AN ACT GRANTING TAX AND DUTY EXEMPTION AND TAX CREDIT ON CAPITAL EQUIPMENT

• Number: Republic Act No. 7369
• Sections: 8

Section 1

SECTION 1. Paragraph (c), Article 39, Title III of the Omnibus Investments Code of 1987 is hereby amended to read as follows:

"(c) Tax and Duty Exemption on Imported Capital Equipment. - Until December 31, 1994, importations of machinery and equipment and accompanying spare parts of new and expanding registered enterprise shall be exempt to the extent of One hundred percent (100%) of the customs duties and national internal revenue tax payable thereon: Provided, That the importation of machinery and equipment and accompanying spare parts shall comply with the following conditions:

"(1) They are not manufactured domestically in sufficient quantity, of comparable quality and at reasonable prices;

"(2) They are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products, unless prior approval of the Board is secured for the part-time utilization of said equipment in a non-registered activity to maximize usage thereof or the proportionate taxes and duties are paid on the specific equipment and machinery being permanently used for non-registered activities;

"(3) The approval of the Board was obtained by the registered enterprise for the importation of such machinery, equipment and spare parts." In granting the approval of the importations under this paragraph, the Board may require international canvassing but if the total cost of the capital equipment or industrial plant exceeds US$5,000,000.00, the Board shall apply or adopt the provisions of Presidential Decree Numbered 1764 on international Competitive Bidding.

"If the registered enterprise sells, transfers or disposes these machinery, equipment and spare parts without prior approval of the Board within five (5) years from the date of acquisition, the registered enterprise and the vendee, transferee, or assignee shall be solidarily liable to pay twice the amount of the tax exemption given it.

"The Board shall allow and approve the sale, transfer, disposition of the said items within the said period of five (5) years if made:

"(aa) to another registers enterprise or registered domestic producer enjoying similar incentives;

"(bb) for reason of proven technical obsolescence; or

"(cc) for purposes of replaceement to improve and/or expand the operations of the registered enteprises."

Section 2

SEC. 2. Paragraph (d), Article 39, Title III of the same Code, is likewise amended to read as follows:

"(d) Tax credit on Domestic Capital Equipment. - A tax credit equivalent to One hundred percent (100%) of the value of the national internal revenue taxes and customs duties that would have been waived on the machinery, equipment and spare parts, had these items been imported shall be give to the new and expanding registered enterprise which purchases machinery equipment and spare parts from a domestic manufacture: Provided, That (1) that the said equipment, machinery and spare parts are reasonably needed and will be used exclusively by the registered enterprise in the manufacture of its products, unless prior approval of the Board is secured for the part-time utilization of said equipment in a nonregistered activity to maximize usage thereof; (2) that the equipment would have qualified for tax and duty-free importation under paragraph (c) hereof; (3) that the approval of the Board was obtained by the registered enterprise; and (4) that the purchase is made on or before December 31, 1994. If the registered enterprise sells, transfers, or disposes of these machinery, equipment and spare parts, the provision in the preceding paragraph for such disposition shall apply." SEC. 3. For a period three (3) years starting January 1, 1995, the following imported articles shall be exempt from duties imposed under Section 104 of the Tariff and Customs Code of 1978, as amended, and all kinds of levies provided by law or presidential decree:

HDG. NO.

HARMONIZED

SYSTEM CODE

DESCRIPTION

84.02

Steam or other vapour

generating boilers

(other than central

heating hot water

boilers capable also of

producing low pressure

steam); super-heated

water boilers.

- Steam or other vapour

generating boilers;

8402.11 00

- Watertube boilers with

a steam production

exceeding 45 t per hour

8402.12

-- Watertube boilers

with a steam production

not exceeding 45 t per

hour;

8402.12 10

---- With rating above

9.4 t per hour

8402.12 90

---- Other

8402.19

---- Other vapour

generating boilers,

including hybrid

boilers;

8402.19 10

------ With rating above

9.4 t per hour

8402.19 90

------ Other

8402.20

- Super-heated water

boilers

8402.20 10

---- With rating above

9.4 t per hour

8402.20 90

---- Other

x x x

84.03

Central heating boilers

other than those of

heading No. 84.02.

8403.10 00

- Boilers

x x x

84.04

Auxiliary plant for use

with boilers of heading

No. 84.02 or 84.03 (for

example, economisers,

super-heaters, soot

removers, gas

recoverers); condensers

for steam or other

vapour power units.

8404.10

- Auxiliary plant for

use with boilers of

heading No. 84.02 or

84.03;

8404.10 10

-- Auxiliary plant for

use with boilers of

heading No. 84.02

8404.10 90

- Other

8404.20 00

- Condensers for steam

and other vapour power

units

x x x

84.05

Producer gas or water

gas generators, with or

without their purifiers;

acetylene gas generators

and similar water

process gas generators,

with or without their

purifiers.

8405.10 00

- Producers gas or water

gas generators, with or

without their purifiers;

acetylene gas generators

and similar water

process gas generators,

with or without their

purifiers.

x x x

84.06

Steam turbines and other

vapour turbines.

- Turbines:

8406.11 00

For marine propulsion

8406.19 00

Other

x x x

84.07

Spark-ignition

reciprocating or rotary

internal combustion

piston engines.

x x x

- Marine propulsion

engines:

8407.21 00

-- Outboard motors

x x x

- Reciprocating piston

engines of a kind used

for the propulsion of

vehicles of Chapter 87;

8407.31

-- Of a cylinder

capacity not exceeding

50 cc

x x x

84.08

Compression-ignition

internal combustion

piston engines (diesel

or semi-diesel engines).

8408.10 00

- Marine propulsion

engines

x x x

84.10

Hydraulic turbines,

water wheels, and

regulators therefor.

- Hydraulic turbines and

water wheels:

8410.11 00

-- Of a power not

exceeding 1,000 kw

8410.12 00

--- Of a power exceeding

1,000 kw but not

exceeding 10,000 kw

8410.13 00

-- Of a power exceeding

10,000 kw

x x x

84.13

Pumps for liquids,

whether or not fitted

with a measuring device;

liquid elevators.

- Pumps fitted or

designed to be fitted

with a measuring device;

x x x

8413.19 00

Other

8413.20 00

Hand pumps, other than

those of subheading No.

8413.11 or 8413.19

8413.30 00

- Fuel, lubricating or

cooling medium pumps for

internal combustion

piston engines

8413.40 00

Concrete pumps

8413.50 00

Other reciprocating

positive displacement

pumps

8413.60 00

- Other rotary positive

displacement pumps

8413.70 00

- Other centrifugal

pumps;

8413.70 10

-- Centrifugal water

pumps, single stage,

single suction,

horizontal shaft type

suitable for belt drive

or direct coupling

(except pumps with

shafts common with prime

mover) with casings and

impellers of cast iron

or bronze

8413.70 90

-- Other

- Other pumps; liquid

elevators;

8413.81 00

Pumps

8413.82 00

Liquid elevators

x x x

84.14

Air or vacuum pumps, air

or other gas compressors

and fans; ventilating or

recycling hoods

incorporating a fan,

wether or not fitted

with filters.

8414.00 00

- Vacuum pumps

x x x

8414.30 00

- Compressors of a kind

used in refrigerating

equipment.

x x x

8414.40 00

- Air compressors

mounted on a wheeled

chassis for towing

x x x

8414.60 0

- Hoods having a maximum

horizontal side not

exceeding 120 cm

8414.80 00

- Other

x x x

84.16

Furnace burners for

liquid fuel, for

pulverized solid fuel or

for gas; mechanical

stokers, mechanical

grates, mechanical ash

dischargers and similar

appliances.

8416.10 00

- Furnace burners for

liquid fuel

8416.20 00

- Other furnace burners,

including combination

burners

8416.30 00

- Mechanical stokers,

mechanical grates,

mechanical ash

dischargers and similar

appliances

x x x

84.17

Industrial or laboratory

furnaces and ovens,

including incinerators,

non-electric.

8417.10 00

- Furnaces and ovens for

the roasting, melting or

other heat-treatment of

ores, pyrites or of

metals

8417.20 00

- Bakery ovens,

including biscuit ovens

8417.80 00

- Other

x x x

84.19

Machinery, plant or

laboratory equipment,

whether or not

electrically heated, for

the treatment of

materials by a process

involving a change of

temperature such as

heating, cooking,

roasting, distilling,

rectifying, sterilizing,

pasteurising, steaming,

drying, evaporating,

vaporising, condensing

or cooling, other than

machinery or plant of a

kind used for domestic

purposes; instantaneous

or storage water

heaters, non-electric.

- Instantaneous or

storage water heaters,

non-electric;

8419.11 00

- Instantaneous gas

water heaters

8419.19 00

Other

x x x

- Dryers;

8419.31 00

For agricultural

products

8419.32 00

For wood, paper pulp,

paper or paperboard

8419.39

-- Other;

8419.39 10

---- Driers for printing

plate making

8419.39 90

---- Other

8419.40 00

Distilling or rectifying

plant

8419.50 00

Heating exchange units

8419.60 00

- Machinery for

liquefying air or gas

- Other machinery, plant

and equipment;

8419.81 00

-- For making hot drinks

or for cooking or

heating food

8419.89

-- Other;

8419.89 10

---- Sterilising

apparatus (other than

those covered in

subheading No.

8419.2000)

8419.89 90

---- Other

x x x

84.20

Calendaring or other

rolling machines, other

than for metals or

glass, and cylinders

therefor.

8420.10 00

- Calendaring or other

rolling machines

x x x

84.21

Centrifuges, including

centrifugal dryers;

filtering or purifying

machinery and apparatus,

for liquids or gases.

- Centrifuges, including

centrifugal dryers;

8421.11 00

-- Cream separators

8421.17 00

-- Clothes-dryers

(EXCLUDING THOSE FOR

HOUSEHOLD USE)

8421.19 00

-- Other

-- Filtering or

purifying machinery and

apparatus for liquids;

8421.21 00

-- For filtering or

purifying water

(EXCLUDING THOSE FOR

HOUSEHOLD USE)

8421.22 00

-- For filtering or

purifying beverages

other than water

(EXCLUDING THOSE FOR

HOUSEHOLD USE)

8421.23 00

-- Oil or petrol-filters

for internal combustion

engines

8421.29 00

-- Other

(EXCLUDING THOSE FOR

HOUSEHOLD USE)

-- Filtering or

purifying machinery

and apparatus for gases;

8421.31 00

-- Intake air filters

for internal combustion

engines

8421.39 00

-- Other

(EXCLUDING THOSE FOR

HOUSEHOLD USE)

x x x

84.22

Dish washing machines;

machinery for cleaning

or drying bottles or

other containers;

machinery for filling,

closing, sealing,

capsuling or labelling

bottles, cans, boxes,

bags or other

containers; other

packing or wrapping

machinery, machinery for

aerating beverages.

- Dish washing machines;

x x x

8422.19 00

-- Other

x x x

8422.30 00

- Machinery for filling,

closing, scaling,

capsuling or labelling

bottles, cans, boxes,

bags or other

containers; machinery

for aerating beverages

8422.40 00

-- Other packing or

wrapping machinery

x x x

84.25

Pulley tackle and hoists

other than skip hoists;

winches and capstans;

jabs.

- Pulley tackle and

hoists other than skip

hoists or hoists of a

kind used for raising

vehicles;

8425.11 00

Powered by electric

motor

8425.19 00

Other

8425.20 00

Pit-head winding gear;

winches specially

designed for use

underground

- Other winches;

capstans;

8425.31 00

-- Powered by electric

motor

8425.39 00

-- Other

-- Jacks; hoists of a

kind used for raising

vehicles;

8425.41 00

-- Built-in jacking

system of a type used in

garages

8425.42 00

-- Other jacks and

hoists, hyradulic

8425.49 00

-- Other

84.26

Derricks; cranes,

including cable cranes;

mobile lifting frames,

straddle carriers and

works trucks fitted with

a crane.

- Overhead travelling

cranes, transporter

cranes, gantry cranes,

bridge cranes, mobile

lifting frames and

straddle carriers;

8426.11 00

-- Overhead travelling

cranes on fixed support

8426.12

-- Mobile lifting frames

on tyres and straddle

carriers;

8426.12 10

-- Straddle carriers

8426.12 20

-- Mobile lifting frames

on tyres

8426.19 00

-- Other

8426.20 00

- Tower cranes

8426.30 00

-- Portal or pedestal

jib cranes

Other machinery,

self-propelled;

8426.41

-- On tyres;

8426.41 10

-- Crane trucks

8426.41 90

-- Other

8426.49 00

-- Other

- Other machinery;

8426.91 00

-- Designed for mounting

on road vehicles

8426.99 00

-- Other

x x x

84.28

Other lifting, handling,

loading or unloading

machinery (for example,

lifts, escalators,

conveyors, teleferics).

8428.10 00

- Lifts and skip hoists

8428.20 00

- Pneumatic elevators

and conveyors

- other continuousaction

elevators and

conveyors, for goods or

materials;

8428.31 00

-- Specially designed

for underground use

8428.32 00

-- Other, bucket type

8428.33 00

-- Other, belt type

8428.39 00

-- Other

8428.40 00

- Escalators and moving

walkways

8428.50 00

Mine wagon pushers,

locomotive or wagon

traversers, wagon

tippers and similar

railway wagon handling

equipment

8428.60 00

- Teleferics,

chair-lifts,

ski-draglines; traction

mechanisms for

funiculars

8428.90 00

- Other machinery

84.29

Self-propelled

bulldozers, angledozers,

graders, levellers,

scrapers, mechanical

shovels, excavators,

shovel loaders, tamping

machines and road

rollers.

- Bulldozers and

angledozers

8429.11 00

-- Track laying

8429.19 00

-- Other

8429.20 00

- Graders and levellers

8429.30 00

- Scrapers

8429.40 00

- Tamping machines and

road rollers

- Mechanical shovels,

excavators and shovel

loaders

8429.51 00

-- Front-end shovel

loaders

8429.52 00

-- Machinery with a 360

deg. revolving

superstructure

8429.59 00

-- Other

84.30

Other moving, grading,

leveling, scraping,

excavating, tamping,

compacting, extracting

or boring machinery, for

earth, minerals or ores;

pile-drivers and pile

extractors; snow-ploughs

and snow-blowers.

8430.10 00

- Pile-drivers and pile

extractors

x x x

- Coal or rock cutters

and tunnel ling

machinery;

8430.31 00

-- Self-propelled

8430.39 00

-- Other

- Other boring or

sinking machinery;

8430.41 00

-- Self-propelled

8430.49 00

-- Other

8430.50 00

- Other machinery,

self-propelled

- Other machinery, not

self-propelled;

8430.61 00

-- Tamping or compacting

machinery

8430.62 00

-- Scrapers

8430.69 00

-- Other

x x x

84.33

Harvesting or threshing

machinery, including

straw or fodder balers;

grass or hay mowers;

machines for cleaning,

sorting or grading eggs,

fruit or other

agricultural produce,

other than machinery of

heading No. 84.37.

x x x

8433.20 00

- Other mowers,

including cutter bars

for tractor mounting

8433.30 00

- Other haymaking

machinery

8433.40 00

- Straw or fodder

balers, including

pick-up balers

- Other harvesting

machinery; threshing

machinery;

8433.51 00

Combine

harvester-threshers

8433.52 00

Other threshing

machinery

8433.53 00

Root or tuber harvesting

machines

8433.59 00

Other

8433.60 00

Machines for cleaning,

sorting or grading eggs,

fruit or other

agricultural produce

84.34

Milking machines and

dairy machinery.

8434.10 00

- Milking machines

8434.20 00

- Dairy machinery

x x x

84.35

Presses, crushers and

similar machinery used

in the manufacture of

wine, cider, fruit

juices or similar

beverages.

8435.10 00

- Machinery

x x x

84.37

Machines for cleaning,

sorting or grading seed,

grain or dried

leguminous vegetables,

machinery used in the

milling industry or for

the working of cereals

or dried leguminous

vegetables, other than

farm-type machinery.

8437.10

- Machinery for

cleaning, sorting or

grading seed, grain or

dried leguminous

vegetables;

8437.10 10

For bread grains (e.g.

wheat, rye)

8437.10 90

Other

8437.80

Other Machinery;

8437.80 10

Rice hullers and cone

type rice mill

8437.80 90

Other

x x x

84.38

Machinery, not specified

or included elsewhere in

this Chapter, for the

industrial preparation

or manufacture of food

or drink, other than

machinery for the

extraction or

preparation of animal or

fixed vegetable fats or

oils.

8438.10 00

- Bakery machinery and

machinery for the

manufacture of macaroni,

spaghetti or similar

products

8438.20 00

- Machinery for the

manufacture of

confectionery, cocoa or

chocolate

8438.30 00

- Machinery for sugar

manufacture

8438.40 00

- Brewery machinery

8438.50 00

- Machinery for the

preparation of - meat or

poultry

8438.60 00

- Machinery for the

preparation of fruits,

nuts or vegetables

8438.80 00

- Other machinery

x x x

84.39

Machinery for making

pulp of fibrous

cellulosic materials or

for making or finishing

paper or paperboard.

8439.10 00

- Machinery for making

pulp of fibrous

cellulosic material

8439.20 00

- Machinery for making

paper or paperboard

8439.30 00

- Machinery for

finishing paper or

paperboard

x x x

84.40

Book-binding machinery,

including book-sewing

machines.

8440.10 00

- Machinery

x x x

84.41

Other machinery for

making up paper pulp,

paper or paperboard,

including cutting

machines of all kinds.

8441.10

Cutting machines:

8441.10 10

For photographic prints

on paper or paperboard

mounts for photographs.

8441.10 90

-- Other

8441.20 00

- Machines for making

bags, sacks or envelopes

8441.30 00

- Machines for making

cartons, boxes, cases,

tubes, drums or similar

containers, other than

by moulding

8441.40 00

- Machines for moulding

articles in paper pulp,

paper or paperboard

8441.80 00

- Other Machinery

x x x

84.42

Machinery, apparatus and

equipment (other than

the machine-tools of

headings Nos. 84.56 to

84.65), for typefounding

or typesetting,

for preparing

or making printing

blocks, plates,

cylinders or other

printing components:

printing type, blocks,

plates, cylinders and

other printing

components: blocks,

plates, cylinders and

lithographic stones,

prepared for printing

purposes (for example,

planed, grained or

polished).

8442.10 00

-Phototype-setting and

composing machines

8442.20 00

- Machinery, apparatus

and equipment for

type-setting or

composing by other

processes, with or

without founding device

8442.30 00

- Other machinery,

apparatus and equipment

x x x

8442.50 00

- Printing type, blocks,

plates, cylinders and

other printing

components, blocks,

plates, cylinders and

lithographic stones,

prepared for printing

purposes (for example,

planed, grained or

polished)

84.43

Printing machinery,

machines for uses

ancillary to printing.

- Offset printing

machinery

8443.11 00

-- Reel fed

8443.12 00

-- Sheet fed office type

(sheet size not

exceeding 27 x 36 cm)

8443.19 00

-- Other

Letterpress printing

machinery, excluding

flexographic printing:

8443.21 00

-- Reel fed

8443.29 00

-- Other

8443.30 00

- Flexographic printing

machinery

8443.40 00

- Gravure printing

machinery

8443.50 00

- Other printing

machinery

8443.60

- Machines for uses

ancillary to printing

8443.60 10

-- Proofing machines,

color decks, automatic

splicers, in feed

devices, color

registration equipment,

dehumidifiers,

anti-wrinkle devices,

proof presses, moisture

control stabilizers,

embossing machines,

scoring machines,

automatic registration

controls, saddles,

counter stackers and

ink vibrators

8443.60 90

-- Other

x x x

84.44

8444.00 00

Machines for extruding,

drawing, texturing or

cutting man-made textile

materials.

84.45

Machines for preparing

textile fibers;

spinning, doubling or

twisting machines and

other machinery for

producing textile yarns;

textile reeling or

winding (including weftwinding)

machines and

machines for preparing

textile yams for use on

the machines of heading

No. 84.46 or 84.47.

- Machines for preparing

textile fibers

8445.11 00

-- Carding machines

8445.12 00

-- Combing machines

8445.13 00

-- Drawing or roving

machines

8445.19 00

-- Other

8445.20 00

- Textile spinning

machines

8445.30 00

- Textile doubling or

twisting machines

8445.40 00

- Textile winding

(including weftwinding)

or reeling

machines

8445.90 00

- Other

84.46

Weaving machines

(looms).

8446.10 00

- For weaving fabrics of

a width not exceeding

30 cm.

- For weaving fabrics of

a width exceeding 30 cm.

shuttle type

8446.21 00

-- Power looms

8446.29 00

- Other

8446.30 00

- For weaving fabrics of

a width exceeding 30 cm.

shuttleless type

84.47

Knitting machines,

stitch-bonding

machines and machines

for making dimmed yarn,

tulle, lace, embroidery,

trimmings, braid or net

and machines for

tufting.

- Circular knitting

machines:

8447.11 00

-- With cylinder

diameter not exceeding

165 mm.

8447.12 00

-- With cylinder

diameter exceeding

165 mm.

8447.20 00

- Flat knitting

machines: stitch-bonding

machines

8447.90 00

- Other

84.49

8449.00 00

Machinery for the

manufacture or finishing

of felt or nonwovens in

the piece or in shapes,

including, machinery for

making felt hats; blocks

for making hats.

x x x

84.51

Machinery (other than

machines of heading No.

84.50) for washing,

cleaning, wringing,

drying, ironing,

pressing (including

fusing presses),

bleaching, dyeing,

dressing, finishing,

coating or impregnating

textile yams, fabrics or

made up textile articles

and machines for

applying the paste to

the base fabric or other

support used in the

manufacture of floor

coverings such as

linoleum; machines for

reeling, unreeling,

folding, cutting or

pinking textile fabrics.

8451.10 00

- Dry-cleaning machines

- Drying machines:

8451.21 00

-- Each of a dry linen

capacity not exceeding

10 kg.

8451.29 00

-- Other

8451.30 00

- Ironing machines and

presses (including

fusing presses)

8451.40 00

- Washing, bleaching or

dyeing machines

8451.50 00

- Machines for reeling,

unreeling, folding,

cutting or pinking

textile fabrics

8451.80 00

- Other machinery

x x x

84.52

8452.30 00

Sewing machine needles

(EXCLUDING THOSE UNDER

SUBHEADING NO. 8452

.10 00)

x x x

84.53

Machinery for preparing,

tanning or working

hides, skins or leather

or for making or

repairing footwear or

other articles of hides,

skins or leather, other

than sewing machines.

8453.10 00

- Machinery for

preparing, tanning or

working hides, skins or

leather

8453.20 00

- Machinery for making

or repairing footwear

8453.80 00

- Other machinery

x x x

84.54

Converters, ladles,

ingot moulds and

casting machines, of a

kind used in

metallurgy or in metal

foundries.

8454.10 00

- Converters

8454.20 00

- Inqot moulds and

ladles

8454.30 00

Casting machines

x x x

84.55

Metal rolling mills and

rolls therefor.

8455.10 00

- Tube mills

- Other rolling mills

8455.21 00

-- Hot or combination

hot and cold

8455.22 00

-- Cold

8455.30 00

- Rolls for rolling

mills

x x x

84.57

Machining centres, unit

construction machines

(single station) and

multistation transfer

machines, for working

metal.

8457.10 00

- Machine centres

8457.20 00

- Unit construction

machines (single

Station)

8457.30 00

- Multi-station transfer

machines

84.58

Lathes for removing

metal.

- Horizontal lathes:

8458.11 00

-- Numerically

controlled

8458.19 00

-- Other

- Other lathes:

8458.91 00

-- Numerically

controlled

8458.99 00

-- Other

84.59

Machine-tools (including

way-type unit head

machines) for drilling,

boring, milling,

threading or tapping by

removing metal, other

than lathes of

heading No. 84.58.

8459.10 00

-- Way-type unit head

machines

-- Other drilling

machines

8459.21 00

-- Numerically

controlled

8459.29 00

-- Other

-- Other boring-milling

machines:

8459.31 00

-- Numerically

controlled

8459.39 00

-- Other

8459.40 00

- Other boring machines

- Milling machines,

knee-type:

8459.51 00

-- Nwnerically

controlled

8459.59

-- Other

- Other milling machines

8459.61 00

-- Numerically

controlled

8459.69 00

-- Other

8459.70 00

- Other threading or

tamping machines

x x x

84.62

Machine tools (including

presses) for working

metal by forging,

hammering or diestamping;

machine-tools

(including presses) for

working metal by

bending, folding,

straightening,

flattening, shearing,

punching or notching;

pressing for working

metal or metal carbides,

not specified above.

8462.10 00

- Forging or diestamping

machines

(including presses) and

hammers

- Bending, folding,

straightening or

flattening machines

(including presses):

8462.21 00

-- Nunerically

controlled

8462.29 00

-- Other

- Shearing machines

(including presses),

other than combined

punching and shearing

machines:

8462.31 00

-- Numerically

controlled

8462.39 00

-- Other

- Punching or notching

machines (including

presses), including

combined punching and

shearing machines:

8462.41 00

-- Numerically

controlled

8462.49 00

-- Other

- Other:

8462.91

-- Hydraulic presses:

8462.91 00

-- Presses for moulding

metallic powders by

sintering; presses for

compressing metal scrap

into bales,etc.

8462.91 90

-- Other

8462.99

- Other

8462.99 10

-- Presses for moulding

metallic powders by

sintering; presses for

compressing metal scrap

into bales, etc.

8462.99 90

-- Other

x x x

84.64

Machine tools for

working stone, ceramics,

concrete asbestos-cement

or like mineral

materials or for cold

working glass.

8464.10 00

- Sawing machines

8464.20 0

- Grinding or polishing

machines

8464.90 00

- Other

84.65

Machine-tools (including

machines for nailing,

stapling, glueing or

otherwise assembling)

for working wood, cork,

bone, hard rubber, hard

plastics or similar hard

materials.

8465.10 00

- Machines which can

carry outdifferent types

of machining operations

without tool change

between such operations

- Other:

8465.91 00

-- Sawing machines

8465.92 00

-- Planing, milling or

moulding (by cutting)

machines

8465.93 00

-- Grinding, sanding or

polishing machines

8465.94 00

-- Bending or assembling

machines

8465.95 00

-- Drilling or morticig,

machines

8465.96 00

-- Splitting, slicing or

paring machines

8465.99 00

-- Other

84.68 8468.20

- Other gas-operated

machinery and apparatus:

8468.20 10

-- Complete or finished

hand-operated gas

welding, brazing and

cutting appliances for

metal

8468.20 90

-- Other

x x x

84.74

Machinery for sorting,

screening, separating,

washing, crushing,

grinding, mixing or

kneading earth, stone,

ores or other mineral

substances, in solid

(including powder or

paste) form; machinery

for agglomerating,

shaping or moulding

solid mineral fuels,

ceramic paste,

unhardened cements,

plastering materials or

other mineral products

in powder or paste form;

machines for forming

foundry moulds of sand.

8474.10 00

- Sorting, screening,

separating or washing

machines

8474.20 00

- Crushing or grinding

machines

- Mixing or kneading

machines:

8474.31 00

-- Concrete or mortar

mixers

8474.32 00

-- Machines for mixing

mineral substances with

bitumen

8474.39 00

-- Other

8474.80 00

- Other machinery

x x x

84.75

Machines for assembling

electric or electronic

lamps, tubes or valves

or flashbulbs, in glass

envelopes; machines for

manufacturing or hot

working glass or

glassware.

8475.10 00

- Machines for

assembling electric or

electronic lamps, tubes

or valves or flashbulbs,

in glass envelopes

8475.20 00

- Machines for

manufacturing or hot

working glass or

glassware

x x x

84.77

Machinery for working

rubber or plastics or

for the manufacture of

products from these

materials, not specified

or included elsewhere in

this Chapter.

8477.10 00

- Injection-moulding

machines

8477.20 00

- Extruders

8477.30 00

- Blow moulding machines

8477.40 00

- Vacuum moulding

machines and other -

thermoforming machines

- Other machinery for

moulding or otherwise

forming:

8477.51 00

-- For moulding or

retreading pneumatic

tyres or for moulding or

otherwise forming inner

tubes

8477.59 00

-- Other

8477.80 00

- Other machinery

x x x

84.78

Machinery for preparing

or making up tobacco,

not specified or

included elsewhere in

this Chapter,

8478.10 00

- Machinery

x x x

84.79

8479.30 00

- Presses for the

manufacture of

particle board or fiber

building board of wood

or other ligneous

materials and other

machinery for treating

wood or cork

x x x

84.80

- Moulding boxes for

metal foundry: mould

bases; moulding

patterns; moulds for

metal (other than ingot

moulds), metal carbides,

glass, mineral

materials, rubber or

plastics.

8480.10 00

- Moulding boxes for

metal foundry

8480.20 00

- Mould bases

8480.30

- Moulding patterns;

8480.30 10

-- Of iron or steel

8480.30 90

-- Other

- Moulds for metal or

metal carbides:

8480.41 00

-- Injection or

compression types

8480.49 00

-- Other

8480.50 00

- Moulds for glass

8480.60 00

- Moulds for mineral

materials

- Moulds for rubber or

plastics:

8480.71 00

-- Injection or

compression types

8480.79 00

-- Other

x x x

84.83

Transmission shafts

(including cam shafts

and crank shafts) and

cranks; bearing housings

and plain shaft

bearings; gears and

gearing; ball screws;

gear boxes and other

speed changers,

including torque

converters; flywheels

and pulleys, including

pulley blocks; cluthces

and shaft couplings

(including universal

joints).

8483.10 00

- Transmission shafts

(including cam shafts

and crank shafts) and

cranks

8483.20 00

- Bearing housings,

incorporating ball

or roller bearings

8483.30 00

- Bearing housings, not

incorporating ball or

roller bearings; plain

shaft bearings

8483.40 00

- Gears and gearing,

other than toothed

wheels, chain sprockets

and other transmission

elements presented

separately: ball screws;

gear boxes and other

speed changers,

including torque

converters

8483.50 00

- Flywheels and pulleys,

including pulley blocks

8483.60 00

- Clutches and shaft

couplings (including

universal joints)

8483.90 00

- Parts

x x x

85.01

Electric motors and

generators (excluding

generating sets).

8501.10

- Motors of an output

not exceeding 37.5 W:

8501.10 10

-- Electric motors for

toys

8501.10 90

-- Other

8501.20

- Universal AC/DC motors

of an output exceeding

37.5 W:

8501.20 10

-- Motors with ratings

of 3.75 KW and below

8501.20 20

-- Motors with ratings

over 3.75 KW up to

225 KW

8501.20 30

-- Motors with ratings

over 225 KW

- Other DC motors: DC

generators:

8501.31

-- Of an output not

exceeding 750 W:

8501.31 10

-- Electric generators

when imported by

telecommunication

companies under prior

authorization of the

board of Communications

8501.31 20

-- Electric generators

8501.31 90

-- Other

8501.32

-- Of an output

exceeding 750 W but

not exceeding 75KW:

8501.32 10

-- Electric generators

when imported by

telecommunication

companies under prior

authorization of the

Board of Communications

8501.32 20

-- Electric generators

8501.32 90

-- Other

8501.33

-- Of an output

exceeding 75 KW but

not exceeding 375 KW:

8501.33 10

-- Electric generators

when imported by

telecommunication

companies under prior

authorization of the

Board of Communications

8501.33 20

-- Electric generators

8501.33 30

-- Motors with rating

over 225 KW but not over

375 KW

8501.33 90

-- Other motors

8501.34

-- Of an output

exceeding 375 KW:

8501.34 10

-- Electric generators

when imported by

telecommunication

companies underprior

authorization of the

Board of Communications

8501.34 20

-- Electric generators

8501.34 30 -- Motors with rating

over 375 KW

8501.40

-- Other AC motors,

single-phase:

8501.40 10

-- Motors over 225 KW

8501.40 90

-- Other

-- Other AC motors,

multi-phase:

8501.51 00

-- Of an output not

exceeding 750 W

8501.52 00

-- Of an output

exceeding 750 W but

not exceeding 75 KW

8501.53

-- Of an output

exceeding 75 KW:

8501.53 10

-- Motors over 225 KW

8501.53 90

-- Other motors

-- AC generators

(altenators):

8501.61

-- Of an output not

exceeding 75 KVA:

8501.61 10

-- When imported by

telecommunication

companies under prior

authorization of the

Board of Communications

8501.61 90

-- Other

8501.62

-- Of an output

exceeding 75 KVA but

not exceeding 375 KVA:

8501.62 10

-- When imported by

telecommunication

companies under prior

authorization of the

Board of Communications

8501.62 90

-- Other

8501.63

-- Of an output

exceeding 375 KVA but

not exceeding 750 KVA:

8501.63 10

-- When imported by

telecommunication

companies underprior

authorization of the

Board of Communications

8501.63 90

-- Other

8501.64

-- Of an output

exceeding 750 KVA:

8501.64 10

-- When imported by

telecommunication

companies underprior

authorization of the

Board of Communications

8501.64 10

-- Other

x x x

85.14

Industrial or laboratory

electric (including

induction or dielectric)

furnaces and ovens;

other industrial or

laboratory induction or

dielectric heating

equipment.

8514.10 00

- Resistance heated

furnaces and ovens

8514.20 00

- Induction or

dielectric furnaces and

ovens

8514.30 00

- Other furnaces and

ovens

8514.40 00

- Other induction or

dielectric heating

equipment

x x x

85.15

Electric (including

electrically heated

gas), laser or other

light or photon beam,

ultrasonic, electron

beam, magnetic pulse or

plasma arc soldering,

brazing or welding

machines and apparatus,

whether or not capable

of cutting: electric

machines and apparatus

for hot spraying of

metals or sintered metal

carbides.

- Brazing or soldering

machines and apparatus:

8515.11 00

-- Soldering irons and

ouns

8515.19 00

-- Other

- Machines and apparatus

for resistance welding

of metals:

8515.21 00

-- Fully or partly

automatic

8515.29 00

-- Other

- Machines and apparatus

for arc (including

plasma arc) welding of

metals:

8515.31 00

-- Fully or partly

automatic

8515.39

-- Other:

x x x

8515.39 90

-- Other

8515.80

-- Other machines and

apparatus:

8515.80 10

-- For hot spraying of

metals or sintered metal

carbides

8515.80 90

-- Other

x x x

:Provided, however, That the National Economic and Development Authority may, upon due notice and public hearing, and in consultation with concerned government agencies, exclude any item from the foregoing list, subject to the condition that the machinery or equipment is being manufactured domestically in sufficient quantity, of comparable quality and at a reasonable price.

Section 4

SEC. 4. Pursuant to the preceding Section, a domestic manufacturer of any of the articles enumerated therein shall be entitled to a tax credit equivalent to one hundred percent (100%) of the national intemal revenue taxes, customs duties and levies actually paid on the raw materials used in the manufacture of the article. The purchaser of such article shall likewise be entitled to a tax credit of one hundred percent (100%) of the value of the National Internal Revenue taxes, customs duties imposed thereon under Section 104 of the Tariff and Customs Code of 1978, as amended, and levies provided by law or presidential decree had such article been imported.

Section 5

SEC. 5. As used in this Act, the term domestic manufacturer' shall mean a citizen of the Philippines; a partnership or any other association organized under Philippine laws, with at least sixty percent (60%) of its capital owned and controlled by citizens of the Philippines; a corporation or cooperative organized under Philippine laws with at least sixty percent (60%) of its capital stock outstanding and entitled to vote owned and held by citizens of the Philippines, and with at least sixty percent (60%) of the members of its Board of Directors being citizens of the Philippines.

Section 6

SEC. 6. The Board of Investments (BOI) shall issue certificates for the tax credit mentioned in Section 4 hereof after evaluation as to whether the manufactured article falls under Section 3 of this Act: Provided, however, That the domestic manufacturer has not availed of tax credits thereon under any other investment incentive law, order, rule or regulation: Provided, further, That availment of the tax credit provided for under this Act shall bar the availment of tax credits under such other laws, orders, rules or regulations.

Section 7

SEC. 7. The BOI shall formulate and publish guidelines for the implementation of this Act in the Official Gazette and in any newspaper of general circulation within ninety (90) days after its approval.

Section 8

SEC. 8. All laws, decree, orders, issuances and rules and regulations of parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Section 9

SEC. 9. This Act shall take effect fifteen (15) days after the implementing rules have been published and shall be in effect for five (5) years from the date of its approval.

Approved,

(Sgd.) NEPTALI A. GONZALES

(Sgd.) RAMON V. MITRA

President of Senate

Speaker of the House of Representatives

This bill which is a consolidation of Senate Bill No. 1920 and House Bill No. 34254, was finally passed by the Senate and the House of Representative on February 7, 1992.

(Sgd.) ANACLETO D. BADOY, JR.

(Sgd.) CAMILO L. SABIO

Secretary of Senate

Secretary General House of Representatives

Approved: APR 10 1992

(Sgd.) CORAZON C. AQUINO

President of the Philippines