Question & AnswerQ&A (Republic Act No. 9290)
The short title of Republic Act No. 9290 is the "Footwear, Leather Goods and Tannery Industries Development Act."
The main policy objective is to support, promote, and encourage the growth and development of small and medium scale enterprises (SMEs) in the footwear, leather goods, and tannery industries to generate employment and increase foreign exchange earnings through exports and import substitution.
The incentives include zero duty on imported capital equipment and parts, 50% additional deduction from gross income for approved training program expenses, inclusion in government duty-free shops, and tax credit on domestically purchased supplies equivalent to 100% of national internal revenue taxes and customs duties had these been imported.
All government personnel entitled to clothing, shoes, and other similar allowances are mandated to source their footwear and leather goods from domestically accredited producers and manufacturers.
Violators may be fined no less than Fifty thousand pesos (P50,000.00), or imprisoned for not less than one year but not more than six years, or both, at the discretion of the Court.
The Department of Trade and Industry (DTI) is responsible for monitoring, overseeing, and supervising the implementation of the Act.
The Act mandates an automatic quantitative export ban or tax on raw materials to prioritize the needs of the footwear, leather goods, and tannery industries.
The CITC is responsible for product development training, support for technology and capital equipment acquisition, and developing initiatives and programs for the industries in coordination with local government units.
The development incentives are available for a maximum period of ten (10) years from the effectivity of the Act.
Products must be of internationally comparable quality, with footwear sizing conforming at least to Philippine Sizing Standards. Products must also be properly labelled whether sold domestically or abroad, and re-labelling without prior written consent is prohibited.