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MALACANANG

Manila

BY THE PRESIDENT OF THE PHILIPPINES

EXECUTIVE ORDER NO. 528

REDUCING THE RATES OF DUTY ON CAPITAL EQUIPMENT SPARE PARTS AND ACCESSORIES

IMPORTED BY THE BOARD OF INVESTMENTS !BOI" REGISTERED NE# AND EXPANDING

ENTERPRISES

#HEREAS Executive Order No. 313, dated 15 May 2004, entitled "Modifying the ate! of uty on

#a$ital E%ui$&ent, '$are (art! and )cce!!orie! *&$orted +y the oard of *nve!t&ent! -O* egi!tered

Ne/ and Ex$anding Enter$ri!e!" $rovide for ero $ercent duty and one $ercent duty on certain article!

i&$orted +y O* regi!tered ne/ and ex$anding ex$ort and do&e!tic enter$ri!e!, re!$ectively

#HEREAS EO 313 i! effective for a $eriod of t/o -2 year! fro& it! effectivity or until une 200

#HEREAS the overn&ent i! co&&itted to continually encourage inve!t&ent! in $referred area! ofactivitie!

#HEREAS there i! a need to extend O* regi!tered enter$ri!e! dutyfree treat&ent on i&$ortation of

ca$ital e%ui$&ent, !$are $art! and acce!!orie!, /hich are currently +eing en6oyed +y enter$ri!e! located

/ithin econo&ic one! and free$ort!

#HEREAS i&$ortation of ca$ital e%ui$&ent i! one of the &a6or co!t +urden! of +u!ine!! enter$ri!e in

their !tart u$ o$eration!

#HEREAS allo/ing duty free i&$ortation /ill &a7e the (hili$$ine! &ore co&$etitive in attracting

indu!trie! in the face of an increa!ing co&$etitive )!ian &ar7et for foreign direct inve!t&ent!

#HEREAS 'ection 401 of the 8ariff and #u!to&! #ode of the (hili$$ine! e&$o/er! the (re!ident of

the e$u+lic of the (hili$$ine!, u$on the reco&&endation of the National Econo&ic and evelo$&ent

)uthority to increa!e, reduce or re&ove exi!ting $rotective rate! of i&$ort duty.

NO# THEREFORE I GLORIA MACAPAGAL ARROYO (re!ident of the (hili$$ine!, +y virtue of

the $o/er ve!ted in &e, do here+y order9

S$%&i'n (. )ny i&$ortation of ca$ital e%ui$&ent, !$are $art! and acce!!orie! +y enter$ri!e! regi!tered

/ith the oard of *nve!t&ent! -Ol !hall +e !u+6ected to ero -0: duty, a! indicated in 'ection 2 hereof.

S$%&i'n 2. 8he ero $ercent -0: duty on article or e%ui$&ent cla!!ified under #ha$ter! 40, 5;,

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S$%&i'n ). 8he regi!tered enter$ri!e cannot !ell, tran!fer or di!$o!e of the afore&entioned ca$ital

e%ui$&ent, &achinery, !$are $art!, and acce!!orie!, /ithout $rior oard a$$roval /ithin five -5 year!

fro& date of i&$ortation. Other/i!e, the regi!tered enter$ri!e /ill +e !olidarily lia+le to $ay t/ice the

a&ount of the duty foregone /ithout $re6udice to other a$$lica+le $enaltie! under E.O. 22.

S$%&i'n *. 8he oard of *nve!t&ent! !hall $ro&ulgate the i&$le&enting rule! and regulation!

governing the i&$ortation hereof.

S$%&i'n 5. )ll (re!idential i!!uance!, ad&ini!trative rule! and regulation! or $art! thereof, /hich are

incon!i!tent /ith thi! Executive Order are here+y revo7ed or &odified accordingly.

S$%&i'n +. 8hi! Executive Order !hall ta7e effect thirty -30 day! follo/ing it! co&$lete $u+lication in t/o

-2 ne/!$a$er of general circulation in the (hili$$ine! and !hall +e availed of for a $eriod of five -5 year!

fro& the date of effectivity of thi! Order or until enact&ent of the +ill a&ending E.O. 22, other/i!e 7no/n

a! the O&ni+u! *nve!t&ent #ode of 1;ord, t/o 8hou!and and 'ix.

'ignature of the (re!ident

y the (re!ident9

EDUARDO R. ERMITA

Executive 'ecretary