PROVIDING FOR INCENTIVES TO THE SHIPPING INDUSTRY BY GRANTING ADDITIONAL DEDUCTIBLE ITEMS FOR INCOME TAX PURPOSES.

• Number: Presidential Decree No. 667
• Sections: 6

Preamble

WHEREAS, the government recognizes the important role of the

shipping industry in the economic development of the country;

WHEREAS, there is a need to increase the number of

ocean-going shipping vessels of Philippine registry;

WHEREAS, exporters and importers should be encouraged to

patronize Philippine flag vessels in order to effect foreign exchange

savings;

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

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

do hereby decree the following as part of the law of the land.

Section 1

SECTION 1. Exporters of Philippine products shall be allowed

to deduct from their taxable income to the extent of one hundred-fifty

percentum (150%) of the amount of overseas freight expenses and arrastre

charges in Philippine ports, provided that shipments are made on board

vessels of Philippine registry.

Section 2

SEC. 2. Importers of goods that are to be utilized as raw

materials, intermediate products or for further manufacturing or for

resale shall be allowed to deduct from their taxable income to the

extent of one hundred-fifty percentum (150%) of the amount of overseas

freight expenses and arrastre charges in Philippine ports on goods

shipped from port of source to the Philippines, provided that shipments

are made on board vessels of Philippine registry.

Section 3

SEC. 3. Enterprises that are registered with the Board of

Investments shall be allowed to deduct from their taxable income two

hundred percentum (200%) of shipping costs incurred in the transport of

their product and raw materials to or from foreign ports, provided that

shipments are made on board vessels of the Philippine registry.

Section 4

SEC. 4. The pertinent provisions of the National Internal

Revenue Code, Investments Incentives Act, Export Incentives Act, and all

laws, decrees, rules and regulations, or parts thereof, inconsistent

with any of the provisions of this Decree are hereby repealed, amended

or modified accordingly.

Section 5

SEC. 5. This Decree shall take effect immediately.

Done in the City of Manila, this 5th day of March, in the year of

Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary