Presidential Decree No. 791 (PD 791) — Providing Exemption for the Payment of Customs and Tariff Duties, Special Import Tax and Compensating Tax Covering Importation of Sugar Mills, Machinery, Spare Parts and Equipment for a Limited Period.
WHEREAS, the sugar industry contributes a very sizeable
amount in the foreign exchange earnings of the country during the past
years prompting the government to encourage more production of sugarcane
and the establishment of new sugar mills to further increase production
of sugar to supply the traditional as well as the new foreign markets;
WHEREAS, the current cost of sugar mills, machinery and
equipment has multiplied to about two and a half times of the cost of
sugar mills in the late 1960's and early 1970's due to worldwide
inflation which correspondingly increased the financial requirements of
the sugar industry;
WHEREAS, all the new sugar mills are being financed by
government financial institutions and, therefore, in the event of
collapse of its operations by reason of financial problems resulting
from high cost of acquisition of the mill, the said government financial
institutions will ultimately suffer the loss;
WHEREAS, there is a need to provide government assistance
and incentive in the production and processing of sugar in view of the
present uncertain and fluid economic conditions confronting the sugar
industry which undoubtedly will affect adversely the future foreign
exchange earning of the country to the prejudice of the national
economy;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution,
do hereby decree and order:
SECTION 1. Any person, partnership, company or corporation
who or which now engaged or shall engage in the business of
manufacturing, milling, processing or refining of sugar shall be
exempted from the payment of special import tax, compensating tax and
customs and tariff duties in respect to the importation of plant
machinery, spare parts and other equipment effective upon approval of
this Decree until June 30, 1980.
SEC. 2. The exemption granted under this Decree shall only
cover the importation of plant machinery, spare parts and other
equipment directly and actually needed and will be used exclusively in
the manufacture, milling, processing or refining of sugar by the grantee
of the exemption under this Decree and the shipping documents covering
the importation are in the name of the tax-exempt firms to whom the
goods shall be delivered directly by the customs authorities.
SEC. 3. Any grantee under this Decree who shall make use of
the privilege hereunder for purposes other than those for which such
privilege were granted or who shall in any manner violate the provision
of this Decree shall be penalized with imprisonment of not less than
five (5) years but not exceeding ten (10) years and a fine of not less
than P10,000.00 but not exceeding P200,000.00 and in addition, such
violation shall ipso facto cause forfeiture of exemption, aside
from the payment of all taxes and duties due in accordance with the
existing laws.
Any person or any officer or employee of the Government who shall
connive with the grantee of tax exemption in the violation of the
provisions of this Decree shall suffer the same penalties prescribed in
the first paragraph of this section. In case the grantee is a juridical
person, the official or officials who consented to the commission of the
offense or tolerated the violation of the provisions of this Decree
shall be the person or persons liable.
SEC. 4. Any person, partnership, company or corporation
who or which may qualify for similar exemption privilege under existing
law or other laws hereinafter decreed or enacted and is qualified under
this Decree, may choose which privilege the grantee desires to avail of,
but in no case shall such grantee be entitled to both privileges
simultaneously.
SEC. 5. All acts, executive orders, administrative orders
or commissions, rules and regulations or part thereof inconsistent with
any of the provisions of this Decree are hereby repealed or modified
accordingly.
SEC. 6. This Decree shall take effect upon approval and
shall continue to be effective until June 30, 1980.
Done in the City of Manila, this 3rd day of September, in the
year of Our Lord, nineteen hundred and seventy-five.
(Sgd.)
FERDINAND E. MARCOS
President
Republic of the Philippines
By the President:
(Sgd.)
ROBERTO V. REYES
Acting Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
