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LETTER OF INSTRUCTIONS

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LETTER OF INSTRUCTIONS NO. 943

LETTER OF INSTRUCTIONS NO. 943

TO    :      The Minister, Ministry of Finance

        The Governor, Central Bank of the Philippines
        The Commissioner, Bureau of Customs


In line with the policy of the Government to enhance the effective posture of the Philippine Air Force and in order to insure the improvement of the operational readiness of their aircraft and assure the effective performance of their responsibilities to ensure national security and considering that the achievement of said objectives requires the prompt release from customs custody of aircraft, it is hereby ordered that:

1.    The importation of aircraft, engines, equipment machinery, spare parts, aviation gas, fuel and oil, whether crude or refined, and such other articles or supplies by and for the use of Philippine Air Force shall be allowed informal entry free of customs duty and other tariff and released immediately subject to the presentation, within fifteen (15) days from date of release, of a statement under oath stating:

a.    That such articles or supplies are not locally available in reasonable quantity, quality, and price; and

b.    That they are necessary for or incidental to the operation of the Philippine Air Force and its other allied activities.


2.    The following requirements are hereby dispensed with:

a.    Prior authorized and/or indorsement of qualification for tax exemption from the Ministry of Finance;

b.    Certification from the Civil Aeronautics Administration that such articles or supplies are not locally available in reasonable quantity, quality, and price, and that they are necessary for or incidental to the proper operation of the scheduled airlines importing the same; and

c.    Central Bank release certificate.

3.    As a general rule and whenever practicable and in order to meet critical security needs, planeside or shipside delivery of imported items to the PAF is authorized provided importation documents are submitted to the Ministry of Finance for accounting of the importations.

4.    Effective this date the Philippine Air Force is given tax exempt status and free of the requirements of Section 1205 of the Tariff and Customs Code of the Philippines.


Done in the City of Manila, this 17th day of October, in the year of Our Lord, nineteen hundred and seventy-nine.

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