Law Summary
Development Incentives for Qualified Jewelry Enterprises
- Zero duty on imported raw materials such as precious metals, gems, stones, jewelry parts, and related supplies as specified by the Tariff and Customs Code.
- Exemption from excise tax on all types of jewelry goods, including real or imitation pearls and precious or semi-precious stones.
- Zero duty on imported capital equipment and related spare parts as defined under specific chapters of the Tariff and Customs Code.
- Additional 50% deduction from taxable income for approved training expenses incurred within the financial year.
- Gold and silver sales by Bangko Sentral ng Pilipinas at minimal margins to jewelry enterprises.
- Authority for jewelry enterprises to procure gold and silver directly from other sources.
- Inclusion and promotion of locally-manufactured jewelry in the government’s tourist duty-free shops.
- Eligibility to avail of incentives from other special laws if the activity is export-oriented and benefits are not duplicated.
Eligibility Criteria for Government Assistance
- Jewelry enterprises must be duly registered with relevant government agencies to access assistance, counseling, and incentives.
- Defines "jewelry enterprise" broadly to include entities engaged in manufacturing, cutting, polishing, shaping, refining, forming, or fabricating fine and imitation jewelry, including components like pearls, stones, precious metals, and related raw materials and parts.
Role of the Department of Trade and Industry (DTI)
- DTI shall monitor, oversee, and supervise implementation of the Act.
- Required to submit an annual report to Congress on the Act’s implementation.
Issuance of Implementing Rules and Regulations
- The Secretary of Trade and Industry must promulgate implementing rules and regulations within 30 days of the Act’s approval.
- Consultation with the Secretary of Finance is mandated before issuance.
Separability Clause
- Declares that if any provision is declared unconstitutional, other provisions remain effective and enforceable.
Repealing Clause
- Repeals or modifies inconsistent provisions, including the second paragraph of subsection "q" of Section 105 of the Tariff and Customs Code, and other conflicting laws, executive orders, rules, or regulations.
Effectivity
- The Act takes effect 15 days after publication in two newspapers of general circulation.