REPUBLIC ACT NO. 7369 - AN ACT
GRANTING TAX AND DUTY EXEMPTION AND TAX CREDIT ON CAPITAL EQUIPMENT
Section 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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