PEZA Scrap Buyers Registration Rules

Scrap buyers of scrap materials generated by economic zone enterprises must register to operate in PEZA-registered economic zones.
The order establishes a registration system in which a buyer’s PEZA Central Office registration enables operation in all PEZA-registered economic zones.
The prior system requiring registration in each and every zone is replaced by the PEZA Central Office registration system.
The order also allows registration outside regular processing months for specialized scrap materials generated by economic zone locator enterprises that have started operations or generate such specialized scrap for the first time.

Scrap buyers shall register and/or renew their registration with the PEZA Central Office.
PEZA Central Office registration is effective for a period of two years.
PEZA Central Office receives and processes applications only in January and June each year.
For Year 2003, registration is undertaken in February until 31 March and in June.
Outside January and June, PEZA may register buyers of specialized scrap materials if the application includes an endorsement of the CEOs/Presidents of the economic zone locator enterprises that generate the specialized scrap materials.

Scrap buyers may submit applications to the PEZA-Enterprise Assistance Divisions (PEZA-EADs) in economic zones where they operate.
The PEZA-EAD shall accept the applications after verifying completeness of the documentary requirements and accuracy of information submitted.
The PEZA-EAD shall receive payment of the Registration Fee and immediately forward the applications to the PEZA Central Office.
Scrap buyers who apply through a PEZA-EAD may secure their Certificates of Registration from the PEZA-EAD no later than five working days after acceptance of the applications.
When applications are accepted by PEZA Central Office, certificates are issued within one-hour of acceptance of the applications.

Scrap buyers shall submit their application for registration with originals or copies certified as true copies by an official of the company of the following:
- the Scrap Buyer’s Registration Form;
- the DENR Certificate of Non-Coverage for buyers of scrap materials not containing toxic and hazardous waste;
- the DENR Accreditation/Environmental Compliance Certificate for buyers of scrap materials containing toxic and hazardous waste;
- the Mayor’s Permit; and
- P5,000 Registration Application Filing Fee.
Additional requirements apply when applicable:
- a DENR-EMB Permit to Transport for buyers that will transport scrap materials containing toxic and hazardous waste; and
- a written endorsement by the CEO/President of the economic zone locator enterprise generating the specialized scrap materials when the application is filed outside January and June.
Scrap buyers shall submit applications directly to the PEZA Central Office, or alternatively to the PEZA-EAD where they operate.

The Bureau of Customs (BoC) is solely responsible for appropriate valuation of scrap materials for purposes of determining import duties and taxes.
Import duties and taxes assessed by the BoC on the scrap materials sold shall be paid in the name of the economic zone enterprise which sells the scrap materials.
Scrap buyers shall fill-out PEZA Form 8106 and present the corresponding original copy of the official receipts evidencing payment of assessed import duties and taxes.
Scrap buyers shall submit a copy of the receipts evidencing payment of assessed import duties and taxes to the PEZA-EAD every time they withdraw scrap materials from the economic zone.
The PEZA-EAD shall verify with the BoC the basis for computation of the import duties and taxes paid, including determined values, commodity classifications, and tariff rates based on the Tariff and Customs Code of the Philippines.

A fixed Scrap Sales Processing Fee (SSPF) of P500.00 per scrap sales transaction is imposed.
The fixed SSPF is imposed in lieu of the existing SSPF of 5% of the value of the scrap materials sold.
The P500.00 SSPF applies to sales transactions where import duties and taxes have been paid to the BoC and the scrap materials are withdrawn from the economic zone on the day the taxes and duties were paid.

Scrap buyers withdrawing and transporting scrap materials containing toxic and hazardous waste (e.g., plastic drums containing used oil, methyl alcohol, solder dross) shall present upon demand:
- a copy of the DENR-EMB Permit to Transport; and
- a Hazardous Waste Manifest.
The permits and manifest documentation must evidence that the scrap buyer has a valid authority to transport and that the toxic and hazardous scrap materials are delivered only to DENR-Accredited storage, treatment, processing and/or recycling facilities.

The order directs “for your guidance and strict compliance.”
The adopted date is 14 Feb. 2003, with signature by (SGD.) LILIA B. DE LIMA, Director General.