Board Delegated Functions Pursuant to Article 7 of Executive Order No. 226, Otherwise Known as the Omnibus Investments Code of 1987

November 7, 2016

BOI OFFICE ORDER NO. 2016-019

SUBJECT : Board Delegated Functions Pursuant to Article 7 of Executive Order No. 226, Otherwise Known as the Omnibus Investments Code of 1987

WHEREAS, Executive Order (E.O.) No. 226, otherwise known as the Omnibus Investments Code of 1987, as amended, provides that the Board of Investments (BOI) shall be responsible for the regulation and promotion of investments in the Philippines; ITAaHc

WHEREAS, Article 7 of E.O. No. 226 provides for the power and duties of the Board and all actions of the BOI emanate therefrom;

WHEREAS, in the case Qua Chee Gan, et al. v. The Deportation Board, (G.R. No. L-10280, September 30, 1963), the Supreme Court stated that "while ministerial duties may be delegated, official functions requiring the exercise of discretion and judgment may not be so delegated";

WHEREAS, the Board may delegate its functions and duties that are ministerial in character and provided further that there are clear and express guidelines thereto;

WHEREAS, functions and duties of the Board that require exercise of discretion and judgment shall not be delegated;

NOW THEREFORE, to promote ease of doing business and in the interest of service, the Board, in its meeting of 12 October 2016, by virtue of Resolution No. 28-02, Series of 2016, RESOLVED that the following functions be DELEGATED to the concerned Directors, Executive Directors, and the Management Committee:

A. CONCERNED DIRECTORS —

1. Issuance of Certifications:

a. Republic Act No. 7844 (Export Development Act)

b. Certificate of Non-Availability

c. Certificate of Eligibility under E.O. No. 133 implementing Section 109 of Republic Act No. 8435, otherwise known as the Agriculture and Fisheries Modernization Act of 1997

d. Certificate of Performance of BOI Registration for Department of Finance Action Center

e. Certificate of Qualification pursuant to Article 39 (l) of Executive Order No. 226, as amended cSaATC

f. Certificate of Entitlement to Income Tax Holiday

g. Certification of not the same person as previous SIRV holder

h. Other Certifications and Indorsement to other government agencies

2. Endorsement of Application for registration of Multinational Companies for the establishment of Regional Area Headquarters (RHQ), Regional Operating Headquarters (ROHQ), or Regional Warehouses (RW)

3. Endorsement to the Securities and Exchange Commission on the change of business name, change of address, change of resident agent, cancellation, and all ministerial amendments of ROHQ/RHQ

4. Endorsement for the Withdrawal of Time Deposit of SIRV applicants

5. Endorsement for Employment of Foreign Nationals

6. Endorsement for Importation of Consigned Equipment under Article 39 (f) of Executive Order No. 226, as amended

7. Endorsement of good standing for Client Profile Registration System pursuant to BOC Memorandum Order No. 3902008, entitled, "Initial Registration of Clients and Stakeholders with the Electronic-to-Mobile or e2m Customs System; Data Build-up Phase of the Client Profile Registration System of CPRS"

8. Request for extension of period to submit pre-registration requirements, provided it does not exceed ninety (90) days.

9. Mining-Copper export clearance

10. Amendment of Terms and Conditions of BOI registration:

a. Change in Corporate Name as approved by the Securities and Exchange Commission;

b. Amendment in authorized or subscribed capital stock as approved/noted by the Securities and Exchange Commission;

c. Change of stockholder/corporate structure, provided that there is no effect in the nationality requirement to maintain its qualification for BOI registration and/or does not affect its export commitment/requirement;

d. Change of Plant Location subject to publication in the newspaper, provided that the project is not covered by locational restriction;

e. Change in "Address of Record"; and CHTAIc

f. Typographical errors in the terms and conditions of registration.

B. CONCERNED EXECUTIVE DIRECTORS —

1. Amendment of Terms and Conditions of Registration:

a. Change of start of commercial operations/timetable, provided that there shall be NO amendment of ITH reckoning date;

b. Request for downward amendment of registered capacity;

c. 1st request for upward amendment of registered capacity, provided that the amendment does not exceed twenty-five percent (25%) of the original registered capacity. Subsequent requests shall be raised to the ManCom.

d. Request for amendment in registered product(s) and/or services (Inclusion/deletion), provided that there is no additional capital equipment. The amendment shall be based on the Guidelines for Amendment of Registered Capacity as adopted on 15 March 1989. Further, in the event of inclusion of additional product line, said product line should be listed under the project's governing Investment Priorities Plan at the time of registration.

2. Change of Project Timetable, with or without change in ITH reckoning date, of APPROVED projects but NOT yet registered, provided that the adjustment in timetable shall not exceed one (1) year

3. Request for temporary cessation of operation for less than one year

4. Cancellation of firm's registration pursuant to the guidelines on Cancellation as published in 2014

5. Clearance to release documents requested by other government agencies

6. Clearance for initial public offering "by way of introduction," regardless if the condition on public offering is included in the terms and conditions of registration

7. Motor vehicle- variance and model registration pursuant to Executive Order No. 156, Series of 2002

8. Accreditation of Jewelry Enterprise and/or Jewelry Industry Association under RA 8502, otherwise known as the Jewelry Industry Development Act of 1998

9. Accreditation of Footwear, Leathergoods, and Tannery Enterprise under RA 9290, otherwise known as Footwear, Leathergoods, and Tannery Industries Development Act

10. Declaration of Stock Dividend provided that the nationality requirement is still complied with cHDAIS

11. Incentives Matters:

a. Evaluation Report of ITH Bonus year application

b. Evaluation report of disposal of capital equipment

c. Certificate of Authority on importation of capital equipment

d. Certificate of Authority on importation of capital equipment under the Downstream Oil Industry Deregulation Act

e. Certificate of Authority on importation of genetic materials and breeding stocks

f. Certificate of Tax and Duty exemption on the importation of spare parts and supplies

g. Endorsement of tax and duty exemption under RHQ/ROHQ

h. Endorsement for VAT Zero Rating

i. Endorsement for the issuance of Probationary, Indefinite SIRV

j. Endorsement for the cancellation/downgrading of SIRV

k. Endorsement for the lifting from the Bureau of Immigration's Blacklist (for SIRV holders whose SIRV were cancelled by publication)

l. Issuance of Certifications under SIRV

m. Evaluation for the issuance of SIRV ID

n. Cancellation of SIRV by publication

o. Clearance to release data on incentives data availment by private sector

p. GTIS New/Renewal of License to Operate a Bonded Manufacturing Warehouse

q. GTIS New License to Operate a Common Bonded Manufacturing Warehouse

r. GTIS Accreditation of Membership to a Common Bonded Manufacturing Warehouse

s. GTIS Accreditation of Subcontractor

t. GTIS Registration of Subcontractor

Cases covered by the guidelines but falling under borderline cases or gray areas of existing policies or cases where the Executive Director is in doubt shall be presented to the Management Committee for deliberation. EATCcI

C. MANAGEMENT COMMITTEE —

1. Applications for registration of Export Activities, Economic and Low-cost Housing projects, and projects covered by Republic Act No. 9513, otherwise known as the Renewable Energy Act of 2008;

2. Approval of Application for Long-Term Lease under RA 7652, otherwise known as the Investor's Lease Act;

3. Approval of Pre-qualification of Foreign Retailers under RA 8762, otherwise known as the Retail Trade Liberalization Act of 2000;

4. Request for adjustment of projected revenue (for those to exceed the 110% of the projected gross revenue);

5. Request for extension of period to submit pre-registration requirements beyond the allowable 90 days;

6. Request for amendment of terms and conditions of enterprises that have been approved by the Board but not yet registered, except those circumstances delegated to the concerned Executive Director;

7. The Change of Project Timetable, with or without change in ITH reckoning date, of APPROVED projects but NOT yet registered, exceeding one (1) year;

8. Notation of the following actions undertaken by the Executive Director/Director:

a. Cancellation of BOI-registration

b. Report on the amendment of terms and conditions approved by the Executive Director

c. Report on the endorsement of ROHQ/RHQ applications

d. Accreditation of Jewelry Enterprise and/or Jewelry Industry Association under RA 8502, otherwise known as the Jewelry Industry Development Act of 1998

e. Accreditation of Footwear, Leathergoods, and Tannery Enterprise under RA 9290, otherwise known as Footwear, Leather.

Cases, applications for registration, or grey areas that require policy direction/guidelines/rules shall be raised to the Board for consideration.

Issues/concerns/disagreements raised by a Management Committee member in any case or application for registration shall be raised to the Board for consideration. ISHCcT

D. APPLICATION FOR REGISTRATION OF MICRO AND SMALL ENTERPRISES

RESOLVED, that the processing and approval of projects of Micro and Small Enterprises be delegated to the following:

a. Approval of project applications Executive Director for Industry applied in Luzon Development Services (IDS)

b. Approval of project applications Division Chiefs/Officer-in-applied in Visayas and Mindanao Charge BOI Extension Offices (BEOs)

RESOLVED, that any action on the delegated functions to the Management Committee shall be based on unanimous vote; otherwise the matter shall be elevated to the Board for consideration;

RESOLVED, that the implementing letter-notice to the enterprise pursuant to the above delegated functions shall be signed by the concerned Director/Executive Director and said implementing letter shall be immediately released upon action of the concerned Executive Director or ManCom, provided that applications for registration referred under Para C (1) shall be released only after ManCom confirmation of the minutes;

RESOLVED, that the AUTHORIZED SIGNATORY for the Certificate of Registration, Certificate of Compliance with Pre-Qualification Requirements (RA 8762), and Certificate of Approval of Long Term Lease Agreement (RA 7652) of applicant-enterprise referred to in paragraph C (1) to (3) shall be the MANAGING HEAD;

RESOLVED, that pursuant to Article 7 (20) of EO 226, the AUTHORIZED SIGNATORY for agreements entered into with other agencies of government for the simplification and facilitation of systems and procedures involved in the promotion of investments, operation of registered enterprises and other activities necessary for the effective implementation of E.O. 226 shall be the MANAGING HEAD;

RESOLVED, that the AUTHORIZED SIGNATORY for any pleadings, legal documents/instruments, or other papers relative to any case involving the Board of Investments shall be the MANAGING HEAD;

RESOLVED, that actions covered under paragraphs C (1) to (3) and D shall be regularly reported every first Board Meeting of the month by the Supervising Executive Director of the concerned Service for NOTATION AND INFORMATION;

RESOLVED FINALLY, that the following functions shall NOT be delegated and shall be acted upon by the Board of Governors: DHITCc

a. Approval of Investments Priorities Plan;

b. Promulgation of rules and regulations to implement E.O. No. 226;

c. Restriction in the availment of certain incentives;

d. Requirement for performance bonds and guarantees;

e. All other application for registration other than those provided under paragraph C (1);

f. Action on request for movement of ITH Reckoning period pursuant to Article 7 (14) of EO 226;

g. Action on Motion for Reconsideration, Appeals and Cases;

h. Request of Waiver/Temporary suspension of the conditions imposed in the terms and conditions of BOI registration;

i. Action on Income Tax Holiday Applications;

j. Determination of the organizational structure; and

k. Such other functions/actions that require exercise of judgment or discretion.

This Order takes effect immediately and shall remain valid until revoked.

SO ORDERED.

BY AUTHORITY OF THE BOARD

(SGD.) UNDERSECRETARY CEFERINO S. RODOLFOManaging Head