Rules for Export Development Act Implementation

Monetary and foreign exchange policies aim for competitive exchange rates and safety nets for adversely affected sectors.
Fiscal and credit policies focus on adequate investment funds for export purposes, keeping credit costs competitive, and ensuring SME access.
Agricultural policies support agri-industrial competitiveness and industry linkages.
Trade, tariff, and customs policies support domestic industry competitiveness in international trade.
Technical support includes technology transfers, R&D, and training via DOST, Department of Agriculture, and state universities.
Infrastructure policies ensure adequate power, water, transport, communications, and sanitary measures.
Export growth is linked to countryside development through SME-friendly policies.
Labor policies encourage productivity and industrial harmony with integrated training schemes and fair pricing.
Simplification of procedures in government agencies affecting exporters is mandated.
Repeal of laws detrimental to exports is encouraged.

"Exporter": Person or entity earning at least 50% of revenues from foreign currency export sales, including direct and indirect exporters.
"Services": Export service supply limited to IT, construction, consultancy, and professional services, excluding overseas contract workers.
"Export Promotion": Activities supporting export including networking, trade fairs, training, quality control, and marketing.
"Export Incentives": Government support to motivate exporters, including those from BOI and LGUs.
"Accredited Organization": Exporter organization with multi-sectoral representation and activities, accredited by the Export Development Council.
"Export sale/revenue": Determined on Philippine port FOB value or net sales, with specific provisions for constructive exports and consignment sales.
"SMEs": Export enterprises with assets up to P60 million.
"Eximbank": Proposed institution for export financing and related services, particularly for SMEs.
"Negotiability": Tax credits granted can be negotiable up to certain conditions.

The President approves a rolling three-year PEDP formulated by DTI in consultation with the private sector.
PEDP sets export thrusts, strategies, programs, and projects.
It is updated biannually and integrated into the Medium-Term Philippine Development Plan.

Composition includes Secretaries of key departments and 9 private sector representatives.
Powers include approving PEDP, reviewing export performance, identifying bottlenecks, mandating agencies to resolve constraints, quality control oversight, sanctioning impediments to export, legislative recommendations, and accrediting exporter organizations.
Executive Committee (ExCom) assists with policy initiatives, coordination, agenda setting, and reviews budgets.
Monthly regular meetings and additional meetings convened by President or Chairman.
Funding through government appropriation and private sector contributions.

Council accredits one umbrella organization for three years representing exporters.
Functions include recommending private sector Council members, representing export interests, assisting DTI in export promotion, managing Philippine Trade Centers, and respecting predecessor obligations.

Registration requires annual BETP accreditation, compliance with Minimum Wage and SSS laws, payment of fees, and submission of sworn statements on import use.
Incentives include:
- Exemption from PD 1853 (Advance Payment of Customs Duties), requiring certification for presentation on imports.
- Duty-free importation of machinery, equipment, and spare parts for export manufacture until December 31, 1997.
- Tax credit for imported inputs/raw materials not available locally until December 31, 1999.
- Tax credit for increased export revenues, scaled progressively with export growth.
- Tax credit for use/import-substitution of non-traditional products raw materials up to 25% of duties, valid until December 31, 1997, extendable by President.
Exporters may also avail other incentives under EO No. 226 and similar laws but cannot claim duplicate incentives.

Claims filed with One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center.
Tax Credit Certificates (TCC) issued as evidence, valid for 3 or 5 years depending on type, and transferable up to three times except to LGUs.
Claims must meet deadlines (generally within 90 working days of exportation or 60 days from filing tax return for export revenue increase).
Verification of claims done by BIR to prevent duplicate claims.

Council mandated to study and recommend creation of an export financing institution, possibly private sector-led, focusing on SMEs.
Interim financing programs to be developed with government financial institutions for accessible credit at competitive rates.
Government funding provided through budgetary appropriations and institutional equity contributions.

Rationalization and eventual privatization of export promotion functions within two years.
Creation of a Task Force to study and recommend funding and framework.
Accredited export organization to perform privatized export promotion functions.
Interim financial and technical assistance to export organizations provided by government.

Government assists in establishing Trade Centers as permanent export product exhibit sites.
Provides land grants or long-term leases for centers.
Accredited organization manages centers and may contract operators.

President appoints private sector representatives to EDC on effectivity of the act.
Old Council continues functions until new Council is operational.
Funding transferred from old to new Council and included in annual General Appropriations.

Willful or gross negligence violations lead to expulsion of officials and prohibition from government positions for two years.
Council may suspend or cancel exporter’s registration for failure to maintain qualifications, violations of the Act, its rules, or laws protecting labor, consumers, environment, and health.

Inconsistent laws, orders, rules, or regulations repealed or amended accordingly.
The implementing rules and regulations have retroactive effect to December 30, 1994, the effective date of the Export Development Act.