BOC exempts importation of PPEs, medical supplies from tax payment

MANILA, Philippines — The Bureau of Customs (BOC) has exempted the importation of personal protective equipment (PPE) and medical supplies from tax and duties following the signing of Republic Act No. 11469 or the Bayanihan To Heal As One Act.

The BOC issued Customs Administrative Order (CAO) 07-2020 that will serve as the guidelines for the tax and duty exemption on the importation of the PPEs and medical supplies as the country fights the coronavirus pandemic.

“The aim of this CAO is to expedite customs clearance of tax and duty-exempt importations of PPEs and medical goods which are urgently needed by the country’s citizens, frontliners, and medical supplies manufacturers in this public health emergency we are currently facing,” BOC said in a statement on Wednesday.

Section 4 (o) of R.A. 11469 states that importation of healthcare equipment and supplies “shall be exempt from import duties, taxes and other fees.”

According to CAO 07-2020, the following health equipment and items are exempted from duties, taxes, and fees:

  1. Personal Protective equipment such as gloves, gowns, masks, goggles, face shields, surgical equipment, and supplies;
  2. Laboratory equipment and its reagents;
  3. Medical equipment and devices;
  4. Support and maintenance for laboratory and medical equipment;
  5. Surgical equipment and supplies;
  6. Medical supplies, tools, and consumables such as alcohol, sanitizers, tissue, thermometers, hand soap,
  7. detergent, sodium hydrochloride, cleaning materials, provide iodine, common medicines (such as paracetamol tablets and suspension, mefenamic acid, vitamin tablet and suspension, hyoscine tablet and suspension, oral rehydration solution, and cetirizine tablet and suspension);
  8. COVID-19 testing kits;
  9. Others as may be identified by the Department of Health

The BOC said commercial importers of PPEs and medical equipment and supplies are exempted from presenting the Certificate of Product Notification (CPN) or Certificate of Product Registration (CPR) issued by the Food and Drugs Administration (FDA) prior to release from Customs.

This is however provided that they present a copy of their License to Operate (LTO) and their proof of application for product notification with the FDA.

Meanwhile, those importing ventilators, respirators, and their respective accessories for commercial purposes only need to present a copy of their LTO.

“In addition, imported health products for donation which are certified by regulatory agencies or accredited third party organizations in the originating countries shall be automatically cleared, while an FDA clearance will not be required prior to the release of foreign donations of PPEs, ventilators, respirators and their respective accessories which will be used in treating COVID-19 patients,” the BOC said.

“Imported goods under Section 4(O) of the RA 11469 which are released under Provisional Goods Declaration are subject to the submission of Tax Exemption Indorsement (TEI) issued by the Department of Finance-Revenue Office (DOF-RO) after 12 April 2020 or upon lifting of the declaration of ECQ, whichever comes earlier,” Customs added.

As of Tuesday afternoon, the Department of Health (DOH) said there are 2,084 COVID-19 cases in the country, with the death toll soaring to 88.

A total of 49 patients, meanwhile recovered from the disease.

/MUF
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