Published
By Myrna M. Velasco
The Department of
Energy (DOE) will be re-casting the set of rules on its issuance of
certificates for duty-free importation of equipment, machinery and spare parts
that will be utilized for renewable energy (RE) projects in the Philippines.
On its proposed rules
modification, the DOE is soliciting industry inputs on a Department Circular
that it will be issuing soon relative to RE’s duty-free importation
certificates or DFICs.
The DFIC is the
document being issued by the energy department granting RE developers exemption
from payment of tariff duties on the importation of RE machinery, equipment,
materials and spare parts as anchored on Republic Act 9513 or the Renewable
Energy Act.
In the propounded DFIC
rules’ fortification, the DOE sets out the processes of application as well as
the requisite evaluation phase; the sale and disposal of such equipment; and
the post-audit requirement.
The DOE rules likewise
prescribe “emergency importation”, which may be undertaken by the RE developer
upon submission of a written request “showing the necessity of the emergency
importation.”
In such circumstance,
the DOE stipulated that “the applicant shall post a good and sufficient bond in
favor of the Bureau of Customs in an amount not less than the stated amount of
duty and tax from which the emergency importation is being expected.”
In case of cancellation
of planned emergency importation, the applicant-RE developer will need to
inform the BOC of such within a prescribed period of 30 days; and failure to do
so will result in the cancellation of its bond.
On securing DFIC, the
primary condition set forth by the department is for such machinery and
equipment to be “directly and actually needed and will be used exclusively in
the RE facilities for transformation into energy and delivery of energy to the
point of use.”
The DOE added that “the
importation of materials and spare parts shall be restricted only to component
materials and parts for the specific machinery and/or equipment authorized to
be imported.”
Further, the department
noted that “the kind of capital machinery and equipment to be imported must be
in accordance with the approved work and financial program of the RE
facilities.”
Relative to planned
sale or disposal of the capital equipment, the RE developer must secure prior
endorsement from the energy department.
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