LETTER OF INSTRUCTIONS NO. 66 - ANNOUNCING THE APPROVAL AND EFFECTIVITY OF THE SIXTH INVESTMENT PRIORITIES PLAN AND FOURTH EXPORT PRIORITIES PLAN UNDER THE INVESTMENT INCENTIVES ACT AND EXPORT INCENTIVES ACT

WHEREAS, pursuant to the provisions of Republic Act No. 5186, otherwise known as the Investment Incentives Act, and Republic Act No. 6135, otherwise known as the Export Incentives Act, the Board of Investments has prepared the Sixth Investment Priorities Plan and the Fourth Export Priorities Plan and the same have been submitted to me for approval through, and with the recommendation of the National Economic and Development Authority.

WHEREAS, after a careful study of the said Sixth Investment Priorities Plan and Fourth Export Priorities Plan and their supporting data, I have found them to be feasible and in conformity with law and accordingly approved it.

NOW, THEREFORE, pursuant to Section 18 of Republic Act No. 5186, and Sec. 4 of Republic Act No. 6135, I, FERDINAND E. MARCOS, President of the Philippines, do hereby declare and proclaim in effect the Sixth Investment Priorities Plan and Fourth Export Priorities Plan hereto attached.

Done in the City of Manila, this 22nd day of March, in the year of Our Lord, nineteen hundred and seventy-three.

SIXTH INVESTMENT PRIORITIES PLAN
and
FOURTH EXPORT PRIORITIES PLAN
BOARD OF INVESTMENT
Ortigas Building, Ortigas Avenue
Pasig, Rizal

SIXTH INVESTMENT PRIORITIES PLAN

FOREST PRODUCTS

1.    Tree Farming (NP)  
    MC (Local): 1.8 million cu. m.

2.    Lumber Products (NP)  
    MC (Export): Variable
3.    Plywood (NP)
    MC (a) (Local): 68 million sq. ft.

           (b) Export: Variable
4.    Veneer (NP)
    MC (Export): Variable

FIBER PRODUCTSt

1.    Ramie (P)
    MC (Local) : 10 million sq. yd.

    Condition: Integrated
2.    Pulp, Pulp and Paper (P/NP)
    MC (a) Local: 82,800 MT
           (b) Export: Variable

Condition: Paper production is qualified for registration only to extent integrated with and supported by pulping capacity.

CROP PRODUCTION

1.    Peanuts (NP)
    MC (Local): 7,700 MT
2.    Sorghum (NP)
    MC (Local): 133,300 MT
3.    Soybeans (NP)
    MC (Local): 116,300 MT
4.    Rice (NP)
    MC (Local): 640,000 MT

Condition: Developing new fields and integrated with processing  facilities.

5.    Corn (NP)
    MC (Local): 358,000 MT
    Conditions: Developing new fields and integrated with processing facilities.

6.    Grain Processing (Rice) (NP)
    MC (Local): 615,000 MT

Conditions:

A.    Centrals in Consumption Areas 1
    Storage

Location     Capacity (MT)

1.    Greater Manila     50,000
2.    La Union (San Fernando)     20,000
3.    Zamboanga del Sur (Malangas)    10,000
4.    Cotabato del Sur (Dadiangas)    10,000
5.    Cagayan de Oro City    10,000
6.    Iloilo City    10,000
    --------
    10,000
    --------

B.    Centrals in Production Areas 2
    Storage

Region     Capacity (MT)

1.    Ilocos          7,000
2.    Cagayan Valley      66,000
3.    Central Luzon     101,000
4.    Southern Luzon       10,000
5.    Bicol      25,000
6.    Western Visayas      11,000
7.    Eastern Visayas      31,000
8.    S & W Mindanao      21,000
9.    N & E Mindanao        8,000
    ---------
    280,000
    ---------

FOOD PROCESSING  

1.    Agar-agar (Processed Seaweeds) (NP)
    MC a) Local: 110,000 MT
           b) Export: Variable

Condition : Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

2.    Fruit & Vegetable Processing (P/NP)
    MC a) Local: 14,650 MT
           b) Export: Variable
3.    Coconut Oil (NP)
    MC (Export): Variable

Condition: Milling capacity to be distributed among coconut    producing regions in proportion to copra supply.

4.    Palm Oil (NP)
    MC a) Local: 110 MT
           b) Export: Variable
5.    Feed Yeast (NP)
    MC (Local) 15,000 MT

Condition: In sugar cane-producing regions  

6.    Tomato Paste (P/NP)
    MC (Local): 1,000 MT
7.    Processed Meat (NP)
    MC (Local): 9,000 MT

Condition: Outside greater Metropolitan Manila Area

8.    Processed Fish (NP)
    MC a) Local: 64,380 MT
           b) Export: Variable

LIVESTOCK AND FISHING

1.    Cattle (NP)
    MC (Local): 24,300 MTDW
2.    Hogs (NP)
    MC (Local): 36,224 MTDW
3.    Poultry (NP)
    MC (Local):  36,640 MT (Meat)
                 35,920 MT (Eggs)
            3,293,000 (Chicks)
4.    Fish (Commercial) Deep Sea (NP)
    MC a) Local: 100,000 MT
           b) Export: Variable
5.    Fish (Inland) NP
    MC a) Local: 15,800 MT
           b) Export: Variable
6.    Shrimps and Shellfish (NP)
    MC a) Local: 7,410 MT
           b) Export: Variable

METALLIC MINERAL PRODUCTS

1.    Iron Ore (NP)
    MC a) Local: 1.5 million MT
           b) Export: Variable

Conditions:

    1)    Beneficiated, including pre-reduced and metallized  pellets.

    2)    Production for local market to be phased with establishment of smelting facilities.

2.    Chromite Ore (NP)
    MC (Export): Variable
    Condition: Beneficiated
3.    Copper Ore (NP)
    MC a) Local: 115,000 MT (copper metal content or concentrates)
           b) Export: Variable
    Condition: Beneficiated
4.    Copper Metal (P)
    MC a) Local: 10,500 MT
           b) Export: Variable

     Condition:

1)    Pyrometallurgical or hydro-metallurgical extraction process.

2)    Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

5.    Primary Steel (P)
    MC (Local): 1 million MT
    Condition: Integrated, including slabs, blooms and billets
6.    Ferro-Alloys (NP)
    MC a) Local *: 2,300 MT
           b) Export: Variable

    Comments: 2,300 MT of local MC is intended for existing use broken down as follows:

    a)    306 MT for ferrosilicon, silicomanganese and ferro-manganese
    b)    1, 994 MT for all other ferroalloys

7.    Nickel Metal and Alloys (P)
    MC (Export): Variable
8.    Gold Mining and processing (NP)
    MC: Variable
    Condition: Beneficiated ore
9.    Gold Refining (P/NP)
    MC: 360,000 ozs.

NON-METALLIC * MINERAL PRODUCTS

1.    Asbestos (P)
    MC (Local): 5,000 MT
2.    Perlite (NP)
    MC a) Local: 8,200 MT
           b) Export: Variable
3.    Foundry Coke (P)
    MC (Local): 30,000 MT
4.    Dinnerware (P/NP)
    MC a) Local * : 964 MT
           b) Export: Variable
5.    Clay (NP)
    MC Local: 34,000 MT
    Condition: Beneficiated
6.    Refractories (P/NP)
    MC (Local): 10,000 MT
7.    Rock Aggregates (NP)
    MC (Local): 507,000 cu. m.

    Condition: Cebu Island obly

CHEMICAL PRODUCTS

1.    Salt
    a.    Industrial Salt (P/NP)
        MC (Local): 87,000 MT
    Condition: Purity: 92 percent NaCl (Wet Basis), minimum.

    b.    Edible Salt (P)
        MC (Local): 93,200 MT
    Conditions: Purity: 99.5 percent NaCl (Dry Basis), minimum.

    Size: Passing No. 20 steve, 95 percent, minimum.

    Moisture content: 0.5 percent, maximum
2.    Polyvinyl Alcohol Resins (P)
    MC (Local) : 2,590 MT
3.    Nylon Fibers (P)
    MC a) Local *: 2,040 MT
           b) Export: Variable
4.    Chemical Gypsum (NP)
    MC (Local): 105,000 MT
5.    Rubber belts (P)
    MC (Local): 250,000 Kg.

    MC (Export): Variable
6.    Polyester Fiber (Staple fiber & filament yarn) (P)
    MC (Export): Variable
    Condition: Reserved for expansion of registered plants.

7.    Low-density Polyethylene (P)
    MC a) Local: 115,000 MT
           b) Export: Variable

Condition: Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

8.    High-density Polyethylene (P)
    MC a) Local: 36,000 MT
           b) Export: Variable

Condition: Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

9.    Polypropylene (P)
    MC a) Local: 40,000 MT
           b) Export: Variable

Condition: Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties. 

10.    Antibiotics (P)
    a. Tetracycline
        MC (Local): 30,000 kg.

      b. Streptomycins
        MC (Local): 30,000 kg.

      c. Penicillins
        MC (Local): 57,000 kg.

11.    Cellophane (P)
    MC a) Local: 6,400 MT
           b) Export: Variable

Conditions:

1.    The project must be located closed to the Northern Luzon Copper Smelter in order to make the cost of sulfuric acid as low as possible;

2.     The project must be located in an area which is  economically   accessible to sites  suitable to tree farming;

3.    A project for the manufacture of pulp to be used as raw material for the cellophane project should be submitted within one year from the start of the   operation of the cellophane project;

4.    Project should generate export revenues in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

12.    Glass containers (NP)
    MC (Local): 113,000 MT
13.    Petroleum Wax (P)
    MC a) Local: 16,000 MT
           b) Export: Variable  

Condition: Project should generate export revenue in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

14.    Gum Rosin and Gum Turpentine (P)
    MC a) Local: 8,000 MT
           b) Export: Variable

Condition: Project should generate export revenue in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

15.    Textiles (NP)
    MC a) Local: 115,400,000 sq. yds.

           b) Export: Variable

Condition: Only new textile mills will be entitled to registration under the IPP, with the condition of location outside the Greater Manila area. Expansion of existing textile mills in the Greater Manila area should be registered under the Export Incentives ACT, with a commitment to export a minimum proportion of production resulting from the expansion in capacity.

16.    Agricultural Lime (NP)
    MC (Local): 72,000 MT

Condition: In suitable locations and capacities to serve farm needs   economically. (Outside Greater Manila)  

IRON OR STEEL-BASED INDUSTRIES

1.    High Carbon Steel Wire (P)  
    MC (Local): 17,150 MT
2.    Alloy Steel (P)
    a. Ingots
        MC (Local): 12,160 MT
    b. Castings
        MC (Local): Variable
        Condition: Alloy steel ingots must be produced

HAND TOOLS

1.    Files (P/NP)
    MC (Local): 116,500 doz.

INDUSTRIAL MACHINERY

1.    Shapers (P)
    MC (Local): 2,700 units
2.    Lathes (P)
    MC (Local): 8,900 units
3.    Drill Presses (P)
    MC (Local): 6,800 units
4.    Pumps (P/NP)
    MC (Local) * : 2,530 units
5.    Carbide-tipped Tools (P/NP)
    MC (Local): 1.9 million units
6.    Shaft Bearing Products (P)
    MC (Local): 745,000 units
7.    Regulators and Adaptors and Pressure-Reducing Valves for LPG Appliances (NP)
    MC (Local) *: 300,000 pcs. (regulators & adaptors)
    176,000 pcs. (pressure reducing valves)
8.    Speed Reducers (P/NP)
    MC (Local): 42,300 units
    Conditions:
    (1)    5 to 10 HP per unit
    (2)    Substantially from domestically cast, rolled or
     forged metal.

9.    Logging Blocks of Alloy
    Steel (P)
    MC (Local): 3,300 units

    Condition: Substantially forged domestically cast, rolled or forged metal.

10.    Globe, gate and check valves (P)
    MC (Local): 720 MT

    Condition: From 2 inches and above and made from domestically cast or forged metal.

FARM MACHINERY

1.    Palay Threshers (NP)
    MC (Local): 9,500 units
    Condition: Power operated
2.    Disc Plows, Disc Harrows and Roto Tillers (NP)
    MC a) Local: 2,400 units
           b) Export: Variable
3.    Grain Driers (P)
    MC (Local): 750 units

FABRICATED METAL PRODUCTS

1.    Steam Boilers (P)
    MC (Local): 1,200 units
    Condition: Package type up to 200 Bo. Hp.

ENGINES

1.    High HP Diesel Engines (P)
    MC (Local): 5,400 units
    Condition: 200 BHP and above
2.    Small Gasoline Engines (P)
    MC (Local): 68,000 units
    Condition: Up to 15 BHP

ELECTRICAL EQUIPMENT

1.    Electrical Controls
     a)    Circuit Breakers (NP)
        MC (Local): 736,900 poles
        Condition: Up to 125 A
    b)    Magnetic Starters (NP)
        MC a) Local: 36,000 units
               b) Export: Variable
        Condition: Up to size 2
2.    Flashlights (NP)
    MC a) Local: 1,710,000 units 
           b) Export: Variable
3.    Kilowatt-hour Meters (P)
    MC (Local): 109,100 units
4.    Power Transformers (P)
    MC (Local): 145,000 KVA
5.    Transceivers (P)
    MC (Local): 1,190 units
6.    Electrical Tape (NP)
    MC (Local): 7.3 million rolls
7.    Electric Motors for Automotive Use (P)
    MC a) Local: 65,000 units
           b) Export: Variable

TRANSPORT EQUIPMENT

1.    Barges and Tugboats (P/NP)
    MC a) Local: 377,000 GT
           b) Export: Variable
2.    Fishing Boats (P/NP)
    MC (Local): 59,040 GT
3.    Inter-island Ships (P)
    MC (Local): 380,000 GT
4.    Ocean-going Ships (P)
    MC (Local): 875,000 GT
5.    Motorcycles (P)
    MC (Local)*: 15, 720 units
6.    Automotive Gauges and Instruments (NP)
    MC a) Local: 56,000 units
           b) Export: Variable
7.    Vehicle Shock Absorber (NP)
    MC a) Local: 600,000 units
           b) Export: Variable
8.    Automotive Rear Axles (P)
    MC a) Local: 30,000 units
           b) Export: Variable  

Condition: Project should generate export revenue in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

9.    Automotive Propeller Shafts (P)
    MC a) Local: 30,000 units
           b) Export: Variable
10.    Automotive Clutches (P)
    MC a) Local: 30,000 units
           b) Export: Variable
11.    Automotive Engine Block (with cylinder head) (P)
    MC a) Local: 58,800 units
           b) Export: Variable

Condition: Project should generate export revenue in the first five years of commercial operation in an amount aggregating at least the difference between the total foreign exchange capital cost of the project and the amount resulting from multiplying actual project employment by $4,000. Failure to comply with this condition shall subject the project to prescribed penalties.

FOURTH EXPORT PRIORITIES PLAN

LIST A: EXPORTABLE PRODUCTS OF EXISTING FIRMS
BTN     SITC     EXPORTABLE PRODUCTS

                   Food Processing
02.01 to 02.06;     011.1 to 011.6    1. Processed meat including
16.01; 16.02;     011.8(1); 011.8(9)         canned, chilled or frozen
16.03; 16.04    411.3(1); 012.9;       dried, salted or dehydrated
16.05    013.3; 013.4; 013.8;        meat.

    032.0(1); 032.0(2)      
03.01; 03.02;    031.1 to 013.3;     2. Processed sea foods
03.03; 16.04;     032.0(1); 032.0(2)          including canned,
16.05      chilled or frozen,         dried or salted or
            dehydrated sea
            foods.

04.01; 04.02    022.1; 022.2; 022.3    3. Processed milk.

04.02; 21.07    022.1; 022.2; 099.0(9)    4. Frozen specialties.

07.01 to 07.06;     051; 052; 053;054;     5. Processed fruits and
08.01 to 08.13;    055        vegetables  including
20.01 to 20.07            juices, canned,
            chilled or frozen,
            dried, salted or dehydrated.

07.01 to 07.03;     054     6. Dried roots
07.05; 12.04 to
12.06; 12.08
09.01    071.1; 081.9(1)     7. Coffee, processed
09.04 to 03.10     075.1; 075.2(1) (2)    8. Spices such as processed
(3)(4)(5)(9)             ginger, pepper, onion,
            garlic
11.01 to 11.09     046.0(1)(2); 047.0     9. Cereal preparations
19.01 to 1908     (1)(2); 048.1(1)
    048.2; 055.4(1)(2)
    (3)(4); 599.5(1)(2);
    048.1(2); 048.3;
    048.8(1) (2) (3);
    055.4(5)
11.01; 11.03 to    046.0(1); 047.0(1);    10. Flour
11.06     055.4(1)(2)(3)(4)
11.08     599.5(1)    11. Starches
13.03     292.9    12. Agar-agar
15.01 to 15.17     091.3; 091.4; 411.1    13. Vegetable cooking
    411.3(2) (4) (5) (9)          oils and lard.

    442.0 to 421.7; 422.1
    to 422.5; 422.9;
    431.1 to 431.4;
    512.2(5) (6)
15.13; 04.03;     091.4; 023.0; 024.0    14. Margarine, butter,
 04.04               and cheese
16.04     032.0(1)     15. Fish Sauce
17.04     062.0(1)    16. Confectionery
18.03; 18.04;    072.3(1); 072.3(2)    17. Cocoa and Cocoa
18.05              preparations such as
              cocoa butter
18.06     073.0     18. Chocolate and chocolate
              preparations
19.03    048.4(2)     19. Noddles
19.08    048.4(2)     20. Biscuits & cookies;
              cones
20.02     055.5(2)     21. Catsup
21.06     099.0(6)     22. Baking Powder
21.06    099.0(6)    23. Brewer Yeast
21.07    099.0(9)     24. Peanut Butter
21.07     099.0(9)    25. Chewing Gum
21.07     099.0(9)     26. Coconut Syrup
21.07     099.0(9)     27. Food Coloring such
              as Atsuete
22.02    111.0(2)    28. Soft Drinks
22.03     112.3     29. Beer
22.04 to 22.07     112.(1); 112.1(2);     30. Fruits and Flower
    112.1(3); 112.2           wine
22.08; 22.09     512.2(4); 112.4     31. Alcoholic products
              such as run, whisky
              and gin
22.10     099.0(7)     32. Vinegar, all kinds  
23.05     081.9(4)     33. Brewery Spent
              Grains
04.04    024.0     34. Processed cheese
04.05     025.0     35. Processed poultry
              products
        Processed Rubber
        Products
40.05     621.0(1)     1. Crumb rubber
40.06    621.0(2)     2. Camel back
40.11     629.1     3. Rubber tires and
             inner tubes
40.14    629.0(8)     4. Rubber gloves
40.14     629.9(8)     5. Rubber toys and
            sporting goods
40.16     629.9(9)    6. Rubber tiles
64.01     851.0(1)     7. Rubber shoes
64.01    851.0(1)    8. Rubber sandals
64.01     851.0(1)    9. Rubber slippers
35.06     599.5(9)     10. Bonding cement
40.06 (A)     621.0(2)     11. Rubber cement
40.06 (B)     621.0(2)     12. Rubber and thread
               gums
40.09     621.0(5)    13. Tube rubber
40.14 (C)    629.9(8)     14. Rubber automotive
                parts such as vibration
               dampers, caps,
              weather strips, handles
                and pedals, carpet underlay
               made of rubber
40.16     629.9(9)     15. Curing tube & sectional
               air bag
        Chemicals and Chemical
        Products
27.10     331.0(2); 332.1 to     1. Motor gas and diesel
    332.5(1); 332.9(1)
28.01    513.2 (1)     2. Chlorine liquid and
             chlorine compounds
28.03    513.2(7)     3. Carbon blacksia
28.03    513.2(7)    4. Acetylene black
28.06     513.3(1)     5. Hydrochloric acid
28.08     513.3(3)     6. Sulfuric acid
28.13; 29.04 to     513.9(9); 512.2(1)     7. Acid oils, fatty acid
29.07    (2) (3) (7) (8)        and fatty alcohols
28.23     513.5     8. Iron oxide
28.45     514.3(3)     9. Silica gel
28.56    514.9(4)     10. Calcium carbide
29.04 to 29.07     512.2(1) (2) (3)    11. Alcohol rectified and
    (7) (8)          refined, distilled and
              denatured
31.01 to 31.05     561     12. Fertilizers; organic
               and inorganic
32.07 to 32.08     533.1 to 533.3(1)     13. Paints, pigments,
              varnishes and related
              products
32.13     533.2 to 895.9     14. Ink
33.06     533.0     15. Cosmetics, perfumery
34.01; 34.02     554.1; 554.2    16. Soaps and detergents
34.04     599.7(1)     17. Wax and wax products
35.01 to 35.06    599.5(3) (4) (6)     18. Glues
        (7) (9)
36.01 to 36.08     571.1(1) (2); 571.2     19. Pyrotechnic explosives
    (1) (2); 571.3; 599.9
    (3); 899.3(2) (3)
36.06     899.3(2)     20. Matches
38.11     599.2     21. Insecticides, pesticides
38.11     599.2     22. Mosquito coils
38.19     599.9(9)    23. PVC tiles
39.01     581.1     24. Alkyd resins
44.02     241.2     25. Charcoal
37.08     862.3     26. Photographic chemicals
15.11     512.2 (6)     27. Glycerine, refined
               and crude
        Metallic Products
26.01     283.7     1. Manganese concentrates
26.01     285.0(1)    2. Silver concentrates
             and bars
73.02    671.4; 671.5     3. Ferro-alloys
73.04     679.1 to 579.3;     4. Metal castings;
    698.9(1);         rough, finisher and
           semi-finished
73.10; 73.11;    673.1(1); 673.2(1);     5. Metal rods, bars,
74.03; 75.02;     673.4(1); 673.5(1);         angles, shapes and
76.02; 77.02;     682.2(1); 683.2(1);         sections, of iron or
76.02    684.2(1); 689.3(2);         steel (Hot-rolled,
    685.2(1);686.2(1);        forged, extruded,
    687.2(1); 682.2(1);        cold-formed or cold
              finished)
73.13     674.1(1); 674.2(1);     6. Iron and steel plates,
    674.8(1); 674.7;         coils and sheets, including
    674.2(1)         G.I. sheets
73.14; 74.10;    677.0(1); 693.1(2);    7. Steel, aluminum and
76.12    693.1(3)        copper wires
73.17; 73.18;     672.9; 678.1     8. Pipes and tubes;
73.20; 74.07;     to 678.3; 682.2(5);          B.I.,G.I., spiral
74.08; 75.04;     682.2(6); 683.2(3);          welded or aluminum
76.06; 76.07;     684.2(5); 684.2(6);
75.02; 78.05;     689.3(2); 685.2(4);
79.04; 80.05    686.2(3); 687.2(4);
73.21    691.1     9. Prefabricated and
        fabricated structural
         products made
        of iron and steel
        and cement
73.23    692.2(1)    10. Steel drums
73.23    692.2(1)    11. Pails
73.24    692.3(1)     12. Compressed gas cylinders,
            and similar
           pressure containers
           of iron and steel
73.25; 74.10;     693.1(1) to 693.1     13. Insulated cable wires
76.12; 85.23    (3); 723.1
73.31; 73.32    694.1(1); 694.2(1);    14. Nails, bolts, nuts
74.14; 74.15    694.1(2); 694.2(2);
    698.9(1)
73.40    698.9(1)     15. Grinding balls
76.03; 76.04    684.2(2); 684.2(3)    16. Aluminum sheets
           and foil
80.03     687.2(2)    17. Tin plates
80.06    698.9(8)     18. Tin cans
82.06 to 82.15     695.2(5) (6); 696.0(1)    19. Household utensils
    to 696.0(6);           made of metal including
    719.4(1)          enamelled
82.08    719.4(1)    20. Kitchen, appliances
          and tools, hand-operated
          such as
          meat grinders, coconut
          graters
82.09; 82.13     696.0(1) to 696.0(5)     21. Cutlery such as scissors,
            blades, tailor's
          sears, shovels,
          spades, rakes, saws,
          knives
82.11    696.0(3)     22. Razor blades
83.01; 83.11(3)     698.1(1); 698.8(5)    23. Metallic closures
             and screw caps
83.02    698.1(2)    24. Building, hardwire
          such as hinges, door
          knobs, door bolts
          and window rotor-operators
83.03    698.2    25. Vault doors (e.g.

          insulated vault
          doors)
83.03    698.2     26. Safes (e.g. record
         safes and tapeguards)
83.03    698.2     27. Strong boxes, armored
           and reinforced
          strong room
         doors and compartments
          and fittings
        (e.g. insulated filingsia
           cabinets)
83.04    698.2    28. Filing cabinets
          racks, sorting boxes,
          paper trays, paper
          rests and similar
         office equipment of
         base metal
73.38    812.3    29. Wrought iron furniture
83.07    812.4(2)     30. Gas lamps
93.01 to 93.07     951.0(2) to 951.0(5)     31. Firearms and ammunitions
    894.3(1) (2) (3)
    571.4
97.01; 97.08;     894.2(1); 894.5;    32. Toys and sporting
80.06;     698.9(8)           goods
25.02; 26.01    274.2; 281.4     33. Pyrite cinder or
          iron sulfite
    Non-Metallic Products
25.15; 68.16     273.1(2); 663.6(3)    1. Marble slabs, tile
        chips and  curios
25.15    273.1(2)    2. Processed marble
            blocks
25.20; 25.21    273.3    3. Cement additives
25.22    661.1     4. Lime
25.23    661.2    5. Cement & Clinker
68.11    663.6(2)     6. Cement floor tiles
68.12    661.8(3)    7. Asbestos tiles
68.12    663.6(2);    8. Pipes and tubes,
    661.8(3)       asbestos cement
68.12    663.6(2)    9. Roofing tiles & fire
    661.8(3)         bricks
69.01 to     662.3(1) (2)    10 . Refractories
69.03    663.7
69.04 to     662.4(1) (2)     11. Clay products such
69.14    (3) (4) (5);           as pottery, roofing
    663.9(1);           tiles and paste frits
    812.2; 666.4;
    666.5;666.6;
    663.9(2)
69.04 to     662.4(1) (2)     12. Ceramic products
69.14    (3)(4) (5);          such as tiles (Glazed,
    663.9(1);          Vitrified), Sanitary
    812.2; 666.4;          ware sinks, Bidets,
    666.5; 666.6         etc., except dinnerware
     663.9(2)
70.00     664; 665     13. Glass & glass containers
          such as
          sheet glass, window
          panes, optical glass,
          bottles
70.08    664.7     14. Safety glass
70.20     651.8; 653.8;    15. Reinforced fiber
    664.9(4)          glass products
25.02    274.2     16. Pyrite (unroasted)
         (roasted)
    Machinery and
    Equipment and Parts
84.24; 84.25;    712.1; 712.2;     1. Agricultural equipment
84.28    712.9(9)        and components
84.24; 84.25;    712.1; 712.2;     2. Process equipment
84.28    712.9(9)      and components
84.24; 84.25;    712.1; 712.2;    3. Transport equipment
84.28    712.9(9)        and components
84.24; 84.25;    712.1; 712.2;     4. Construction equipment
84.28    712.9(9)        and components
84.29    718.3(1)    5. Ricemills and Parts
        thereof
84.41     717.3    6. Sewing Machines
87.01    712.5    7. Tractor parts
87.06    732.8(9)    8. Parts of trucks,
        passenger trucks,
        automobiles and
        other commercial
        vehicles
87.10    733.1(1)    9. Bicycles
    Electrical Products
    Machines & Parts
83.15     698.8(6)    1. Welding Electrodes
84.21    719.6(4)    2. Fire extinguishers
85.03    729.1(1)     3. Dry cell batteries
85.04    729.1(2)    4. Storage batteries
85.09    729.4(2)    5. Motor control center
85.17    729.9(4)    6. Fire alarm systems
85.19     722.2    7. Panelboard
85.20    729.2    8. Electric Lamps &
        Bulbs, incandescent
        and fluorescent
85.22; 84.15    729.9(6); 725.0(1)    9. Electrical appliances
        such as electric fans,
         toasters, refrigerators,
           TV
85.23; 85.25    723.1; 723.2(1) to     10. Bus ducts
to 28    (3); 729.9(8)
85.27    723.2(3)     11. Light dimmers
76.08    691.2    12. Formed aluminum
          parts such as door
         shelves, food shelves,
             and/or parts thereof
76.13 (A)    693(3)     13. Wire screens
84.11 (A)     719.2(2)    14. Hermetic compressors
84.12 (B)     719.1(2)    15. Evaporators
84.17 (B)     719.1(9)    16. Condensers and heat
           exchangers
85.13    724.9(1)     17. Electronic equip-parts
          and component
85.15    724.1
    724.2
    724.9
85.15 (B)    724.2
85.18    729.9(5)
85.19    722.2
85.22    729.7
    729.9(9)
85.28    729.9(8)
82.50    729.2    18. Fluorescent and
          mercury lamp ballasts
    Wood Products
44.27    632.7    1. Caskets
44.27    632.7    2. Carvings & lattice
            works
44.27    632.7    3. Pallets
44.27    632.7    4. Shelves
44.27    632.7    5. Sandals & Shoes
44.27    632.7    6. Toys & Sporting
        goods
44.27    632.7    7. Parquet tiles
44.27    632.7    8. Bamboo products
44.27     632.7    9. Prefabricated houses
         & components except
        lumber
44.28    632.8(9)    10. Gun stocks
44.28    632.8(9)    11. Cabinets
44.28    632.8(9)    12. Mouldings
44.28    632.8(9)    13. Doors & fixtures
94.01 to     821.0(1) (2)    14. Furniture, complete
94.04    (3) (9)          or knocked down &
          parts
48.16    642.1(1)    15. Boxes and crates
44.28    632.8(9)
    Pharmaceutical
    Products
30.01 to     541.6(2) (3);     1. Drugs & Other
30.03    541.7        Pharmaceuticals
30.04    541.9(1)    2. Wadding, Gauze,
             Bandages, Adhesives,
               Similar Articles
30.04     541.9(9)    3. Sanitary Napkins
30.05    541.9(9)    4. Talcum Powder
30.05    541.9(9)    5. Dentures
    Fiber Products  
57.04    265.8    1. Coconut Colt
57.10; 57.11;     653.5(1)    2. Bags, Kenaf, Jute,
51.04    653.6(1);        Synthetic
    653.4; 653.9(4)
58.01    657.5    3. Carpets and Rugs
59.04; 59.05    665.6(1) (2) (3)    4. Cordage, Twines,
59.06            Rope, Fishing Nets,
             Abaca and Synthetic
67.04    899.9(5)    5. Wigs and Hair
        Pieces
    Textile Products
50 to 57    651 to 653    1. Textile Yarns and
        Fabrics, cotton and
        synthetic and their
        blends
50 to 57     651 to 653    2. Fabrics of abaca,
        sinamay, burlap,
        jusi, pine-apple and
        other bast fibers
58.03 to     654 to 655    3. Specialty Garments
58.10        such as laces, garters
        and bands
58.10    654    4. Embroideries
61.00     841    5. Garments
61.00    841    6. Gloves
61.00    841    7. Hosiery
62.05    656.9    8. Tablecloths
62.05    656.9(2)    9. Mosquito Nets
    Paper Products
48.01 D;    641.4;    1. Cigarette Paper
48.10    642.9(1)
48.01    641.5    2. Tissue (Napkin)
48.01    641.2(1)    3. Bond
48.13    642.9    4. Carbon paper including
          diazo papers,
        electrostatic copy
         papers
48.16    642.1    5. Boxes and Packaging
         Materials
48.16    642.1    6. Containers of Paperboard
49.01 to     892.1(1) (2) (3)    7. Books, Pamphlets,
49.11    892.2; 892.3;          Magazines and
    892.4(1) (2);        other printed matters 
    892.9(2) (3) (4) (9)
    Other Products
    1. Fish Meal
12.09 to 12.10    081    2. Animal and Poultry
09.01 D; 18.02;        Feeds
23.01 to 23.07
24.02     122.2     3. Cigarettes
44.25 to 44.28    632.8(1); 632.8(2)    4. Garment hanger of
    632.8(9); 632.7(3)        wood, plastics or
        metal
49.01 to     892.1(1) (2) (3)    5. Advertising Materials
49.11    892.2; 892.3; 892.4(1)
    (2); 892.9(2) (3) (4)
    (9)
56.04; 56.04    266.3(1); 266.2(1);    6. Threads of cotton
    266.2(3); 266.3(3);        or synthetic fibers
71.01 to     667.1 to 667.4; 275.1    7. Jewelry
71.16    275.2(1); 681.1(1) (2)
    581.2(1); (2); 285.0
    (2); 897.1(1) (2) (3)
    (4); 897.2
71.01    667.1    8. Cultured Pearls
71.05 to     681.1(1);    9. Plaques and Trophies
71.11    681.1(2);
    681.2(1) (2);
    285.0(2)
71.12 to     897.1(1) (2) (3)    10. Cuff links
71.16    (4); 897.2
73.34    698.5(2)    11. Pins, safety or
              dressmakers
98.01     899.5(2)    12. Buttons
98.02    899.5(3)     13. Zippers
99.01    896.(1)     14. Paintings
44.19; 44.20;    631.8(7); 632.7(1) (2)    15. Handicrafts such as
44.24; 44.25;    (3); 632.8(2) (9);          lampshades, place mats,
44.27; 44.28;    899.2(1); 657.8;          shellcraft,
46.01 to 46.03;    899.2(2); 655.7(1) (2);          hats, household
65.01 to 65.07;    841.5 (1) (2) (3) (4) (9);         utensils, toys and
67.01 to 67.05;    899.9(2) (3) (4) (5) (6);         sporting goods
97.01 to 97.08;    894.2(1) (2) (3) (4) (5);
98.06; 98.11;    884.4(1) (2); 894.5;
98.12.     895.9(2); 899.3(5);
    800.5(4); 831.0; 899.4
    (1) (2) (3)
42.02;    831.0; 899.4    16. Travel Goods
66.01 to 66.03    (1) (2) (3)
42.02;     621.0(1) (2) (3)    17. Leather Products
64.02 to 64.05    (4) (5) (6);          such as purses,
    621.1; 629.3;          wallets, belts, straps,
    629.4; 629.9(8)          gloves, footwear
    (9); 841.6
41.02 to     611.3; 611.4;    18. Tanned Leather
41.08    611.9(1) to (5)
    611.9(9)
39.07; 64.01;    893; 851.0(1) (2);    19. Plastic Products
64.02; 42,01;    612.2; 831.0;          such as light diffusers,
62.02; 48.00;    899.2; 657.8;          footwear, containers,
71.16; 90.03;    899.2(2); 897.2;           sheets, raincoats,
90.04; 94.03;    841.2(1) (2);          packaging materials,
96.01 to 96.06;    821.0 (9); 895.2(3);          brushes,
97.01 to 97.08;    (4) (5) (7);          brooms, gloves,
    899.5(1); 894.2(1)          toothbrushes, toys
         and sporting goods,
           optical frames
98.01 to     (2) (3) (4) (5); 894.4
98.16    (1) (2); 894.5; 895.5
    (2) (3) (5) (6) (7);
    895.2(1) (2) (3);
    895.9(2) (3) (5);
    899.5(4) (5) (6) (7);
98.02;    899.5(3);    20. School and Office
98.03;    895.2(1);         supplies such as
98.05;    895.2(3);         fasteners, pencils,
83.05    895.1(2)         folders, paperclips,
           pens and holders,
         bookbinders, rulers,
        desk pieces, etc.

    21. Musical Instruments
         & Parts
92.01    891.4(1)        Pianos and Parts
            thereof
92.02    891.4        Guitars and Ukeleles
92.02    891.4        Violins
92.05    851.8(3)        Harmonicas

LIST B: EXPORTABLE PRODUCTS OF PREFERRED
AREAS OF INVESTMENTS *

BTN    SITC    EXPORTABLE PRODUCTS
07.01 to 07.06;    051;052;    1. Processed fruits &
08.01 to 08.13;    053;054;        vegetables (NP)
20.01 to 20.07    055
17.02    061.9    2. Glucose powder (including
        cassava
       starch production)
       (NP)
15.07    422.9    3. Rice bran oil (P)
13.03    292.9    4. Agar-agar (NP)
15.11    512.2(6)    5. Refined glycerine
       (NP)
16.05    032.0(2)    6. Processed shrimps
           & shellfish (NP)
28.03    513.2(7)    7. Activated carbon
       (P)
29.11    512.4(1)    8. Furfural (P)
33.01    551.1    9. Essential oils (NP)
44.15    631.2 (1)    10. Blackboard & blackboard
          cores (NP)
47.01    251    11. Cellulosic staples
          for specialty pulp
          (P)
64.01 to 64.06    851.0(1) (2) (3);    12. Footwear (NP)
    (4) (5); 612.3
73.02     671.4; 671.5    13. Ferro-alloys (NP)
84.11    719.2    14. Hermetic compressors (P)
85.01 to 85.28    722 to 726; 729    15. Electronic parts and
           components such as
          transistors, diodes,
            printed circuit
          boards, integrated
          circuits, variable resistors
          and switches
          (P)
85.11    729.9(2)    16. Electric welders
          (NP)
82.03    695.22    17. Pliers and wrenches
          (P)
84.63    732.0    18. Motor vehicle transmission
          (P)
59.14; 60.01;    653    19. Knitted fabrics
60.06              a. Flat (NP)
          b. Circular (NP)
          Condition: At least
           70% of total production
            must be exported.

61.00    841    20. Garments (NP)
          Condition: At least
          70% of total production
           must be exported.

1.    In addition to the above conditions regarding centrals in production areas, centrals in consumption areas must be integrated with satellites, preferably modernized existing mills. A satellite-central must have at least 1,500 MT of storage capacity and equipped with facilities for bulk storage and handling, cleaning, drying, hulling, milling, packaging and pest and rodent control.

2    Centrals in production areas must be of at least 2,000 MT storage capacity and equipped with facilities for bulk storage and handling, cleaning, drying, milling, whitening, grading and packing, and pest and rodent control. Processing capacities should be based on 3 stock-turns per year.

3    Facilities to be established in these areas may be also utilized  for corn drying/storage. The specific locations and extent of utilization for corn are treated on a case to case basis, but should not be over 60 per cent of capacity.

*    Applications for the entire measured capacity have been received and are now under process.

N.B. 1.    P means pioneer; NP means non-pioneer, P/NP means pioneer or non-pioneer to be determined on a case to case basis.

  2.    Under the column indicating the measured capacities, the word variable denotes the likelihood of a domestic demand-supply gap or of an export potential.

  3.    The classification of Pioneer status in the IPP is primarily on the basis of newness of the product. While NP ordinarily means non-pioneer, the Board reserves the right to change the status of an area, from NP only to P, after public hearing, if a new and better process is used in the manufacture of such product and there are economic advantages in giving the preferred activity pioneer status.

*    An enterprise applying under List B will be entitled to tax free importation of machinery only if said enterprise agrees to export at least 50 percent of its total production.


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