Limits urged on duty-free imports of capital eqpm’t

The Federation of Philippine Industries (FPI) is urging the Department of Trade and Industry (DTI) to include two conditionalities to the proposed grant of duty-free incentives to capital equipment.

The DTI wants to restore the duty-free importation of capital equipment in the Omnibus Investment Act and has already submitted a proposed bill to Congress.

While the FPI is not against the restoration of the duty-free importation incentive, it is asking the DTI to set two conditionalities.

The first conditionality is that the tax and duty-free importation of capital equipment would be allowed only if the capital equipment to be imported is not produced locally, or is not in sufficient quantities and at comparable prices.

The second conditionality is that tax credits be given for purchases of locally produced equipment/parts.

The FPI is hoping that the DTI can still revise the proposed bill.

The Tariff Commission is set to hold a public hearing/consultation on the tariff modification of capital equipment and parts on March 22 at 9 a.m. at the Philippine Heart Center Bldg. along East Avenue, Quezon City.

The hearing will cover the following products: rubber, textile fabrics/articles; stone, plaster, cement, asbestos, mica; ceramics; glass; iron and steel; aluminum; tools/implements, etc of base metal; boilers, machinery/mechanical appliances; electrical machinery/equipment (airconditioners, TVs, radios); motor vehicles/bicycles; ships/boats; optical, photographic, etc. instruments; clocks/watches, and miscellaneous articles.

The House committee on ways and means requested the hearing in order to facilitate the restoration of incentives for registered enterprises.