Recall and Annotation of Certificates of Registration and Certificates of Authority Issued under Executive Order No. 70, Series of 2012, in View of the Effectivity of Executive Order No. 22, Series of 2017

July 26, 2017

BOI MEMORANDUM CIRCULAR NO. 2017-005

WHEREAS, Executive Order (EO) No. 70, Series of 2012, provided for zero percent (0%) duty on certain articles imported by Board of Investments (BOI)-registered new and expanding enterprises for a period of five (5) years from the date of its effectivity or upon enactment of a law amending EO No. 226, also known as the Omnibus Investments Code of 1987, whichever is earlier;

WHEREAS, the BOI has issued to qualified BOI-registered enterprises certificates of authority (CAs) to import capital equipment with zero percent (0%) duty rate pursuant to EO No. 70;

WHEREAS, the five-year availment period under EO No. 70 has expired on 09 May 2017;

WHEREAS, on 28 April 2017, the President signed EO No. 22, which was published in the Manila Bulletin and became effective on 18 May 2017, granting zero percent (0%) duty on importation of capital equipment, spare parts and supplies as indicated in Section 2 thereof to BOI-registered new and expanding enterprises;

WHEREAS, Section 7 of EO No. 22 provides that the same shall be valid for one (1) year from its effectivity or until a law amending EO No. 226 is amended, whichever comes earlier;

WHEREAS, DTI-BOI Administrative Order (AO) No. 01, Series of 2017, also known as the Implementing Rules and Regulations (IRR) of EO No. 22, which was published in the Philippine Star and which took effect on 09 June 2017, was amended by DTI-BOI AO No. 01-A, Series of 2017, which was published in the Philippine Star and which took effect on 26 July 2017; HESIcT

WHEREAS, Section 2 of DTI-BOI AO No. 01, Series of 2017, as amended by DTI-BOI AO No. 01-A, Series of 2017, provides that the activities listed under the Investment Priorities Plan (IPP) prepared by the BOI every three (3) years and duly approved by the President are qualified;

WHEREAS, Section 3 of DTI-BOI AO No. 01, Series of 2017, as amended, states that enterprises registered with the BOI starting the year 2012, of good standing, with project/s qualified as new or expanding under Executive Order No. 226, otherwise known as the Omnibus Investments Code 1987, may import, at zero percent (0%) duty, capital equipment, spare parts and accessories classified under AHTN chapters 40, 59, 68, 69, 70, 73, 76, 82, 83, 84, 85, 86, 87, 89, 90, 91 and 96 of the Customs Modernization and Tariff Act (CMTA);

WHEREAS, Section 14 of DTI-BOI AO No. 01, Series of 2017, as amended, entitles qualified BOI-registered enterprises with valid CAs issued pursuant to EO No. 70 to the zero percent (0%) duty rate subject to certain conditions;

NOW THEREFORE, to carry out the intent and purpose of DTI-BOI AO No. 01, Series of 2017, as amended, the Board, in its meeting of 05 July 2017 and by virtue of Board Resolution No. 16-56, Series of 2017, directs:

1. All BOI-registered new and expanding enterprises registered starting the year 2012 to surrender their certificate of registration (CR) for annotation of their entitlement to zero percent (0%) duty rate on importation of certain articles pursuant to EO No. 22 and its IRR; and

2. All BOI-registered new and expanding enterprises with valid CA issued pursuant to EO No. 70, provided that the capital equipment, spare parts or accessories were ordered, as reflected on the date of the purchase order or on the date of the opening of the corresponding letters of credit; or loaded, as reflected in the bill of lading; or are still in transit on or before the date of the expiration of EO No. 70 and have arrived after such date but not yet released form customs control, to surrender said CAs, for annotation of the extension of their validity in accordance with Section 14 of DTI-BOI AO No. 01, Series of 2017, as amended. caITAC

July 26, 2017, Makati, Philippines.

By the Authority of the Board:

(SGD.) DR. CEFERINO S. RODOLFOUndersecretary and BOI Managing Head

SECRETARY'S CERTIFICATE

This is to certify that Memorandum Circular No. 005, Series of 2017, has been approved by the BOI through Board Resolution No. 16-56, Series of 2017.

 

(SGD.) ATTY. MARJORIE O. RAMOS-SAMANIEGOBoard Secretary

Published in The Philippine Star on August 9, 2017.