Law Summary

Background

• Legal Basis: This Executive Order originates from Executive Order No. 46, issued on September 4, 1986, which established a duty and tax-free merchandising system in the Philippines.
• Purpose: The initiative aims to enhance service facilities for tourists and to generate foreign exchange and revenue for the government, crucial for financing economic recovery and development programs.

Section 1: Imposition of Entrance Fee

• Legal Provision: An entrance fee of Fifty Pesos (P50.00) shall be levied on all non-passengers entering over-the-counter stores and shops operated by Duty Free Philippines.
• Locations Covered: Specific stores mentioned include:
  • Fiesta Shopping Center (Parańaque, Metro Manila)
  • Cebu City store
  • Paskuhan Village Outlet (San Fernando, Pampanga)
• Exemptions: Exemptions from the entrance fee may be provided under implementing rules and regulations to be promulgated jointly by the Department of Tourism and the Bureau of Customs.
• Effective Date: The entrance fee will take effect on April 1, 1993.

Section 2: Allocation of Proceeds

• Revenue Collection: Proceeds from the collected entrance fees are designated to accrue to the general fund of the National Government.
• Remittance Process: These funds are to be remitted monthly to the National Treasury.

Section 3: Effectivity

• Immediate Effect: This Executive Order is effective immediately upon issuance.

Signatures

• President: Fidel V. Ramos
• Legal Counsel: Antonio T. Carpio (Chief Presidential Legal Counsel)

Key Takeaways

• An entrance fee of P50.00 is mandated for non-passengers at Duty Free Philippines stores effective April 1, 1993.
• The revenue generated will support the National Government's general fund and be remitted monthly to the National Treasury.
• Exemptions to the fee may be established through further regulations by relevant authorities.