Criteria for BOI to Exercise the Authority without Presidential Approval
- Extension or increase can be granted if the enterprise:
- Suffers heavy financial losses or is in distressed condition.
- Faces operational force majeure that impairs viability.
- Has not fully enjoyed previously granted incentives due to circumstances beyond its control.
- Has projects with gestation periods extending beyond the initial incentive period.
- Experiences adverse effects from unforeseen governmental policy changes or protectionism in importing countries impacting competitiveness.
Requisite for Presidential Approval in Other Cases
- For cases not meeting the specific criteria, the BOI must obtain presidential authorization to extend incentives or increase tax exemptions.
- This follows the provisions of Presidential Decree No. 1584.
Overriding Effect and Repeal of Conflicting Laws
- Any laws, decrees, executive orders, administrative orders, or regulations inconsistent with this order are repealed, amended, or modified accordingly.
Immediate Effectivity
- The executive order takes effect immediately upon issuance.
Legal and Institutional Context
- Authority granted is pursuant to powers vested by the Philippine Constitution and relevant laws, including P.D. 1584 and P.D. 1416.
- The purpose is to support industrial growth, particularly providing immediate relief to firms in distress to sustain development.
Summary of Key Legal Concepts
- Delegation of Presidential authority to an administrative body (BOI).
- Conditions under which the BOI may act independently versus requiring presidential consent.
- Emphasis on protecting enterprise viability amid financial, operational, and policy challenges.
- Streamlining incentive administration to promote sustained industrial and economic growth.