Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

April 21, 2020
2020-5621

Philippines grants incentives to importers and local manufacturers of “Critical Health Equipment and Supplies”

Since the declaration of a state of public health emergency and calamity throughout the Philippines, and the imposition of an Enhanced Community Quarantine over the entire island of Luzon, the Philippine Government has implemented certain measures to ease the burden brought about by COVID-19 to various businesses.

The Philippine Bureau of Customs (BOC) released Customs Administrative Order (CAO) No. 07-2020, the central issuance that implements Section 4 (o) of the Bayanihan to Heal as One Act, the source law that grants tax exemptions to address the current health emergency.

The measure provides tax, duty and customs fee exemptions to importers of “critical health equipment and supplies,” as well as to local manufacturers that import equipment and materials needed to produce such items.

This is particularly relevant to importers and local manufacturers of personal protective equipment (such as gloves, gowns, masks, goggles, face shields, surgical equipment and supplies), laboratory equipment, medical equipment and devices, support and maintenance for laboratory and medical equipment, surgical equipment and supplies, medical supplies, tools and consumables (such as alcohol, sanitizers, tissue, thermometers, hand soap, detergent, and common medicines, among others), COVID-19 testing kits, and other items as may be identified by the country’s Health Department.

To qualify for exemption, importers must apply for the necessary Tax-Exempt Indorsements or TEIs and/or accreditations, whichever is applicable, from the relevant government agencies.

The exemption applies to all importations made within three months from the effectivity of the Act (i.e., until 23 June 2020 or three months from its publication and immediate effective date of 25 March 2020), unless extended by Congress.

___________________________________________________________

For additional information with respect to this Alert, please contact the following:

SyCip Gorres Velayo & Co., Indirect Tax – Customs and Global Trade, Makati City

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more