Section 5August 8, 1991, Sec./Art. 5

Certified Enterprises. – The Board of Investments (hereinafter referred to as the "BOI") in consultation with other government agencies shall certify as eligible for incentives under this Act enterprises that meet the following conditions:

(a) Nationality – The enterprise shall be undertaken by a citizen of the Philippines or a corporation, partnership, or other association organized under the laws of the Philippines at least thirty-five percent (35%) of the capital of which is owned and controlled by citizens of the Philippines. As a matter of principle, and whenever possible, Filipino investors will be given preference in investing up to one hundred percent (100%) in the equity capital of an enterprise.

(b) Manufacturing Activity. – The enterprise shall engage in:

(1) Production of primary steel products in the form of refined iron ore, ingots, slabs, blooms, and billets; or intermediate steel products such as plates, hot-rolled or cold-rolled coils, or sheets, or their equivalents; or

(2) Manufacture or processing of products or provision of infrastructure such as roads, auxiliary facilities, such as ports and harbors; and, industrial services, primarily for the direct use of enterprises engaged in the activities referred to in (1) above; or

(3) Refinement or treatment of by-products or waste-products predominantly of the enterprises in (1) above;

(c) Technical and Economic Capability. – The enterprise shall be capable of operating and establishing on a technologically up-to-date, economically efficient and internationally competitive basis and of contributing to national development, taking into account the markets proposed to be addressed by the enterprise;

(d) Separate Accounts. – If the enterprise is engaged or proposes to engage in undertakings other than the manufacturing activity described in subsection (b) above, it has installed or undertakes to install an accounting system adequate to record and identify the investments, revenues, costs, and profits and losses of such manufacturing activity separate from the other projects undertaken by such enterprise; and

(e) Environmental Protection. – The enterprise shall comply with laws and regulations on environmental protection so as not to adversely affect the residents and ecological balance of the location(s) of the manufacturing activity.