FURTHER AMENDING SECTION 105 OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, EXEMPTING IMPORTATIONS OF DOMESTIC SCHEDULED AIRLINES AND OF NEW MINES AND OLD MINES WHICH RESUME OPERATIONS FROM CUSTOMS DUTY.

• Number: Presidential Decree No. 238
• Sections: 3

Preamble

WHEREAS, the domestic scheduled airlines had been granted

under their respective congressional franchises exemption from customs duty and

compensating tax in consideration of the franchise tax on gross receipts therein

imposed and of the essential air transportation service they provide the

public;

WHEREAS, there is a pressing need to rehabilitate our

faltering civil aviation industry, to expand and improve the service being

provided by the domestic scheduled airlines, to assure a favorable

competitive position of our national flag carrier in the international field and

to make the operations of our scheduled airlines financially sound and

economically viable to effect the desired social and economic development of our

country;

WHEREAS, the Philippines is blessed with bountiful mineral

resources, the development and exploitation of which is essential to our

economic development; and

WHEREAS, the mining industry requires large amounts of high

risk capital and needs tax incentives during the initial years of commercial

operations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to

Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated

September 22, 1972, as amended, do hereby amend Section 105 of the Tariff and

Customs Code, as amended, to wit:

Section 1

SECTION 1. Section One Hundred five of Republic Act Numbered

Nineteen hundred and thirty-seven, otherwise known as the "Tariff and Customs

Code of the Philippines," is further amended by inserting two new paragraphs

"(u)" and "(v)" therein after paragraph (t) thereof which shall read as

follows:

"SEC. 105. Conditionally-Free

Importations.

x x x

"(u) Aircraft, equipment and machinery, spare parts commissary and catering

supplies, aviation gas, fuel and oil, whether crude or refined, and such other

articles or supplies imported by and for the use of scheduled airlines operating

under Congressional franchises: Provided, That such articles or

supplies are not locally available in reasonable quantity, quality and price and

are necessary or incidental for the proper operation of the scheduled airline

importing the same"; and

"(v) Machineries, equipment, tools for production, plants to convert mineral

ores into saleable form, spare parts, supplies, materials, accessories,

explosives, chemicals, transportation and communication facilities imported by

and for the use of new mines and old mines which resume operations, when

certified to as such by the Secretary of Agriculture and Natural Resources upon

the recommendation of the Director of Mines, for a period ending five (5) years

from the first date of actual commercial production of saleable mineral product:

Provided, That such articles are not locally available in reasonable

quantity, quality and price and are necessary or incidental in the proper

operation of the mine."

Section 2

SEC. 2. This Decree is hereby made part of the law of the

land and shall take effect immediately.

Done in the City of Manila, this 9th day of July, in the year of Our Lord,

nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ROBERTO V. REYES

Assistant Executive Secretary