Export Development Act of 1994

The State adopts export development as a national effort.
The government champions exports as a strategy for sustainable agri-industrial development.
The private sector leads in promoting exports through discipline and hard work.
Both government and private sector aim to transform the Philippines into an exporting nation.
Exporting is emphasized as key to national survival, increased employment, and higher incomes.

"Exporter": Licensed entity earning at least 50% of revenues from foreign currency sales abroad, including certain IT and construction services; excludes overseas contract workers.
"Export promotion": Activities by public/private sectors to support export sales, including trade fairs, advisory services, training, and quality standards.
"Export incentives": Government support measures to encourage investment and competitiveness in export sector.
"Accredited organization": Exporters' organization accredited by the Export Development Council.

An institutional body overseeing PEDP implementation and export policy coordination.
Strengthened and institutionalized to perform policy reforms.

Includes key Cabinet Secretaries, the Bangko Sentral Governor, and nine private sector representatives.
Private sector majority mostly from the accredited exporters' organization; one appointed vice-chairman.
Other experts may be invited to assist meetings.

A single umbrella exporters' group accredited for three years to represent sector interests.
Coordinates and assists DTI in export promotion activities.
Manages the Philippine Trade Center and related contracts.

Council to study and recommend alignment of government export financing programs.
Explore creation of private sector-led export financing institution focusing on exporters and SMEs.
Government equity may fund the institution.

Council to prepare privatization program for export promotion within 90 days.
Privatization to complete within two years.
Interim financial/technical assistance provided to accredited organization.
Government appropriations earmarked for export promotion until privatization funding is established.

Government assists private sector in establishing trade centers as permanent export product exhibits.
Provides land and facilitates financing for construction.
Trade centers managed by accredited organization.

Additional incentives beyond BOI provisions include:
- Exemption from PD No. 1853 for importations used in export production.
- Zero percent duty on machinery and equipment imports for three years.
- Tax credits on imported inputs used for exports, valid five years.
- Tax credits on increases in export revenues, tiered from 2.5% to 10% credits.
- Tax credits for non-traditional exporters using local inputs (up to 25% duties saved), initially for three years with possible extension.
Incentives conditioned on certification of eligibility and exclusive use for export production.
Government financial institutions to offer preferential credit facilities for exporters during interim Eximbank absence.

Initial appointment of private representatives by the President for two-year terms.
Budget for new Council transferred from old Export Development Council.
Council to commence operations within one month after Act's approval.

Willful violation or gross negligence in enforcing the Act leads to expulsion of responsible officials.
Officials barred from holding government positions for at least two years.

Formulated by Secretaries of Trade and Industry and Finance, in consultation with the Council.

If any provision is declared unconstitutional, other provisions remain effective.

The Act takes effect two days after publication in the Official Gazette or two national newspapers, whichever is earlier.