Transactions Permitted.
Section 2
SECTION 2. Transactions Permitted.—Gifts paid for in foreign exchange by Filipinos abroad and nonresidents in general for delivery in the Philippines, shall be governed by and made subject to the following: Goods assembled or manufactured in the Philippines, when paid for in convertible foreign currency inwardly remitted through the banking system in the Philippines, shall be subject to a sales tax equivalent to ten percent (10%) of the gross selling price or gross value in money of the goods sold and shall be exempt from the payment of gift taxes. This exemption shall, however, apply only to sales not exceeding an aggregate foreign exchange value of One Thousand United States dollars (US$1,000,00), or its equivalent in other convertible foreign currencies, but in no case to exceed three (3) units or pieces of the same goods sold and delivered as gifts in the Philippines. The Minister of Finance shall adopt and promulgate such rules and regulations as shall be necessary to effectively implement the fiscal incentives provided in this Decree.