Title
Tax and Duty-Free Importation Rules for Book Publishing
Law
Nbdb
Decision Date
Jan 8, 1998
A Philippine law issued by the National Book Development Board aims to promote the economic efficiency and viability of the book publishing industry by providing tax- and duty-free importation of raw materials for registered and accredited book publishers, subject to certain conditions and monitoring by the NBDB.
monitoring of raw materials
book publishing
economic efficiency

Scope and coverage; eligible importers

  • The tax-and-duty-free importation of raw materials used in book publishing is available to persons and entities registered with and accredited by the NBDB.
  • The NBDB Governing Board may import raw materials on behalf of eligible registered and accredited persons/entities, subject to posting the required bond.
  • Importation is also allowed directly to eligible importers for their own publications.
  • The Book Publisher Importer (BPI) imports raw materials for its own publications, and the Book Publisher Association Importer (BPAI) imports raw materials for and on behalf of its members.

Definitions used for implementation

  • “Raw Materials” include all types of paper, carton, book cloth, and ink that form part of the book.
  • The tariff headings and descriptions of raw materials include: Newsprint (4801.00); Bookpaper or Bond Paper classified by GSM under 4802.52, 4802.60, 4802.53; and Solid Bleached Board (for Cover) 4810.12 for specified GSM, plus printing ink under 3215.11, 3215.19, and 3215.90.
  • “Importer” covers eligible registered and accredited persons/entities/groups/associations of bonafide publishers habitually engaged in book publishing that import raw materials for use in book publishing.
  • “Registration” means inclusion in the register or list of persons/enterprises engaged in book publishing.
  • “Accreditation” means qualifying to NBDB standards, including production, marketing, organizational, and functional capabilities, culminating in issuance of a Certificate of Accreditation.
  • “Bonafide publisher or book association habitually engaged in book publishing” refers to a person or entity operating as a book publisher or recognized as a book association for not less than two (2) years from the time of application.
  • “Date of Importation” means the date of actual release of raw materials to the importer.

Eligible importation power and bond requirement

  • The NBDB Governing Board has authority to import raw materials on behalf of eligible registered and accredited persons/entities, provided the appropriate bond is posted equivalent to the taxes, duties and charges waived.
  • The NBDB Governing Board may delegate this importation function to eligible persons/entities subject to conditions imposed by the Board and the guidelines.
  • The bond posted by registered and accredited importers secures the commitments and representations made in the application for tax-and-duty-free importation.
  • BPI may import for its own publications, and BPAI may import for and on behalf of its members.

Substantive criteria for approval

  • The NBDB endorses tax-and-duty-free importation only when the raw materials are not domestically available in sufficient quantity, are of comparable quality, and are at reasonable prices.
  • Raw materials are not considered available in sufficient quantity if they cannot be made available to the registered and accredited persons/entities at the time of need or within a reasonable period of time.
  • Comparable quality is assessed by whether the production process and efficiency will be adversely affected or result in poor quality products or increased production cost.
  • Reasonableness of domestic prices may be guided by the acquisition cost of similar imported raw materials into the Philippines assuming all applicable taxes and duties were paid, plus 15% mark-up.
  • Approval requires that the raw materials are reasonably needed and will be used exclusively by the registered and duly accredited persons/entities for book publishing.
  • Approval also requires that the recommendation of the NBDB Board and the approval of the DOF are obtained before importation is made or before letters of credit are opened.
  • If an authorized publisher stops operations or closes shop, it must pay the corresponding duties and taxes on the unused quantity of raw materials.
  • Failure to fully liquidate a prior tax-and-duty-free importation is a valid ground for disapproval of subsequent applications, aside from penalties and sanctions.

Importation procedure, documents, deadlines

  • Eligible applicants must file with the NBDB:
    • A duly accomplished and notarized NBDB application form.
    • A certificate of non-availability of the raw materials from local domestic producer/supplier.
    • A Pro-Forma invoice/price quotation.
    • The quantity and sufficient description of raw materials to be used.
    • A corresponding production schedule per title.
    • An end-use justification showing reasonable necessity.
    • A computation of taxes and duties to be waived with tariff heading and duty rate indicated.
    • Other documents/information as may be required by the NBDB.
  • Applicants must submit two (2) complete sets of the application form with all required documents and pay a processing fee of PHP 500.00.
  • Within 3 working days, NBDB staff checks/pre-evaluates eligibility and completeness of documents and checks whether the description and quantity tally with the pro-forma invoice price quotation.
  • If there is a mismatch, the applicant must submit the correct pro-forma invoice.
  • If raw materials are found locally available, the applicant must also submit:
    • A price quotation from local suppliers/manufacturers; and
    • Justification as to quality of the proposed importation from both local and foreign suppliers.
  • After paying the filing fee and after NBDB checking, the applicant files copies of the application form with the NBDB.
  • Within 7 working days from official filing, NBDB staff evaluates and prepares endorsement for Executive Director consideration by the Board.
  • After Board approval, the Executive Director signs an endorsement addressed to the Department of Finance (DOF), Mabuhay Lane to import tax and duty-free raw materials.
  • The DOF processes applications under existing Mabuhay Lane procedures.
  • If the DOF is not satisfied, it notifies the applicant through NBDB of document deficiencies and requires completion within 10 days from notice; non-compliance results in disapproval.
  • If criteria are met, the DOF issues an endorsement letter addressed to the Bureau of Customs.
  • The BOC requires the importer to post the required bond equivalent to the cost of importation before raw materials are released.
  • The BOC furnishes NBDB copies of documents on the release of raw materials for monitoring purposes.

Monitoring, board decision, ongoing compliance

  • After 6 months from the date of importation, the importer must provide NBDB a status report certified by an accountable officer on the usage of raw materials.
  • If another importation application is filed within the 6-month period from the last importation, the applicant must file a status report on the previous importation.
  • NBDB verifies the status report before processing new applications to import.
  • The Board must render its decision within 10 working days from official acceptance of the application by the NBDB Secretariat.
  • The Board communicates its decision in writing to the applicant.
  • Benefits continue as long as individuals and enterprises remain registered and commit no violation of the Act, its implementing rules, these guidelines, or the terms and conditions of registration/accreditation.

Administrative inquiry, penalties, appeal routes

  • The NBDB conducts an administrative inquiry after due notice upon reported violations of these guidelines.
  • NBDB issues summons, subpoena, and/or subpoena duces tecum and initiates fact-finding to determine whether a violation exists.
  • If a violation is found, the respondent is informed and given an opportunity to be heard.
  • Any adverse decision may be appealed to the Board within 72 hours from receipt of the decision.
  • The Board sitting en banc decides within 5 days after the case is deemed submitted for decision.
  • If the Board does not consider the appeal, it orders, after due notice, cancellation of the respondent’s Certificate of Registration/Accreditation, without prejudice to penalties under the Act.
  • NBDB recommends filing appropriate action with the proper prosecuting agencies.
  • If a publisher stops operations or closes shop, the publisher must pay the corresponding duties and taxes on the unused quantity of raw materials.
  • Failure to fully liquidate prior tax-and-duty-free importation remains a valid ground for disapproval of subsequent applications, aside from penalties and sanctions.

Notices, remedies, separability

  • Board notices are addressed to registered and/or duly accredited enterprises at their principal place of business and may be delivered with like effect to authorized representatives appearing in NBDB records.
  • All Board decisions relative to implementation may be appealed within 15 days from receipt by the aggrieved party to the Office of the President; otherwise, the decision becomes final and executory.
  • When an appeal is filed, the decision becomes final and executory 90 days after perfection of taking appeal unless reversed.
  • If any provision of the guidelines is declared invalid, the unaffected parts remain valid.
  • The guidelines take effect 15 days after completion of publication in at least two (2) newspapers of general circulation.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.

About Privacy Terms