Question & AnswerQ&A (Republic Act No. 8502)
The official title of Republic Act No. 8502 is the "Jewelry Industry Development Act of 1998."
The declared policy of the State is to support, promote, and encourage the growth and development of predominantly small and medium scale jewelry industries by promoting legalization, tax incentives, industry linkages, and skills advancement.
Incentives include zero duty on imported raw materials and capital equipment, exemption from excise tax on jewelry and related goods, an additional 50% deduction on expenses for approved training, direct gold and silver purchase authority, and inclusion of locally-manufactured jewelry in government-operated tourist duty-free shops.
The Department of Trade and Industry (DTI) is responsible for monitoring, overseeing, supervising, and implementing the provisions of the Act.
A jewelry enterprise refers to any enterprise engaged in manufacturing goods commonly or commercially known as fine and imitation jewelry, including producing, cutting, polishing, shaping, refining, forming, fabricating real or imitation pearls, precious and semi-precious stones, goods made of precious metals or imitations, and other raw materials and parts used in jewelry manufacture.
Yes, jewelry enterprises availing of incentives under this Act can also avail incentives under other special laws such as RA 7844, RA 7916, and Executive Order 226, provided the activity is export-oriented and there is no double availment of the same incentives.
Jewelry enterprises must be duly registered with the appropriate government agencies as provided by law to qualify for government assistance, counselling, and other incentives.
The Act grants the Bangko Sentral ng Pilipinas authority to sell gold and silver to jewelry enterprises under minimal margins and allows jewelry enterprises to buy gold and silver directly from other sources.
The Secretary of Trade and Industry shall promulgate the implementing rules and regulations within thirty (30) days from the approval of the Act, upon prior consultation with the Secretary of Finance.
If any provision is declared unconstitutional, the remaining provisions that are not affected shall remain in full force and effect due to the separability clause.