WHEREAS, Presidential Decree No. 1352 was issued in
accordance with the policy enunciated under Presidential Decree No. 776 to
rationalize and harmonize the fiscal incentives granted under various existing
laws for purposes of conserving government revenues;
WHEREAS, in line with such policy, it is necessary to
clarify and/or amend the provisions thereof; and
WHEREAS, the importations of government agencies or
instrumentalities are governed by Presidential Decree No. 1177 and therefore
need not be subject to the provisions hereof;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution, do hereby
decree:
SECTION 1. Presidential Decree No. 1352 is hereby amended to
read as follows:
"SECTION 1. All importations which are at present totally or
partially exempt from customs duties and/or internal revenue tax under the
provisions of any general or special law shall be subject to a five (5%) percent
customs duty and five (5%) percent internal revenue tax, subject to the same
limitations and conditions prescribed under such law, if any.
"In the case of importations enjoying partial exemption, the said duty and
tax shall be imposed on the exempt portion in addition to the duty and tax due
on the taxable portion.
"The duty and tax imposed herein shall be computed in accordance with the
applicable provisions of the Tariff and Customs Code of the Philippines, as
amended, and the National Internal Revenue Code of 1977, as amended,
respectively.
"The customs duty and internal revenue tax imposed under this section shall
not apply to the following importations:
"1. Those which are exempt in pursuance of or in compliance with
international treaties or commitments, such as the ADB-RP Host Agreement (1966);
the 1947 Convention on Priveleges and Immunities of the United Nations and its
specialized agencies; the United States Agency for International Development-RP
Agreement; the 1947 Military Bases Agreement; and other similar treaties or
commitments;
"2. Those which are exempt under the following Presidential Decrees:
"(a) Presidential Decree No. 66;
"(b) Presidential Decree No. 87;
"(c) Presidential Decree No. 529;
"(d) Presidential Decree No. 215;
"(e) Presidential Decree No. 666; and
"(f) Presidential Decree No. 972.
"3. Importations of machinery, equipment and spare parts shipped with such
machinery and equipment made by enterprises registered with the appropriate
government agency, on or before April 21, 1978, under any tax incentive law,
subject to the following conditions:
"(a) That the importation has been authorized by the appropriate government
agency for the prosecution of specific projects already approved by the said
agency as of April 21, 1978; and
"(b) That the herein exemption shall not be authorized beyond December 31,
1981.
"SEC. 2. The duty and tax imposed herein shall be paid
before release of the imported articles from customs' custody.
"Where the corresponding tax incentive law authorized a deferral of the duty
and internal revenue tax due from registered non-pioneer enterprises, the same
privilege may be extended to registered pioneer enterprises by the appropriate
implementing government agency.
"SEC. 3. Unless otherwise provided by law, in the case of
importations subjected to the five (5%) percent customs duty and five (5%)
percent internal revenue tax herein imposed which are subsequently sold,
transferred or exchanged to non-exempt persons or entities, the purchaser shall
be considered the importer thereof and shall be liable for the difference
between the full customs duty and internal revenue tax due thereon based on the
depreciated value of the article at time of sale, transfer or exchange and the
five (5%) percent customs duty and five (5%) percent internal revenue tax
previously paid. The duty and tax due on such article shall constitute a lien on
the article itself, superior to all other charges or lien irrespective of the
possessor thereof.
"SEC. 4. The pertinent provisions of the following laws are
hereby repealed or amended accordingly:
"(a) Presidential Decree No. 218, as amended by Presidential Decree No.
348;
"(b) Presidential Decree No. 413;
"(c) Presidential Decree No.
440;
"(d) Presidential Decree No. 535;
"(e) Presidential Decree No.
538;
"(f) Presidential Decree No. 634;
"(g) Presidential Decree No.
992;
"(h) Presidential Decree No. 1159;
"(i) Republic Act No. 720;
"(j)
Republic Act No. 1370;
"(k) Republic Act No. 2640;
"(l) Republic Act No.
3470, as amended;
"(m) Republic Act No. 5186, as amended;
"(n) Republic
Act No. 6135, as amended; and
"(o) Other general and special laws, and
special charters granting franchises.
"SEC. 5. The President may, in the interest of national
economic development, upon recommendation of the Fiscal Incentives Review Board,
restore any exemption benefit withdrawn under this Decree."
SEC. 2. The Secretary of Finance shall, upon the
recommendation of the Commissioner of Customs and in consultation with the
appropriate government agency, promulgate the necessary rules and regulations
for the effective implementation of the provisions of this Decree.
SEC. 3. All laws, rules and regulations or parts thereof in
sistent with the provisions of this Decree are hereby repealed or amended
accordingly.
SEC. 4. This Decree shall take effect upon approval.
However, any duty and internal revenue tax already paid on importations
mentioned in paragraph 3 of Section 1 hereof shall be recomputed in accordance
with the provisions of this Decree.
DONE in the City of Manila this 31st day of May, in the year of Our Lord,
nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JACOBO C. CLAVE
Presidential Executive
Assistant
