QuestionsQuestions (LETTER OF INSTRUCTIONS NO. 943)
LOI No. 943 is issued by the President to implement government policy to enhance the operational readiness of the Philippine Air Force by enabling the prompt release of aircraft and related items from customs custody, while ensuring national security and effective performance of PAF responsibilities.
Aircraft, engines, equipment, machinery, spare parts, aviation parts, fuel and oil (crude or refined), and such other articles or supplies by and for the use of the Philippine Air Force.
It means the importation of covered items may be entered without the usual formal customs entry and without paying customs duty or other tariffs, and the items are released immediately subject to the required submission of documentation within the stated period.
(1) A statement that the articles or supplies are not locally available in reasonable quantity, quality, and price; and (2) that they are necessary for or incidental to the operation of the Philippine Air Force and its other allied activities.
Within fifteen (15) days from the date of release.
Dispensed requirements include: (1) prior authority and/or indorsement of qualification for tax exemption from the Ministry of Finance; (2) certification from the Civil Aeronautics Administration that the items are not locally available in reasonable quantity, quality, and price and are necessary for proper operation of scheduled airlines importing the same; and (3) Central Bank release certificate.
LOI No. 943 states that, effective the date of the instruction, the Philippine Air Force is given tax exempt status and is free of the requirements of Section 1205 of the Tariff and Customs Code of the Philippines.
LOI No. 943 is addressed to the Minister of Finance, the Governor of the Central Bank (spelled “Central Lank” in the text), and the Commissioner of the Bureau of Customs, indicating implementation involves finance/tax administration and customs processing.
As a general rule, when practicable and to meet critical security needs, planeside or shipside delivery to the PAF is authorized, provided that importation documents are submitted to the Ministry of Finance for accounting of the importations.
Because the instruction aims to ensure operational readiness for national security, it prioritizes speed of release and secure handling of sensitive military items, while still requiring post-release documentation and accounting.
It covers more than aircraft; it includes engines, equipment, machinery, spare parts, aviation parts, fuel and oil (crude or refined), and other articles or supplies incidental to PAF operations.
The sworn statement must assert that the articles/supplies are not locally available in reasonable quantity, quality, and price.
It removes the need for that authority’s certification that items are not locally available and are necessary for proper operation of scheduled airlines importing the same, which reflects that the instruction specifically streamlines the documentary process for PAF-related imports.
It is an executive policy instrument that modifies/dispenses certain administrative and documentary requirements and grants tax-exempt status and duty-free informal entry for covered PAF imports, expressly freeing the PAF from Section 1205 requirements of the Tariff and Customs Code.