Tuesday, September 02, 2014

Rules and Regulations Governing Duty-Free Donations


ITEMS FOR DONATION

1. Purely books that are educational (economic, technical, vocational, scientific, philosophical, historical, cultural or religious) in nature

Books including magazines, newspapers, and other periodicals that are educational (economic, technical, vocational, scientific, philosophical, historical, cultural, or religious) in nature

Educational, scientific, and cultural materials covered by international agreements or commitments binding upon the Philippine government so certified by the Department of Education

Bibles, missals, prayer books, Koran, Ahadith, and other religious books of similar nature and extracts therefrom, hymnal and hymns for religious use

QUALIFIED RECIPIENTS

  1. Educational, scientific, and cultural institutions or societies, and similar organizations duly approved by Department of Education or the United Nations Educational Scientific Cultural Organization (UNESCO)
  2. scientific Foundations
  3. Cultural societies
  4. Government Agencies

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Packing list, including description of books and titles, in lieu of the Commercial Invoice
  3. Bill of Lading/Airway bill

Recipient:

  1. Letter to the Department of Finance/UNESCO requesting for tax and duty-free clearance for donated books
  2. UNESCO endorsement
  3. Deed of Acceptance
  4. Duly Notarized Affidavit stating that the books will be used solely for educational purposes
  5. Certificate of Registration with the National Book Development Board pursuant to RA 8047/Copy of BIR certification and international agreement or executive order allowing tax-exempt privileges, if applicable
  6. Distribution plan

EXEMPTION

Duty and tax free

(Section 105 (s) of the Tariff and Customs Code and Section 109 (y) of Republic Act No. 8424, both as amended)


2.Computers and other similar Information Technology products.

QUALIFIED RECEPIENTS

  1. Educational and training institutions registered with appropriate Philippine government agencies
  2. Educational, scientific, and cultural institutions or societies, and similar organizations duly approved by Department of Education or UNESCO

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Packing list with computer specifications
  3. Bill of Lading/Airway bill

Recipient:

  1. Letter to the UNESCO requesting for duty-free clearance for  the donated computers
  2. Deed of Acceptance
  3. Duly Notarized Affidavit stating that the computer will be used solely for educational purposes
  4. Distribution plan, if any
  5. Certificate of Accreditation, if recipient is an educational or training institution
  6. UNESCO Endorsement, if recipient is a non-government organization
  7. Copy of BIR certificate, and international agreement or executive order allowing tax-exempt privileges, if applicable

EXEMPTION

Duty free

(Pursuant to Annex D(b) of the UNESCO Florence Agreement classified as “Scientific Instrument or Apparatus” or Executive Order No. 163)

Tax and Duty free

(Pursuant to Section 4(3), Article XIV of the New Constitution)

3. Drugs, medicines and other pharmaceuticals having similar preparations registered with the Bureau of Food and Drugs (BFAD)

QUALIFIED RECIPIENTS

  1. Welfare/ relief dispensing organizations/ agencies registered and/or accredited by the Department of Social Welfare and Development and registered with the SEC (DSWD Administrative Order No. 19, series of 2002)
  2. Government and private (primary and secondary) hospitals duly registered and licensed to operate by the Department of Health (Republic Act 4226 or Hospital Licensure Act)

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Bill of Lading/Airway bill
  3. Complete list of drugs and quantity to be donated, with the following information:
    • Generic name/brand name
    • Formulation (with English translation)
    • Dosage forms/strengths
    • Batch/lot number and expiration date (shelf life of at least 12 months upon arrival in the Philippines)
    • Name and address of manufacture

Recipient:

  1. Letter to the Department of Finance requesting for duty-free clearance for donated medicines
  2. Deed of Acceptance
  3. Distribution plan endorsed by the local DSWD representative
  4. Certificate of Product Registration/ Clearance issued by the Food and Drug Administration  (FDA)

EXEMPTION

Duty free

(only if consigned to qualified recipients)


4.Essential machinery and equipment including spare parts and accessories.

QUALIFIED RECEPIENTS

  1. Non-profit charitable and/or religious institution (except private individual/ civic/ service/ cultural/ educational/ scientific organization/foundation) duly registered with the Securities and Exchange Commission
  2. Government and private (primary and secondary) hospitals duly registered and licensed to operate by the Department of Health pursuant to Republic Act 4226 or the Hospital Licensure Act
  3. Duly-registered cooperatives
  4. Duly registered NACIDA-enterprises upon certification of the NACIDA Administrator that they are deserving of such incentives

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Packing list
  3. Bill of Lading/Airway bill
  4. Product catalogue and/or technical description of products to be donated

Recipient:

  1. Letter to the Department of Finance or the National Economic and Development Authority (NEDA) requesting for duty-free clearance for the donated equipment
  2. Deed of Acceptance
  3. Copy of SEC Registration and Articles of Incorporation and/or By-laws, in case of non-stock, non-profit charitable or religious institutions requesting exemption from payment of duties for the first time
  4. Current and valid DOH license to operate, if hospital
  5. Certificate of registration for cooperatives or NACIDA-registered firms
  6. Endorsement of the Board of Investments (BOI)

EXEMPTION

Duty free

(if consigned to qualified recipients)


5.Food and non-food products/relief items for free distribution to the needy.

Relief items:  Food and non-food items, except used clothing, that are responsive to any situation affecting disadvantaged or distressed individuals and families in order to meet their basic needs (i.e., canned or packed food items, medicine, blankets, towels, evacuation tents, tarpaulines, bunk beds, etc.)

QUALIFIED RECIPIENTS

Welfare/relief dispensing organizations/ agencies registered or licensed/accredited by the Department of Social Welfare and Development

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Packing list/Commercial Invoice
  3. Bill of Lading/Airway Bill

Recipient:

  1. Letter to the Department of Finance requesting for duty-free clearance for donated food and non-food products
  2. Deed of Acceptance
  3. DSWD Endorsement
  4. DSWD License to Operate and/or Certificate of Accreditation
  5. Duly notarized distribution plan confirmed by the local Social Welfare and Development Office and endorsed by the DSWD Field Office, which will provide technical assistance on the utilization of specific shipment
  6. Duly notarized distribution report on previous shipment, if any
  7. Prior agreed/approved arrangements with the DSWD Regional Office concerned on items other than food, medicines, and relief items
  8. For food items, DOH Endorsement to BFAD for the issuance of clearance, to be submitted with the complete list of food items and quantity to be donated, with expiration date of at least 6 months upon arrival in the Philippines
  9. BFAD Certificate of Product Registration for food items and medicines

EXEMPTION

Duty free

(if consigned to qualified recipients)


6. Heavy equipment or machineries used for construction, improvement, repair and maintenance of roads, bridges, and other infrastructure projects, including garbage trucks, fire trucks and other similar equipment

Note:  Vehicle should be left hand drive and not more than ten years old.

QUALIFIED RECIPIENTS

Local government units (includes provinces, cities, municipalities and barrios)

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation  duly authenticated by the Philippine Embassy/Consulate
  2. Bill of Lading, Airway Bill
  3. Commercial Invoice and Packing List
  4. Certificate of Road Worthiness and Emission Standards of donated vehicle/s from country of origin
  5. Cancellation of Vehicle Registration

Recipient:

  1. Letter-Application signed by the local government executive (governor, city/municipal mayor) or his duly authorized representative
  2. Board Resolution stating the purpose of the importation
  3. Deed of Acceptance
  4. Sworn Statement that the imported articles are not for sale, hire, or barter
  5. Authority to Import from the Bureau of Import Services
  6. Undertaking from the local government unit that upon release and physical examination of the machinery and equipment, the words “ENTERED DUTY-TAX FREE UNDER THE NEW LOCAL GOVERNMENT CODE” shall be printed in a conspicuous space on the machinery and equipment which was accorded duty and tax free release

Note:  All applications for availment of tax and duty free incentive shall be filed with the Revenue Operations Group of the Department of Finance

EXEMPTION

Duty and tax free

(Title Six, Book II of Republic Act No. 7160, The New Local Government Code; Department of Finance Department Order No. 21-92)

 


7. Medical equipment and machinery, including spare parts and accessories

QUALIFIED RECIPIENTS

Government and private (primary and secondary) hospitals duly registered and licensed to operate by the Department of Health (Republic Act 4226 or Hospital Licensure Act)

REQUIRED DOCUMENTS

Donor:

  1. Deed of Donation duly authenticated by the Philippine Embassy/Consulate
  2. Packing list with product catalogue and/or technical description of products
  3. Bill of Lading/Airway bill

Recipient:

  1. Letter to the Department of Finance or NEDA requesting for duty-free clearance for donated medical equipment
  2. Deed of Acceptance
  3. SEC Registration, Articles of Incorporation, by-laws in case of non-stock, non-profit charitable or religious institutions
  4. For medical equipment capable of emitting radiation (i.e., x-ray and ultrasound equipment)
    • Letter to the DOH-BIHC requesting endorsement to the Bureau of Health Devices and Technology (BHDT) for the issuance of clearance, to be submitted with the following documents:
      • Complete brochure/ literature about equipment model
      • For x-ray equipment, a copy of the license to operate an x-ray facility issued by the BHDT
      • Name(s) and credentials of the person(s) who will operate the equipment

EXEMPTION

Duty-free

(if consigned to qualified recipients)

FLOWCHART: Requirements for Duty-Free Donations

reqdutyfree

LEGEND:

*BFAD – Bureau of Food & Drug Administration

*BOC – Bureau of Customs

*BOI – Board of Investments

*DepEd – Department of Education

*DOH – Department of Health

*DOF – Department of Finance

*DSWD – Department of Social Welfare & Development

*MO36 – Memorandum Order 36

*SEC – Securities & Exchange Commission

*CDA – Cooperative Development Authority