Annex "A"
IMPLEMENTING RULES AND REGULATIONS GOVERNING THE GRANTING OF TARIFF EXEMPTIONS
ON THE IMPORTATION OF AGRICULTURE AND FISHERIES INPUTS, MACHINERY AND EQUIPMENT
RULE I
DEFINITION OF TERMS
The terms used in this set of
implementing rules and regulations (IRRs) are defined as follows:
(a)
Agriculture enterprise refers to any single proprietorship,
partnership, cooperative, corporation, farmer’s organization/association, or
juridical entity engaged in the cultivation of the soil, planting of crops,
growing of fruit trees, raising of livestock or poultry, the harvesting, and
marketing of such farm products, and other farm activities and practices.
(b) Agriculture
inputs, machinery and equipment refer to goods that
are used or employed in cultivation of the soil, planting of crops, growing of
fruit trees, raising of livestock or poultry, the harvesting and marketing of
such farm products, and in the conduct of farm activities and practices.
(c)
Agriculture sector refers to the sector engaged in the cultivation
of the soil, planting of crops, growing of fruit trees, raising of livestock or
poultry, whether for food or non food purposes, including the harvesting and
marketing of such farm products, and other farm activities and practices.
(d)
Bill of lading refers to a document issued by a carrier to a
shipper, signed by a captain, agent, or owner of a vessel, furnishing written
evidence regarding receipt of articles (cargo), the conditions on which
transportation is made (contract of carriage), and the engagement to deliver
goods at the prescribed port of destination to a lawful holder of the bill of
lading.
(e)
CIF value of articles refer to the cost of the commodity at the
point of delivery including costs of freight and insurance.
(f) Commercial Invoice refers to a document issued by the seller upon
completion of the transaction for sale of a commodity which include the date of
invoice, name and address of buyer, order or contract number, description of the
commodity for sale, unit price, quantity/ volume/ weight and total value of the
projected sale, terms of delivery and payment, shipping marks and numbers, and
shipping details.
(g)
Consolidated purchase orders refer to the consolidation of
purchases of participating agriculture/fisheries enterprise/s to foreign
supplier or import consolidator.
(h)
Cooperatives refer to duly registered associations of persons with
the Cooperative Development Authority (CDA), which may be considered as
agriculture and fisheries enterprises, with a common bond of interest who have
voluntarily joined together to achieve a lawful common social and economic end,
making equitable contributions to the capital required and accepting a fair
share of the risks and benefits of the undertaking in accordance with
universally accepted cooperative principles.
(i)
Exclusive use of imported agriculture and fisheries inputs, machinery
and equipment refers to the employment, application, use or consumption by a
certified agriculture and fisheries enterprise of an imported agriculture and
fisheries input, machinery and/or equipment.
(j)
Farmers and fisherfolk refer to natural persons with agriculture
and fisheries activities as their primary source of income.
(k)
Farmers’ and fisherfolk’s organizations or associations refer to
entities duly accredited or registered by appropriate government agencies and
which are composed primarily of agricultural producers, farmers, farm workers,
agrarian reform beneficiaries, fisherfolk who voluntarily join together to
engage in agriculture or fisheries activities which they themselves own control
and patronize.
(l)
Fish and fisheries/aquatic products refer to fin fish, mollusks,
crustaceans, echinoderms, marine mammals, and all other species of aquatic flora
and fauna and all other products of aquatic living resources in any form.
(m) Fisheries enterprise refers to any single proprietorship,
partnership, cooperative, corporation, fisherfolk’s organization/association and
other juridical entity that is engaged in producing, harvesting, processing,
marketing of fish or fisheries/aquatic products and developing and conserving
aquatic resources and fisheries areas.
(n)
Fisheries inputs, machinery and equipment refer to goods for use
as an ingredient, or component part of a finished fisheries product, or employed
in producing, harvesting, processing, marketing of fish or fisheries/ aquatic
products and developing aquatic resources and fisheries areas.
(o) Fisheries sector refers to the sector engaged in producing,
harvesting, processing, marketing of fish or fisheries/aquatic products and
developing and conserving aquatic resources and fisheries areas.
(p) Imports refer to all articles or commodities brought into the
Philippines from any foreign country.
(q)
Import consolidator refers to any juridical person
authorized/accredited by the Department of Agriculture Regional Field Unit (DA-RFU)
by issuing a Certificate of Accreditation to import agriculture and fisheries
inputs, machinery and equipment on behalf of eligible agriculture and/or
fisheries enterprises.
(r) Micro-agricultural processor refers to any single proprietorship,
partnership, cooperative, farmer’s organization/association, or corporation,
engaged in the processing of raw agricultural and fishery products into
semi-processed or finished products which include materials for the manufacture
of food and/or non-food products, pharmaceuticals and other industrial
products, whose total assets, inclusive of those arising from loans but
exclusive of the land on which the particular business entity’s office, plant
and equipment are situated, must have value of not more than Three Million Pesos
(P3, 000,000.00).
(s)
Purchase order refers to a purchaser’s (agriculture/fisheries
enterprise) written offer to a supplier formally stating all terms and
conditions of a proposed transaction.
(t) Small agriculture and fisheries enterprise refers to any business
activity or enterprise engaged in industry, agribusiness and/or services,
whether single proprietorship, cooperative, partnership or corporation whose
total assets, inclusive of those arising from loans but exclusive of the land on
which the particular business entity’s office, plant and equipment are situated,
must have value of not more than Fifteen Million Pesos (P15, 000,000).
(u) Total allowable peso value of import transaction refers to the
cumulative peso value of articles imported within the validity of the CE, which
should not exceed the declared assets of an agriculture and fisheries
enterprise. In the case of the import consolidator, the CIF value of articles
should not exceed the sum of unused total allowable peso value reflected in
Section 4 (c) of Rule IV.
Rule II
COVERED ARTICLES
All articles under Annex “B”
imported by qualified agriculture and fisheries enterprises and
micro-agricultural processors shall be duty-exempt, and shall be subject to all
existing import rules, regulations and requirements.
Rule III
COVERED ENTERPRISES
Only those agriculture and
fisheries enterprises, and micro-agricultural processors as defined in Rule I
(a), (m), and (r) shall be eligible for exemption from the payment of tariffs on
imported inputs, machinery and equipment listed in Annex ”B” that are for their
exclusive use and shall be subject to the provisions of the IRRs; Provided that
small agriculture and fisheries enterprises as defined in Rule I (t) shall be
subject to “simplified certification” procedures under Section 3, Rule IV of
this IRR; Provided further that agriculture and fisheries enterprises not
falling within Rule I (t) shall be subject to the “regular certification”
procedures under Section 4, Rule IV of this IRR; Provided finally that
micro-agricultural processors defined in Rule I (r) shall be subject to the
“regular certification” procedures under Section 4, Rule IV of this IRR.
Rule IV
APPLICATION/CERTIFICATION PROCEDURES FOR
AGRICULTURE AND FISHERIES ENTERPRISES AND
MICRO-AGRICULTURAL PROCESSORS
Section
1. Agriculture and fisheries enterprises
availing of duty-exempt importation shall apply for a
Certificate of Eligibility (CE) with any of the deputized agencies enumerated in
the
subsequent section. The CE entitles enterprise for duty-free importation of
agriculture
and fisheries inputs, machinery, equipment listed in Annex “B”.
Section
2. The Head of any of the following government agencies is deputized to
issue the CE:
(a) The DA’s
Regional Field Units (RFUs) (for agriculture enterprises);
(b) The Bureau
of Fisheries and Aquatic Resources (BFAR) or its regional offices
(for fisheries
enterprises); or
(c) The DTI’s
regional and provincial offices, or DTI-BOI.
Section 3.
Small agriculture and fisheries enterprises applying for a CE shall be subject
to the simplified certification procedures by submitting the following
documents:
(a) Duly
accomplished application form;
(b) A certified
copy of certificate of registration issued by:
(b.1) the SEC, in the case of corporation and
partnership;
(b.2) the DTI, in the case of single
proprietorship; or a certified copy of Business/Mayor’s Permit, as the case may
be;
(b.3) the CDA, in the case of a cooperative; or
(b.4) by the SEC or an accreditation by
appropriate government agency in the case of farmers’/fisherfolk’s organizations
and associations; and
(c) Declared
assets of the previous year or the latest available declaration of assets, which
will be the basis of the total allowable peso value of import transaction/s in a
year.
Section 4. All agriculture
and fisheries enterprises not falling within the definition under Rule I
(t), and micro-agricultural processors defined under Rule I (r) shall be subject
to the
regular certification procedures by submitting the following requirements:
(a) Duly accomplished application form;
(b) A certified copy of
certificate of registration issued by:
(b.1) the SEC, in the case of corporation and
partnership;
(b.2) the DTI, in the case of single
proprietorship,
(b.3) the CDA, in the case of a cooperative; or
(b.4) by the SEC or
an accreditation by appropriate government agency in the case of farmers’/fisherfolk’s
organizations and associations;
(c) Duly
”audited” assets of the previous year or the latest available declaration of
assets, which will be the basis of the total allowable peso value of import
transaction/s in a year;
(d) Notarized
statement indicating the following:
i. That the
enterprise has no pending application from other issuing agency/ies under the
incentives provided in Section 109 of RA 8435 as amended by RA 9281; and
ii. That the
enterprise has not availed of similar incentives provided under existing laws
for the same articles to be imported; and
(e) An
indicative list of regularly used inputs, equipment and machinery for the year.
Section 5. The application for and
receipt of a CE shall only be undertaken by the eligible enterprise
or through
its authorized representative/s. Such authorization shall define the extent and
nature of the representative’s authority through the issuance of the following:
(a) A board
resolution and a corporate secretary’s certificate in the case of a corporation;
(b) A
secretary’s/partner’s certificate in the case of a partnership; or
(c) A special
power of attorney (SPA) in the case of a sole proprietorship.
Section 6. The DA or any of its deputized agencies shall issue a CE within three (3)
working days from
submission of the application form with complete supporting
documents. The issuing
agency shall conduct an ocular inspection before the
issuance of CE for all new applicants to
ascertain the capacity and requirements
of the applicant.
Section 7.
The CE shall contain the following information:
(a) Name of the
agriculture or fisheries enterprise;
(b) Type of
agricultural or fishery activity engaged in;
(c) CE Control
number;
(d) Date of
issuance and expiration of the CE;
(e) Total
allowable peso value of import transaction/s within the validity of
the CE
referred to in Sections 3 (c) and 4 (c) of this Rule; and
(f) A table for
recording the following information as a result of tariff-exempt
import transactions made
by an enterprise:
(f.1) Commodity code and description;
(f.2) CIF peso value and volume/quantity;
(f.3) Available balance/unused allowable peso
value of imports;
(f.4) Name and signature of DA Officer and BOC
Collector; and
(f.5) Date recorded.
Section 8.
The issuing agency shall indicate the amount of the total allowable peso value
of
import transaction/s in a year in the space provided in the CE.
Section 9.
An eligible enterprise securing more than one valid CE shall constitute a
violation
of this EO and shall be subject to the penalties outlined in Rule IX.
Section 10.
The CE is non-transferable and shall be valid for a year from the date of
issuance, unless invalidated or revoked under Rule IX. An enterprise with an
expired CE and wishing to continue to avail of the duty-exempt importation may
re-apply for another CE by following the procedures on application outlined in
this Rule; Provided, that the enterprise shall surrender the expired CE to the
same issuing agency.
Rule V
IMPORT CONSOLIDATORS
Section 1. An import consolidator as defined in Rule I (q) may represent and assist
an/those
eligible agriculture and/or fisheries enterprise/s, that are unable to
undertake
direct importation of articles listed in Annex “B”.
Section 2.
The DA-RFUs shall, within sixty (60) days from the effectivity of these IRRs,
invite application from interested entities to serve as import consolidators by
submitting a letter of intent. The letter of intent should include the range of
articles that the entity wishes to import. The DA-RFU shall make available the
list of interested import consolidators.
Section 3.
Before an import consolidator can undertake import services for eligible
agriculture and fisheries enterprises, it must apply in writing for a
Certificate of
Accreditation (CA) form and must submit the following documents
to any of the
DA-RFUs:
(a) Certificate
of registration from the CDA, SEC, or DTI, as the case may be;
(b) Notarized
statement indicating the following:
i. That the
import consolidator will only use the CA for purposes of providing import
services to eligible agriculture and/or fisheries enterprise/s and shall not
undertake any of the activities referred to in Section 9 of this Rule; and
ii. A letter of
endorsement duly signed by all participating eligible agriculture and fisheries
enterprises, attached with their individual valid original CE, allowing the
import consolidator to import agriculture and fishery inputs, machinery and
equipment on their behalf; and
(c)
Consolidated purchase orders of participating agriculture and/or fisheries
enterprise/s.
Section 4 . For CEs being consolidated,
DA-RFUs shall indicate in the space provided in each
CE of this/these
enterprise/s the required information referred to in Section 7(f)
of Rule IV
based on the information contained in the purchase order/s of
participating
agriculture and/or fisheries enterprise/s. The peso value of articles
contained in each purchase order of this/these enterprise/s shall be considered
as the actual CIF peso value of articles to be imported and shall automatically
be
deducted from its/their unused total allowable peso value of import
transaction/s reflected in the valid CE.
The purchase order as used in this section
refers to the purchase order of each of the eligible agriculture and fisheries
enterprise.
Section 5. The DA-RFUs shall issue the CA within three (3) working days upon acceptance of
application form with complete supporting documents referred to in Section 3 of
this Rule.
Section 6. The CA authorizes an import consolidator to import articles for agriculture
and/or
fisheries enterprise/s with valid CE. The CA shall contain the following
information:
(a) Registered
business name of import consolidator;
(b) Main
business activity;
(c) CA control
number;
(d) Date of
issuance and expiration;
(e) Total
allowable peso value of an import transaction; and
(f) Registered
business name/s of each participating agriculture and/or fisheries enterprise/s
referred to in Section 3 of Rule IV including:
(f.1) CE Serial Number/s;
(f.2) Peso value of articles to be imported as
reflected in the enterprise purchase order
(f.3) Unused total allowable peso value of
import transaction;
(g) A table for
recording the following information:
(g.1) Commodity code and description;
(g.2) CIF peso value and volume/quantity;
(g.3) Name and signature of BOC
collector/officer; and
(g.4) Date recorded.
Section 7. The CA is
non-transferable and only good for a single import transaction. It shall
remain
valid for three (3) months from the date of its issuance. A valid CA that
is about to expire on the date of the arrival of the articles imported may be
extended for a non-extendible period of 30 days; Provided, That, the goods are
in transit. The import consolidator shall surrender the original copy of the
CA
immediately after its use to the DA central office within thirty (30) days.
Section 8. The DA-RFU shall
require the submission of a copy of the delivery receipt from
each enterprise
represented by the consolidator within seven (7) days on the
date of delivery of
items.
Section 9. An import
consolidator shall be prohibited from diverting for its benefit or use,
selling,
bartering, exchanging, leasing or transferring to third persons, the
imported
agriculture and fisheries inputs, machinery and equipment.
Circumvention of
this provision by the import consolidator shall be subject to
the penalty
provisions under Rule IX.
Rule VI
IMPORT REQUIREMENTS
Section 1. In order to avail of
the duty-free importation incentive for every importation,
an eligible
agriculture and fisheries enterprise shall apply for an endorsement
with the
issuing agency by submitting the following documents:
(a) Valid CE
(original);
(b) Bill of
Lading or Airway Bill (copy);
(c) Commercial
Invoice (copy);
(d) Notarized
statement stating that the inputs, equipment and/or machinery to
be imported
tariff-exempt will be for the exclusive use of the importing
agriculture and
fisheries enterprise.
In endorsing the request for tariff-free
importation, the issuing agency shall fill-up
the table of the CE with the
required information based on the submitted documents above. The peso value of
the articles shall be deducted from the total allowable value. The name and
signature of the authorized official of the issuing agencies shall constitute
the endorsement for the tariff-exempt importation. The accomplished CE shall be
returned to the enterprise.
Section 2. In the case of import
consolidators, the procedures outlined in Rule V shall
apply.
Rule VII
IMPORT PROCEDURES FOR TARIFF EXEMPTION
Section 1. Upon arrival of the
imported agricultural and fisheries inputs, machinery and
equipment listed in
Annex “B” at the point of entry into the Philippines, the importing
agriculture
or fisheries enterprise or import consolidator shall present the following
documents to the Custom Collector/Officer to facilitate the exemption from duty
of the imports:
(a) In the case
of agriculture and/or fisheries enterprise, original plus two copies
of valid
CE;
(b) A sworn
statement that the input, machinery, and/or equipment to be
imported
tariff-exempt will be for the exclusive use of the importing
agriculture or
fisheries enterprise;
(c) Commercial
invoice;
(d) Bill of
Lading/Airway Bill; and
(e) In the case
of an import consolidator, original plus a copy of valid CA.
Section 2. In addition to the
requirements of these IRRs, the importing enterprise or import consolidator
shall comply with all other existing laws, and rules and regulations by BOC and
other government agencies.
Section 3. The final release of
said inputs, machinery, or equipment from the BOC shall be subject to compliance
with the requirements referred in Rule II, as the case maybe.
Section 4. In processing the
import transaction, the Custom Collector shall countersign on the space provided
in the CE and CA provided that:
(a) In the case
of agriculture and/or fisheries enterprise, the CIF value of each
import
transaction shall not exceed the available balance of the total allowable
peso
value reflected in the valid CE; or
(b) In the case
of an import consolidator, the CIF quantity of an import transaction
shall not
exceed the total allowable peso value reflected in the CA referred to
in Rule 1
(g).
Section 5. The BOC shall retain
a copy of the CE; a second copy shall be forwarded by the BOC to the DA central
office, while the original copy of the CE shall be returned to the agriculture
and fisheries enterprise for future use.
Section 6. A valid CE that is
about to expire on the date of the arrival of the articles imported may be
extended by the issuing agency for a non-extendible period of 30 days; Provided
that the goods are in transit.
RULE VIII
MONITORING AND REPORTING
Section 1. The DA and its deputized agencies, in coordination with the
BOC shall monitor the importation and utilization of articles under Annex “B” to
safeguard against possible abuse of the duty-exempt importation privilege
granted to agriculture and fisheries enterprises. In case of suspected
violations, these agencies shall initiate investigation and forward their
initial findings to the DA for endorsement to the appropriate agency.
Section 2. DA-RFUs and the
deputized agencies shall submit to the DA Central Office and BOC a list of all
agriculture and fisheries enterprises eligible to avail of the duty exemption.
The DA shall maintain a database of these eligible agriculture and fishery
enterprises.
Section 3. Agencies authorized
to issue CE for eligible agriculture and fisheries enterprises shall submit to
the DA central office the list of all approved CEs with control numbers not
later than the second week of every month. The DA RFUs shall likewise submit to
the DA central office the lists of approved CEs and CAs with control numbers on
the same period.
Section 4. The DA shall maintain
a databank of the information contained in the CEs and CAs and shall provide the
DTI, DTI-BOI and DOF with a report on monthly basis.
Section 5. The DA shall provide
the BOC with updated lists of agriculture and fisheries enterprises that were
issued with CEs and import consolidators issued with CAs, every third (3rd)
week of the month. In case the updated list of enterprise is still in transit
and not yet received by the BOC, the certified enterprise could request the
issuing DA-RFU to clear the issue with BOC.
Section 6. The DA shall prepare
a monthly report on the volume and the value of importation of tariff-exempt
inputs, machinery and equipment based on used CEs and CAs submitted by BOC and
import data from the National Statistics Office (NSO). The report shall follow
the formats below:
(a) Trend
analysis of CE and CA by commodity, issuing agency, type of
enterprise;
(b) Trend
analysis of use of CE by commodity, type of enterprise, importer;
(c) Trend
analysis of use of CA by commodity, type of enterprise; and
(d) Trend
analysis of share of CE and CA imports to total imports by
commodity.
The DA-Agribusiness and Marketing Assistance
Service (DA-AMAS) shall monitor and report to the Task Force on Tariff-Exemption
for Agriculture and Fisheries Modernization (TF-TEFAM) on a monthly basis or as
frequent as necessary. The TEFAM shall report to the Tariff and Related Matters
(TRM) Committee on a quarterly basis.
Section 7. The DA shall conduct periodic
inspection/visit of agriculture and fisheries enterprises or import
consolidators to ensure the exclusive utilization of the import products by
agriculture and fisheries enterprises. Refusal of an enterprise to cooperate
with the inspection/visit, including the refusal to submit relevant documents,
shall be subject to the administrative sanctions provided for in Rule IX.
RULE IX
PENALTIES
Section 1. Any person,
partnership, corporation, association and other juridical entity found
circumventing any provision of these IRRs shall suffer the penalty of
imprisonment for a period of not less than six (6) months but not more than one
(1) year, or a fine equivalent to two hundred percent (200%) of the value of the
imported materials, or both, at the discretion of the court, and the accessory
penalties of confiscation of the imported goods in favor of the government and
revocation of the privileges given under this title.
In cases where the violator is a juridical
entity, the officers responsible in the violation of these IRRs shall suffer the
penalty of imprisonment prescribed in this section.
Section 2. The importation of
goods exceeding the declared assets of the single proprietorship, partnership,
or farmers/fisherfolk organizations and associations or the authorized capital
stock in case of corporations and cooperatives, or the resale of imported goods
shall be prima facie evidence of the violation of these IRRs.
Section 3. Based on the
investigations by the appropriate offices, and on the results of the import
monitoring mechanism established in these IRRs, information on actions by any
entity considered to be in violation of these IRRs shall be endorsed to the DA
for proper legal action.
Section 4. Any commodity under
the custody of the BOC which is determined to have been imported in violation of
any of the provisions of these IRRs shall be confiscated in favor of the
government of the Republic of the Philippines and disposed of according to the
usual procedures of the BOC.
Section 5. The DA may also
impose administrative sanctions such as cancellation or withdrawal of the CE or
CA; automatic disapproval of pending and subsequent application for CE or CA; or
blacklisting, against these enterprises, after determining in an administrative
proceeding that a violation of these IRRs has been committed.
Section 6. In appropriate cases,
the DA shall recommend legal action against the enterprise or the import
consolidator found to have violated the terms and conditions specified under
these IRRs.
Section 7. Public
officials/employees who shall knowingly issue a CE or a CA to an enterprise
which is not eligible under these IRRs or who shall directly or indirectly
participate in the commission of an offense shall be penalized under existing
laws.
In addition, the DA may impose administrative
sanctions on these officials/employees after determining in an administrative
proceeding, that a violation of this EO and its IRRs has been committed.
[Home] [Up] [EO 376 Annex A] [EO 376 Annex B]
