Republic of the Philippines DEPARTMENT OF FINANCE Manila
DEPARTMENT ORDER NO.
SUBJECT
RULES AND REGl.1LAl"IONS II"IF'L.E:ME:N'I":I:b10 DUTY FREE IMPORTATION UNDER SECTION 6 Of= ARTICLE III OF R.A. NO, 7459
The
following rules and regulations are hereby promulgated the effective implementation of Section 6 (''nd paragraph),, Article III, R.A. No. 7459, the pertinent portion of which provides, as follows: for
exemption.
"Section 6. --
"The Technologies, their manufacture or sale, shall also be exempt from the payment of license, permit fees, customs duties and charges on import.,'
SECTION I.
SCOf-'E.
"G;_:emi,ti an [_!'pm .. I....U.fa E:,iY_me_nt_.>, p.! G.{s .au. trod ChaCgM_- on I.;._rt.. For a period of ten (10) years from the date of approval of application for tax exemption of invention and or technology, importation of necessary machinery, equipments, spare parts and raw materials used for the technology, or to produce the invention, shall be exempt from payment of customs duties and other import charges, provided that said articles are not available locally in sufficient quantity, comparable quality and reasonable price.''
SECTION Regulations.-
DE-INITIOf_t. OF TEFRhti.
For
purposes
of
2.1.
Act refers to the Inventors and Invention Incentives Act of Philippines.
2.
Invention refers to any patented machine, product process including implements or tools and other related gadgets of invention, utility model and industrial design patents duly accredited by the Filipino Inventors Society (FIS).
these
Inventor --- refers to the oatentee/s, heir/s or assignee/s of an Invention letters patent, Utility Model letters, or Industrial Design letters patent.
2.4.
Technology - means the application of knowledge or science which shall include all others such as inventions, innovations and results of researches.
2.5..
Screening Committee -refers to members consisting of Technical representatives from the Department of Science and Technology (DOST), the Filipino Inventors Society (FIS), the Department of Trade and Industry (DTI), the Department of Agriculture (DAR), and the Department of Environment and Natural. Resources (DENR).,
2.6.
RDI refers to the Research and Development Institute of the Department of Science and Technology.
Heir - refers to immediate member/s of the inventors family defined under the Civil Code of the Philippines, as amended.,
2.S,
Assignee -- refers to any person or entity to whom the inventor has assigned the invention under a Deed of Assignment upon his death„
2.9.
Society - refers Society, Inc:.
to
the
Filipino
Inventors
SECTION 3. APPLICATION FOR EXEMPTION,
Application for exemption from customs duties shall be fileca the Revenue Office, Department of Finance, Manila. Only inventors as defined in Section 2,_, hereof may avail of the duty exemption mentioned therein, upon certification/appropriate indorsement_ by the Screening Committee that they are duly registered members and that the proposed importations are indispensable to produce their inventions. with
4, SECTION DOCUMENTATION REQUIREMENTS, To avail of the exemption and for expeditous processing of request for this purpose;, the following requirements are prescribed-,
4.1.
A letter -- application signed by the inventor or' his/her duly authorized representative should be submitted attaching thereto the following usual. import documents;
(.i)
Bill of Lading, Airway Parcel Post Notice or shipping documents:
Bill!, other
(ii)
Tax Identification Number (TIN), Commercial Invoice and Packing List; and
(iii) Other relevant documents concerning the shipments.
4.2,
Sworn Statement of the Inventor that the imported articles are actually, directly and exclusively needed in his/her inventions and that they are not for sale„ hire or barter.
4.3.
Certification from the Department of Science and Technology that the importer is an accredited member for the Filipino Inventors Society and that the importation/s is/are indispensable in his invention/s.
4.4,
Certification from the Department of Trade and Industry (DTI) that the proposed importations (machinery, equipment, raw materials and spare parts) are not locally available in sufficient quantity, comparable quality, and reasonable price,
4.5.
Nothing in these rules shall be construed to include motor vehicles, home appliances and furniture and as fixtures among the equipment/articles to be used for the Technology or to produce the invention.
?ECTION . The Department of Finance thru the Revenue Office may require the submission of other documents/papers to these prescribed herein n as the need arise.
SECTION b, VIS,ITORIAL:POWERS.. -- Any .invent ,r/s or.. heir-/s ............... as
SECTION 7. "L1WalJ O4_.[. -- All duty-free release. importations pursuant to these rules and regulations when disposed of to non. ^:^,t. .•E,:.,rn - liable P.:c:, the payment of the exempt persons/entities, shall be , corresponding dL.,.. duties thereon. The use of such artz.c.tes:. entered pursuant hereto by persons or entities other than the importer---inventor, without prior payment of duties and taxes aforementioned onnd shall subject such article/s to compensation and/or seizure in accordance with the craw,
SECTION E. upon its approval.
SECTION
EFFECTIVITY.
This Order shall take effect
APPROVED 9. this Manila, Philippines.
/ & _
----
ERNEST C. LELI Acting
dk£3/rules/ ra7459--Inventors
Secretary
day
