Objectives
- Prevent abuse of duty free privileges granted to SBFZ registered enterprises.
- Ensure TEDFA are primarily used for flights and business related to Subic Bay Freeport.
- Restrict use of tax exempt aircraft parts to TEDFA only, prohibiting usage or sales outside SBFZ.
- Require locators to lease adequate hangar space at Subic Bay International Airport (SBIA) for TEDFA housing.
Policy on Duty Free and Tax Exempt Admission
- TEDFA and related parts must be primarily based and operated within SBFZ, acting as the core base of operations.
- TEDFA must return and maintain physical presence at SBIA after each flight.
- Failure to comply results in payment of duties and taxes as per relevant laws (Sec. 47(B) of RA 7227).
- Eligible locators include those with sufficient hangar space engaged in aviation/logistics or those with at least Php 100 million investment justifying aircraft admission.
- Admission of TEDFA requires SBMA Board approval; hobbyist aircraft admission is discretionary.
Documentary Requirements for Admission
- Valid Certificate of Tax Exemption and Business Permit to Operate.
- Lease agreement for hangar space at SBIA.
- Entry clearance from the Civil Aviation Authority of the Philippines (CAAP) for ferry flights.
- No objection certificate from CAAP for aircraft parts when applicable.
- Invoice for the aircraft units.
- Certification of good standing from SBIA authorities.
Fees
- A permit fee of Php 25,000.00 per TEDFA is required for registered locators.
Annual Monitoring
- Locators must submit annual certified copies of flight schedules and total flight hours for all admitted TEDFA.
- SBIA is responsible for verifying compliance with operational hub requirements and that TEDFA return to SBFZ after flights.
Sale, Transfer and Assignment of TEDFA
- Ownership transfer is prohibited within three years of admission.
- Transfers require prior written SBMA approval valid for 30 days.
- Must submit notarized transfer documents within 15 days after the transaction.
- Payment of duties and taxes to BOC is required if the transferee is not entitled to duty-free privileges or TEDFA is removed from SBFZ.
- Transfer fee of Php 25,000.00 applies.
- Unauthorized sale/transfer subjects TEDFA to duties, taxes, and penalties.
Fines and Penalties
- Unauthorized sale/transfer: Php 250,000.00 fine plus payment of applicable duties/taxes; may face administrative/criminal actions.
- Violation of maintaining active hub presence condition in Certificate of Tax Exemption: Php 250,000.00 penalty plus duties/taxes to BOC.
Effectivity
- These policy guidelines became effective 15 days after publication in a newspaper of general circulation, as mandated by SBMA authority.