March 18, 2019 | 12:31 am
THE DEPARTMENT of Energy (DoE) has
issued a draft circular to regulate the duty-free importation of renewable
energy (RE) machinery, equipment, materials and spare parts in line with the
government’s drive to promote ease doing business in the country.
Under the draft rules, duty-free
importation is allowed for certified renewable energy developers and operators
within 10 years of issuance of their certificates of registration.
Duty-free importation also covers
control and communication equipment. They will be exempt from tariffs if they
meet the conditions set by the department.
CONDITIONS
Among others, “[t]he RE machinery, equipment, materials and spare parts are not manufactured domestically in reasonable quantity and quality at competitive prices,” the draft read.
Among others, “[t]he RE machinery, equipment, materials and spare parts are not manufactured domestically in reasonable quantity and quality at competitive prices,” the draft read.
“The RE machinery and equipment are
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.”
Another condition is that
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.”
“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,” the draft said, adding: “The RE
machinery equipment materials, spare parts are covered by shipping documents in
the name of the duly registered RE developer/operator to whom the shipment will
be directly delivered by customs authorities.”
The rules allow duty-free
importation of components, parts and materials, provided that they are not
manufactured domestically in reasonable quantity and quality at competitive
prices.
They should also be “directly and
actually” needed and be used exclusively in the manufacture or fabrication of
RE equipment.
They should be covered by shipping
documents in the name of the duly registered manufacturer or fabricator to whom
the shipment will be directly delivered by customs authorities.
“Prior approval of the DoE should be
obtained before the importation of such components, parts and materials,” the
draft read.
It also sets the conditions for the
sale or disposal of RE capital equipment, their emergency importation and
export.
PROCEDURES
The draft, now awaiting industry comment, also lays down procedures for issuance of duty-free importation certificates.
The draft, now awaiting industry comment, also lays down procedures for issuance of duty-free importation certificates.
All applications for duty-free
importation are subject to the department’s inspection, reportorial
requirements, recording and data base.
The department will have the right
of entry or access to any premises to inspect all machinery, equipment,
materials and spare parts covered by the circular.
The proposed circular is in line
with Republic Act (RA) No. 9513, or the “Renewable Energy Act of 2008,” which
mandates the increased use of RE by institutionalizing development of national
and local capabilities in the use of renewable energy systems, and promoting
their efficient and cost-effective commercial application by providing fiscal
and non-fiscal incentives.
Section 2 of RA No. 9485 or the
“Anti-Red Tape Act of 2007” — as amended by RA No. 11032 or “The Ease of Doing
Business and Efficient Government Service Delivery Act of 2018” — mandates the
government to promote transparency in each agency with regard to the manner of
transacting with the public.
RA No. 11032 “shall encompass a
program for the adoption of simplified requirements and procedures that will
reduce red tape and expedite business and non-business related transactions in
government,” the department said. — Victor V. Saulon
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