurgical or hydro-metallurgical extraction processes.
		2.	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	4.	Primary Steel (P)
	MC	a)	Local: 1.5 million MT
		b)	Export: Variable Condition: Integrated, including slabs, blooms and billets from iron ore coke and limestone.
	5.	Pig iron(P)
		MC (Local): 70,000 MT
	6.	Nickel Metal and Alloys (P)
		MC (Export): Variable
	Note:	Preference will be given to those plants which require minimum financial assistance from the government in the form of guarantees or equity.
	7.	Gold Mining and Processing (NP)
		MC : Variable
Condition:	Beneficiated ore
	8.	Mercury (NP)
		MC (Export): Variable
	9.	Gold Refining (P/NP)
		MC: 360,000 ozs.
	Note:	Gold refining may only be done by Central Bank or designated affiliate.
NON-METALLIC MINERAL PRODUCTS
	1.	Coal for Power Generation (NP)
		MC (Local): 2,400,000 MT
	2.	Foundry Coke (P)
		MC (Local): 30,000 MT
	3.	Clay (NP)
		MC (Local):  40,000 MT
Condition:	Beneficiated
	4.	Refractories (P/NP)
	MC	a)	Local: 35,000 MT
		b)	Export: Variable
Notes:	1.	The 35,000 MT local MC us intended for existing use broken down as follows:
		a)	15,000 MT basic bricks and basic specials
		b)	16,500 MT alumina and silica bricks
		c)	3,500 MT refractory specials
	2.	An estimated additional 35,000 MT may become necessary to provide for the construction of integrated iron and steel mill, aluminum, copper and laterite smelters and refineries. The annual production capacity required, or advisable, to provide for these needs must however be determined at a later date.
	5.	Glass containers (NP)
		MC (Local): 39,300 MT
CHEMICAL PRODUCTS
	1.	Salt
		a)	Industrial Salt (P/NP)
			MC (Local): 80,270 MT   aisa dc
Condition:	Purity: 92 per cent NaCl (Wet Basis), minimum
		b)	Edible Salt (P)
			MC (Local): 107,100 MT
Conditions:	Purity: 99.5 per cent NaCl (Dry Basis), minimum
	Size:	Passing No. 20 sieve, 95 per cent, minimum Moisture Content: 0.5 per cent, maximum
	2.	Antibiotics (P)
		a)	Tetracyclines
			MC(Local): 30,000 kg.
		b)	Streptomycins
			MC (Local): 30,000 kg.
		c)	Penicillins
			MC (Local): 57,000 kg.
	3.	Chemical Gypsum (NP)
		MC (Local): 105,000 MT
	4.	Lime (NP)
		MC (Local): 90,000 MT
Condition:	In suitable locations and capacities to serve farm needs economically. (Outside Greater Manila)
	5.	Phthalic Anhydride (P/NP)
	MC	a)	Local: 4,000 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	6.	Integrated Vinyl Chloride Monomer Plant (NP)
		MC (Local): 54,600 MT
	7.	Polyvinyl Alcohol Resin (P)
	MC	a)	Local: 3,030 MT
		b)	Export: Variable
	8.	Petroleum Wax (P)
	MC	a)	Local: 17,330 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	9.	Low-density Polyethylene (P)
	MC	a)	Local: 115,000 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at the least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	10.	High-density Polyethylene (P)
	MC	a)	Local: 36,000 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $ 4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	11.	Polypropylene (P)
	MC	a)	Local: 40,000 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	12.	Soda Ash (P)
	MC	a)	Local: 156,960 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	13.	Nylon Fibers (P)
	MC	a)	Local: 10,000 MT
		b)	Export: Variable
	14.	Polyester Fiber (Staple fiber & filament yarn) (P)
	MC	a)	Local: 16,000 MT
		b)	Export: Variable
	15.	Rayon fiber(P)
	MC	a)	Local: 25,000 MT
		b)	Export: Variable
	Condition:
		1)	A project for the manufacture of dissolving pulp should be submitted for the rayon fiber project within one year from the start of commercial operation of the rayon project.
		2)	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	16.	Spun Yarn for Textiles (NP)
	MC	a)	Local: 308,000 spindles
		b)	Export: Variable
	Conditions:
		1)	Only new textiles mills will be entitled to registration under the IPP, with the condition of location outside the Greater Manila area. Expansion of existing textile mills in the Greater Manila area should be registered under the Export Incentives Act. with a commitment to export a minimum proportion of production resulting from the expansion in capacity.   cdtai
		2)	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at east the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	17.	Textile Tops/Slivers (NP)
	MC	a)	Local: 10,200 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.  acd
	18.	Textiles (NP)
	MC	a)	Local: 115,700,000 sq. yds.
		b)	Export: Variable
Condition:	Only new textile mills will be entitled to registration under the IPP, with the condition of location outside the Greater Manila area. Expansion of existing textile mills in the Greater Manila are should be registered under the Export Incentives Act, with a commitment to export a minimum proportion of production resulting from the expansion in capacity.
	19.	Tire Cords and Fish Nets (P)
	MC (Local):	4,000 MT tire cords
			800 MT fish nets
	20.	Rubber belts (P)
	MC	a)	Local: 10,310,000 kg.
		b)	Export: Variable
	21.	Fiberglass Wool Insulation (P)
	MC	a)	Local: 8,000,000 lbs.
		b)	Export: Variable
IRON OR STEEL-BASED INDUSTRIES
	1.	High Carbon Steel Wire (P)
		MC (Local): 18,100 MT
	2.	Alloy Steel (P)
		a)	Ingots
			MC (Local): 15,910 MT
		b)	Castings (High Alloy and Low Alloy)
	MC	a)	Local: Variable
		b)	Export: Variable
	3.	Closed-impression Die Steel Forgings (P)
	MC	a)	Local: 7,500 MT
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
Note :		One application covering the entire MC has been approved by the Board.
HAND TOOLS
	1.	Files (P/NP)
		MC (Local): 116,500 doz.
INDUSTRIAL MACHINERY
	1.	SHAPERS (P)
		MC (Local): 2,700 units
	2.	Lathes (P)
		MC (Local): 1,490 units
	3.	Drill Presses (P)
		MC (Local): 2,120 units
	4.	Carbide-tipped Tools (P/NP)
		MC (Local): 1.9 million units
	5.	Shaft Bearing Products (P)
		MC (Local): 823,000 units
	6.	Speed Reducers (P/NP)
		MC (Local): 42,300 units
Conditions:	1)	5 to 10 HP per unit
	2)	Substantially from domestically cast, rolled or forged metal
	7.	Logging Blocks of Alloy Steel (P)
		MC (Local): 3,300 units
Condition:		Substantially from domestically cast, rolled or forged metal
	8.	Globe, gate and check valve (P)
		MC (Local): 720 MT
Condition:	From 2 inches and above and made from domestically cast or forged metal
	9.	Shuttles (P)
		MC (Local): 477,300 units   cda
	10.	Air Compressor (P)
	MC	a)	Local: 6,000 units
		b)	Export: Variable
FARM MACHINERY
	1.	Palay Threshers (NP)
		MC (Local): 9,500 units
Condition:	Power operated
	2.	Disc Plows, Disc Harrows and Roto Tillers (NP)
	MC	a)	Local: 2,400 units
		b)	Export: Variable
	3.	Grain Driers (P)
		MC (local): 750 units
FABRICATED METAL PRODUCTS
	1.	Steam Boilers (P)
		MC (Local): 1,000 units
Condition:		Package type up to 200 Bo. Hp.
	2.	Oil Exploration and Development Equipment and Facilities (P)
		a)	Oil Exploration Equipment and Facilities
	MC	a)	Local: 40,000 MT
		b)	Export: Variable
		b)	Oil Development Equipment and Facilities
	MC	a)	Local: 32,000 MT
		b)	Export: Variable
ENGINES
	1.	High HP Diesel Engines (P)
		MC (Local): 5,400 units
Condition:	200 BHP and above
	2.	Small Gasoline Engines (P)
		MC (Local): 68,000 units
		Condition: Up to 15 BHP
ELECTRICAL EQUIPMENT
	1.	Electrical Control
		a)	Circuit Breakers (NP)
	MC	a)	Local: 368,450 poles
		b)	Export: Variable
Condition:	Up to 125 A
	Note:	One firm with a capacity of 368,450 poles has been approved by the Board.
		b)	Magnetic Starters (NP)
	MC	a)	Local: 9,000 units
		b)	Export: Variable
Condition:	Up to size 2
	Note:	One firm with a capacity of 10,000 units has been approved by the Board.
	2.	Flashlights (NP)
	MC	a)	Local: 910,000 units
		b)	Export: Variable
	3.	Kilowatt-hour Meters (P)
		MC (Local): 284,400 units
	4.	Power Transformers (P)
		MC (Local): 145,000 KVA
	5.	Transceivers (P)
		MC (Local): 1,190 units
	6.	Electrical tape (NP)
	MC	a)	Local: 300,000 rolls
		b)	Export: Variable
	Note:	One firm with a capacity of 7,200,000 rolls [3,600,000 rolls (Local); 3,600,000 rolls (for export] has been approved by the Board.
	7.	Electric Motors for Automotive Use (NP)
	MC	a)	Local: 65,000 units
		b)	Export: Variable
	8.	Electronic Data Processing Systems (P/NP)
	MC	a)	Local: 102 sets
		b)	Export: Variable
TRANSPORT EQUIPMENT
	1.	Barges and Tugboats (P/NP)   cdasia
	MC	a)	Local: 327,000 GT
		b)	Export: Variable
	2.	Fishing Boats (P/NP)
		MC (Local): 58,735 GT
	3.	Inter-island Ships (P)
		MC (Local): 480,770 GT
	4.	Ocean-going Ships (P)
		MC (Local): 875,000 GT
	5.	Motorcycles (NP)
		MC (Local): 15,720 units
	Note:	Applications for the whole MC have been received and are now under process.  cdtai
	6.	Automotive Gauges and Instruments (NP)
	MC	a)	Local: 56,000 units
		b)	Export: Variable
	Note:	One application covering the entire MC has been approved by the Board.
	7.	Vehicle Shock Absorber (NP)
	MC	a)	Local: 600,000 units
		b)	Export: Variable
	Note:	Applications for the whole MC have been received and are now under process.
	8.	Automotive Rear Axles (P)
	MC	a)	Local: 30,000 units
		b)	Export: Variable
Condition:	Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	Note:	One application covering the entire MC has been approved by the Board.
	9.	Automotive Propeller Shafts (P)
	MC	a)	Local: 30,000 units
		b)	Export: Variable
	Note:	One application covering the entire MC has been approved by the Board.   cd i
	10.	Automotive Clutches (P)
	MC	a)	Local: 30,000 units
		b)	Export: Variable
	Note:	One application covering the entire MC has been approved by the Board.
	11.	Automotive Engine Block (with cylinder head) (P)
	MC	a)	Local: 58,800 units
		b)	Export: Variable
Condition:		Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $ 4,000. Failure to comply with this condition shall subject the project to prescribed penalties.
	12.	Rims for Bicycles and Motorcycles (NP)
	MC	a)	Local: 379,000 units
		b)	Export: Variable
	13.	Spokes and Nipples for Bicycles and Motorcycles (NP)
	MC	a)	Local: 107,000 gross
		b)	Export: Variable
	14.	Sprockets for Bicycles and Motorcycles (NP)
	MC	a)	Local: 470,000 units
		b)	Export: Variable
	15.	Roller Chain for Bicycles and Motorcycles (NP)
	MC	a)	Local: 291,000 units
		b)	Export: Variable
	16.	Electric Driven Industrial Vehicles (P)
		MC (local): 500 units

 

N.B.

1. P means pioneer; NP means non-pioneer, P/NP means pioneer or non-pioneer to be determined on a case to case basis.

2. Under the column indicating the measured capacities, the word variable denotes the likelihood of a domestic demand-supply gap or of an export potential.

 

3. The classification of Pioneer status in the IPP is primarily on the basis of newness of the product. While NP ordinarily means non-pioneer, the Board reserves the right to change the status of an area, from NP only to P, after public hearing, if a new and better process is used in the manufacture of such product and there are economic advantages in giving the preferred activity pioneer status.

4. The Board reserves the right to add a variable measured capacity for export for any area listed which would have, based on recent developments, an export market potential.

 

FIFTH EXPORT PRIORITIES PLAN

LIST A: EXPORTABLE PRODUCTS OF EXISTING FIRMS

 

BTN	SITC		EXPORTABLE PRODUCTS
			Food Processing
02.01 to 02.06;	011.1 to 011.6;011.8	1.	Processed meat including
16.01;16.02;16.03	(1);011.8 (9);411.3		canned, chilled or frozen,
(1);012.9; 012.1;			dried, salted or dehydrated
013.3; 013.4; 013.8;			meat.
03.01; 03.02; 03.03;	031.1 to 031.3;032.0	2.	Processed seafoods including
16.04; 16.05	(1); 032.0 (2)		canned, chilled, or frozen,
			dried or salted or de-
			hydrated sea foods.
04.02	022.1; 022.2	3.	Processed milk
21.07	099.0 (9)	4.	Frozen specialties
07.01 to 07.06;	051;052;053	5.	Processed fruits and
08.01 to 08.13	054;055		vegetables including juices,
20.01 to 20.07			canned, chilled or frozen,
			dried, salted or dehydrated.
07.01 to 07.03	054	6.	Dried roots
07.05; 12.04 to
12.06; 12.08
09.01; 21.02	071.1; 071.3	7.	Coffee, processed
09.04 to 09.10	075.1;075.2(1)(2)	8.	Spices such as processed
(3) (4) (5) (9)			ginger, pepper, onion, garlic
11.01 to 11.09;	046.0(1)(2);047.0	9.	Cereal preparations
19.01 to 19.08	(1) (2);048.1
	(1);048.2;055.4(1)
	(2) (3) (4);
	048.1(2); 048.3;
	048.8 (1) (2) (3);
	055.4 (5)
11.01;11.03 to 11.06	046.0 (1);047.0 (1)	10.	Flour
	055.4 (1) (2) (3) (4)
11.08	599.5 (1)	11.	Starches
13.03	292.9 (1)	12.	Agar-agar
15.01; 15.07; 15.12;	091.3;421.2 to 421.7;	13.	Vegetable cooking oils
15.13	422.2;422.3;422.4;		and lard
	422.9;431.2
15.13;04.03;04.04	091.4;023.0;024.0	14.	Margarine, butter and
	cheese
21.04	099.0 (4)	15.	Fish sauce
17.04	062.0 (1)	16.	Confectionery
18.03;18.04;18.05	072.3 (1); 072.3	17.	Cocoa and cocoa preparations
	(2); 072.2		such as cocoa butter
18.06	073.0	18.	Chocolate and chocolate
			preparations
19.03	048.3	19.	Noodles
19.08	048.4 (2)	20.	Biscuits and cookies;
	cones   cd
21.04	099.0 (4)	21.	Catsup
21.06	099.0 (6)	22.	Baking powder
21.06	099.0 (6)	23.	Brewer yeast
21.07	099.0 (9)	24.	Peanut Butter
17.04	062.0 (1)	25.	Chewing gum
21.07	099.0 (9)	26.	Coconut syrup
32.04	532.0 (1)	27.	Food coloring such as at-
			suete
22.02	111.0 (2)	28.	Soft drinks
22.03	112.3	29.	Beer
22.04 to 22.07	112.1 (1);112.1	30.	Fruits and flower wine
	(2); 112.1(3);
	112.2
22.08; 22.09	512.2 (4); 112.4	31.	Alcoholic products such
			as rum, whisky and gin
22.10	099.0 (7)	32.	Vinegar, all kinds
23.03	081.9 (3)	33.	Brewery spent grains
04.04	024.0	34.	Processed cheese
02.02;02.03;16.02	011.4;011.8;013.8	35.	Processed poultry
			products
			Processed Rubber Products
40.01	231.1	1.	Rubber latex
40.01	231.1	2.	Crumb rubber
40.06	621.0 (2)	3.	Camel back
40.11	629.1	4.	Rubber tires and inner
			tubes
40.13	841.6	5.	Rubber gloves
97.03;97.04;97.07	894.2 (3) (4);	6.	Rubber toys and sporting
	894.4 (1)		goods
40.08	621.0 (4)	7.	Rubber tiles
64.01;64.02	851.0 (1) (2)	8.	Rubber shoes
64.01	851.0 (1)	9.	Rubber sandals
64.01	851.0 (1)	10.	Rubber slippers
35.06	599.5 (9)	11.	Bonding cement
40.06 (A)	621.0 (2)	12.	Rubber cement
40.06 (B)	621.0 (2)	13.	Rubber and thread gums
40.09	621.0 (5)	14.	Tube rubber
87.06	732.8 (9)	15.	Rubber automotive parts
			such as vibration dampers
			caps; weather strips, handles
			and pedals, carpet
			underlay made of rubber
84.60	719.9 (1)	16.	Curing tube and section
			air bag
			Chemicals and Chemical
			Products
28.01;28.30;28.31	513.2 (1); 514.1	1.	Chlorine liquid and
28.32	(2);514.2(3);514.1		chlorine compounds
	(4)
28.03	513.2 (7)	2.	Carbon black
28.03	513.2 (7)	3.	Acetylene black
28.06	513.3 (1)	4.	Hydrochloric acid
28.08	513.3 (3)	5.	Sulphuric acid
15.10	431.3 (1);512.2 (5)	6.	Acid oils, fatty acid and
			fatty alcohols
28.23;25.09	513.5;276.9 (2)	7.	Iron oxide   casia
28.13	513.3 (9)	8.	Silica gel
28.56	514.9 (4)	9.	Calcium carbide
22.08	512.2 (4)	10.	Alcohol rectified and
			refined distilled and denatured
32.09	533.1 to 533.3 (1)	11.	Paints, pigments, varnishes
	533.3 (2)		and related products
32.12	533.3 (5)	12.	Glazing putty
32.13	533.2 to 895.9 (1)	13.	Ink
33.06	553.0	14.	Cosmetics, perfumery
34.01;34.02	554.1;554.2	15.	Soaps and detergents
34.04	599.7 (1)	16.	Wax and wax products
35.01 to 35.06	599.5(3) (4) (5)	17.	Glues
	(6) (7) (9)
36.05	571.3	18.	Pyrotechnic explosives
36.06	899.3 (2)	19.	Matches
38.11	599.2	20.	Insecticides, pesticides
38.11	599.2	21.	Mosquito coils
39.02;68.13	581.2;663.8 (1)	22.	PVC tiles
30.01	581.1	23.	Alkyd resins
39.05	581.9 (2)	24.	Modified hard resins
44.02	241.2	25.	Charcoal
37.08	862.3	26.	Photographic chemicals
15.11	512.2 (6)	27.	Glycerine, refined and
			crued
			Metallic Products
26.01	283.7	1.	Manganese concentrates
26.01;71.05	285.0(1);681.1 (1)	2.	Silver concentrates
			and bars
73.02	671.4;671.5	3.	Ferro-alloys
73.07;84	672.5 (1);711	4.	Metal castings; rough;
			finished and semi-finished
73.11	673.4 (1);673.5 (1)	5.	Angles, shapes and
			sections of iron or steel
			(hot-rolled, forged,
			extruded, cold formed or
			cold finished)
73.13	674.1(1);674.2 (1)	6.	Iron and steel plates,
	673.3(1);674.8 (1)		coils and sheets, including
	674.7		G.I. sheets
74.03;74.10;76.02	682.2(1);693.1 (2)	7.	Aluminum and copper
76.12	693.1(3);684.2 (1)		wires
73.17;73.18;76.06	672.9;678.1	8.	Pipes and tubes; B.I.,
	to 678.3		G.I., spiral welded or
			aluminum
73.21	691.1	9.	Prefabricated and fabricated
			structural products
			made of iron and steel
			and cement
73.23	692.2 (1)	10.	Steel drums
73.23	692.2 (1)	11.	Pails
73.24	692.3 (1)	12.	Compressed gas cylinders
			and similar pressure
			containers of iron and steel
85.23	723.1	13.	Insulated cable wires
73.32;74.15	694.2 (1);	14.	Bolts and nuts
	694.2 (2)
73.40	698.9 (1)	15.	Grinding balls
76.03;76.04	684.2 (2);684.2 (3)	16.	Aluminum sheets and foil
73.13	674.7	17.	Tin plates
82.05	695.2 (4)	18.	Interchangeable tools
			for hand or machine tools
			(e.g. diamond drill bits)
73.38;76.15;82.14	692.2 (1); 812.3;	19.	Household utensils made
	697.2;(3); 696.0 (6)		of metal including enamelled utensils
82.08	719.4 (1)	20.	Kitchen appliances and
			tools hand-operated such
			as meat grinders, coconut
			graters
82.09;82.13	696.0(1) to 696.0	21.	Cutlery such as scissors,
	(5)		blades, tailor's sears,
			shovels, spades, rakes, saws,
			knives
82.11	696.0 (3)	22.	Razor blades
83.13	698.8 (5)	23.	Metallic closures and
			screw caps
83.02	698.1 (2)	24.	Building hardware such
			as hinges, door knobs, door
			bolts and window rotor-
			operators
83.03	698.2	25.	Vault doors (e.g. insulated
			vault doors)
83.03	698.2	26.	Safes (e.g. record safes
			and tapeguards)
83.03	698.2	27.	Strong boxes, armored
			and reinforced strong
			room doors and compartments
			and fittings (e.g. insulated
			filing cabinets)
83.04;94.03	895.1(1);821.0(9)	28.	Filing cabinets, racks,
			sorting boxes, paper trays
			paper rests and similar
			office equipment of
			base metal
83.07	812.4(2)	29.	Gas lamps
93.02 to 93.07	951.0 (2) (3) to	30.	Firearms and ammunitions
	951.0 (5) (6);894.3
	(1) (2) (3); 571.4
97.01 to 97.07	894.2 (1) (2) (3)	31.	Toys and sporting goods
97.06 to 97.07	(4); 894.4 (1);
	894.5
26.01	281.4	32.	Pyrite cinders or iron
			sulfite
			Non-Metallic Products
25.15; 68.02	273.1 (2);	1.	Marble slabs, tile chips
	661.3 (2)		and curios
68.02	661.3 (2)	2.	Processed marble blocks
25.20;38.19	273.2 (1); 599.9 (9)	3.	Cement additives
25.22	661.1	4.	Lime
25.23	661.2	5.	Cement and clinker
68.11	663.6 (2)	6.	Cement floor tiles
68.12;68.13	661.8 (3); 663.8 (1)	7.	Asbestos tiles
68.12	663.6 (2); 661.8 (3)	8.	Pipes and tubes, asbestos
			cement
68.12;69.01;69.02;	663.6 (2);661.8 (3)	9.	Roofing tiles and fire
69.05			bricks
69.01 to 69.03	662.3(1) (2) 663.7	10.	Refractories
69.04 to 69.14	662.4(1) (2) (3)	11.	Clay products such as
	(4) (5); 663.9 (1);	pottery roofing tiles and
	812.2; 666.4; 666.5;	paste frits
	666.6; 663.9 (2)
69.04 to 69.14	662.4 (1) (2) (3)	12.	Ceramic products such as
	(4) (5); 663.9 (1);		tiles (glazed, vitrified),
	812.2; 666.4; 666.5;		sanitary ware sinks, bidets,
	666.6; 663.9 (2)		etc., except dinner-ware
70.00	664;665	13.	Glass and glass
			containers such as sheet
			glass, window panes, optical
			glass, bottles
70.08	664.7	14.	Safety glass
39.01;39.02;39.03	581.1;581.2;581.3	15.	Reinforced fiber glass
			products
25.02;26.01	274.2;281.4	16.	Pyrite (unroasted, roasted)
			Machinery and Equipment
			and Parts
84.10;84.21;84.24	719.2(1);719.6 (4)	1.	Agricultural equipment
84.25;84.28;87.01	712.1;712.2;712.5;		and components
	712.9 (9)
84.00; 85.00	719;729	2.	Process equipment and
			component
84.22;	719.3 (1)	3.	Transport equipment
			and components (including
			escalators and elevators)
88.03	734.9(2)	4.	Aircraft components and
			accessories
88.02	734.1	5.	Aircraft assemblies
84.22;84.23;84.28	719.3 (1);718.4 (2)	6.	Construction equipment
			and components
84.29	718.3 (1)	7.	Ricemills and parts
			thereof
84.41	717.3	8.	Sewing machines
84.46 to 84.48	719.5 (1) (2) (4)	9.	Machine tools for working
			wood, plastic, minerals
			their parts and accessories
			(e.g. hand saws)
87.01;87.06	712.5;732.5;732.8	10.	Tractor parts
	(9)
84.06;84.63;35.08;	711.5;719.9 (3);	11.	Parts of trucks, passenger
85.09;87.06	729.4 (1); 729.4		trucks, automobiles and
	(3) 732.8 (9)		other commercial vehicles
87.10	733.1 (1)	12.	Bicycles
			Electrical Products
			Machines and Parts
83.15	698.8 (7)	1.	Welding electrodes
84.21	719.6 (4)	2.	Fire extinguishers
85.03	729.1 (1)	3.	Dry cell batteries
85.04	729.1 (1)	4.	Storage batteries
84.09	729.4 (2)	5.	Motor control center
84.17	729.9 (4)	6.	Fire alarm system
85.19	722.2	7.	Panelboard  cda
85.20	729.2	8.	Electric lamps and bulbs,
			incandescent and fluorescent
84.15;85.06;85.12	719.1 (5); 719.4	9.	Electrical appliances
	(2);725.0 (1);725.0		such as electric fans,
	(3);725.0 (5)		refrigerators, TV
85.23;85.25; to 28	723.1; 723.2 (1) to	10.	Bus ducts
	(3); 729.9 (8)
85.27
	723.2 (3)	11.	Light dimmers
76.08;84.15	691.2;719.4 (2)	12.	Formed aluminum parts
			such as door shelves,
			food shelves, and/or
			parts thereof
76.13 (A); 73.27	693.3 (3) 693.3 (1)	13.	Wire screens
84.11 (A)	719.2 (2)	14.	Hermetic compressors
84.12 (B)	719.1 (2)	15.	Evaporators
84.17 (B)	719.1 (9)	16.	Condensers and heat
			exchangers
85.21;85.15	729.3;724.1;724.2;	17.	Electronic equipment,
	724.9		parts and components
85.01	722.1	18.	Fluorescent and mercury
			lamp ballasts
			Wood Products
44.27;44.28	632.7 (3); 632.8 (9)	1.	Caskets
44.27	632.7 (3)	2.	Carvings and lattice works
44.28	632.8 (9)	3.	Pallets  casia
44.27	632.7 (3)	4.	Shelves
64.03	851.0 (3)	5.	Sandals and shoes
97.01;97.03;97.04;	894.2 (1) (3) (4)	6.	Toys and sporting goods
97.06	894.4 (2)
44.13;44.23	243.3 (2);632.4	7.	Parquet tiles
46.03	899.2 (2)	8.	Bamboo products
44.23	632.4	9.	Prefabricated houses and
			components except lumber
93.06	894.3 (3)	10.	Gun stocks
44.27;94.03	632.7 (3); 821.0 (9)	11.	Cabinets
44.19	631.8 (7)	12.	Mouldings
44.23	632.4	13.	Doors and fixtures
94.01 to 94.04	821.0 (1) (2) (3)	14.	Furniture, complete or
	(9)		knocked down and parts
44.21	632.1	15.	Boxes and crates
			Pharmaceutical Products
30.01 to 30.03	541.6 (2) (3); 541.7	1.	Drugs and other
			pharmaceuticals
30.04	541.9 (1)	2.	Wadding, gauze, bandages
			adhesives, similar articles
59.01	655.8 (1)	3.	Sanitary napkins
33.06	553.0	4.	Talcum powder
90.19	899.6 (2)	5.	Dentures
			Fiber Products
57.04	265.8	1.	Coconut Coir
62.03	656.1	2.	Bags, kenaf, jute, synthetic
58.01;58.02	657.5;657.6	3.	Carpets and rugs
59.04;59.05;59.06	655.6 (1) (2) (3)	4.	Cordage, twines, rope fishing
			nets, abaca and synthetic
67.04	899.9 (5)	5.	Wigs and hair pieces
			Textile Products
51.55 and 56	651 to 653	1.	Textile yarns and fabrics,
			cotton and synthetic and
			their blends
			Condition:  Direct exports
			of textile yarns will be
			allowed only with prior
			BOI permission
57.09;57.10;57.11	653.3 (2); 653.4	2.	Fabrics of abaca, sinamay,
	653.9 (4)		burlap, jusi, pineapple and
			other bast fibers
58.03 to 58.10	657.7;652.2;653.6	3.	Specialty garments such
	(3);653.1 (3);		as laces, garters and band
	653.9 (6)
58.10	654.0 (6)	4.	Embroideries
61.00	841	5.	Garments
61.00	841	6.	Gloves
60.03	841.4 (2)	7.	Hosiery
62.02	656.9 (1)	8.	Tablecloths
62.02	656.9 (1)	9.	Mosquito nets
60.05;62.02;94.04	841.4 (4); 656.9	10.	Other Made-up articles of
	(1);821.0 (3)		textile
			Paper Products
48.01 D; 48.10;	641.4;642.9 (1) (3)	1.	Cigarette paper
48.15;48.21	(9) C
48.01;48.15;48.21	641.5; 642.9(1)	2.	Tissue (napkin)
	(3) (4)
48.01	641.2 (1)	3.	Bond
48.13;37.03	642.9 (2);862.4 (3)	4.	Carbon paper including
			diazo papers, electrostatic
			copy papers
48.01;48.16	641.3;642.1 (1)	5.	Boxes and Packaging
			Materials
48.16	642.1 (1)	6.	Containers of Paperboard
49.01 to 49.11	892.1 (1) (2) (3);	7.	Books, Pamphlets,
	892.2;892.3;892.4		Magazines and other printed
	(1) (2); 892.9 (2)		matters
	(3) (4) (9)
			Other Products
23.01 to 23.07	081.4;081.2;081.3;	1.	Animal feeds
	081.9 (3) (4) (9);
	081.1 (9)
24.02	122.2	2.	Cigarettes
39.07;44.28;73.40;	891.0; 698.9 (1)	3.	Garment hangers of wood
76.16	698.9 (4); 632.8 (9)		plastic of metal
49.11	892.9 (9)	4.	Advertising Materials
56.06;55.06	651.4 (2);651.6 (5)	5.	Threads of cotton or
			synthetic fibers
71.01 to 71.16	667.1 to 667.4;681.2	6.	Jewelry
	(1) (2); 285.0 (2);
	897.1 (1) (2) (3)
	(4); 897.2
71.01	667.1	7.	Cultured pearls
83.06	697.9 (2)	8.	Plaques and trophies
71.12 to 71.16	897.1 (1) (2) (3)	9.	Cuff links
	(4); 897.2
73.34	698.5 (2)	10.	Pins, safety or dress-
			maker's
83.09	698.5 (3)	11.	Clasps, hood, eyes,
			buckles, etc., of base metal
98.01	899.5 (2)	12.	Buttons
98.02	899.5 (3)	13.	Zippers
66.01	899.4 (1)	14.	Umbrellas
99.01	896.0 (1)	15.	Paintings
44.19;44.20;44.24;	631.8 (7);632.7 (1)	16.	Handicrafts such as lamp
44.25;44.27;44.28;	(2) (3); 632.8 (2)		shades, place mats, shell-
46.01 to 46.03;65.01	(9); 657.8; 899.2		crafts, hats household
to 65.07;67.01 to	(2);655.7 (1) (2);		utensils, toys, and sporting
67.05;97.01 to	841.5 (1) (2) (3)		goods
97.08;98.0698.11;	(4) (9);899.9 (2)
98.12	(3) (4) (5) (6);
	894.2 (1) (2) (3)
	(4) (5); 899.3 (5);
	899.5 (4) 831.0;
	899.4 (1) (2) (3);
	894.5
42.02	831.0	17.	Travel goods
42.02; 42.03;42,04;	831.0;841.3;612.1;	18.	Leather products such as
42.05; 64.02;64.05	612.9; 851.0 (2);		purses, wallets, belts,
	612.3		straps, gloves, footwear
41.02 to 41.08	611.3; 611.4; 611.9	19.	Tanned leather cdt
	(1) to (5) 611.9 (9)
39.07;64.01;	851.0 (1) (2);	20.	Plastic products such as
64.02;42.01;71.16;	612.2;831.0;		light diffusers, footwear,
90.03;90.04;94.03	821.0 (9);893;894;		containers, sheets,
96.01 to 96.06;97.01	895;897;899		raincoats, packaging materials,
to 97.08;98.01 to			brushes, brooms, gloves,
98.16			toothbrushes, toys and
			sporting goods, optical
			frames
98.03;98.04;98.05	895.2 (1) (2);895.2	21.	School and office supplies
83.05	(3)		such as fasteners, pencils,
			folders, paperclips, pens
			and holders, bookbinders,
			rulers, desk pieces, etc.
			Musical Instruments and
			parts
92.01;92.09;92.10	891.4 (1)(3) 891.9	22.	Pianos and Parts thereof
92.02	891.4 (2)		Guitars and Ukeleles
92.02	891.4 (2)		Violins
92.05	891.8 (3)		Harmonicas

LIST B: EXPORTABLE PRODUCTS OF PREFERRED

AREAS OF INVESTMENTS

BTN	SITC		EXPORTABLE PRODUCTS
07.01 to 07.06;08.01	051;052;053;054;	1.	Processed fruits and
to 08.13;20.01 to	055		vegetables (NP)  aisa dc
20.07	16.04;16.05 032.0 (1) (20	2.	Processed seafoods (NP)
17.02	061.9	3.	Glucose powder (including
			cassava starch production)
			(NP)
15.07	422.9	4.	Rice bran oil (P)
13.03	292.9 (1)	5.	Agar-agar (NP)
09.04 to 09.10	075.1;075.2 (2) (3)	6.	Spices (NP)
	(4) (5) (9)
23.07	081.9 (9)	7.	Fodder (cattle feed) (NP)
48.09	641.6	8.	Fiberboard (NP)
			Condition: At least 80% of
			production must be exported
			Note: Expansion projects
			intended for the export
			market of existing fiberboard
			manufacturers previously
			registered under
			R.A. 5186 may be registered
			under the same law
			(Investment Incentives Act)
			provided they shall comply
			with the requirements for
			registration under List
			B of R.A. 6135.
44.18	631.4 (2)	9.	Particleboard (NP)
44.15	631.2 (1)	10.	Blackboard and blackboard
			cores (NP)
44.23	632.4	11.	Builders' woodwork, including
			prefabricated and sectional
			buildings or components
			of wood (NP)
94.00	821.0	12.	Furniture (NP)
97.01;97.02;97.06	894.2 (1) (2) (3)	13.	Toys (NP)
40.01	231.1	14.	Crumb rubber (NP)
47.01	251	15.	Cellulosic staples for
			specialty pulp (P)
64.01 to 64.06	851.0 (1) (2) (3)	16.	Footwear (NP)
26.01	283.2 (1)	17.	Beneficiated nickel
			silicate ore (NP)
73.02	671.4;671.5	18.	Ferro-alloys (NP)
69.10	812.2	19.	Ceramic bathroom
			accessories (NP)  acd
69.08	662.4 (5)	20.	Vitrified tiles (NP)
71.12 to 71.16	897.1 (1) to 897.2	21.	Jewelry (P/NP)
28.54	514.9 (2)	22.	Hydrogen peroxide (P/NP)
15.11	512.2 (6)	23.	Refined glycerine (NP)
38.03	599.9 (2)	24.	Activated carbon (P)
29.11	512.4 (1)	25.	Furfural (P)
33.01	551.1	26.	Essential oils (NP)
22.08	512.2 (4)	27.	Alcohol (molasses
			fermentation) (NP)
56.01 (A)	266.2 (1)	28.	Acrylic fiber (P)
60.01;60.06	653;841	29.	Knitted fabrics (NP)
50 to 56	652 to 653	30.	Woven fabrics (NP)
61.00	841	31.	Garments (NP)
60.01 to 60.06;61.01	841.4 (5); 841.1 (1)	32.	Made-up articles of
to 61.11;62.01 to	to 841.2 (9); 656.6		textile, plastic, rubber and
62.05;39.07;40.13;	(1) to 656.9 (2);		leather (NP)
42.02;42.03;42.05	893.0;841.6;831.0;
	841.3;612.9
85.24	729.9 (6)	33.	Graphite electrode (P)
84.11	719.2 (2)	34.	Hermetic compressors (P)
84.63	719.9 (3)	35.	Motor vehicle
			transmission (P)
82.03	695.2 (2)	36.	Pliers and wrenches (P)
98.10	899.3 (4)	37.	Cigarette lighters (NP)
83.01	698.1 (1)	38.	Locks (NP)
91.00	864	39.	Clocks and watches and
			parts thereof (P)
83.09	698.5 (3)	40.	Buckles and metal plated
			accessories (NP)
85.01 to 85.28;	722 to 726; 729;	41.	Electrical and electronic
92.11; 92.13	891.1 (1) (2)		machinery, equipment,
			apparatus, and their parts
			and components (P/NP)
84.48	719.5 (4)	42.	Precision tools and dies
			parts of machinery and
			equipment for semi-conductor
			manufacture (P)
			N.B.
1. BTN means Brussels Trade Nomenclature
2. SITC means Standard International Trade Classification.
3. List A contains a list of exportable products of existing firms.

 Firms registered for List A products shall be entitled to all incentives granted under R.A. 6135 except tax exemption on imported capital equipment. However, exceptions to this policy may be made; and on a case to case basis, firms registered under List A may be allowed tax and duty free importation of capital equipment, provided that the following conditions are fulfilled: acd

a) The applicant firms have already made commercial exportation of their registered exportable products;

b) They are currently utilizing close to one hundred percent of their total existing capacity; and

c) They can prove to the satisfaction of the Board that the expansion capacity being applied for will be used substantially (at least 50 percent), if not entirely, for export. cd

4. List B would include products of preferred projects which are intrinsically export-oriented, or of such a nature that even if production were to be substantially sold in the domestic market, they would still be desirable to promote. Enterprises registered under List B will be entitled to free importation of machineries only if the project will export at least 50 percent of its total production.

5. The Board reserves the right to suspend or restrict the exportation of any product listed in the EPP in the event of domestic shortage thereof.

1 In addition to the above conditions regarding centrals in production areas, centrals in consumption areas must be integrated with satellites, preferably modernized existing mills. A satellite-central must have at least 1,500 MT of storage capacity and equipped with facilities for bulk storage and handling, cleaning, drying, hulling, milling, packaging and pest and rodent control.

2 Centrals in production areas must be of at least 2,000 MT storage capacity and equipped with facilities for bulk storage and handling, cleaning, drying, milling, grading, and packing, and pest and rodent control. Processing capacities should be based on 3 stockturns per year.

3 Facilities to be established in these areas as well as in selected consumption areas determined by the Board to be necessary to stabilize prices, may be utilized for corn processing/storage. The extent of utilization for corn should not be over 60 percent of capacity.