Roxas said that "even if you haven’t dotted the I’s and T’s, the policy decision has been made."
The Department of Finance and the Board of Investment, Roxas said, have already agreed on the amount which is equivalent to $400 per CBU unit exported.
"Government would also go through the formality of a Tariff Commission hearing," Roxas said.
Instead of cashing out the incentive, Roxas explained, government is offering an offsetting arrangement wherein the value of the export incentive would be offset against the tariff payables of the car manufacturing firm for its other CBU imports that are not locally assembled.
Likewise, Roxas said, "we have also begun and nearly completed the procedures operationalizing the steps."
Government is also in the process of drawing up an Executive Order which would be signed "shortly" by President Arroyo.
Based on the Department of Trade and Industry’s timetable, the export incentives program should be ready in time for President Bush’s State Visit to the country next month.
It is US car maker Ford Motor which initially benefit from the export incentive program since it is currently the only one engaged in CBU export.
Ford Motor Co. Philippines manufactures the Ford Escape sport utility vehicle for export to Thailand and other ASEAN countries.
Roxas said that the BOI is also looking at the possibility of eventually extending the export incentives to auto parts. But in granting the export incentives, Roxas stressed, "the incentive is earned since they have to first export before they get the incentive.