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LETTER OF INSTRUCTIONS
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LETTER OF INSTRUCTIONS NO. 1456 |
The Ministry of Trade and Industry
The Board of Investments
The Ministry of Finance
The Ministry of Agriculture and Food
The Ministry of Agriculture and Food
The Ministry of Energy
All Ministries, Bureaus, Offices, and Agencies
Concerned
In accordance with the specific recommendations stated in the memorandum of the Chairman of the Board of Investments dated 21 March 1985, the proposed 1985 Investments Priorities Plan is hereby approved.
DONE in the City of Manila, this 24th day of April, in the year of Our Lord, nineteen hundred and eighty-five.
1985
INVESTMENT PRIORITIES PLAN
I.
AGRICULTURE
1. Vegetable beans (P/NP)
a.
Mungobeans
b. Redbeans
c. Whitebeans
d. Kadios
e. Others
Note: May include processing if integrated with production.
a.
Cassava
b. Sweet
potatoes
c. Peanuts
d. Others
Note: May include processing if integrated with production.
a.
Cloves
b. Garlic
c. Ginger
d. Pepper
e. Onion
f. Mints
g. Others
4. Edible nuts (excluding coconut) (P/NP)
a.
Cashew
b. Macademia
c. Pili Nuts
d. Others
Note: Includes replanting and/or interplanting with fruit trees land presently planted to traditional crops.
a.
Avocado
b. Citrus
c. Mango
d. Papaya
e. Pineapple
f. Strawberry
g. Melon
h. Grapes
i. Passion
fruits
j. Other fruits
6. Cereals
a.
Palay (P/NP)
b.
Wheat (P)
c. Barley (P)
a.
Mushrooms
b. Asparagus
c. Okra
d. Tomato
e. Cacao beans
PRODUCTION
OF FEED GRAINS
2. Sorghum (P/NP)
3. Soybeans (P/NP)
4. Winged beans (PN/P)
PRODUCTION
OF FEED INGREDIENTS AND FEEDS
2. Feeds for aquaculture (P/NP)
3. Other feed ingredients (P/NP)
PRODUCTION
OF OTHER CROPS
Note: May be integrated with copra production which shall supply the copra requirements of existing oil mills.
2. Oil Palm (NP)
Note: May include processing if integrated with growing.
3. Cotton (P/NP)
Note: May be integrated with ginning.
4. Abaca fiber (P/NP)
5. Bast fibers such as jute, kenaf and ramie (P/NP)
6. Rubber (latex) (P/NP)
Note: May include processing latex into crumb rubber.
7. Sericulture (P/NP)
Note: May be integrated with mulberry growing up to spinning.
8. Hydrocarbon bearing trees and other plants (P)
9. Medicinal herbs and plants (P/NP)
10. Essential oil-bearing plants (P/NP)
a.
Sesame
b. Citronella
c. Others
PRODUCTION
OF SEEDS (Breeder's Foundation. Registered and Certified Seeds)
2. F1 Corn (P/NP)
3. F1 Corn (P/NP)
4. Vegetables (such as those crops which belong to the families of eggplants, squash, cabbage, etc., (P/NP)
5. Production of quality seeds/seedlings of fruit trees (P/NP)
PRODUCTION
OF ORNAMENTAL PLANTS*
2. Cut flowers (P/NP)
3. Landscape/indoor plants (P/NP)
PRODUCTION/PROCESSING
OF AGRICULTURAL INPUTS
PRODUCTION
OF LIVESTOCK AND POULTRY (Including Dairy)
2. Hogs (NP)
3. Poultry (NP)
a.
Day-old chicks (must start with grandparents in the production process)
b. Meat
c. Table eggs
d. Others
(other poultry species)
5. Dairy (P/NP)
PRODUCTION
OF BREEDERS
1. Beef and dairy cattle (P/NP)
2. Hogs (P/NP)
3. Poultry (P/NP)
4. Goats (P/NP)
5. Frozen semen and embryos (P)
AGRICULTURAL
SERVICES
2. Irrigation (NP)
3. Tractor pool (NP)
4. Other specialized services such as:
a. Refrigeration/storage services for farm and fishery products (NP)
b. Meteorological research weather modification including, but not limited to cloud seeding (NP)
c. Post harvest technological services such as picking, handling, packing and transportation (NP)
5. Flower induction services for fruit and vegetable crops (NP)
6. Artificial insemination and embryo transfer services (P)
II.
FORESTRY
TREE
FARMS/PLANTATIONS
2. Rattan (P)
3. Bamboo (P/NP)
4. Others (P/NP)
III.
FISHERY
2. Aquaculture (such as prawns, oysters, mussels, etc.) (P/NP)
IV.
MINING
PRIORITY ACTIVITIES TO SUPPORT
THE MINING INDUSTRY (P/NP)
2. Mining and quarrying of metallic/non-metallic minerals (excluding riverbed operations)
3. Processing of minerals such as beneficiation and other metallurgical methods
V.
MANUFACTURING
PROCESSED FOOD
1. Meat (NP)
Note: May include processing of by-products
2. Fruits, vegetables and root crops(P/NP)
a.
Purees, concentrates and others (such as mangoes, guava, papaya,
tomato, guyabano, banana, citrus, etc.)
b. Dehydrated
products (such as mangoes, papaya pineapple, banana, coconut, etc.)
c. Other
preservers such as ube, sweet potatoes, tomato paste, pickled cucumber,
canned asparagus, etc.)
4. Fish and other marine products
a.
Fish (NP)
b.
Seaweeds and other algae-based foods (P/NP)
a.
Castor oil (NP)
b. Palm oil
(NP)
c. Peanut oil
(NP)
d. Rice bran
oil (NP)
e. Sunflower
and soybean oil (P/NP)
7. Spices (P/NP)
8. Processed coffee *(NP)
9. Other processed foods* (P/NP)
Manufacturers of processed fruits are encouraged to set up processing plants integrated with the suppliers of raw materials so that they are assured of steady and continuos supplies for manufacturing. Those integrated may be plantations wholly-owned by the manufacturing plant or by a cooperative venture with groups of growers or in the form of a contractual agreement with growers to supply raw materials.
WOOD
PRODUCTS
1. Builder's woodwork, including prefabricated and sectional building and other components of wood* (NP)
2. Plywood (NP) Note: Limited to expansion/modernization of existing plywood plants except when part of a processing center or for processing of timer from plantations.
3. Veneer (NP) Note: Limited to sliced veneer and/or expansion only of existing rotary-cut veneer plants except when part of a processing center/complex for processing of timber from plantations or for rehabilitation/modernization
4. Blackboard* (NP) Note: must be integrated with primary wood processing plants.
5. Particle board* (NP)
6. Furniture* (NP)
7. Other wood products such as toys, chopsticks, lacquered wood products, etc., including combinations of wood and other materials* (NP)
PAPER
PRODUCTS
2. Packing containers* (NP)
3. Paper products such as notebooks, diaries, albums stationeries, etc. (NP)
4. Printed matters such as books, pamphlets, magazines etc. (NP)
TEXTILE
PRODUCTS
2. Spun yarn and circular knitted fabrics and intermediate products thereof made of natural and/or synthetic materials specialized or integrated) (NP)
3. Textile finishing (NP)
4. Non-woven textiles (NP)
5. Specialty fabrics (NP)
6. Tire cord fabrics (P)
7. Abaca yarns and ropes* (NP)
8. Fish nets (NP)
9. Garments* (NP)
10. Made-up articles of textile (NP)
FOOTWEAR*
(P/NP)
LEATHER
PRODUCTS* (P/NP)
2. Made-up articles of leather (such as travel goods, handbags, wallets, purses, camera and lens cases, gloves and mittens, coats and garment items, etc.)
CHEMICAL
PRODUCTS
a.
Caustic soda (NP)
b. Salt
(edible and industrial) (P/NP)
c. Nicotine
sulfate* (NP)
d. Refined
glycerine* (NP)
e. Ethanol
(P/NP)
f. Pigments
(i) Chrome
yellow and molybdate orange pigment (P)
(ii) Color
pellet resins (colorants) (NP)
(iii)
Colorants and color masterbatch (NP)
(iv) Others
(P/NP)
g.
Cocochemicals (such as esters, fatty alcohols and derivatives thereof
from coconut oil) (P/NP)
h.
Sucro-chemicals (such as ribonucleic acid, citric acid and sorbitol)
(P/NP)
i. Acetic acid
(P)
j. Polyglycols
and glycol ethers (P)
k. Stearic
acid (P)
l. Xanthates
(P)
m. Furfural
(P)
n. Blowing
agent for rubber and plastic compounds (P)
o. Ethylene
from ethanol naptha or liquefied petroleum gas (P)
p. Modified
starch as sizing agent (NP)
q. Di-octyl
phthalate* (P/NP)
r. Acetylene
black (NP)
s. Sodium
sulfate (NP)
t. Various
lacquers and sanitary liners (P)
u. Tellurium
dioxide* (P)
a.
Nitrogenous fertilizer (P/NP)
3. Synthetic resins
a.
Polypropylene (P)
b. Low density
polyethylene (P)
c. High
density polyethylene (P)
d. Other
derivatives of ethylene and propylene (P)
e. Synthetic
rubbers (Such as styrene, butadiene rubber, polybutadiene rubber and
polyisoprene rubber) (P)
f. Recycled
acrylic resins* (NP)
a.
Nylon tire cords (P)
b. Nylon yarn
for fish nets (P/NP)
c. Nylon yarn
and fiber (P/NP)
d. Acrylic
fiber* (P)
e. Polyester
staple fiber and filament yarn (P/NP)
a.
Essential oils* (NP)
b. Activated
carbon* (P/NP)
c. Chemicals
for metallurgical use (P/NP)
d.
Biotechnological/biosynthetic chemicals (P/NP)
e. Palm oil
chemicals (P/NP)
PHARMACEUTICALS
1. Antibiotics (P)
a.
Penicillins
b.
Streptomycins
c.
Tetracyclines
3. Other pharmaceuticals (P/NP)
4. Parenteral therapy systems and components thereof (P/NP)
5. Hard gelatin capsules* (P)
PETROLEUM
PRODUCTS
1. Petroleum wax (P)
2. Basic/intermediate petrochemicals (P/NP)
a.
Vinyl chloride monomer
b. Methanol
c. Other
basic/intermediate petrochemicals* (such as plystyrene)
RUBBER
PRODUCTS
1. Crumb rubber* (NP)
2. Reclaimed rubber* (NP)
3. High pressure and hydraulic rubber hoses (P/NP)
4. Rubber belts (NP)
5. Rubber rollers for rice mills (NP)
6. Made-up articles of rubber (such as inner tubes, latex round rubber, gloves, etc.)* (NP)
PLASTIC
PRODUCTS
1. Made-up articles of plastic (such as plastic containers, raincoats, housewares, hooks, coat hangers, office and school supplies and plastic sheets/tapes/films)* (NP)
2. Polyethylene film bags* (NP)
3. Plastic twine* (NP)
4. Other plastic products (P/NP)
NON-METALLIC
MINERAL PRODUCTS
1. Processed gypsum products (P/NP)
a.
Commercial grade chemical gypsum
b. Gypsum
board
c. Plaster of
paris
d. Other
processed gypsum products
3. Silicon/silica powder (P)
4. Abrasives (P/NP)
STRUCTURAL
MATERIALS /CONSTRUCTION /HOUSING COMPONENTS
1. Pre-cast reinforced walls and trusses (NP)
2. Ceramic bathroom accessories (NP)
3. Others (P/NP)
MACHINERY
AND EQUIPMENT
1. Manufacture of process machinery and equipment, their related spare parts, accessories and supplies for the following industries (P/NP):
a.
Agriculture
(i) For crop
production and post harvest
(i) For
livestock and poultry
b. Forestry
and logging
c. Fishery
d. Mining and
quarrying
e. Textile
f. Food
processing
g. Wood
processing including furniture and fixture)
h. Paper,
paper products, printing, publishing and allied industries
i. Chemical,
petroleum, coal, rubber and plastics
j.
Non-metallic mineral products like ceramics, glass, cement
k. Basic
metals (iron and steel; non-ferrous)
l. Fabricated
metals
m. Other
manufacturing industries
n.
Construction
2. Manufacture of intermediate (ancillary) machinery/equipment (P/NP)
a.
Materials handling
b. Measuring
and controlling devices
c. Packaging
d. Precision
tools, molds, dies
e. Prime
movers (internal combustion engine)
f. Electrical
machinery such as electric motor, generator, switch gear
ELECTRONIC
PRODUCTS MACHINERY/EQUIPMENT THEIR RELATED SPARE PARTS ACCESSORIES AND
SUPPLIES (P/NP)
a.
Semiconductor devices
b. Electron
tubes
3. Electronic machinery/equipment and/or parts/components thereof such as:
a.
Industrial automation, instrumentation, process control equipment,
robotics, etc.
b.
Telecommunication systems and information handling systems
c. Medical
electronics
d. Automotive
electronics
5. Measuring and controlling devices
6. Raw materials and supplies (direct and indirect) used in the processing of semiconductor devices such as lead frames, goldwires, gold preform, finger cots, shipping tubes. etc.
ELECTRICAL
MACHINERY/EQUIPMENT THEIR RELATED SPARE PARTS, ACCESSORIES AND SUPPLIES
(P/NP)
a.
Electric Motor
b. Generators
a.
Power
b.
Distribution
c. Specialty
a.
Switchgears
b. Power
capacitor
a.
Coils
b. Capacitors
c. Resistors
d. Rhoestat
SHIPBUILDING
AND SHIPREPAIR (P/NP)
1. Coastwise and ocean-going vessels and the repair thereof
2. Pleasure boats*
MISCELLANEOUS
MANUFACTURED PRODUCTS* FOR THE FOLLOWING INDUSTRIES: (P/NP)
1. Apparel
2. Footwear/leathergoods
3. Processed food
4. Giftwares, handicrafts, and accessories
5. Furniture
6. Health care
7. Sporting goods
8. Metalworking
9. Scientific instruments
RATIONALIZATION/REHABILITATION/MODERNIZATION
OF INDUSTRIAL PLANTS
1. Plywood plants (NP)
Note: Limited to expansion/modernization of existing plywood plants except when part of a processing center or for processing of timber from plantations.
2. Veneer plants (NP)
Note: Limited to sliced veneer and or expansion only of existing rotary-cut plants except when part of a processing center/complex for processing of timber from plantations or for rehabilitation/modernization.
3. Pulp and papermills (P/NP)
4. Powdered milk plants (NP)
5. Textile mills (NP)
6. Cement plants (NP)
Note: Prior approval of the Philippine Cement Industry Authority is a required.
7. Metalworking shops such as:
a.
Foundries (P/NP)
b. Forge
plants (P/NP)
c. Metal
fabrication and machine ships (P/NP)
d. Heat
treating plants (P/NP)
e. Metal
finishing (plating) plants (P/NP)
9. Nickel smelting/refining (P/NP)
10. Shipbuilding and shiprepair (P/NP)
11. Nasic chemical plants, e.g. methanol, caustic soda, synthetic resins, sucro-chemicals, plasticizers, nylon yarn, rubber processing, etc. (P/NP)
12. Conversion of detergent manufacturing facilities to coconut fatty alcohol feedstock (in line with the rationalization program of the coconut oil industry) (P)
13. Components for the Progressive Car and Truck Manufacturing Programs
a.
Automotive gasoline engines* (P)
b. Camshafts
for engines (P)
c. Heavy-duty
motor vehicle transmissions (P)
d. Crankshafts
and connecting rods (P)
e. Heavy
vehicle axles (P)
f. Automotive
grade iron casting (P)
g. Ignition
coils (P/NP)
h. Cylinder
liners (P/NP)
i. Piston
rings (P)
j. Automotive
gauges and instruments (NP)
k. Oil, air
and fuel filters for automotive/industrial applications (P/NP)
l. Electric
motors for automotive use* (NP)
m.
Automotive lighting and signaling equipment (P/NP)
(i) Headlamps
(ii) Rear turn
signal lights
(iii) Rear
turn signal/tail/stop lights*
(iv) Turn
signal light indicator assembly*
(v) License
plate light assembly*
(vi) Flasher
units*
(vii) Interior
lighting
(viii) Horns*
(ix) Switches
n.
Other automotive parts and components* (P/NP)
14. Components for the Progressive Motorcycle Manufacturing Program
a.
Rims for bicycles and motorcycles (NP)
b. Spokes and
nipples for bicycles and motorcycles (NP)
c. Sprockets
for bicycles and motorcycles (NP)
d. Roller
chains for bicycles and motorcycles (NP)
e. Other
motorcycle parts and components* (P/NP)
VI.
ENERGY - RELATED PROJECTS (P/NP)
1. Alcohol production for fuel, with or without integration with agricultural production of raw materials therefor.
2. Production of fuel or energy through the conversion or transformation of biomass materials, coal and charcoal into more usable forms of fuel, such as briquettes, powders or pellets, gaseous and liquid fuels, including handling activities and facilities related.
3. Establishment of any manufacturing plant substantially using coal as fuel geothermal and other non-conventional fuels, or conversion of existing manufacturing plants/equipment for the use of coal and non-conventional fuels, subject to certain conditions.
4. Manufacture of equipment necessary of the production and/or utilization of solar energy, power, alcohol, biogas, geothermal steam or geothermal hot water, wind, coal-derived fuels, and other fuels certified by the Ministry of Energy to be of non-conventional nature.
5. Manufacture of mini-hydro-electric systems.
6. Any manufacturing plant essentially using non-conventional energy device, process or system certified by the Ministry of Energy to be relevant to the Energy Program of the Government, subject to certain conditions.
PROJECTS
PROMOTING THE CONSERVATION AND MORE EFFICIENT USE OF ENERGY
1. Installation of new equipment or modernization of existing equipment leading to improvements if the efficiency with which energy is used (e.g. high efficiency boilers, with furnaces, co-generation of steam and electricity and instrumentation and control devices)
2. Installation of new equipment or conversion of existing equipment to enable the replacement of one form of energy with another to promote the national interest (e.g. from electricity to direct fuel or vice-versa, from gasoline or diesel powered to bunker or coal-powered)
3. Installation of new manufacturing plant or process, or modernization of existing manufacturing plant or process, resulting in more efficient utilization of energy than currently achieved (e.g. new chemical plants requiring less energy inputs)
4. installations of waste energy recovery system (e.g. recycling of waste hot water)
5. installation of equipment and materials to improve energy, utilization in building (e.g. more energy-efficient lighting system or air-conditioning system)
6. Manufacture of equipment for specific use in the energy conservation projects listed above.
VII.
PUBLIC UTILITIES (P/NP)
1. Interisland shipping and directly related facilities essential to the efficient operation of ships.
2. District cooling systems.
VIII.
EXPORT TRADERS
IX.
SERVICE EXPORTERS
Notes:
1. Existing producers of non-traditional export products whether or not listed in the Investment Priorities Plan, may be registered for limited incentives under PD. 1789.
2. *The registration of products with asterisk is subject to certain conditions.
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