Section 5
SECTION 5. A new section to be known as Section four-A is hereby inserted into the same Act to read as follows: "SEC. 4-A. In the contracting of any loan, credit or indebtedness under this Act, the President of the Philippines may, when necessary, agree to modify the application of any law granting preferences or imposing restrictions on international competitive bidding, including, among others, Act Numbered Four thousand two hundred thirty-nine, Commonwealth Act Numbered One hundred thirty-eight, the provisions of Commonwealth Act Numbered Five hundred forty-one, insofar as such provisions do not pertain to constructions primarily for national defense purposes, Republic Act Numbered Nine hundred twelve, and Republic Act Numbered Five thousand one hundred eighty-three: Provided, however, that any privilege granted to any foreign bidder shall, likewise, be granted to the domestic bidder in order to put them on equal terms with foreign bidders: Provided, further, that in case where international competitive bidding shall be conducted, preference shall be granted in favor of articles, materials, equipment or supplies of the growth, production of the Philippines, or manufactured in the Philippines substantially from articles, materials, or supplies of the growth, production or manufacture of the Philippines when offered by bidders who are citizens of the Philippines or corporations, partnership, associations or firms duly organized and registered under the laws of the Philippines at least sixty per centum of the capital of which is owned and held by citizens of the Philippines: Provided, however, that in no case shall the President of the Philippines reduce the minimum preference below fifteen per centum: Provided, further, that in comparing the bids: (A) customs duties and any other taxes otherwise due on, or in respect of, imported articles, materials, equipment or supplies and any national and local sales taxes thereon due on the sale to the buyer shall, if included in the bid price of a bidder not entitled to preference under provided for in this section; (B) customs duties due on the imported component of the articles, materials, equipment or supplies and the national and local taxes due on the sale to the buyer of articles, materials, equipment or supplies shall, if included in the bid price of a bidder entitled to preference under this section, be deducted therefrom."