Granting Tax and Duty Exemption and Tax Credit on Capital Equipment
Republic Act No. 7369, enacted on April 10, 1992, amends the Omnibus Investments Code to provide tax and duty exemptions for imported capital equipment for new and expanding registered enterprises until December 31, 1994. Importations are exempt from customs duties and national internal revenue tax, provided they meet specific conditions, such as lack of domestic availability and exclusive use in manufacturing. The act also offers a 100% tax credit for domestic purchases of capital equipment that would have qualified for tax exemptions if imported. Additionally, it outlines penalties for unauthorized sale or transfer of the equipment within five years, along with provisions for the Board of Investments to issue guidelines and certificates for tax credits. The law is effective for five years from its approval.
Quick Answers
- What is Granting Tax and Duty Exemption and Tax Credit on Capital Equipment about?
- Republic Act No. 7369, enacted on April 10, 1992, amends the Omnibus Investments Code to provide tax and duty exemptions for imported capital equipment for new and expanding registered enterprises until December 31, 1994. Importations are exempt from customs duties and national internal revenue tax, provided they meet specific conditions, such as lack of domestic availability and exclusive use in manufacturing. The act also offers a 100% tax credit for domestic purchases of capital equipment that would have qualified for tax exemptions if imported. Additionally, it outlines penalties for unauthorized sale or transfer of the equipment within five years, along with provisions for the Board of Investments to issue guidelines and certificates for tax credits. The law is effective for five years from its approval.
- What type of law is Republic Act No. 7369?
- Granting Tax and Duty Exemption and Tax Credit on Capital Equipment (Republic Act No. 7369) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Granting Tax and Duty Exemption and Tax Credit on Capital Equipment enacted?
- Granting Tax and Duty Exemption and Tax Credit on Capital Equipment (Republic Act No. 7369) was enacted on Apr 10, 1992.
- What is the citation for Granting Tax and Duty Exemption and Tax Credit on Capital Equipment?
- Granting Tax and Duty Exemption and Tax Credit on Capital Equipment, Republic Act No. 7369, Apr 10, 1992 (Philippines)
Law Information
- Reference Number
- Republic Act No. 7369
- Date Enacted
- Category
- Statutes
- Subcategory
- Republic Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
April 10, 1992
REPUBLIC ACT NO. 7369
AN ACT GRANTING TAX AND DUTY EXEMPTION AND TAX CREDIT ON CAPITAL EQUIPMENT
SECTION 1. Paragraph (c), Article 39, Title III of the Omnibus Investments Code of 1987 is hereby amended to read as follows:
"(c) Tax and Duty Exemption on Imported Capital Equipment. — Until December 31, 1994, importations of machinery and equipment and accompanying spare parts of new and expanding registered enterprise shall be exempt to the extent of One hundred percent (100%) of the customs duties and national internal revenue tax payable thereon: Provided, That the importation of machinery and equipment and accompanying spare parts shall comply with the following conditions:
"(1) They are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices;
"(2) They are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products, unless prior approval of the Board is secured for the part-time utilization of said equipment in a non-registered activity to maximize usage thereof or the proportionate taxes and duties are paid on the specific equipment and machinery being permanently used for non-registered activities;
"(3) The approval of the Board was obtained by the registered enterprise for the importation of such machinery, equipment and spare parts." In granting the approval of the importations under this paragraph, the Board may require international canvassing but if the total cost of the capital equipment or industrial plant exceeds US$5,000,000.00, the Board shall apply or adopt the provisions of Presidential Decree Numbered 1764 on International Competitive Bidding. acd
"If the registered enterprise sells, transfers or disposes these machinery, equipment and spare parts without prior approval of the Board within five (5) years from the date of acquisition, the registered enterprise and the vendee, transferee, or assignee shall be solidarily liable to pay twice the amount of the tax exemption given it.
"The Board shall allow and approve the sale, transfer, disposition of the said items within the said period of five (5) years if made:
"(aa) to another registered enterprise or registered domestic producer enjoying similar incentives;
"(bb) for reason of proven technical obsolescence; or cd i
"(cc) for purposes of replacement to improve and/or expand the operations of the registered enterprises."
SECTION 2. Paragraph (d), Article 39, Title III of the same Code, is likewise amended to read as follows:
"(d) Tax credit on Domestic Capital Equipment. — A tax credit equivalent to One hundred percent (100%) of the value of the national internal revenue taxes and customs duties that would have been waived on the machinery, equipment and spare parts, had these items been imported shall be given to the new and expanding registered enterprise which purchases machinery, equipment and spare parts from a domestic manufacturer: Provided, That (1) that the said equipment, machinery and spare parts are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products, unless prior approval of the Board is secured for the part-time utilization of said equipment in a nonregistered activity to maximize usage thereof; (2) that the equipment would have qualified for tax and duty-free importation under paragraph (c) hereof; (3) that the approval of the Board was obtained by the registered enterprise; and (4) that the purchase is made on or before December 31, 1994. If the registered enterprise sells, transfers, or disposes of these machinery, equipment and spare parts, the provision in the preceding paragraph for such disposition shall apply." cd i
SECTION 3. For a period of three (3) years starting January 1, 1995, the following imported articles shall be exempt from duties imposed under Section 104 of the Tariff and Customs Code of 1978, as amended, and all kinds of levies provided by law or presidential decree:
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HDG. NO.
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HARMONIZED
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DESCRIPTION
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SYSTEM CODE
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| 84.02 | Steam or other vapour generating | |
| boilers (other than central heating hot | ||
| water boilers capable also | ||
| of producing low pressure steam); | ||
| super-heated water boilers. | ||
| - Steam or other vapour generating | ||
| boilers. | ||
| 8402.11 00 | - Watertube boilers with a steam | |
| production exceeding 45 t per hour | ||
| 8402.12 | - Watertube boilers with a steam | |
| production not exceeding 45 t per hour; | ||
| 8402.12 10 | - With rating above 9.4 t per hour | |
| 8402.12 90 | - Other | |
| 8402.19 | - Other vapour generating boilers, | |
| including hybrid boilers; | ||
| 8402.19 10 | - With rating above 9.4 t per hour | |
| 8402.19 90 | - Other | |
| 8402.20 | - Super-heated water boilers | |
| 8402.20 10 | - With rating above 9.4 t per hour | |
| 8402.20 90 | - Other | |
| x x x | ||
| 84.03 | Central heating boilers other than | |
| those of heading No. 84.02. | ||
| 8403.10 00 | - Boilers | |
| x x x | ||
| 84.04 | Auxiliary plant for use with boilers of | |
| heading No. 84.02 or 84.03 (for | ||
| example, economizers, super-heaters, | ||
| soot removers, gas recoverers); | ||
| condensers for steam or other vapour | ||
| power units. | ||
| 8404.10 | - Auxiliary plant for use with boilers | |
| of heading No. 84.02 or 84.03; | ||
| 8404.10 10 | - Auxiliary plant for use with boilers | |
| of heading No. 84.02 | ||
| 8404.10 90 | - Other | |
| 8404.20 00 | - Condensers for steam and other | |
| vapour power units | ||
| x x x | ||
| 84.05 | Producer gas or water gas | |
| generators, with or without their purifiers, | ||
| acetylene gas generators and similar water | ||
| process gas generators, with or | ||
| without their purifiers. | ||
| 8405.10 00 | - Producers gas or water gas | |
| generators, with or without their purifiers; | ||
| acetylene gas generators and similar water | ||
| process gas generators, | ||
| with or without their purifiers. | ||
| x x x | ||
| 84.06 | Steam turbines and other vapour | |
| turbines. | ||
| - Turbines; | ||
| 8406.11 00 | - For marine propulsion | |
| 8406.19 00 | - Other | |
| x x x | ||
| 84.07 | Spark-ignition reciprocating or rotary | |
| internal combustion piston engines. | ||
| x x x | ||
| - Marine propulsion engines: | ||
| 8407.21 00 | - Outboard motors | |
| x x x | ||
| - Reciprocating piston engines of a | ||
| kind used for the propulsion | ||
| of vehicles of Chapter 87; | ||
| 8407.31 | -Of a cylinder capacity not exceeding | |
| 50 cc | ||
| x x x | ||
| 84.08 | Compression-ignition internal | |
| combustion piston engines (diesel or | ||
| semi-diesel engines). | ||
| 8408.10 00 | - Marine propulsion engines | |
| x x x | ||
| 84.10 | Hydraulic turbines, water wheels, and | |
| regulators therefor. | ||
| - Hydraulic turbines and water | ||
| wheels: | ||
| 8410.11 00 | -Of a power not exceeding 1,000 kw | |
| 8410.12 00 | -Of a power exceeding 1,000 kw but | |
| not exceeding 10,000 kw | ||
| 8410.13 00 | - Of a power exceeding 10,000 kw | |
| x x x | ||
| 84.13 | Pumps for liquids, whether or not | |
| fitted with a measuring device; | ||
| liquid elevators. | ||
| -Pumps fitted or designed to be fitted | ||
| with a measuring device; | ||
| x x x | ||
| 8413.19 00 | - Other | |
| 8413.20 00 | - Hand Pumps, other than those of | |
| subheading No. 8413.11 or 8413.19 | ||
| 8413.30 00 | - Fuel, lubricating or cooling medium | |
| pumps for internal combustion piston | ||
| engines | ||
| 8413.40 00 | - Concrete pumps | |
| 8413.50 00 | - Other reciprocating positive | |
| displacement pumps | ||
| 8413.60 00 | - Other rotary positive displacement | |
| pumps | ||
| 8413.70 00 | - Other centrifugal pumps; | |
| 8413.70 10 | - Centrifugal water pumps, single | |
| stage, single suction, horizontal shaft | ||
| type suitable for belt drive or direct | ||
| coupling (except pumps with shafts | ||
| common with prime mover) | ||
| with casings and impellers of cast | ||
| iron or bronze | ||
| 8413.70 90 | - Other | |
| - Other pumps; liquid elevators; | ||
| 8413.81 00 | - Pumps | |
| 8413.82 00 | - Liquid elevators | |
| x x x | ||
| 84.14 | Air or vacuum pumps, air or other gas | |
| compressors and fans; ventilating or | ||
| recycling hoods incorporating a fan, | ||
| whether or not fitted with filters. | ||
| 8414.00 00 | - Vacuum pumps | |
| x x x | ||
| 8414.30 00 | - Compressors of a kind used in | |
| refrigerating equipment. | ||
| x x x | ||
| 8414.40 00 | - Air compressor mounted on a | |
| wheeled chassis for towing | ||
| x x x | ||
| 8414.60 00 | - Hoods having a maximum | |
| horizontal side not exceeding 120 cm | ||
| 8414.80 00 | - Other | |
| x x x | ||
| 84.16 | Furnace burners for liquid fuel, for | |
| pulverized solid fuel or for gas; | ||
| mechanical strokers, mechanical | ||
| grates, mechanical ash discharges | ||
| and similar appliances. | ||
| 8416.10 00 | - Furnace burners for liquid fuel | |
| 8416.20 00 | - Other furnace burners, including | |
| combination burners | ||
| 8416.30 00 | - Mechanical strokers, mechanical | |
| grates, mechanical ash dischargers | ||
| and similar appliances | ||
| x x x | ||
| 84.17 | Industrial or laboratory furnaces and | |
| ovens, including incinerators, | ||
| non-electric. | ||
| 8417.10 00 | - Furnaces and ovens for the roasting | |
| melting or other heat-treatment of | ||
| ores, pyrites or of metals | ||
| 8417.20 00 | - Bakery ovens, including biscuit ovens | |
| 8417.80 00 | - Other | |
| x x x | ||
| 84.19 | Machinery, plant or laboratory | |
| equipment, whether or not electrically | ||
| heated, for the treatment of | ||
| materials by a process involving a | ||
| change of temperature such as | ||
| heating, cooking, roasting, distilling, | ||
| rectifying, sterilizing, pasteurizing, steaming, | ||
| drying, evaporating, vaporising, | ||
| condensing or cooling, other than | ||
| machinery or plant of a kind used | ||
| for domestic purposes; instantaneous | ||
| or storage water heaters, non-electric. | ||
| - Instantaneous or storage water heaters, | ||
| non-electric; | ||
| 8419.11 00 | - Instantaneous gas water heaters | |
| 8419.19 00 | - Other | |
| x x x | ||
| - Dryers; | ||
| 8419.31 00 | - For agricultural products | |
| 8419.32 00 | - For wood, paper pulp, paper or | |
| paperboard | ||
| 8419.39 | - Other | |
| 8419.39 10 | - Driers for printing plate making | |
| 8419.39 90 | - Other | |
| 8419.40 00 | - Distilling or rectifying plant | |
| 8419.50 00 | - Heating exchange units | |
| 8419.60 00 | - Machinery for liquefying air or gas | |
| - Other machinery, plant and equipment; | ||
| 8419.81 00 | - For making hot drinks or for | |
| cooking or heating food | ||
| 8419.89 | - Other; | |
| 8419.89 10 | - Sterilising apparatus (other than | |
| those covered in subheading No. | ||
| 8419.20 00) | ||
| 8419.89 90 | - Other | |
| x x x | ||
| 84.20 | Calendaring or other rolling | |
| machines, other than for metals or | ||
| glass, and cylinders therefor. | ||
| 8420.10 00 | - Calendaring or other | |
| rolling machines | ||
| x x x | ||
| 84.21 | Centrifuges, including centrifugal | |
| dryers; filtering or purifying | ||
| machinery and apparatus, for liquids | ||
| or gases. | ||
| - Centrifuges, including centrifugal | ||
| dryers; | ||
| 8421.11 00 | - Cream separators | |
| 8421.17 00 | - Clothes-dryers | |
| (EXCLUDING THOSE FOR HOUSEHOLD USE) | ||
| 8421.19 00 | - Other | |
| - Filtering or purifying machinery | ||
| and apparatus for liquids; | ||
| 8421.21 00 | - For filtering or purifying water | |
| (EXCLUDING THOSE FOR HOUSEHOLD USE) | ||
| 8421.22 00 | - For filtering or purifying beverages | |
| other than water | ||
| (EXCLUDING THOSE FOR HOUSEHOLD USE) | ||
| 8421.23 00 | - Oil or petrol-filters for internal | |
| combustion engines | ||
| 8421.29 00 | - Other | |
| (EXCLUDING THOSE FOR HOUSEHOLD USE) | ||
| - Filtering or purifying machinery | ||
| and apparatus for gases; | ||
| 8421.31 00 | - Intake air filters for internal | |
| combustion engines | ||
| 8421.39 00 | - Other | |
| (EXCLUDING THOSE FOR HOUSEHOLD USE) | ||
| x x x | ||
| 84.22 | Dish washing machines; machinery | |
| for cleaning or drying bottles or other | ||
| containers; machinery for filling, | ||
| closing, sealing, capsuling or | ||
| labelling bottles, cans, boxes, bags or | ||
| other containers; other packing or | ||
| wrapping machinery, machinery for | ||
| aerating beverages. | ||
| - Dish washing machines; | ||
| x x x | ||
| 8422.19 00 | - Other | |
| x x x | ||
| 8422.30 00 | - Machinery for filling, closing, | |
| sealing, capsuling or labelling bottles, | ||
| cans, boxes, bags or other containers; | ||
| machinery for aerating beverages | ||
| 8422.40 00 | - Other packing or wrapping | |
| machinery | ||
| x x x | ||
| 84.25 | Pulley tackle and hoists other than | |
| skip hoists; winches and capstans; | ||
| jabs. | ||
| - Pulley tackle and hoists other than | ||
| skip hoists or hoists of a kind used for | ||
| raising vehicles; | ||
| 8425.11 00 | - Powered by electric motor | |
| 8425.19 00 | - Other | |
| 8425.20 00 | - Pit-head winding gear; winches | |
| specially designed for use underground | ||
| - Other winches; capstans; | ||
| 8425.31 00 | - Powered by electric motor | |
| 8425.39 00 | - Other | |
| - Jacks; hoists of a kind used for | ||
| raising vehicles; | ||
| 8425.41 00 | - Built-in packing system of a type | |
| used in garages | ||
| 8425.42 00 | - Other jacks and hoists, hydraulic | |
| 8425.49 00 | - Other | |
| 84.26 | Derricks; cranes, including cable | |
| cranes; mobile lifting frames, | ||
| straddle carriers and works trucks | ||
| fitted with a crane. | ||
| - Overhead travelling cranes, | ||
| transporter cranes, gantry cranes, bridge | ||
| cranes, mobile lifting frames and | ||
| graddle carriers; | ||
| 8426.11 00 | - Overhead travelling cranes on | |
| fixed support | ||
| 8426.12 | - Mobile lifting frames on types and | |
| straddle carriers; | ||
| 8426.12 10 | - Straddle carriers; | |
| 8426.12 20 | - Mobile lifting frames on types | |
| 8426.19 00 | - Other | |
| 8426.20 00 | - Tower cranes | |
| 8426.30 00 | - Portal or pedestal jib cranes | |
| - Other machinery, self-propelled; | ||
| 8426.41 | - On tyres; | |
| 8426.41 10 | - Crane trucks | |
| 8426.41 90 | - Other | |
| 8426.49 00 | - Other | |
| - Other machinery; | ||
| 8426.91 00 | - Designed for mounting on road | |
| vehicles | ||
| 8426.99 00 | - Other | |
| x x x | ||
| 84.28 | Other lifting, handling, loading or | |
| unloading machinery (for example, | ||
| lifts, escalators, conveyors, teleferics). | ||
| 8428.10 00 | - Lifts and skip hoists | |
| 8428.20 00 | - Pneumatic elevators and conveyors | |
| - other continuous-action elevators | ||
| and conveyors, for goods or materials; | ||
| 8428.31 00 | - Specially designed for underground use | |
| 8428.32 00 | - Other, bucket type | |
| 8428.33 00 | - Other, belt type | |
| 8428.39 00 | - Other | |
| 8428.40 00 | - Escalators and moving walkways | |
| 8428.50 00 | - Mine wagon pushers, locomotive or | |
| wagon traversers, wagon tippers and | ||
| similar railway wagon handling | ||
| equipment | ||
| 8428.60 00 | - Teleferies, chair-lifts, ski-draglines; | |
| traction mechanisms for funiculars | ||
| 8428.90 00 | - Other machinery | |
| 84.29 | Self-propelled bulldozers, angledozers, | |
| graders, levellers, scrapers, mechanical | ||
| shovels, excavators, shovel loaders, | ||
| tamping machines and road rollers. | ||
| - Bulldozers and angledozers | ||
| 8429.11 00 | - Track laying | |
| 8429.19 00 | - Other | |
| 8429.20 00 | - Graders and levellers | |
| 8429.30 00 | - Scrapers | |
| 8429.40 00 | - Tamping machines and road rollers | |
| - Mechanical shovels, excavators and | ||
| shovel loaders | ||
| 8429.51 00 | - Front-end shovel loaders | |
| 8429.52 00 | - Machinery with a 360º revolving | |
| superstructure | ||
| 8429.59 00 | - Other | |
| 84.30 | Other moving, leveling, scraping, | |
| excavating, tamping, compacting, | ||
| extracting or boring machinery, | ||
| for earth, minerals or ores; | ||
| pile-drivers and pile extractors; | ||
| snow-ploughs and snow-blowers. | ||
| 8430.10 00 | - Pile-drivers and pile extractors | |
| x x x | ||
| - Coal or rock cutters and tunnelling | ||
| machinery; | ||
| 8430.31 00 | - Self-propelled | |
| 8430.39 00 | - Other | |
| - Other boring or sinking machinery; | ||
| 8430.41 00 | - Self-propelled | |
| 8430.49 00 | - Other | |
| 8430.50 00 | - Other machinery, self-propelled | |
| - Other machinery, not self-propelled; | ||
| 8430.61 00 | - Tamping or compacting machinery | |
| 8430.62 00 | - Scrapers | |
| 8430.69 00 | - Other | |
| x x x | ||
| 84.33 | Harvesting or threshing machinery, | |
| including straw or fodder balers; | ||
| grass or hay mowers; machines for | ||
| cleaning, sorting or grading eggs, | ||
| fruit or other agricultural produce, | ||
| other than machinery of heading No. | ||
| 84.37. | ||
| x x x | ||
| 8433.20 00 | - Other mowers, including cutter | |
| bars for tractor mounting | ||
| 8433.30 00 | - Other haymaking machinery | |
| 8433.40 00 | - Straw or fodder balers; including | |
| pick-up balers | ||
| - Other harvesting machinery; | ||
| threshing machinery; | ||
| 8433.51 00 | - Combine harvester-threshers | |
| 8433.52 00 | - Other threshing machinery | |
| 8433.53 00 | - Root or tuber harvesting machines | |
| 8433.59 00 | - Other | |
| 8433.60 00 | - Machines for cleaning, sorting or | |
| grading eggs, fruit or other agricultural | ||
| produce | ||
| 84.34 | Milking machines and dairy machinery. | |
| 8434.10 00 | - Milking machines | |
| 8434.20 00 | - Dairy machinery | |
| x x x | ||
| 84.35 | Presses, crushers and similar | |
| machinery used in the manufacture of | ||
| wine, cider, fruit juices or similar | ||
| beverages. | ||
| 8435.10 00 | - Machinery | |
| x x x | ||
| 84.37 | Machines for cleaning, sorting or | |
| grading seed, grain or dried | ||
| leguminous vegetables, machinery used | ||
| in the milling industry or for the | ||
| working of cereals or dried | ||
| leguminous vegetables, other than | ||
| farm-type machinery. | ||
| 8437.10 | - Machinery for cleaning, sorting or | |
| grading seed, grain, or dried | ||
| leguminous vegetables; | ||
| 8437.10 10 | - For bread grains (e.g. wheat, rye) | |
| 8437.10 90 | - Other | |
| 8437.80 | - Other Machinery; | |
| 8437.80 10 | - Rice hullers and cone type rice mill | |
| 8437.80 90 | - Other | |
| x x x | ||
| 84.38 | Machinery, not specified or included | |
| elsewhere in this Chapter, for the | ||
| industrial preparation or manufacture | ||
| of food or drink, other than machinery | ||
| for the extraction or preparation of | ||
| animal or fixed vegetable fats or oils. | ||
| 8438.10 00 | - Bakery machinery and machinery | |
| for the manufacture of macaroni, | ||
| spaghetti or similar products. | ||
| 8438.20 00 | - Machinery for the manufacture of | |
| confectionery, cocoa or chocolate | ||
| 8438.30 00 | - Machinery for sugar manufacture | |
| 8438.40 00 | - Brewery machinery | |
| 8438.50 00 | - Machinery for the preparation of | |
| meat or poultry | ||
| 8438.60 00 | - Machinery for the preparation of | |
| fruits, nuts or vegetables | ||
| 8438.80 00 | - Other machinery | |
| x x x | ||
| 84.39 | Machinery for making pulp of fibrous | |
| cellulosic materials or for making or | ||
| finishing paper or paperboard. | ||
| 8439.10 00 | - Machinery for making pulp of | |
| fibrous cellulosic material | ||
| 8439.20 00 | - Machinery for making paper or | |
| paperboard | ||
| 8439.30 00 | - Machinery for finishing paper or | |
| paperboard | ||
| x x x | ||
| 84.40 | Book-binding machinery; including | |
| book-sewing machines. | ||
| 8440.10 00 | - Machinery | |
| x x x | ||
| 84.41 | Other machinery for making up paper | |
| pulp, paper or paperboard, including | ||
| cutting machines of all kinds. | ||
| 8441.10 | - Cutting machines; | |
| 8441.10 10 | - For photographic prints on paper | |
| or paperboard mounts for photographs. | ||
| 8441.10 90 | - Other | |
| 8441.20 00 | - Machines for making bags, sacks or | |
| envelopes | ||
| 8441.30 00 | - Machines for making cartons, | |
| boxes, cases, tubes, drums or similar | ||
| containers, other than by moulding | ||
| 8441.40 00 | - Machines for moulding articles in | |
| paper pulp, paper or paperboard | ||
| 8441.80 00 | - Other machinery | |
| x x x | ||
| 84.42 | Machinery, apparatus and equipment | |
| (other than the machine-tools of | ||
| headings Nos. 84.56 to 84.65), for | ||
| type-founding or type-setting, for | ||
| preparing or making printing blocks, | ||
| plates, cylinders and other printing | ||
| components: printing type, blocks, | ||
| plates, cylinders and other printing | ||
| components: blocks, plates, cylinders | ||
| and lithographic stones, prepared | ||
| for printing purposes (for example, | ||
| planed, grained or polished). | ||
| 8442.10 00 | - Phototype-setting and composing | |
| machines | ||
| 8442.20 00 | - Machinery, apparatus and | |
| equipment for type-setting or | ||
| composing by other processes, with or | ||
| without founding device | ||
| 8442.30 00 | - Other machinery, apparatus and | |
| equipment | ||
| x x x | ||
| 8442.50 00 | - Printing type, blocks, plates, | |
| cylinders and other printing | ||
| components, blocks, plates, cylinders | ||
| and lithographic stones, prepared for | ||
| printing purposes (for example, planed, | ||
| grained, or polished) | ||
| 84.43 | Printing machinery, machines for uses | |
| ancillary to printing. | ||
| - Offset printing machinery | ||
| 8443.11 00 | - Reel fed | |
| 8443.12 00 | - Sheet fed, office type (sheet size | |
| not exceeding 27 x 36 cm) | ||
| 8443.19 00 | - Other | |
| Letterpress printing machinery; | ||
| excluding flexographic printing; | ||
| 8443.21 00 | - Reel fed | |
| 8443.29 00 | - Other | |
| 8443.30 00 | - Flexographic printing machinery | |
| 8443.40 00 | - Gravure printing machinery | |
| 8443.50 00 | - Other printing machinery | |
| 8443.60 | - Machines for uses ancillary to | |
| printing | ||
| 8443.60 10 | - Proofing machines, color decks, | |
| automatic splicers, infeed devices, | ||
| color registration equipment, | ||
| dehumidifiers, anti-wrinkle device, | ||
| proof presses, moisture control | ||
| stabilizers, embossing machines, | ||
| scoring machines, automatic | ||
| registration controls, saddles, counter | ||
| stackers and ink vibrators | ||
| 8443.60 90 | - Other | |
| x x x | ||
| 84.44 | 8444.00 00 | Machines for extruding, drawing, |
| texturing or cutting man-made textile | ||
| materials. | ||
| 84.45 | Machines for preparing textile | |
| fibers; spinning, doubling or twisting | ||
| machines and other machinery for | ||
| producing textile yarns; textile | ||
| reeling or winding (including | ||
| weft-winding) machines and machines | ||
| for preparing textile yarns for use on | ||
| the machines of heading No. 84.46 or | ||
| 84.47. | ||
| - Machines for preparing textile fibers | ||
| 8445.11 00 | - Carding machines | |
| 8445.12 00 | - Combing machines | |
| 8445.13 00 | - Drawing or roving machines | |
| 8445.19 00 | - Other | |
| 8445.20 00 | - Textile spinning machines | |
| 8445.30 00 | - Textile doubling or twisting machines | |
| 8445.40 00 | - Textile winding (including weft-winding) | |
| or reeling machines | ||
| 8445.90 00 | - Other | |
| 84.46 | Weaving machines (looms). | |
| 8446.10 00 | - For weaving fabrics of a width not | |
| exceeding 30 cm. | ||
| - For weaving fabrics of a width | ||
| exceeding 30 cm. shuttle type | ||
| 8446.21 00 | - Power looms | |
| 8446.29 00 | - Other | |
| 8446.30 00 | - For weaving fabrics of a width | |
| exceeding 30 cm. shuttleless type | ||
| 84.47 | Knitting machines, stitch-bonding | |
| machines and machines for making | ||
| dimned yarn, tulle, lace, embroidery, | ||
| trimmings, braid, or net and machines | ||
| for tufting. | ||
| - Circular knitting machines; | ||
| 8447.11 00 | - With cylinder diameter not | |
| exceeding 165 mm. | ||
| 8447.12 00 | - With cylinder diameter exceeding | |
| 165 mm. | ||
| 8447.20 00 | - Flat knitting machines; | |
| stitch-bonding machines | ||
| 8447.90 00 | - Other | |
| 84.49 | 8449.00 00 | Machinery for the manufacture or |
| finishing of felt or nonwovens in the | ||
| piece or in shapes, including machinery | ||
| for making felthats; blocks for | ||
| making hats. | ||
| x x x | ||
| 84.51 | Machinery (other than machines of | |
| heading No. 84.50) for washing, | ||
| cleaning, wringing, drying, ironing, | ||
| pressing (including fusing presses), | ||
| bleaching, dyeing, dressing, finishing, | ||
| coating, or impregnating textile yarns, | ||
| fabrics or made up textile articles and | ||
| machines for applying the paste to the | ||
| base fabric or other support used in the | ||
| manufacture of floor coverings such as | ||
| linoleum; machines for reeling, | ||
| unreeling, folding, cutting or pinking | ||
| textile fabrics. | ||
| 8451.10 00 | - Dry-cleaning machines | |
| - Drying machines; | ||
| 8451.21 00 | - Each of a dry linen capacity not | |
| exceeding 10 kg. | ||
| 8451.29 00 | - Other | |
| 8451.30 00 | - Ironing machines and presses | |
| (including fusing presses) | ||
| 8451.40 00 | - Washing, bleaching or dyeing | |
| machines | ||
| 8451.50 00 | - Machines for reeling, unreeling, | |
| folding, cutting or pinking textile | ||
| fabrics | ||
| 8451.80 00 | - Other machinery | |
| x x x | ||
| 84.52 | 8452.30 00 | Sewing machine needles |
| (EXCLUDING THOSE UNDER SUBHEADING NO. 8452.10 00) | ||
| x x x | ||
| 84.53 | Machinery for preparing, tanning or | |
| working hides, skins or leather or for | ||
| making or repairing footwear or other | ||
| articles of hides, skins or leather, | ||
| other than sewing machines. | ||
| 8453.10 00 | - Machinery for preparing, tanning or | |
| working hides, skins or leather | ||
| 8453.20 00 | - Machinery for making or repairing | |
| footwear | ||
| 8453.80 00 | - Other machinery | |
| x x x | ||
| 84.54 | Converters, ladles, ingot moulds and | |
| casting machines of a kind used in | ||
| metallurgy or in metal foundries. | ||
| 8454.10 00 | - Converters | |
| 8454.20 00 | - Ingot moulds and ladles | |
| 8454.30 00 | - Casting machines | |
| x x x | ||
| 84.55 | Metal rolling mills and rolls therefor. | |
| 8455.10 00 | - Tube mills | |
| - Other rolling mills | ||
| 8455.21 00 | - Hot or combination hot and cold | |
| 8455.22 00 | - Cold | |
| 8455.30 00 | - Rolls for rolling mills | |
| x x x | ||
| 84.57 | Machining centres, unit construction | |
| machines (single station) and | ||
| multi-station transfer machines, for | ||
| working metal. | ||
| 8457.10 00 | - Machine centres | |
| 8457.20 00 | - Unit construction machines (single | |
| Station) | ||
| 8457.30 00 | - Multi-station transfer machines | |
| 84.58 | Lathes for removing metal. | |
| - Horizontal lathes: | ||
| 8458.11 00 | - Numerically controlled | |
| 8458.19 00 | - Other | |
| - Other lathes: | ||
| 8458.91 00 | - Numerically controlled | |
| 8458.99 00 | - Other | |
| 84.59 | Machine tools (including way-type unit | |
| head machines) for drilling, boring, | ||
| milling, threading or tapping by | ||
| removing metal, other than lathes of | ||
| heading No. 84.58. | ||
| 8459.10 00 | - Way-type unit head machines | |
| - Other drilling machines | ||
| 8459.21 00 | - Numerically controlled | |
| 8459.29 00 | - Other | |
| - Other boring-milling machines; | ||
| 8459.31 00 | - Numerically controlled | |
| 8459.39 00 | - Other | |
| 8459.40 00 | - Other boring machines | |
| - Milling machines, knee-type; | ||
| 8459.51 00 | - Numerically controlled | |
| 8459.59 | - Other | |
| - Other milling machines | ||
| 8459.61 00 | - Numerically controlled | |
| 8459.69 00 | - Other | |
| 8459.70 00 | - Other threading or tamping | |
| machines | ||
| x x x | ||
| 84.62 | Machine tools (including presses) for | |
| working metals by forging, hammering | ||
| or die-stamping; machine-tools | ||
| (including presses) for working metal | ||
| by bending, folding, straightening, | ||
| flattening, shearing, punching or | ||
| notching, pressing for working metal or | ||
| metal carbides, not specified above. | ||
| 8462.10 00 | - Forging or die-stamping machines | |
| (including presses) and hammers | ||
| - Bending, folding, straightening, or | ||
| flattening machines (including | ||
| presses); | ||
| 8462.21 00 | - Numerically controlled | |
| 8462.29 00 | - Other | |
| - Shearing machines (including | ||
| presses), other than combined | ||
| punching and shearing machines: | ||
| 8462.31 00 | - Numerically controlled | |
| 8462.39 00 | - Other | |
| - Punching or notching machines | ||
| (including presses), including | ||
| combined punching and shearing | ||
| machines; | ||
| 8462.41 00 | - Numerically controlled | |
| 8462.49 00 | - Other | |
| - Other: | ||
| 8462.91 | - Hydraulic presses: | |
| 8462.91 00 | - Presses for moulding metallic | |
| powders by sintering; presses for | ||
| compressing metal scrap into bales, etc. | ||
| 8462.91 90 | - Other | |
| 8462.99 | - Other | |
| 8462.99 10 | - Presses for moulding metallic | |
| powders by sintering; presses for | ||
| compressing metal scrap into bales, etc. | ||
| 8462.99 90 | - Other | |
| x x x | ||
| 84.64 | Machine tools for working stone, | |
| ceramics, concrete asbestos-cement or | ||
| like mineral materials or for cold | ||
| working glass. | ||
| 8464.10 00 | - Sawing machines | |
| 8464.20 00 | - Grinding or polishing machines | |
| 8464.90 00 | - Other | |
| 84.65 | Machine-tools (including machines for | |
| nailing, stapling, glueing or | ||
| otherwise assembling) for working | ||
| wood, cork, bone, hard rubber, hard | ||
| plastics or similar hard materials. | ||
| 8465.10 00 | - Machines which can carry out | |
| different types of machining operations | ||
| without tool change between such | ||
| operations | ||
| - Other: | ||
| 8465.91 00 | - Sawing machines | |
| 8465.92 00 | - Planing, milling or moulding (by | |
| cutting) machines | ||
| 8465.93 00 | - Grinding, sanding or polishing | |
| machines | ||
| 8465.94 00 | - Bending or assembling machines | |
| 8465.95 00 | - Drilling or morticing machines | |
| 8465.96 00 | - Splitting, slicing or paring | |
| machines | ||
| 8465.99 00 | - Other | |
| 84.68 | 8468.20 | - Other gas-operated machinery and |
| apparatus; | ||
| 8468.20 10 | - Complete or finished hand-operated | |
| gas welding, brazing and cutting | ||
| appliances for metal | ||
| 8468.20 90 | - Other | |
| x x x | ||
| 84.74 | Machinery for sorting, screening, | |
| separating, washing, crushing, grinding, | ||
| mixing or kneading earth, stone, ores | ||
| or other mineral substances, in solid | ||
| (including powder or paste) form; | ||
| machinery for agglomerating, shaping, | ||
| or moulding solid mineral fuels, | ||
| ceramic paste, unhardened cements, | ||
| plastering materials or other mineral | ||
| products in powder or paste | ||
| form; machines for forming foundry | ||
| moulds of sand. | ||
| 8474.10 00 | - Sorting, screening, separating or | |
| washing machines | ||
| 8474.20 00 | - Crushing, or grinding machines | |
| - Mixing or kneading machines: | ||
| 8474.31 00 | - Concrete or mortar mixers | |
| 8474.32 00 | - Machines for mixing mineral | |
| substances with bitumen | ||
| 8474.39 00 | - Other | |
| 8474.80 00 | - Other machinery | |
| x x x | ||
| 84.75 | Machines for assembling electric or | |
| electronic lamps, tubes or valves or | ||
| flashbulbs, in glass envelopes; | ||
| machines for manufacturing or hot | ||
| working glass or glassware. | ||
| 8475.10 00 | - Machines for assembling electric or | |
| electronic lamps, tubes or valves or | ||
| flashbulbs, in glass envelopes | ||
| 8475.20 00 | - Machines for manufacturing or hot | |
| working glass or glassware | ||
| x x x | ||
| 84.77 | Machinery for working rubber or | |
| plastics or for the manufacture of | ||
| products from these materials, not | ||
| specified or included elsewhere in | ||
| this Chapter. | ||
| 8477.10 00 | - Injection-moulding machines | |
| 8477.20 00 | - Extruders | |
| 8477.30 00 | - Blow moulding machines | |
| 8477.40 00 | - Vacuum moulding machines and | |
| other thermoforming machines | ||
| - Other machinery for moulding or | ||
| otherwise forming: | ||
| 8477.51 00 | - For moulding or retreading | |
| pneumatic tyres or for moulding or | ||
| otherwise forming inner tubes | ||
| 8477.59 00 | - Other | |
| 8477.80 00 | - Other machinery | |
| x x x | ||
| 84.78 | Machinery for preparing or | |
| making up tobacco, not specified or | ||
| included elsewhere in this Chapter, | ||
| 8478.10 00 | - Machinery | |
| x x x | ||
| 84.79 | 8479.30 00 | - Presses for the manufacture of |
| particle board or fiber building board | ||
| of wood or other ligneous materials | ||
| and other machinery for treating | ||
| wood or cork | ||
| x x x | ||
| 84.80 | - Moulding boxes for metal foundry: | |
| mould bases; moulding patterns; | ||
| moulds for metal (other than ingot | ||
| moulds), metal carbides, glass, | ||
| mineral materials, rubber or plastics. | ||
| 8480.10 00 | - Moulding boxes for metal foundry | |
| 8480.20 00 | - Mould bases | |
| 8480.30 | - Moulding patterns; | |
| 8480.30 10 | - Of iron or steel | |
| 8480.30 90 | - Other | |
| - Moulds for metal or metal carbides; | ||
| 8480.41 00 | - Injection or compression types | |
| 8480.49 00 | -Other | |
| 8480.50 00 | - Moulds for glass | |
| 8480.60 00 | - Moulds for mineral materials | |
| -Moulds for rubber or plastics; | ||
| 8480.71 00 | - Injection or compression types | |
| 8480.79 00 | - Other | |
| x x x | ||
| 84.83 | Transmission shafts (including cam | |
| shafts and crank shafts) and cranks; | ||
| bearing housing and plain shaft | ||
| bearings; gears and gearing; ball | ||
| screws; gear boxes and other speed | ||
| changers, including torque converters; | ||
| flywheels and pulleys, including | ||
| pulley blocks; clutches and shaft | ||
| couplings (including universal joints). | ||
| 8483.10 00 | - Transmission shafts (including cam | |
| shafts and crank shafts) and cranks | ||
| 8483.20 00 | - Bearing housings, incorporating ball | |
| or roller bearings | ||
| 8483.30 00 | - Bearing housings, not incorporating | |
| ball or roller bearings; plain shaft | ||
| bearings | ||
| 8483.40 00 | - Gears and gearing, other than | |
| toothed wheels, chain sprockets and | ||
| other transmission elements presented | ||
| separately; ball screws; gear boxes | ||
| and other speed changers, including | ||
| torque converters | ||
| 8483.50 00 | - Flywheels and pulleys, including | |
| pulley blocks | ||
| 8483.60 00 | - Clutches and shaft couplings | |
| (including universal joints) | ||
| 8483.90 00 | - Parts | |
| x x x | ||
| 85.01 | Electric motors and generators | |
| (excluding generating sets). | ||
| 8501.10 | - Motors of an output not exceeding | |
| 37.5 W: | ||
| 8501.10 10 | - Electric motors for toys | |
| 8501.10 90 | - Other | |
| 8501.20 | - Universal AC/DC motors of an | |
| output exceeding 37.5 W; | ||
| 8501.20 10 | - Motors with ratings of 37.5 KW | |
| and below | ||
| 8501.20 20 | - Motors with ratings over 3.75 KW | |
| up to 225 KW | ||
| 8501.20 30 | - Motors with ratings over 225 KW | |
| - Other DC motors: DC generators: | ||
| 8501.31 | - Of an output not exceeding | |
| 750 W: | ||
| 8501.31 10 | - Electric generators when imported | |
| by telecommunication companies | ||
| under prior authorization of the | ||
| Board of Communications | ||
| 8501.31 20 | - Electric generators | |
| 8501.31 90 | - Other | |
| 8501.32 | - Of an output exceeding 750 W but | |
| not exceeding 75KW; | ||
| 8501.32 10 | - Electric generators when imported | |
| by telecommunication companies | ||
| under its prior authorization of the | ||
| Board of Communications | ||
| 8501.32 20 | - Electric generators | |
| 8501.32 90 | - Other | |
| 8501.33 | - Of an output exceeding 75KW but | |
| not exceeding 375 KW; | ||
| 8501.33 10 | - Electric generators when imported | |
| by telecommunication companies | ||
| under prior authorization of the | ||
| Board of Communications | ||
| 8501.33 20 | - Electric generators | |
| 8501.33 30 | - Motors with rating over 225 KW | |
| but not over 375 KW | ||
| 8501.33 90 | - Other motors | |
| 8501.34 | - Of an output exceeding 375 KW; | |
| 8501.34 10 | - Electric generators when imported | |
| by telecommunication companies | ||
| under prior authorization of the | ||
| Board of Communications | ||
| 8501.34 20 | - Electric generators | |
| 8501.34 30 | - Motors with rating over 375 KW | |
| 8501.40 | - Other AC motors; single-phase; | |
| 8501.40 10 | - Motors over 225 KW | |
| 8501.40 90 | - Other | |
| - Other AC motors, multi-phase; | ||
| 8501.51 00 | - Of an output not exceeding 750 W | |
| 8501.52 00 | - Of an output exceeding 750 W but | |
| not exceeding 75 KW | ||
| 8501.53 | - Of an output exceeding 75 KW; | |
| 8501.53 10 | - Motors over 225 KW | |
| 8501.53 90 | - Other motors | |
| - AC generators (alternators); | ||
| 8501.61 | - Of an output not exceeding 75 | |
| KVA; | ||
| 8501.61 10 | - When imported by telecommunication | |
| companies under prior authorization | ||
| of the Board of Communications | ||
| 8501.61 90 | - Other | |
| 8501.62 | - Of an output exceeding 75 KVA but | |
| not exceeding 375 KVA; | ||
| 8501.62 10 | - When imported by telecommunication | |
| companies under prior authorization | ||
| of the Board of Communications | ||
| 8501.62 90 | - Other | |
| 8501.63 | - Of an output exceeding 375 KVA | |
| but not exceeding 750 KVA; | ||
| 8501.63 10 | - When imported by | |
| telecommunication companies | ||
| under prior authorization | ||
| of the Board of Communications. | ||
| 8501.63 90 | - Other | |
| 8501.64 | - Of an output exceeding 750 KVA; | |
| 8501.64 10 | - When imported by telecommunication | |
| companies under prior authorization | ||
| of the Board of Communications | ||
| 8501.64 90 | - Other | |
| x x x | ||
| 85.14 | Industrial or laboratory electric | |
| (including induction or dielectric) | ||
| furnaces and ovens; other industrial | ||
| or laboratory induction or dielectric | ||
| heating equipment. | ||
| 8514.10 00 | - Resistance heated furnaces and ovens | |
| 8514.20 00 | - Induction or dielectric furnaces and | |
| ovens | ||
| 8514.30 00 | - Other furnaces and ovens | |
| 8514.40 00 | - Other induction or dielectric | |
| heating equipment | ||
| x x x | ||
| 85.15 | Electric (including electrically | |
| heated gas), laser or other light or | ||
| photon beam, ultrasonic, electron | ||
| beam, magnetic pulse or plasma are | ||
| soldering, brazing or welding machines | ||
| and apparatus, whether or not capable | ||
| of cutting; electric machines and | ||
| apparatus for hot spraying of metals | ||
| or sintered metal carbides. | ||
| - Brazing or soldering machines and | ||
| apparatus; | ||
| 8515.11 00 | - Soldering irons and guns | |
| 8515.19 00 | - Other | |
| - Machines and apparatus for | ||
| resistance welding of metals; | ||
| 8515.21 00 | - Fully or partly automatic | |
| 8515.29 00 | - Other | |
| - Machines and apparatus for arc | ||
| (including plasma arc) welding of | ||
| metals; | ||
| 8515.31 00 | - Fully or partly automatic | |
| 8515.39 | - Other | |
| x x x | ||
| 8515.39 90 | - Other | |
| 8515.80 | - Other machines and apparatus; | |
| 8515.80 10 | - For hot spraying of metals or | |
| sintered metal carbides | ||
| 8515.80 90 | - Other | |
| x x x |
Provided, however, That the National Economic and Development Authority may, upon due notice and public hearing, and in consultation with concerned government agencies, exclude any item from the foregoing list, subject to the condition that the machinery or equipment is being manufactured domestically in sufficient quantity, of comparable quality and at a reasonable price.
SECTION 4. Pursuant to the preceding Section, a domestic manufacturer of any of the articles enumerated therein shall be entitled to a tax credit equivalent to one hundred percent (100%) of the national internal revenue taxes, customs duties and levies actually paid on the raw materials used in the manufacture of the article. The purchaser of such article shall likewise be entitled to a tax credit of one hundred percent (100%) of the value of the National Internal Revenue taxes, customs duties imposed thereon under Section 104 of the Tariff and Customs Code of 1978, as amended, and levies provided by law or presidential decree had such article been imported.
SECTION 5. As used in this Act, the term domestic manufacturer shall mean a citizen of the Philippines; a partnership or any other association organized under Philippine laws, with at least sixty percent (60%) of its capital owned and controlled by citizens of the Philippines; a corporation or cooperative organized under Philippine laws with at least sixty percent (60%) of its capital stock outstanding and entitled to vote owned and held by citizens of the Philippines, and with at least sixty percent (60%) of the members of its Board of Directors being citizens of the Philippines.
SECTION 6. The Board of Investments (BOI) shall issue certificates for the tax credit mentioned in Section 4 hereof after evaluation as to whether the manufactured article falls under Section 3 of this Act; Provided, however, That the domestic manufacturer has not availed of tax credits thereon under any other investment incentive law, order, rule or regulation: Provided, further, That availment of the tax credit provided for under this Act shall bar the availment of tax credits under such other laws, orders, rules or regulations.
SECTION 7. The BOI shall formulate and publish guidelines for the implementation of this Act in the Official Gazette and in any newspaper of general circulation within ninety (90) days after its approval.
SECTION 8. All laws, decrees, orders, issuances and rules and regulations or parts thereof inconsistent with this Act are hereby repealed or modified accordingly. aisa dc
SECTION 9. This Act shall take effect fifteen (15) days after the implementing rules have been published and shall be in effect for five (5) years from the date of its approval.
Approved: April 10, 1992
Published in the Official Gazette, Vol. 88 No. 22 page 3227 on June 1, 1992.
Cite This Law
Granting Tax and Duty Exemption and Tax Credit on Capital Equipment, Republic Act No. 7369, Apr 10, 1992 (Philippines)
Granting Tax and Duty Exemption and Tax Credit on Capital Equipment, Republic Act No. 7369 (Phil. 1992)
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