Export Incentives Act of 1970

"Board of Investments" refers to the body created under the Investment Incentives Act.
"Registered export producer" means entities manufacturing or processing export products and either directly exporting or selling to registered export traders/export producers.
"Registered export trader" denotes entities deriving at least 50% of gross income from export sales purchased from two or more independent registered export producers.
"Registered service exporter" includes entities rendering technical, professional, or other services paid in foreign currency, including media exports.
"Export products" are manufactured or processed products meeting criteria on imported raw material content, export value, and quality standards.
Other key definitions include "Export sales", "Export fees", "Production cost", and "Processing".

The Board shall prepare and submit an annual export priorities plan to the President identifying prioritized export products based on comparative advantage, foreign exchange potential, and national economic profitability.
The plan follows the investment priorities planning procedures.

Investors in registered export producers, traders, or service exporters enjoy incentives provided in the Investment Incentives Act.
Applicants must be Filipino-owned or controlled (at least 60% capital ownership for corporations), engaged or proposing to engage in priority export activities, comply with constitutional restrictions, and maintain segregated accounting for export operations.
The Board must approve registrations within 90 days, with retroactive effect from application date.
Exceptions exist for certain export traders with high export values but may have foreign ownership.

Tax credit for sales, compensating, and specific taxes on inputs used in exporting, valid for 10 years.
Reduced income tax for first five years computed by a formula based on labor and domestic raw material components.
Tax exemption on imported capital equipment (machinery, equipment, spare parts) not available domestically, subject to conditions.
Tax credit for domestic capital equipment purchases.
Exemption from export tax for exporters exceeding $5 million annual exports within five years.
Credits and exemptions are subject to conditions regarding use, sales, and prior approvals, with penalties for violations.

Exemption from export tax and tax credit on taxes paid on exported goods purchased from registered producers.
Additional income tax deductions based on incremental export sales.
Extra deduction for financial assistance extended to export producers.

Additional benefits when establishing plants in designated areas lacking infrastructure.
Benefits include enhanced tax deduction calculations and credit against national taxes for infrastructure works undertaken, transferable as government property upon completion.
Incentives for use of new brand names distinguishing Philippine products.

Income tax deductions based on increments of export fees over baseline years.
Tax credits and customs exemptions for imported equipment used in producing exportable media products.
Conditions include remittance of export fees to the Philippines and compliance with bidding and approval requirements.

Funded by 1% of certain export taxes, administered by the Board for export diversification, quality improvement, marketing, packaging development, training, and related activities.
No fund usage for travel abroad.

Export enterprises operating within authorized foreign trade zones eligible for applicable incentives.
Restrictions apply if similar products are produced domestically by licensed firms.

The Board may suspend or cancel incentives for violation of laws, threat to export trade relations, or sufficient profitability without incentives.

The Board issues rules and regulations within 60 days after enactment.
Export procedures will be expedited and simplified for registered entities, exempting certain government clearances.

Provisions of the Investment Incentives Act apply insofar as consistent with this Act.
Enterprises registered under the previous Act may opt into this Act's provisions prospectively.

Appropriations allocated from Export Assistance Fund and supplementary appropriations for implementing programs.

Violations punishable by fines up to P50,000 or imprisonment up to three years, or both.
Additional penalties for government officials including perpetual disqualification and for foreign nationals including deportation.
Board members liable for violations involving favoritism or abuse of discretion.

Repeals provisions of prior law related to export incentives inconsistent with this Act.