Question & AnswerQ&A (BOI)
The rules are known and cited as the Revised Rules of Procedure on the Cancellation of Registration under Executive Order No. 226.
Grounds include delay of project timetable by one year, withdrawal from business, suspension of operations beyond allowed period, voluntary surrender of certificate, graduation after useful life of incentives, failure to maintain qualifications, violation of the Code, Implementing Rules, labor or consumer laws, misrepresentation, or acts violating laws delegated to the Board.
The concerned Department within the Board of Investments initiates cancellation procedures and prepares a Memorandum supported by evidence.
It must state grounds for cancellation, acts or omissions involved, fines or penalties imposed if any, order of refund if applicable, and require a written reply from the enterprise within fifteen (15) days.
Personal delivery to a responsible officer, registered mail pursuant to the Rules of Court, and publication in a newspaper of general circulation.
Service by publication is effected through a national newspaper with top ten circulation and at least 100,000 copies daily, used when the principal place of business cannot be located or when registration has reached its useful life.
The enterprise must file a written reply within fifteen (15) days from receipt or from the date of publication if served by publication.
The enterprise shall be deemed in default, and the Department proceeds to recommend cancellation to the Management Committee.
MANCOM reviews the Department's Memorandum and issues a resolution affirming, modifying, or reversing the recommendation before the Board's final decision.
The Board confirms, modifies, or reverses the resolution and notifies the registered enterprise accordingly.
Within fifteen (15) days, the enterprise must surrender its Certificate of Registration to the Board’s Department.
The enterprise and its officers may be placed on a Watchlist and the Board may file civil cases through the Office of the Solicitor General to enforce compliance.
Yes, a motion for reconsideration may be filed within fifteen (15) days from receipt or publication of the decision, limited to one per party.
Appeals are filed as a petition for review before the Court of Appeals within fifteen (15) days from denial of motion for reconsideration.
No, the decision is not automatically stayed unless the Court of Appeals directs otherwise upon just terms.
Graduation refers to cancellation of registration after an enterprise has reached the end of the useful life of its fiscal incentives, upon meeting certain conditions like recouping investment and compliance with commitments.
The Watchlist includes enterprises and officers who have unsettled obligations or fail to comply with Board orders; being on this list restricts future transactions until obligations are settled.
The enterprise ceases to be entitled to incentives but retains basic rights and guarantees under Article 38, Title II of Executive Order No. 226.
The Board may forfeit valid performance bonds or file civil cases through the Office of the Solicitor General; enterprises may also be Watchlisted for future reference.