Question & AnswerQ&A (SBMA CERTIFICATION NO. 13-121)
The legal basis includes Section 12(b) of Republic Act No. 7227, as amended by Republic Act No. 9400, which provides for the operation of the Subic Special Economic Zone as a separate customs territory with tax and duty-free importations, and Section 13 of RA 7227 which designates the SBMA as the management authority of the zone.
TEDFA stands for Tax Exempt and Duty Free Aircraft.
The guidelines cover all qualified locators of the Subic Bay Metropolitan Authority intending to admit aircraft, engines, replacement parts, and accessories into the Subic Bay Freeport Zone.
The objectives include preventing abuse of the duty free privilege, ensuring the TEDFA is principally used for Subic Bay Freeport related business, ensuring parts and engines are used solely for TEDFA and not sold outside the SBFZ, and ensuring sufficient hangar space is leased for TEDFA.
Locators must be engaged in aviation or logistics with sufficient hangar space and justification for TEDFA use related to their business in Subic, demonstrating active hub presence; or they must have at least Php 100 million actual investment if not in aviation or logistics.
The admission of all TEDFA units shall be approved by the SBMA Board.
Documents required include a valid Certificate of Tax Exemption and Business Permit to Operate, lease agreement for hangar space, entry clearance from CAAP, no objection from CAAP for parts, invoice documents, and certification from SBIA authorities attesting to locator’s good standing.
Yes, there is a fee of Php 25,000.00 per TEDFA for admission permit.
Locators must submit certified true copies of flight schedules and total flight hours annually to prove compliance, particularly that TEDFA returns and operates from SBFZ, with SBIA tasked to verify compliance.
Sale or transfer is prohibited within three years of admission. Afterwards, SBMA approval is required, transfer must be documented and submitted, applicable duties and taxes must be paid if the transferee is not entitled to duty free privileges, and a Php 25,000 transfer fee must be paid.
A fine of Php 250,000 and payment of duties and taxes apply, with possible administrative and criminal charges.
A fine of Php 250,000 and payment of duties and taxes to the Bureau of Customs.
They take effect 15 days after publication in a newspaper of general circulation following approval.