WHEREAS, it is essential that firms which are in position to export be so encouraged by liberalizing the provisions of R.A. 5186, R.A. 6135 and P.D. 1159;
NOW, THEREFORE, I, FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution, do hereby decree and order that:
SEC. 1. The allowable deduction of a registered export trader under Republic Act 6135 of ten per cent (10%) of its total export sales is hereby increased to twenty per cent (20%). Provided, further, that a registered export trader with its own offices abroad may additionally deduct from its taxable income an amount equivalent to its expenses in establishing and maintaining for the first five (5) years, such overseas offices; Provided, finally, That the Central Bank shall provide the necessary foreign exchange required to maintain such overseas offices of a registered export trader.
SEC. 2. The following additional incentives shall be granted registered export producers under R.A. 61-35, subject to such conditions as the Board of Investments may impose:
SEC. 3. For purposes of qualifying as a registered export producer and the enjoyment of the reduce income tax incentive under R.A. 5186, R.A. 6135 and P.D. 1159, export sales shall be deemed to include sales to another export producer who utilizes such products as direct inputs of its export products and sales to an export trader, whether registered with the Board of Investments or not.
SEC. 4. Export products for listing in the Export Priorities Plan need not meet the limitation that not more than eighty per cent (80%) of its value is attributable to imported raw materials, provided, that, such product meets the local content requirement, if any, set by the Board of Investments; provided further, that products of existing firms with capacity for export, qualified as non-traditional export, shall be deemed listed in the Export Priorities Plan under such conditions as the Board of Investments may impose.
SEC. 5. Without prejudice to minimal local sales authorized by the Board of Investments to meet domestic shortages, registered enterprises exporting 100% of its production need not comply with Section 19 (a) (3) of R.A. 5186 which provides that the foreign exporter must become a Filipino national within a certain period.
SEC. 6. Section 16(r) of R.A. 5186 and Section 13(3) of R.A. 6135 authorizing the Board of Investments to suspend or cancel the registrations with the Board, if the firm's earnings excess 33-1/3% of equity, are hereby repealed. Any other laws, decrees, rules and regulations inconsistent herewith are hereby repealed or modified accordingly.
SEC. 7. This Decree shall take effect immediately.
DONE in the City of Manila, this 9th day of October, in the year of Our Lord, nineteen hundred and seventy-nine.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.) JUAN C. TUVERA Presidential Assistant