REPUBLIC ACT NO. 6135 - AN
ACT TO INVIGORATE THE COUNTRY'S EXPORT TRADE AS A MEANS OF ACCELERATING
ECONOMIC GROWTH BY GRANTING CERTAIN INCENTIVES AND EXEMPTIONS TO
REGISTERED EXPORT PRODUCERS, EXPORT TRADERS, AND SERVICE EXPORTERS,
REPEALING EXPORT INCENTIVES GRANTED UNDER REPUBLIC ACT NUMBERED
FIFTY-ONE HUNDRED EIGHTY-SIX, AND FOR OTHER PURPOSES
Section 1. Short
Title. — This Act shall be known and cited as the "Export Incentives
Act of 1970."
Sec. 2. Declaration of Policy. — It is the policy
of the State to actively encourage, promote, and diversify exports of
services and of manufactures utilizing domestic raw materials to the
fullest extend possible, and to develop new markets for Philippine
products, in order to attain a rising level of production and
employment, increase foreign exchange earnings, hasten the economic
development of the nation, and assure that the benefits of development
accrue to the Filipino people.
Sec. 3. Definition of Terms. — For purposes of
this Act:
(a) "Board of Investments" or simply "Board" shall
mean the Board of Investments created by Republic Act Numbered
fifty-one hundred eighty-six, known as the Investment Incentives Act.
(b) "Registered export producer" shall mean any
person, corporation, partnership or other entity organized and existing
under Philippine laws, (1) registered with the Board in accordance with
this Act, (2) engaged or proposing to engage in the manufacture or
processing of export products as hereinbelow defined, and (3) directly
exporting its export products, or selling them (a) to a registered
export trader that subsequently exports the said products, or (b) to
other export producers who utilize said products as direct inputs in
products subsequently manufactured or processed by them and thereafter
exported.
(c) "Registered export trader" shall mean any person,
corporation, partnership or other entity organized and existing under
Philippine laws, (1) registered with the Board in accordance with this
Act and (2) which derived at least fifty per cent (50%) of its gross
income for the year in which the incentives are claimed, from the sale
abroad of export products bought by it from two or more registered
export producers which are not owned, controlled, or managed by the
same person or entity or group of persons or entities: provided, that,
if the export trader is itself owned, controlled or managed by a person
or entity, or a group of persons or entities that also own, control or
manage another enterprise engaged in manufacturing or processing
products that are not export products or in buying and selling goods
within the Philippines, the percentage of export sales shall be based
upon the combined or consolidated gross income of the export trader and
said other enterprise.
(d) "Registered service exporter" shall mean a
person, corporation, partnership or other entity organized and existing
under Philippine laws, (1) registered with the Board in accordance with
this Act and (2) engaged or proposing to engage in (a) rendering
technical, professional or other services which are paid for in foreign
currency, including, but not limited to, the fields of law, medicine,
accounting, management, valuation and appraisals, engineering,
construction, geodetics, surveying, teaching, pharmacy, nursing,
cultural presentations or promotions, works of arts, and entertainment;
or (b) in exporting television and motion pictures and musical
recordings made or produced in the Philippines, either directly or
through a registered export trader.
(e) "Export products" shall mean manufactured or
processed products: (1) not more that eighty per cent (80%) of whose
individual F.O.B. Philippine port value is attributable to imported law
materials, but said maximum percentage may, after three (3) years from
the enactment of this Act, progressively be decreased by the Board of
Investments at such annual rate as may be warranted by technological
advancement, the availability of domestic raw materials, and similar
factors; (2) the total F.O.B. Philippine port value of the exports of
which did not exceed five million dollars in United States currency in
the calendar year 1968; and (3) which meet standards of quality set by
the Bureau of Standards or, in default of such standards, by the Board
or by such public or private organization, chamber, group or body as
the Board may designate.
( f ) "Export sale" shall mean the Philippine port
F.O.B. value, determined from invoices, bills of lading, inward letters
of credit, landing certificates and other commercial documents, of
export products exported directly by a registered export producer or
registered export trader, or the net selling price of export products
sold by a registered export producer to a registered export trader who
subsequently exports the same; but sales of export products to a
registered export trader shall only be deemed export sales when
actually exported by the latter as evidenced by landing certificates or
similar commercial documents. Exportation of goods on consignment shall
not be deemed export sales until the export products consigned are in
fact sold by the consignee.
(g) "Export fees" shall mean the total foreign
exchange which is charged or received by a registered service exporter
for furnishing or performing services, or permitting the showing or
playing, outside of the Philippines, of television or motion pictures
or musical recordings.
(h) "Production cost" shall mean the total of the
cost of direct labor, raw materials, and manufacturing overhead,
determined in accordance with generally accepted accounting principles,
which are incurred in manufacturing or processing the products of a
registered export producer.
(i) "Processing" shall mean converting raw materials
into marketable form by a special treatment or a series of actions that
results in a change of the nature or state of the products, such as by
slaughtering, milling, pasteurizing, drying or desiccating, quick
freezing, and the like. Merely packing, packaging, or sorting out and
classifying shall not, by themselves, constitute processing.
Sec. 4. Export Priorities Plan. — Within one
hundred twenty days after this Act takes effect, and annually
thereafter as part of the annual investment priorities plan provided in
Section 18 of Republic Act Numbered Fifty-one hundred eighty-six, known
as the Investment Incentives Act, the Board shall submit to the
President, through the National Economic Council, an export priorities
plan setting forth the export products that should be encouraged with
priority, considering:
(a) The comparative advantage they enjoy or could be
made to enjoy;
(b) Their potential for earning foreign exchange; and
(c) Their profitability to the national economy.
The export priorities plan shall be acted upon and take effect, and may
be amended, following the procedure for, and with like effect as, the
said investments priorities plan.
Sec. 5. Incentives for Investors. — In addition to
the basic rights and guaranties set forth in Sec. 4 of Republic Act
Numbered Fifty-one hundred eighty-six, known as the Investment
Incentives Act, investors in enterprises that are registered as export
producers, export traders or service exporters shall enjoy the
incentives set forth in Sec. 5 of the Act; and Philippine nationals
investing in registered export producers that are pioneer enterprises
shall also enjoy the incentives set forth in Sec. 6 of said Act.
Sec. 6. Conditions for Availment of Incentives. —
(a) No export producer, service exporter or export trader shall be
entitled to any incentive under this Act until its registration shall
have been approved by the Board, which approval shall retroact to the
date of filing of the application for registration.
(b) To be entitled to registration, an applicant must
satisfy the Board that (1) he is a citizen of the Philippines, in case
the applicant is a natural person; or that at least sixty per cent of
its capital is owned and controlled by citizens of the Philippines, in
case the applicant is a corporation, partnership or other entity; (2)
that it is engaged or proposes to engage in manufacturing, processing
or exporting export products listed in the export priorities plan or if
not so listed, that at least fifty per cent of its sales are export
sales; or in case of a service exporter, that is engaged or proposes to
engage in rendering services payable in foreign currency, or in
exporting television or motion pictures or musical recordings produced
or made in the Philippines; (3) that it is not engaged and will not
engage in any of the activities reserved by the Constitution or the
laws of the Philippines to Filipino citizen or corporations owned and
controlled by Filipino citizens, unless and until the applicant can
fulfill the requirements of the Constitution or said laws; and (4) that
if the applicant is engaged or proposes to engage in activities other
than the manufacture, processing and exportation of export products, or
in rendering services other than export services, it has installed or
undertakes to install an adequate accounting system to segregate the
investment, revenues, sales, receipts, purchases, payrolls, costs,
expenses, and profits and losses of its export operations from those of
its domestic operations: provided, that in the case of a pioneer
enterprise registered or that may hereafter be registered under
Republic Act Numbered Fifty-one hundred eighty-six, the national
requirement shall be in accordance with Section 19 of the said Act
instead of Sec. 6 (b) of this Act: provided, further, that upon
receipt of the application for registration, the Board shall, within
thirty days, notify the applicant of all pertinent requirements not
complied with: and provided, finally, that the Board of Investments
shall act on said application within ninety days after submission
thereof.
(c) A citizen of the Philippines or a corporation,
partnership or other entity organized and existing under Philippine
laws, at least seventy per cent (70%) of the capital of which is owned
and controlled by citizens of the Philippines, shall also be entitled
to registration as an export trader and to enjoy the benefits and
incentives for registered export traders under this Act, except
exemption from export tax, if it is engaged or proposes to engage in
the exportation of export products the total F.O.B. Philippine port
value of the exports of which exceeded five million dollars in United
States currency in the calendar year 1968: provided, that, (a) the
business of exportation of the said product, at the time the
application for registration is filed, is substantially in the hands of
persons that are not citizens of the Philippines or entities that are
not owned and controlled by citizens of the Philippines; and (b) the
applicant fulfills the other requirements, not inconsistent with those
set forth in this paragraph, that are not set forth in the preceding
paragraph and in paragraphs (c) and (e) of Sec. 3 of this Act.
Sec. 7. Incentives to Registered Export Producers.
— Registered export producers unless they already enjoy the same
privileges under other laws shall be entitled to the incentives set
forth in paragraph (h), (i) and (j) of Sec. 7 of Republic Act
Numbered Fifty-one hundred eighty-six, known as the Investment
Incentives Act; and registered export producers that are pioneer
enterprises shall be entitled also to the incentives set forth in
paragraph (a), (b) and (c) of section 8 of the said Act.n addition to
the said incentives, and in lieu of other incentives provided in
Sec. 7 and in Sec. 9 of that Act, registered export producers
shall be entitled to benefits and incentives as enumerated hereunder:
(a) Tax Credit. — Every registered export producer
shall enjoy, for a period of ten (10) years from its registration, a
tax credit equivalent to the sales, compensating and specific taxes and
duties on the supplies, raw materials and semi-manufactured products
used in the manufacture, processing or production of its export
products and forming part thereof, whether exported directly by the
registered export producer or sold to another export producer, which
uses such sold product as a direct input in export products
manufactured or processed by it and subsequently exported, or to a
registered export trader: provided, that the tax credit shall accrue to
the registered export producer only after the other export producer or
registered export trader has in fact exported the products of the
export producer or those in the manufacture or processing of which the
former were used. The tax credit shall be issued by the Secretary of
Finance upon presentation of the export documents, and shall be in lieu
of refunds.t may be used to pay taxes, duties, charges and fees due to
the national government in connection with its operations. A tax credit
shall be non-transferable, except when such transfer is by hereditary
succession or occurs by operation of law; it may be used by the person
or entity to whom it is issued only for as long as it enjoys the
benefits and incentives provided for in this Act; and may not be used
so as to result in a refund.
b) Reduced Income Tax. — Every registered export
producer shall be entitled for the first five years from its
registration, to deduct from its taxable income an amount equivalent to
a portion of the total export revenue for a particular year, computed
in accordance with the following tax incentive formula:
Total export revenue multiplied by the product of the labor component,
the domestic raw material component, and five: provided, that, (1) the
total export revenue shall be F.O.B. Philippine port; and shall be the
increment of its export sale over its sale for the year 1968; (2) the
labor component shall be the total direct labor wage bill divided by
the total production cost of the firm; (3) the domestic raw material
component shall be the difference between one unit of production and
the ratio of the total value of imported raw materials and supplies to
the total production cost of the firm: provided, further, that the
reduction from taxable income shall not exceed one hundred per cent
(100%) of its total export revenue for each particular year during the
first three (3) years and fifty per cent (50%) during the succeeding
two (2) years.
c) Tax Exemption on Imported Capital Equipment. —
Within five years from registration of the export producer,
importations of machinery and equipment and spare parts shipped with
such machinery and equipment shall not be subject to tariff duties and
compensating tax: provided, that, (1) said machinery, equipment and
immediate component spare parts are not manufactured domestically in
commercial quantity and quality or sold at reasonable prices; (2) are
directly and actually needed and will be used by the registered export
producer in the manufacture, processing, handling and storage of its
export products; (3) are covered by shipping documents in the name of
the registered export producer to whom the shipment will be delivered
direct by customs authorities; (4) the prior approval of the Board was
obtained by the registered export producer before placing the order for
the importation of such machinery, equipment and immediate component
spare parts; and (5) the registered export producer chooses not to
avail of the privileges granted by Republic Act Numbered Thirty-one
hundred twenty-seven, as amended.n granting approval of importations
under this paragraph, the Board shall require international bidding to
be conducted by the end-user in Manila under its supervision; however,
the Board may, in its discretion, dispense with this requirement if (a)
there is, to the knowledge of the Board, only one manufacturer of the
machinery, equipment and spare parts to be imported, or (b) the
importation is caused by the expansion of the registered export
producer and such imports shall be acquired from the same manufacturer
who supplied the machinery, equipment and spare parts being used by the
registered export producer or (c) the total cost of importation is less
than one million dollars ($1,000,000.00).f the registered export
producer does not bring into the country, the proceeds of export sales
equivalent to at least the cost of the imported machinery, equipment
and spare parts with five (5) years after delivery of the same to it,
or if it sells, transfers, or disposes of the machinery and equipment
and spare parts imported under this paragraph without the prior
approval of the Board within the said five (5) years, the registered
export producer shall pay twice the amount of exemption given it,
together with the penalty and interest thereon, computed from the date
of acquisition, fixed by the Tariff and Customs Code and the National
Internal Revenue Code for delinquency in the payment of said duties and
taxes. However, the Board shall allow and approve the sale, transfer,
or disposition of the said items within the said period of five (5)
years if made: (1) to another registered export producer; (2) for
reasons of proven technical obsolescence; or (3) for purposes of
replacement to improve or expand the operations of the registered
export producer.
d) Tax Credit on Domestic Capital Equipment. — A tax
credit equivalent to one hundred per cent (100%) of the value of the
compensating tax and customs duties that would have been paid on the
machinery, equipment and spare parts had these items been imported
shall be given to the registered export producer which purchases
machinery, equipment and spare parts from a domestic manufacturer, and
a tax credit equivalent to fifty per cent (50%) thereof shall be given
to the said manufacturer; provided, that the said machinery, equipment
and spare parts are directly and actually needed and will be used by
the registered export producer in the manufacture, handling and storage
of its export products; that prior approval of the Board was obtained
by the local manufacturer concerned; and that the sale is made within
ten (10) years from the date of registration of the registered export
producer.f the registered export producer sells, transfers or disposes
of the machinery, equipment and spare parts without the prior approval
of the Board within five (5) years from the date of acquisition
thereof, the registered export producer shall pay twice the amount of
the tax credit given it. However, the Board shall allow and approve the
sale, transfer or disposition of the items within the said period of
five (5) years if made (1) to another registered export producer; (2)
for reasons of proven technical obsolescence; or (3) for purposes of
replacement to improve and/or expand the operations of the registered
export producer.
The tax credit shall be issued to and may be used by the registered
export producer and the domestic manufacturer as provided in paragraph
(a) of this section.
(e) Exemption from Export Tax. — Exports by a
registered export producer of an export product, the total F.O.B.
Philippine port value of the exports of which in calendar year 1968
were less that five million dollars in United States currency by which
exceed said total during a period of five (5) years from registration,
shall be exempted from any export tax, including the stabilization tax
imposed by Republic Act Numbered Sixty-one hundred twenty-five.
Sec. 8. Incentives to Registered Export Traders. —
A registered export trader shall be entitled (a) to the exemption from
export tax provided in paragraph (e) of Sec. 7 of this Act; (b) to a
tax credit equivalent to the amount of specific and sales taxes on the
export products bought by it from registered export producers and
subsequently exported; (c) for the first three (3) years from
registration, to deduct from its taxable income, in addition to the
normal deduction allowed by the National Internal Revenue Code, an
amount equivalent to ten per cent (10%) of the increment of its total
export sales over seventy-five per cent (75%) of its total 1968 export
sales; and (d) thereafter, and until the fifth year after registration,
to a similar deduction based on the increment of its annual total
export sales over its average annual total export sales during the
preceding five years. For a period of five years after registration, an
additional deduction of one per cent (1%) shall be allowed a registered
export trader who extends financial assistance to a registered export
producer or producers in an amount equivalent to not less than twenty
per cent (20%) of the registered export trader's total export sales
during the year in which the incentive is claimed.
Sec. 9. Additional Incentives. — (a) The Board
shall grant additional incentives whenever a registered export producer
establishes its processing or manufacturing plant in an area that the
Board designates as necessary for the proper dispersal of industry or
in an area which the Board finds deficient in infrastructure, public
utilities, and other facilities. These additional incentives shall
consist of any, some or all of the following: (a) to use an amount
equivalent to double its direct labor cost in applying the formula for
reduced income tax provided in paragraph (b) of Sec. 7 and this Act;
(2) to use a constant factor of six (6) instead of five (5) in applying
the said formula; (3) to apply in payment of taxes that may be due from
it to the National Government, an amount equivalent to one hundred per
cent (100%) of necessary infrastructure works, in harmony with projects
approved by law, undertaken by the registered export producer with the
prior approval of the Board and the concurrence of the Department of
Public Works and Communications, under the same terms and conditions
set forth in Section 1 of Republic Act Numbered Fifty-two hundred
seventy-nine, such as, portworks, waterworks, aircraft landing
facilities, roads and bridges leading from the plant to a loading point
or to a national highway or poblacion, and other similar projects that
are normally undertaken by the government: provided, that the title to
all such infrastructure works shall upon completion, be transferred to
the Philippine government: provided, further, that should the
registered export producer undertake necessary maintenance work on such
infrastructure works with the prior approval of the Board, a similar
incentive shall be given to it in an amount equivalent to the cost of
such necessary maintenance.
(b) Whenever a registered export producer or export
trader shall use a new brand name for an export product that
distinguishes it from products manufactured or processed outside the
Philippines, the Board shall grant the registered export producer
directly exporting its product or export trader who exports the same an
additional incentive in the form of either (1) a net operating loss
carry-over as provided for in Sec. 7, paragraph (e) of Republic Act
Numbered Fifty-one hundred eighty-six, known as the Investment
Incentives Act; or (2) an additional deduction from taxable income
equivalent to one per cent (1%) of the increment of its export sales
during the year in which the incentive is claimed, determined in the
manner provided in paragraphs (b) and (c) of Sec. 7 of this Act:
provided, that the registered export producer or export trader shall
choose at the time of applying for said additional incentives which of
the two incentives he prefers to enjoy, and such choice shall be
binding.
SECTION 10. Incentives to Registered Service
Exporters. — Every registered service exporter shall, for the first
five years from registration, be entitled to deduct from its taxable
income an amount equivalent to fifty per cent (50%) of the increment of
its total export fees during the year in which the incentives is
claimed over seventy five per cent (75%) of its total export fees in
1969; and thereafter, and until the tenth year after registration, to a
similar deduction based on the increment of annual total export fees
over its average annual total export fees during the preceding five
years: provided, that to be entitled to this deduction, the registered
service exporter must have remitted or repatriated to the Philippines
its total export fees earned during the year in which the incentive is
claimed, less reasonable costs and expenses incurred or payable in
foreign currencies, under such rules and regulations as the Monetary
Board may prescribe.n addition, for a period of ten years from
registration, a registered service exporter who produces television or
motion pictures, or musical recording, in the Philippines, and exports
the picture or recording directly or through a registered export trader
shall also be entitled (a) to a tax credit equivalent to the amount of
specific, compensating and sales taxes and duties paid by it on the raw
materials and supplies used in producing the picture or recording that
is exported; and (b) to exemption from payment of customs duties and
compensating taxes on importations of equipment, machinery or spare
parts shipped with such machinery and equipment that (1) are not
manufactured domestically in reasonable quantity and quality or sold at
reasonable prices; (2) are directly and actually needed and will be
used by the registered service exporter in producing or making the
pictures or recordings that it exports; (3) are covered by shipping
documents in the name of the registered service exporter to whom the
shipment will be delivered direct by customs authorities; (4) have the
approval of the Board of Investment obtained by the registered service
exporter before placing the order for the importation; and (5) are the
subject of international bidding, under the supervision of the Board,
unless the Board dispenses with this condition for any of the reasons
set forth in Sec. 7, paragraph (c) of this Act.f the registered
service exporter does not bring into the Philippines export fees
equivalent to at least the cost of the imported machinery, equipment
and spare parts within five (5) years after delivery of the same to it,
or if it sells, transfers, or disposes of the same or any part thereof,
without prior approval of this Board, within said five (5) years, it
shall pay twice the amount of the exemption given it, together with the
penalty and interest thereon, computed from the date of delivery, fixed
by the Tariff and Customs Code and the National Internal Revenue Code
for delinquency in the payment of duties and taxes. However, the Board
shall allow and approve the sale, transfer or disposition within the
said period of five (5) years, if the registered service exporter has
brought into the Philippines export fees during the period it has held
the equipment which amount to twenty per cent (20%) of the cost of the
equipment for each year in which it has held the equipment; and if made
(1) to another registered service exporter of pictures and recordings;
(2) for reasons of proven technical obsolescence; or (3) for purposes
of replacement to improve or expand the operations of the registered
service exporter.
SECTION 11. Export Assistance Fund. — One per cent
(1%) of the total collections from the tax provided for by Republic Act
Numbered Sixty-one hundred twenty-five, to be deducted from the portion
allocated to the Development Bank of the Philippines, shall be set
aside as an Export Assistance Fund which shall be administered by the
Board and expended for in the pursuance of specific appropriations to
be provided for in the annual General Appropriations Act to implement
programs, projects and activities exclusively for the following
purposes:
1. Diversification of export products and export
markets;
2. Improving existing methods of production so as to
reduce the cost of export products;
3. Raising the quality and level of exports and
assisting in the establishment of export standards;
4. Promoting effective marketing of export products
abroad;
5. Developing of export packaging and design;
6. Establishing an Institute of Export Development
which shall conduct seminars and training courses for manpower in the
direct production of exports, Philippine trade missions and registered
service exporters, export producers, or export traders and their
personnel, and assisting cultural missions that may promote Philippine
products and arts abroad; and
7. Such other undertakings as may be necessary to
implement this Act and achieve its purposes: provided, that no portion
of this fund shall be utilized for travel abroad.
The Central Bank shall turn over and deliver, immediately upon
collection, the portion of the tax constituting the fund to the Board.
SECTION 12. Incentives for Export Enterprises in
Foreign Trade zones. — An export producer who manufactures, assembles
or processes its products solely for export, an export trader, or
service exporter within foreign trade zones that now or hereafter may
exist by authority of law, if qualified and registered under this Act,
is hereby extended the applicable benefits and incentives in this Act:
provided, that the particular products exported under a specific
patent, trade mark or trade name are not manufactured, assembled, or
processed by an existing licensee of such products in the Philippines.
SECTION 13. Suspension or Cancellation of Incentives.
— Any provision of law to the contrary notwithstanding, the Board of
Investments may suspend or cancel wholly or partially any export
incentive granted under this Act whenever (1) there is any violation of
this Act or of any law for the protection of labor; or (2) whenever any
action is threatened or taken by an international association or
foreign nation which would nullify the incentive, and would impair or
threaten to impair the export trade of the Philippines or its relations
with other nations; or (3) when the registered export enterprise has a
paid-up capital of at least five hundred thousand pesos (P500,000.00)
and earns for at least two (2) years profits from its exports of
products or services in excess of thirty-three and one-third percent
(33 1/3%) of equity even without these incentives.
SECTION 14. Issuance of Implementing Rules and
Regulations. — The Board of Investments shall issue such rules and
regulations as may be necessary for the proper implementation of the
provisions of this Act within sixty (60) days after its approval. For
this purpose, and with a view to coordinating trade and industrial
development, the Board may call upon other government agencies for
assistance and cooperation. Such rules and regulations shall take
effect thirty days after their publication in two (2) newspapers of
general circulation in the Philippines.
SECTION 15. Expediting Export Procedure. — Subject to
the approval of the President, the Board of Investments, in
consultation with the National Export Coordinating Center, shall issue
rules and regulations to expedite and simplify the procedure for
exports of registered export producers, registered service exporters,
and registered export traders, who are hereby exempted from the
requirements of obtaining clearances or certificates from national or
local governments or agencies for their export products imposed by
existing laws, executive orders, ordinances, rules and regulations, and
who shall be subject only to such requirements for clearances or
certifications as may be provided in the said promulgated rules and
regulations. The said rules and regulations shall take effect thirty
days after publication in two (2) newspapers of general circulation in
the Philippines.
SECTION 16. Suppletory Effect of Investment
Incentives Act. — Republic Act Numbered Fifty-one hundred eighty-six,
known as the Investment Incentives Act, as far as applicable and not
inconsistent with the provisions of this Act, shall apply to
enterprises registered under this Act.
SECTION 17. Enterprises Registered Under Republic Act
Numbered Fifty-one Hundred Eighty-six. — Any corporation registered
under Republic Act Numbered Fifty-one hundred eighty-six, shall
continue to be governed by the provisions of said Act, but it shall
have the option to register under the provisions of this Act: provided,
that the benefits of this Act, so far as may be applicable, shall be
given prospective effect from the date of its registration under this
Act. Provided, further, that nothing herein contained shall be
construed to entitle further an enterprise to the benefits granted
under Republic Act Numbered Fifty-one hundred eighty- six after its
registration under this Act.
SECTION 18. Appropriations. — (1) The sum of three
million five hundred thousand pesos, or so much thereof as may be
necessary, is hereby appropriated out of the Export Assistance Fund, to
implement the programs, projects and activities to carry out the
purposes authorized in Section 11 of this Act during fiscal year
nineteen hundred seventy-one;
(2) To carry out the purposes of this Act, there is
hereby appropriated the sum of one million pesos for the fiscal year
nineteen hundred seventy-one as supplementary to the appropriations for
the Board of Investments; and
(3) Thereafter, the necessary appropriations shall be
included in the annual General Appropriations Act.
SECTION 19. Penal Provision. — Violation of any
provision of this Act, or of the terms or conditions of registration,
or the rules and regulations promulgated pursuant thereto, or the act
of abetting or aiding in any manner any such violation, shall be
punished by a fine in the amount of not more that fifty thousand pesos
(P50,000) or imprisonment for not more than three (3) years, or both,
at the discretion of the Court.f the offender is a government official,
the maximum of the penalty hereinbelow prescribed shall be imposed and
the offender shall suffer the additional penalty of perpetual
disqualification from public office, without prejudice to any
administrative action against him. Furthermore, where there is a clear
case of favoritism or abuse of discretion, the members of the Board and
the Chairman shall each be liable for such violation by a fine of fifty
thousand pesos and imprisonment of not less than three years.
If the offense be committed by a juridical entity, its president and/or
other officials responsible therefore shall be subject to the penalty
described above.f the official be an alien, he shall be deported after
serving the sentence, without need of further proceedings for
deportation.f the offender is a naturalized citizen, he shall be
automatically denaturalized from the date his sentence becomes final.
Payment of the tax due after apprehension shall not constitute a valid
defense in any prosecution for violation of any provision of this Act.
Sec. 20. Repealing Clause. — Without prejudice to
the right of any enterprise which, at the time of the effectivity of
this Act, has been registered under Republic Act Numbered Fifty-one
hundred eighty-six, known as the Investment Incentives Act, to be
governed under the provisions of that Act, as provided in Section 16
hereof, or any other right acquired prior to the effectivity of this
Act, Sec. 9 of Republic Act Numbered Fifty-one hundred eighty-six
and those portions of Section 18 and 20 that make reference to exports
are hereby repealed, and all Acts, executive orders, administrative
orders, rules and regulations or parts thereof inconsistent with the
provisions of this Act are likewise repealed or modified accordingly.
Sec. 21. Separability Clause. — The provisions of
this Act are hereby declared to be separable, and in the event one or
more of such provisions are held unconstitutional, the validity of
other provisions shall not be affected.
Sec. 22. Effectivity. — This Act shall take effect
upon its approval.
Approved: August 31, 1970
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