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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1040 -
ADMINISTRATIVE MEASURES TO FURTHER STRENGTHEN EXPORT TRADE |
The Minister of trade
The Governor
Central Bank of the Philippines
The Chairman
Board of Investments
The Chairman
Development Bank of the Philippines
The President
Philippine Export and Foreign Loan Guarantee
Corporation
The President
Philippine International Trading Corporation
The Commissioner
Bureau of Internal Revenue
The Commissioner
Bureau of Customs
WHEREAS, the sound and balanced development the economy requires the expansion and sustained growth of export trade, the attainment of which necessitates the trading sector's assumption of a leading and more innovative role in improving the country's export performance;
WHEREAS, this role requires that trading firms develop and extend their functional coverage to include expanded bulk trading, adequate and reliable sources of supply, worldwide market networks, trade and production financing, risk absorption and other innovative functions needed to improve trade leverage;
WHEREAS, to assist in the organization and development of such trading companies, there is a need to provide administrative support for the operations of trading companies registered under P.D. No. 1646, hereinafter referred to as "Registered Export Trading Company."
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order and direct:
1.
A Registered Export Trading Company may operate bonded manufacturing
warehouses under such guidelines as may be prescribed by the Bureau of
Customs and the Board of Investments.
2. The Central
Bank under such terms and conditions as may be prescribed by the
Monetary Board, shall provide a Registered Export Trading
Company:
a.
Access to rediscounting facilities through the availment of more
favorable loan value, rediscount rate/interest charges and maturities;
b. More
liberal export payment terms and preferential export credit financing
facilities from internal and external fund sources for non-traditional
manufactured export products;
4. A Registered Export Trading Company may trade directly or indirectly with Socialist and other centrally planned economy countries.
5. Export sales of Registered Export Trading Company under P.D. No. 1646 shall include commission income.
6. Export sales of a Registered Export Trading Company of export products manufactured by export producers operating bonded manufacturing warehouses or importing raw materials under-bond shall be considered by the Bureau of Customs, under such regulations as the latter may prescribe, as valid liquidation of raw material imports. Further the sale between such export producer and registered export trading company shall not be considered as domestic sales by the Bureau of Internal Revenue and the Bureau of Customs.
7. Export traders and export producers engaged in indirect exports may register with the Board of Investment in order to avail themselves of the tax benefits under P.D. No. 1469.
This Letter of Instructions shall take effect immediately.
Done in the City of Manila, this 24th day of June, in the year of Our Lord, Nineteen Hundred and Eighty.
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