Executive Order No. 85 (2019) — —Executive Order (EO) No. 57 (s. 2018) provided for zero percent duty on certain articles imported by Board of Investments (BOI)-registered new and expanding enterprises for a period of one (1) year from the date of its effectivity or until the enactment of a law amending EO No. 226 (s. 1987), otherwise known as "The Omnibus Investments Code of 1987," as amended, whichever comes earlier;

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Executive Order No. 85 (2019)

—Executive Order (EO) No. 57 (s. 2018) provided for zero percent duty on certain articles imported by Board of Investments (BOI)-registered new and expanding enterprises for a period of one (1) year from the date of its effectivity or until the enactment of a law amending EO No. 226 (s. 1987), otherwise known as "The Omnibus Investments Code of 1987," as amended, whichever comes earlier;

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Section 1 · Zero Percent Duty Section 2 · Coverage Section 3 · Prohibition to Sell, Transfer or Dispose Section 4 Section 5 · Repealing Clause Section 7 · Effectivity Clause

Section 1

Zero Percent Duty

Section 1.

Zero Percent Duty. —Any importation of capital equipment, spare parts and accessories by BOI-registered enterprises shall be subjected to zero percent duty, as indicated in Section 2 hereof.

Section 2

Coverage

Section 2.

Coverage. —The zero percent duty shall be applied to importations by BOI-registered new and expanding enterprises of capital equipment, spare parts and accessories classified under Chapters 40, 59, 68, 69, 70, 73, 76, 82, 83, 84, 85, 86, 87, 89, 90 and 96 of the CMTA, upon issuance by the BOI of a Certificate of Authority, provided that such imported capital equipment, spare parts and accessories comply with the following conditions:—

a. They are not manufactured domestically in sufficient quantity, of comparable quality, and at reasonable prices; and

b. They are reasonably needed and will be used exclusively by the enterprise in its registered activity.

Section 3

Prohibition to Sell, Transfer or Dispose

Section 3.

Prohibition to Sell, Transfer or Dispose. —The BOI-registered enterprise cannot sell, transfer or dispose of the aforementioned capital equipment, machinery, spare parts and accessories, without prior BOI approval, within five (5) years from the date of importation; otherwise, the BOI-registered enterprise will be solidarily liable to pay twice the amount of the duty foregone or Five Hundred Thousand Pesos (P500,000.00), whichever is higher, without prejudice to other applicable penalties under E.O. No. 226.

Section 4

Section 4.

Implementing Rules and Regulations (IRR).—The BOI, in coordination with the Tariff Commission, shall promulgate the IRR governing the implementation of this Order.

Section 5

Repealing Clause

Section 5.

Repealing Clause. —Ail issuances, orders, rules and regulations, or parts thereof, which are inconsistent with this Order are hereby repealed, amended or modified accordingly.

Section—6.

Separability Clause. —If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section 7

Effectivity Clause

Section 7.

Effectivity Clause. —This Order shall take effect immediately after its complete publication in a newspaper of general circuiation in the Philippines, and shall be valid for a period of three (3) years or until a law amending E.O. No. 226 is enacted, whichever comes earlier.

DONE, —in the City of Manila, this 19th day of July in the year of our Lord, Two Thousand and Nineteen.

(SGD.)— RODRIGO ROA DUTERTE

By the President:

(SGD.)— SALVADOR C. MEDIALDEA Executive Secretary