1

Notifying Member

Philippines

2

Title of new legislation/procedure

AMENDING RULE 2, SECTIONS 4, 5, AND 8; RULE3, SECTION 3; RULE 17, SECTION 2, AND RULE 18, SECTION 5, AND ADDING A NEW RULE 18 SECTION 6 OF THE IMPLEMENTING RULES AND REGULATION OF TITLE XIII OF REPUBLIC ACT NO. 8424 OTHERWISE KNOWN AS THE "NATIONAL REVENUE CODE OF 1997", AS AMENDED BY REPUBLIC ACT NO. 11534 OR THE "CORPORATE RECOVERY AND TAX INCENTIVES FOR ENTERPRISES (CREATE) ACT"

3

Date of Publication

29 November 2021

4

Date of entry into force

29 November 2021

5

Website link/Official publication of the new regulation/procedure

https://firb.gov.ph/download/create-irr/

https://firb.gov.ph/download/create-irr-amendments/

6

Have you attached a copy of the regulation (PDF) to the Secretariat

[X] Yes. (Please attach a copy of the regulation to the notification.)

firb.gov.ph/download/create-irr-amendments/?wpdmdl=2382&refresh=6784ea86e4fcd1736764038

[ ] No.

7

Type of notification

[X] (a) New licensing regulation/procedure[2]; (please answer question 8 to 14)

[ ] (b) Changes to a regulation/procedure which has been previously notified in document: ______________ ;  ( please answer question 15 and 16)

8

List of products subject to licensing

All capital equipment, raw materials, spare parts, or accessories are eligible for the duty exemption, subject to conditions of availment provided under the CREATE Act and its IRR.

9

Nature of licensing

Automatic: [ ]

Non-Automatic: [X]

10

Administrative purpose/measure being implemented

(a)

Protect public morals;

(b)

Protect human, animal or plant life and health; protect environment;

(c)

Collect trade statistics or market surveillance;

(d)

Protection of patents, trademarks and copyrights, and the prevention of deceptive practices;

(e)

Pursue obligations under the UN Charter and other international treaties (i.e. CITES, Basel Convention, Rotterdam Convention, UNSC Resolutions etc.)

(f)

Quota (including TRQ) administration;

(g)

Regulate imports of arms, ammunition or fissionable materials and safeguard national security;

(h)

Other: importation of capital equipment, raw materials, spare parts, and accessories duty/ tax and duty free, which is implemented by the Board of Investments (BOI) as provided under Republic Act No. 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

11

Administrative body(ies) for submission of applications

Ministry/authority and Department: Department of Trade and Industry – Board of Investments

Address: Board of Investments, Industry and Investments Building, 385 Senator Gil Puyat Avenue, Makati City, 1200 Metro Manila, Philippines

Websites (BOI and other IPAs):

1._     Board of Investments (BOI)

-_      https://boi.gov.ph

2._     Authority of the Freeport Area of Bataan (AFAB)

-_      https://afab.gov.ph

3._     Aurora Pacific Economic Zone and Freeport Authority (APECO)

-_      https://www.apeco.gov.ph/home

4._     Clark Development Corporation (CDC)

-_      https://www.clark.com.ph

5._     Cagayan Economic Zone Authority (CEZA)

-_      https://ceza.gov.ph

6._     John Hay Management Corporation (JHMC)

-_      https://www.jhmc.com.ph

7._     Philippine Economic Zone Authority (PEZA)

-_      https://www.peza.gov.ph/home

8._     Poro Point Management Corporation (PPMC)

-_      https://poropointfreeport.gov.ph

9._     Regional Board of Investments-BARMM (RBOI-BARMM)

-_      https://bboi.bangsamoro.gov.ph

10._  Subic Bay Metropolitan Authority (SBMA)

-_      https://www.mysubicbay.com.ph

11._  Subic-Clark Alliance for Development Council (SCAD)

-_      https://scad.gov.ph

12._  Zamboanga City Special Economic Zone Authority (ZCSEZA)

-_      https://zfa.gov.ph

Telephone: Board of Investments - (02) 8683-3500 or (02) 8897-6682

E-Mail (BOI and other IPAs):

1._     BOI: incentives@boi.gov.ph

2._     AFAB: info@afab.gov.ph

3._     APECO: busdevmarketing@apecozonefreeport.com

4._     CDC: information@clark.com.ph

5._     JHMC: mgmt@jhmc.com.ph

6._     PEZA: info@peza.gov.ph

7._     RBOI-BARMM: bboi@bangsamoro.gov.ph

8._     SCAD: info@scad.gov.ph

9._     ZCSEZA: ecozone@zfa.gov.ph

12

Contact point for information on eligibility

Ministry/authority and Department: Department of Trade and Industry – Board of Investments

Address: Industry and Investments Building, 385 Senator Gil Puyat Avenue, Makati City, 1200 Metro Manila, Philippines

Websites (BOI and other IPAs):

1._     Board of Investments (BOI)

-_      https://boi.gov.ph

2._     Authority of the Freeport Area of Bataan (AFAB)

-_      https://afab.gov.ph

3._     Aurora Pacific Economic Zone and Freeport Authority (APECO)

-_      https://www.apeco.gov.ph/home

4._     Clark Development Corporation (CDC)

-_      https://www.clark.com.ph

5._     Cagayan Economic Zone Authority (CEZA)

-_      https://ceza.gov.ph

6._     John Hay Management Corporation (JHMC)

-_      https://www.jhmc.com.ph

7._     Philippine Economic Zone Authority (PEZA)

-_      https://www.peza.gov.ph/home

8._     Poro Point Management Corporation (PPMC)

-_      https://poropointfreeport.gov.ph

9._     Regional Board of Investments-BARMM (RBOI-BARMM)

-_      https://bboi.bangsamoro.gov.ph

10._  Subic Bay Metropolitan Authority (SBMA)

-_      https://www.mysubicbay.com.ph

11._  Subic-Clark Alliance for Development Council (SCAD)

-_      https://scad.gov.ph

12._  Zamboanga City Special Economic Zone Authority (ZCSEZA)

-_      https://zfa.gov.ph

Telephone:

1._     Board of Investments - (02) 8683-3500 or (02) 8897-6682

E-Mail (BOI and other IPAs):

1._     BOI: incentives@boi.gov.ph

2._     AFAB: info@afab.gov.ph

3._     APECO: busdevmarketing@apecozonefreeport.com

4._     CDC: information@clark.com.ph

5._     JHMC: mgmt@jhmc.com.ph

6._     PEZA: info@peza.gov.ph

7._     RBOI-BARMM: bboi@bangsamoro.gov.ph

8._     SCAD: info@scad.gov.ph

9._     ZCSEZA: ecozone@zfa.gov.ph

13

Expected duration of licensing procedure

If any provision of these Rules is subsequently declared invalid or unconstitutional, other provision thereof which are not affected shall remain in full force and effect.

14

A summary of the notification in one of the WTO official languages

The Certificate of Authority to Import (CAI) is a requirement for BOI-registered business enterprises (RBEs) to import capital equipment, raw materials, spare parts, and accessories duty/tax and duty-free under the CREATE Act. This certificate is issued by the Board of Investments (BOI) and applies only to items that are not locally available and will be used exclusively in the activity of the firm’s BOI-registered business. The CAI system covers imports from all countries without exception and does not impose any quota restrictions or quantitative limits on the number or value of imports. To apply for a CAI, an RBE must first obtain a Certificate of Non-Local Availability (CNLA) to confirm that the items to be imported are not available locally in sufficient quantity or quality. The application for a CAI is filed manually with the BOI Incentives Administration Service, accompanied by a filled and notarized application form, a proforma invoice or quotation from the supplier, and other required documents. An application fee based on the project cost and an issuance fee are also required. The CAI is valid for one year from the date of issuance and may only be used once. If the CAI is not utilized within this period, it is forfeited, though there is no penalty for non-utilization. The CAI is non-transferable and specific to the importer who applied for it. Additionally, RBEs must obtain a Tax Exemption Indorsement (TEI) from the Department of Finance to ensure customs clearance for duty and tax exemptions. Upon importation, RBEs must present the CAI, CNLA, TEI, and other necessary customs documentation in compliance with the Customs Modernization and Tariff Act. The CAI system is designed to support the import needs of BOI-registered firms engaged in activities listed under the Strategic Investments Priority Plan, helping them access necessary resources for their operations. For more detailed information and access to applicable forms, stakeholders are advised to consult the BOI website.

All Investment Promotion Agencies (IPAs) implement the Certificate of Authority to Import (CAI) or its equivalent under the CREATE Law. As outlined in Section 295 (2), IPA approval is required for duty-free importation of capital equipment, raw materials, and other essential inputs. Each IPA, however, follows its own specific procedures and imposes different filing fees, so businesses must comply with these unique guidelines to secure the necessary approvals and incentives.

15

In the case of 7(b), please indicate the type of new change(s)

16

Please elaborate the changes in detail (in one of the WTO official languages)