Definitions of Activities
- Refinery: manufacturing petroleum products locally through distillation and oil treatment; related storage and movement within refinery
- Storage: handling petroleum products of others for compensation
- Distribution: selling and transporting fuels by tank trucks, barges, pipelines, including bunkering for vessels
- Marketing: selling petroleum products at retail or wholesale, establishment and operation of gasoline stations and LPG outlets
Qualifications for Registration
- Open to persons with new investments made after March 13, 1998
- Refinery applicants must submit DOE endorsement certifying them as natural or juridical persons with new investments
- Storage, marketing, and distribution applicants require DOE endorsement as new industry participants
- Gasoline retail stations outside Less Developed Areas must invest minimum 10 million Pesos, excluding land
Incentives and Duration
- Qualified persons receive incentives upon issuance of Certificate of Registration
- Incentives available for five years from registration except Income Tax Holiday which starts from commercial operation
Specific Incentives
- Income Tax Holiday (ITH) for 5 years from commercial operation; higher capital minimum for ITH in gasoline retail stations outside LDAs
- Additional labor expense deduction: 50% of wage increase, doubled in LDAs
- Reduced duty of 3% and VAT exemption on imported capital equipment subject to conditions and prior BOI approval
- Tax credit on locally made capital equipment based on tariff differences
- Unrestricted use of consigned equipment with proper re-export bonds
- Exemption from taxes and duties on imported spare parts for consigned equipment under export production conditions
- Exemption from real property tax and contractor's tax with BOI certification
- Exemption from wharfage dues and export taxes on registered export products
- Allowance to employ foreign nationals in supervisory or advisory positions for 5 years
Registration Options
- Registered participants under E.O. 226 may opt to transfer to R.A. 8479 registration with DOE endorsement
- Incentives limited to remaining period to prevent double enjoyment
Registration Procedure
- Applicants file for DOE endorsement including disclosure of project details and compliance with DOE requirements
- DOE evaluates within 20 working days and issues endorsement upon fees payment
- Subsequent application for BOI registration follows procedures under E.O. 226
- BOI decision within 20 working days; failure to act means approval with conditions
- Applicants have 30 days to accept BOI decision and comply with requirements
- Certificate issued after payment and fulfillment of pre-registration conditions
Transitory Provisions
- Enterprises operating before effectivity may be registered upon evaluation
- Storage, marketing, distribution enterprises operational after Jan 1, 1994 can apply for DOE endorsement and BOI registration
- Certificates effective upon DOE endorsement with incentives for unavailed period only
Effectivity
- Guidelines effective immediately upon publication in a newspaper of general circulation