Government policy and purpose
- The Government policy is to enhance the effective posture of the Philippine Air Force.
- The instruction aims to improve the operational readiness of aircraft and to ensure effective performance of responsibilities related to national security.
- The instruction is premised on the need for the prompt release of items under customs custody for Air Force operational effectiveness.
Scope: what may enter duty-free
- Duty-free informal entry applies to the importation of aircraft, engines, equipment, machinery, spare parts, aviation pas, fuel and oil (whether crude or refined), and other articles or supplies for the use of the Philippine Air Force.
- The benefit extends to importations by and for the use of the Philippine Air Force.
- The instruction covers items needed for the operation of the Philippine Air Force and its allied activities.
Duty-free informal entry and release rules
- Importation of covered items is allowed informal entry free of customs duty.
- Importations must be released immediately from customs custody.
- The release is subject to a follow-up requirement of submitting a sworn statement within a fixed period after release.
- Delivery authorization is enabled by requiring compliance with document submission for accounting to the Ministry of Finance.
Required sworn statement and timing
- Within fifteen (15) days from the date of release, the importer must present a statement under oath.
- The sworn statement must state that the articles or supplies are not locally available in reasonable quantity, quality, and price.
- The sworn statement must state that the items are necessary for or incidental to the operation of the Philippine Air Force and its other allied activities.
Exempted requirements (dispensed retirements)
- The instruction dispenses with the requirement of prior authority and/or indorsement of qualification for tax exemption from the Ministry of Finance.
- The instruction dispenses with a Certification from the Civil Aeronautics Administration that the articles or supplies are not locally available in reasonable quantity, quality, and price, and that they are necessary for or incidental to proper operation of scheduled airlines importing the same.
- The instruction dispenses with the Central Bank release certificate.
- These dispensed requirements are expressly waived for covered PAF imports to implement the duty-free informal entry system.
Delivery authorization and documentation accounting
- As a general rule, whenever practicable, planeside or shipside delivery of imported items to the PAF is authorized.
- Delivery is conditioned on the submission of importation documents to the Ministry of Finance.
- Submitted documents are required for the accounting of the importations.
- This delivery authorization is intended to meet critical security needs.
Tariff and customs code exemption effect
- Effective this date, the Philippine Air Force is given tax exempt status.
- The Philippine Air Force is free of the requirements of Section 1205 of the Tariff and Customs Code of the Philippines.
- The tax exemption is implemented through the duty-free informal entry and release framework stated in the instruction.