Article 165p. 165

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

13. SGPT and Diluent Set

14. Markers for X-ray Equipment

15. Volt complete door, valve triac unit for hemodialysis

machine

16.

High

temperate

control,

thermistor assembly for

sterilizer

17.

Indicatory

control

and

recording

control for gas

sterilizer

18. Door switch, selector switch, pressure switch

19. Resuscitators or oxygen apparatus

20. Vaporizers

21. Mistogen transducer reservoir

SECTION 3. The reduction herein allowed shall only cover

importation of hospital/medical equipment, machinery,

implements and supplies included in the list above which

are

directly

and

actually

needed

and

will be used

exclusively in the treatment and care of the sick by the

hospital-importer as certified to by the Ministry of Health.

Shipping documents covering the importation shall be in

the name of the hospital importer to whom the goods

shall be directly delivered by customs authorities.

SECTION 4. In addition to the condition in the preceding

sections, reduction in duties shall be allowed only to the

importation of hospital/medical equipment, machinery,

implements and supplies that are not available locally in

sufficient quantities and of comparable quality and cost

as certified to by the Board of Investments. Further, only

hospitals

licensed

by

the

Ministry

of

Health

and

accredited by the Philippine Medical Care Commission,

having at least twenty-five beds and maintaining a ward

dispensing free medical services to indigents may qualify

for the incentives granted under this Decree.

SECTION 5. Any grantee of the incentives under this

Decree who shall make use of the privilege hereunder for

purposes other than those for which of this Decree shall

be penalized with imprisonment of not less than five (5)

years but not exceeding ten (10) years and a fine of not

less than P200,000.00 and in addition, such violation shall

ipso facto cause forfeiture of the imported articles aside

from

the

payment

of

all

taxes

and

duties

due

in

accordance with the existing laws.

Any person or any officer or employee of the government

who shall connive with the grantee of the reduction in

duties in the violation of the provisions of this Decree

shall suffer the same penalties prescribed in the first

paragraph of this section. In case the grantee is a juridical

person, the official or officials who consented to the

commission of the offense or tolerated the violation of the

provisions of this Decree shall be the person or persons

liable.

SECTION 6. Any hospital, medical center, medical clinic or

institution

who

or

which

may

qualify

for

similar

exemption privilege under existing law or other laws

hereinafter decreed or enacted and is qualified under this

Decree, may choose which privilege the grantee desires

to avail of, but in no case shall such grantee be entitled to

both privilege simultaneously.

SECTION 7. Rules and regulations to implement the

provisions of this Decree shall be prepared by the Ministry

of Health within fifteen (15) days from the issuance of this

Decree and approved by the Ministry of Finance within

another fifteen (15) days.

SECTION 8. All laws, decrees, orders, rules and regulations

or parts thereof inconsistent with any of the provisions of

this Decree are hereby repealed or modified accordingly.

SECTION 9. This Decree shall take effect upon approval

and shall continue to be effective until 31 December 1980.

SECTION 105. Conditionally-Free Importations . — The

following articles shall be exempt from the payment of

import

duties upon compliance with the formalities

prescribed in, or with, the regulations which shall be

promulgated by the Commissioner of Customs with the

approval of the Minister of Finance; Provided, That any

article sold, bartered, hired or used for purposes other

than that they were intended for without prior payment

of the duty, tax or other charges which would have been

due and payable at the time of entry if the article had

been entered without the benefit of this section, shall be

subject to forfeiture and the importation shall constitute

a

fraudulent

practice

against

customs

revenue

punishable under Section Thirty-six hundred and two, as

amended of this Code: Provided, further, That a sale

pursuant to a judicial order or in liquidation of the estate

of

a

deceased

person

shall

not

be

subject to the

preceding proviso, without prejudice to the payment of

duties, taxes and other charges: Provided, finally, That the

President may, upon recommendation of the Minister of

Finance, suspend, disallow or completely withdraw, in

whole or in part, any of the conditionally-free importation

under this section:

a. Aquatic products ( e.g. , fish, crustaceans, mollusks,

marine

animals,

seaweeds,

fish

oil,

roe),

caught

or

gathered

by

fishing

vessels

of

Philippine

registry:

Provided, That they are imported in such vessels or in

crafts attached thereto: And provided, further, That they

have not been landed in any foreign territory or, if so

landed, they have been landed solely for transhipment

without having been advanced in condition;

b. Equipment for use in the salvage of vessels or aircraft,

not available locally, upon identification and the giving of

a bond in an amount equal to one and one-half times the

ascertained duties, taxes and other charges thereon,

conditioned for the exportation thereof or payment of the

corresponding duties, taxes and other charges within six

(6) months from the date of acceptance of the import

entry:

Provided,

That the Collector of Customs may

extend the time for exportation or payment of duties,

taxes and other charges for a term not exceeding six (6)

months from the expiration of the original period;

c. Cost of repairs, excluding the value of the article used,

made

in

foreign

countries

upon

vessels

or

aircraft

documented, registered or licensed in the Philippines,

upon proof satisfactory to the Collector of Customs (1)

that adequate facilities for such repairs are not afforded in

the Philippines, or (2) that such vessels or aircraft, while in

the regular course of her voyage or flight was compelled

by stress of weather or other casualty to put into a foreign

port to make such repairs in order to secure the safety,

seaworthiness or airworthiness of the vessel or aircraft to

enable her to reach her port of destination;

d.

Articles

brought

into

the

Philippines

for

repair,

processing or reconditioning to be re-exported upon

completion of the repair, processing or reconditioning:

Provided, That the Collector of Customs shall require the

giving of a bond in an amount equal to one and one-half

times the ascertained duties, taxes and other charges

thereon,

conditioned

for

the

exportation

thereof

or

payment of the corresponding duties, taxes and other

charges

within

six

(6)

months

from

the

date

of

acceptance of the import entry;

e. Medals, badges, cups and other small articles bestowed

as trophies or prizes, or those received or accepted as

honorary distinction;

f. Personal and household effects belonging to residents

of

the

Philippines

returning

from

abroad

including

jewelry, precious stones and other articles of luxury which

were formally declared and listed before departure and

identified under oath before the Collector of Customs

when exported from the Philippines by such returning

residents upon their departure therefrom or during their

stay abroad; personal and household effects including

wearing apparel, articles of personal adornment (except

luxury items), toilet articles, portable appliances and

instruments

and

similar

personal

effects,

excluding

vehicles, watercraft, aircraft, and animals, purchased in

foreign countries by residents of the Philippines which

were necessary, appropriate and normally used for the

comfort and convenience in their journey and during

their stay abroad upon proof satisfactory to the Collector

© Compiled by RGL

165 of 201