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PRESIDENTIAL DECREE NO. 1394
PRESIDENTIAL DECREE NO. 1394
- AMENDING PRESIDENTIAL DECREE NO. 1193 BY AUTHORIZING THE TOURIST DUTY
FREE SHOPS, INC. TO ESTABLISH ONLY THE CUSTOMS BONDED WAREHOUSE,
EXEMPTING IT FROM THE DUTIES AND TAXES IMPOSED BY PRESIDENTIAL DECREES
NOS. 1352 AND 1395, AND FOR OTHER PURPOSES
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chanroblesvirtualawlibrary
WHEREAS, as
a measure to promote tourism, the Tourist Duty Free Shops, Inc. has
been authorized under Presidential Decree No. 1193 to establish and
operate duty and tax free stores subject to certain conditions, rules
and regulations as provided therein;chanroblesvirtualawlibrary
WHEREAS, the nature of the business tourist duty free stores or
enterprises requires the exemption of importations from customs duties
and internal revenue taxes in order to be competitive with other
tax-free stores elsewhere;chanroblesvirtualawlibrary
WHEREAS, to enable the Tourist Duty Free Shops, Inc. to be much more
price competitive by reducing its costs of operations, it is not
necessary to require the establishment of a Customs Bonded Warehouse in
each port of entry where it may wish to establish a sales/display area
or counter;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Section 2 of Presidential Decree No. 1193
is hereby amended to read as follows:cralaw:red
"Sec. 2. A Customs Bonded Warehouse shall first be
established and operated by Tourist Duty Free Shops, Inc. to be used
exclusively for the storage and safe-keeping of imported duty and tax
free merchandise: Provided, That each sales/display area or counter
established by Tourist Duty Free Shops, Inc. for sales or promotional
purposes shall be considered as an extension of the Customs Bonded
Warehouse: Provided, further, That the operation of such warehouse,
sales and display areas/counters shall be under the control and
supervision of the Bureau of Customs."
Section 2. Section 6, paragraph b of the same Decree
is hereby amended to read as follows:cralaw:red
"b) Passengers of international flights or sea
voyages, arriving from or departing for foreign countries, in local or
foreign currency, in accordance with rules, regulations, and procedures
promulgated by the Bureau of Customs and/or Central Bank of the
Philippines." chanroblesvirtualawlibrary
Section 3. Section 10 of Presidential Decree No. 1193
is hereby amended to read as follows:cralaw:red
"Sec. 10. The Tourist Duty Free Shops, Inc. shall, in
lieu of the payment of all business and income taxes, whether imposed
by the national or local governments, pay annually seven per centum
(7%) of its annual net sales, to be apportioned as follows: five per
centum (5%) thereof to the Nutrition Center of the Philippines and/or
other similar projects as may be directed by the President, and the
balance to the national government.
"It is understood that only the provisions of the Decree shall apply on
matters of taxation with respect to the operations of the Tourist Duty
Free Shops, Inc., any provision of Presidential Decree Nos. 1352 and
1395 or any other law to the contrary notwithstanding."
Section 4. This Decree shall take effect immediately.
Done in the City of Manila,
this 31st day of May, in the year of Our Lord, nineteen hundred and
seventy-eight.
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