Title
Tax exemptions under RA 6847 for sports imports
Law
Dof Joint Order No. 1-90
Decision Date
Jul 6, 1991
The Department of Finance and the Philippine Sports Commission establish guidelines for tax exemptions on the importation of sportswear, equipment, and materials necessary for the development of sports, ensuring compliance with international standards and local availability requirements.
A

Scope and Applicability

  • The guidelines implement Section 19 of Republic Act 6847 for tax exemptions on imports by PSC, POC, and NSAs as of January 24, 1990.

Definitions of Key Terms

  • International Sports Standard: Specifications approved by international sports bodies like the International Olympic Committee.
  • Equipment: Essential goods and machines necessary to play or develop sports and maintain sports complexes.
  • Supplies/Materials: Items used by players, officials during training or competitions, and for facility operations.
  • Sportswear: Attire worn by athletes and officials in training or competition.
  • Local Availability: Items certified by Department of Trade and Industry (DTI) to be locally manufactured.
  • Instrument: Devices measuring physical parameters important for training or competitions.
  • These definitions apply mainly to amateur sports; vehicles for more than nine passengers may also be imported duty-free.

Conditions for Availment of Tax Exemption

  • Direct Importation: Requires a letter application signed by PSC Chairman or representative with import documents, certification from PSC on international sports standard and necessity, and DTI certification of non-availability locally.
  • If DTI certifies local availability, exemption may still apply if local items do not meet international standards.

Importation by Donation

  • To PSC: Letter application and deed of acceptance from PSC required.
  • To POC: Requires letter application from POC President, oath certification by PSC Chairman, PSC endorsement to Department of Finance, authenticated deed of donation, and deed of acceptance by POC.
  • To NSAs: Requires letter application from NSA head, oath certification by PSC Chairman, PSC endorsement, certification of NSA accreditation, authenticated deed of donation, and NSA acceptance.
  • All exemption requests by POC and NSAs must be routed through PSC for endorsement before Department of Finance approval.
  • Department of Finance may require additional documentation or undertakings.

Inspection and Monitoring

  • Department of Finance may conduct pre- and post-release inspections in the presence of PSC representatives.
  • PSC may also inspect and audit donated imported items per its internal rules.
  • Inspection reports to be shared with PSC.

Penalties

  • Violations of these guidelines or revenue laws shall be subject to existing legal penalties.

Repealing Clause

  • All previous inconsistent orders, circulars, rules, or regulations are revoked or modified accordingly.

Effectivity

  • The guidelines shall take effect ten (10) days after publication in a newspaper of general circulation.

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