WHEREAS,
certain fiscal incentives can be improved to increase the level of
foreign exchange of the country to finance its growing import
bill; chanroblesvirtualawlibrary
WHEREAS, gift giving is a part of the Filipino cultural heritage which
is observed even by citizens who have migrated abroad by sending gifts
to relatives and friends in the homeland, usually in the form of
foreign manufactured goods;chanroblesvirtualawlibrary
WHEREAS, Philippine-made products can easily equal if not surpass
foreign-made articles, so that if pushed in the right direction if can
generate substantial foreign exchange for the country.
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 as part of the law of the land;chanroblesvirtualawlibrary
Section 1. Declaration of Policy. — It is hereby
declared to be a policy of the state to encourage Filipinos abroad and
other non-residents of the Philippines, to patronize Philippine-made
products by providing incentives therefor, so that locally manufactured
goods paid for in foreign exchange through the banking system of the
Philippines, by Filipinos abroad and non-residents in general for
delivery in the Philippines, are treated as internal exports,
consistently with similar practices elsewhere in the world.
Section 2. Transactions Permitted. — Gifts paid for
in foreign exchange by Filipinos abroad and non-residents in general
for delivery in the Philippines, shall be governed by and made subject
to the following: chanroblesvirtualawlibrary
(a) Goods assembled or manufactured in the
Philippines, when paid for in convertible foreign currency inwardly
remitted through the banking system in the Philippines, shall be
subject to a sales tax equivalent to ten percent (10%) of the gross
selling price or gross value in money of the goods sold and shall be
exempt from the payment of gift taxes.
(b) This exemption shall, however, apply only to
sales not exceeding an aggregate foreign exchange value of One Thousand
United States dollars (US$1,000.00), or its equivalent in other
convertible foreign currencies, but in no case to exceed three (3)
units or pieces of the same goods sold and delivered as gifts in the
Philippines.
(c) The Minister of Finance shall adopt and
promulgate such rules and regulations as shall be necessary to
effectively implement the fiscal incentives provided in this Decree.
Section 3. Transactions not Covered. — Finished goods
imported into the Philippines, purchased for delivery as gift to a
resident, even if paid for in foreign currency by the donor, shall not
be entitled to the fiscal incentives provided under this Decree.
Section 4. International Gift-giving Program. — The
Ministry of Trade, under an International Gift-giving Program that it
shall adopt and implement as part of its export promotion strategies,
shall be and is hereby authorized, to make available the facilities of
its foreign trade service network in the promotion of the products
envisioned under this Decree and said Ministry shall cause to be
published and distributed, a catalogue of products that it shall
accredit to be eligible to participate in such programs under such
rules and regulations as the Minister of Trade shall adopt and
promulgate. chanroblesvirtualawlibrary
Section 5. Repealing Clause. — Any and all acts,
statutes, decrees, orders, rules, regulation, or parts thereof
inconsistent herewith are hereby repealed or modified accordingly.
Section 6. Effectivity. — This Presidential Decree
shall take effect immediately.
Done in the City of Manila this
16th day of January, in the year of Our Lord, nineteen hundred and
eighty-one.
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