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A
collection of Philippine laws, statutes and codes
not
included or cited in the
main indices
of
the Chan Robles Virtual Law Library.
This page features the full text of
Republic Act No. 8502.
REPUBLIC
ACT NO. 8502
AN ACT
TO PROMOTE THE
DEVELOPMENT OF THE JEWELRY MANUFACTURING INDUSTRY, PROVIDING INCENTIVES
THEREFOR AND FOR OTHER PURPOSES.
Section 1. Title. — This
Act shall be known as the "Jewelry Industry Development Act of
1998."
Sec. 2. Declaration
of policy. — Recognizing that the jewelry industry has the
potential
for more employment generation, enhance tax collection efficiency,
increase
the industry linkages with the other sectors of the economy, and to
increase
our foreign exchange earnings through exports and import substitutes,
it
is hereby declared to be the policy of the State to support, promote
and
encourage the growth and development of the predominantly, small and
medium
scale jewelry industries. Toward this end, the State shall undertake to
encourage the development of the jewelry industry:
a) by
promoting and
encouraging
local jewelers to join the formal sector by making the jewelry industry
sector a partner in the task of building up the small and medium
enterprises
through the establishment of an adequate support structure and the
creation
of a business environment conducive to the viability, legalization and
development of the jewelry sector;
b) by adopting
appropriate
tax incentives and programs necessary for the acceleration and growth
of
the industry; and
c) by promoting and
institutionalizing
the effective promotion and participation of associations of the
jewelry
industry and cooperatives particularly in the advancement of the skills
and craftsmanship of Filipino workers therein.
Sec. 3. Development
incentives.
— The following incentives shall be available to qualified jewelry
enterprises
in the jewelry industry:
a)
Entitlement to zero
(0)
duty on imported raw materials which include precious metals, loose
gems,
precious stones, jewelry parts, accessories and supplies for use by
jewelry
enterprise, as specifically mentioned in Chapter 5 of Sec. I,
Chapter
12 of Sec. II, Chapters 25, 26 and 27 of Sec. V, Chapters 28, 34
and 38 of Sec. VI, Chapter 70 of Sec. XIII, Chapter 71 of Sec.
XIV, Chapter 83 of Sec. XV, and Chapter 96 of Sec. XX of the
Tariff
and Customs Code, as amended;
b) Exemption from the
imposition
of excise tax on all goods commonly or commercially known as jewelry,
whether
real or imitation pearls, precious and semi-precious stones and
imitations
thereof; all goods made of, or ornamented, mounted or fitted with
precious
metals or imitations thereof, as specifically mentioned in Sec.
150(a)
of the National Internal Revenue Code of the Philippines, as amended;
c) Entitlement to
zero
(0)
duty on imported capital equipment, including spare parts and toolings
thereof falling within Chapter 69 of Sec. XIII, Chapter 82 of Sec.
XV, Chapters 84 and 85 of Sec. XVI, and Chapter 90 of Sec. XVIII
of the Tariff and Customs Code, as amended;
d) Additional
deduction
from taxable income of fifty percent (50%) of expenses incurred in
training
schemes approved by the appropriate agency and which shall be
deductible
during the financial year the expenses were incurred;
e) Gold and silver
sales
by the Bangko Sentral ng Pilipinas to jewelry enterprises
wider
minimal margins;
f) Authority for
jewelry
enterprises to buy gold and silver directly from other sources;
g) Inclusion of
locally-manufactured
jewelry in the government's tourist duty free shops including the
promotion,
advertisement and sale thereof; and
h) Jewelry
enterprises
availing
of incentives provided under this Act shall still be eligible to
incentives
provided by other special laws such as Republic Act No. 7844 (Export
Development Act of 1994), Republic Act No. 7916 (Special
Economic
Zone Act of 1995), Executive Order 226 (BOI Omnibus Investments
Code), among others: Provided, That the activity is
export-oriented
and that there is no double availment of the same incentives.
Sec. 4. Eligibility for
government assistance. — To qualify for the assistance, counselling
and other incentives envisioned in this Act, jewelry enterprises
availing
of the same must be duly registered with the appropriate government
agencies
as presently provided by law.
Jewelry enterprise as
used
in this Act shall refer to any enterprise engaged in any aspect in the
manufacture of goods commonly or commercially known as fine and
imitation
jewelry including those producing, cutting and polishing, shaping,
refining,
forming or fabricating real or imitation pearls, precious and
semi-precious
stones and imitations thereof, goods made of precious metal and
imitations
thereof, and other raw materials and parts used in the manufacture of
jewelry.
Sec. 5. Implementing
body. — The Department of Trade and Industry shall monitor,
oversee,
supervise and take responsibility for the implementation of this Act
and
shall submit to Congress a yearly report thereof.
Sec. 6. Implementing
rules and regulations. — Within thirty (30) days from approval of
this
Act, the Secretary of Trade and Industry shall upon prior consultation
with the Secretary of Finance, promulgate the rules and regulations
implementing
the provisions of this Act.
Sec. 7. Separability
clause. — The provisions of this Act are hereby declared to be
separable.
If any provisions thereof is declared unconstitutional, the remaining
provisions
thereof not otherwise affected shall remain in full force and effect.
Sec. 8. Repealing
clause. — The second paragraph of said subSec. "q" of Sec.
105 of the Tariff and Customs Code of the Philippines, and laws,
executive
orders, rules and regulations or parts thereof inconsistent herewith
are
hereby repealed or modified accordingly.
Sec. 9. Effectivity.
— This Act shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.
Approved: February
13, 1998
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