Section 3Sec./Art. 3

Development incentives. – The following incentives shall be available to qualified jewelry enterprises in the jewelry industry:

a) Entitlement to zero (0) duty on imported raw materials which include precious metals, loose gems, precious stones, jewelry parts, accessories and supplies for use by jewelry enterprise, as specifically mentioned in Chapter 5 of Sec. I, Chapter 12 of Sec. II, Chapters 25, 26 and 27 of Sec. V, Chapters 28, 34 and 38 of Sec. VI, Chapter 70 of Sec. XIII, Chapter 71 of Sec. XIV, Chapter 83 of Sec. XV, and Chapter 96 of Sec. XX of the Tariff and Customs Code, as amended;

b) Exemption from the imposition of excise tax on all goods commonly or commercially known as jewelry, whether real or imitation pearls, precious and semi-precious stones and imitations thereof; all goods made of, or ornamented, mounted or fitted with precious metals or imitations thereof, as specifically mentioned in Sec. 150(a) of the National Internal Revenue Code of the Philippines, as amended;

c) Entitlement to zero (0) duty on imported capital equipment, including spare parts and toolings thereof falling within Chapter 69 of Sec. XIII, Chapter 82 of Sec. XV, Chapters 84 and 85 of Sec. XVI, and Chapter 90 of Sec. XVIII of the Tariff and Customs Code, as amended;

d) Additional deduction from taxable income of fifty percent (50%) of expenses incurred in training schemes approved by the appropriate agency and which shall be deductible during the financial year the expenses were incurred;

e) Gold and silver sales by the Bangko Sentral ng Pilipinas to jewelry enterprises wider minimal margins;

f) Authority for jewelry enterprises to buy gold and silver directly from other sources;

g) Inclusion of locally-manufactured jewelry in the government's tourist duty free shops including the promotion, advertisement and sale thereof; and

h) Jewelry enterprises availing of incentives provided under this Act shall still be eligible to incentives provided by other special laws such as Republic Act No. 7844 (Export Development Act of 1994), Republic Act No. 7916 (Special Economic Zone Act of 1995), Executive Order 226 (BOI Omnibus Investments Code), among others: Provided, That the activity is export-oriented and that there is no double availment of the same incentives.