PHILIPPINE LAWS, STATUTES, CODES & ISSUANCES
PHILIPPINE LAWS, STATUTES AND CODES - CHAN ROBLES VIRTUAL LAW LIBRARY
REPUBLIC ACTS
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REPUBLIC ACT NO. 7369 - AN ACT
GRANTING TAX AND DUTY EXEMPTION AND TAX CREDIT ON CAPITAL EQUIPMENT
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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. "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 "(cc) for purposes of replacement to improve and/or expand the operations of the registered enterprises." Sec. 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." Sec. 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: HDG. NO. HARMONIZED DESCRIPTION SYSTEM CODE 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 therefore. - 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, vaporizing, 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 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 00 - 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 - Sterilizing 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 therefore. 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 jacking 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, ganty cranes, bridge cranes, mobile lifting frames and straddle 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 - Teleferics, 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 360 o 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 devices, 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 felt hats; 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 therefore. 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 plastic 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 plastic 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 - Mould 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 housings 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 aces 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 ouns 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. Sec. 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. Sec. 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. Sec. 6. The Board of Investments (BOI) shall issue certificates for the tax credit mentioned in Sec. 4 hereof after evaluation as to whether the manufactured article falls under Sec. 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. Sec. 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. Sec. 8. All laws, decrees, orders, issuances and rules and regulations or parts thereof inconsistent with this Act are hereby repealed or modified accordingly. Sec. 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 |
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