MANILA, Philippines — President Rodrigo Duterte has issued an Executive Order (EO) extending to three years the duty-free importation of capital equipment, spare parts and accessories by Board of Investments (BOI)-registered enterprises.
Duterte signed EO 85 on July 19, a copy of which was released to the media on Wednesday.
The EO said the extension of the zero-percent duty importation “will enhance the attractiveness of the country as an investment destination and improve industry competitiveness.”
“The grant of duty-free importation of capital equipment remains to be an important fiscal incentive in promoting investments into the Philippines considering the global competition for foreign direct investments,” it added.
Duterte’s EO came as an earlier executive issuance extending the duty-free importation of capital equipment for a year expired on July 6 and a law amending EO 226, otherwise known as “The Omnibus Investments Code of 1987”, remains to be enacted.
The EO also stated that the enterprises “cannot sell, transfer or dispose of the aforementioned capital equipment, machinery, spare parts and accessories, without prior BOI approval, within five years from the date of importation; otherwise, the BOI-registered enterprise will be solidarily liable to pay twice the amount of the duty foregone or P500,000, whichever is higher, without prejudice to other applicable penalties under EO 226.” /je