JOINT DTI-DOF-BOC-BIR ADMINISTRATIVE ORDER NO. 01 Series of 2004
REVISED RULES AND REGULATIONS IMPLEMENTING R.A. NO. 8502, OTHERWISE KNOWN AS, THE “JEWELRY INDUSTRY DEVELOPMENT ACT OF 1998”
Pursuant to Section 6 of R.A. No. 8502, otherwise known as the Jewelry Industry Development Act of 1998, these Revised Rules and Regulations simplify, consolidate, and amend the Implementing Rules and Regulations of R.A. No. 8502, superceding DTI-BOI Rules and Regulations Implementing R.A. No. 8502, BIR Revenue Regulation 1-99, Joint DOF-BOC Order No. 1-99, and Joint BIR-BOC Order No. 1-99.
Rule I
BASIC GUIDELINES
Section 1. Declaration of Policy. Recognizing that the jewelry industry has the potential for more employment generation, enhance tax collection efficiency, increase the industry linkages with the other sectors of the economy, and to increase our foreign exchange earnings through exports and import substitutes, it is hereby declared to be the policy of the State to support, promote and encourage the growth and development of the predominantly, small and medium scale jewelry industries. Toward this end, the State shall undertake to encourage the development of the jewelry industry by:
(a) Promoting and encouraging local jewelers to join the formal sector by making the jewelry industry sector a partner in the task of building up the small and medium enterprises through the establishment of an adequate support structure and the creation of a business environment conducive to the viability, legalization and development of the jewelry sector;
(b) Adopting appropriate tax incentives and programs necessary for the acceleration and growth of the industry; and
(c) Promoting and institutionalizing the effective promotion and participation of associations of the jewelry industry and cooperatives particularly in the advancement of the skills and craftsmanship of Filipino workers therein.
Section 2. Designation of Agencies. The Board of Investments (BOI) is hereby designated by the Department of Trade and Industry (DTI) to assist the latter in the monitoring, overseeing and supervision related to the implementation of Republic Act No. 8502 and its Rules and Regulations. The Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) are likewise designated by the Department of Finance (DOF) to implement the grant of development incentives under Section 3 (a), (b), (c), (d) and (h) of R.A. No. 8502.
Section 3. Construction . These Rules shall be liberally construed in order to promote its objectives and to ensure a speedy process of accreditation and availment of development incentives by Qualified Jewelry Enterprises.
Rule II
DEFINITION OF TERMS
Section 1. For the purposes of Republic Act No. 8502 and these Rules and Regulations, the terms used herein shall be construed to have the following meaning:
(a) “Accreditation” – shall mean the process by which the Board of Investments determines the eligibility of applicant jewelry enterprise for the assistance, counseling, and other incentives provided under R.A. No. 8502; and applicant jewelry association for the endorsement of its members for accreditation under the Act.
(b) “Act” – shall mean the Jewelry Industry Development Act of 1998 (R.A. No. 8502).
(c) “Annual Business Plan” – shall refer to the document submitted by the enterprise applying for accreditation under the Act and these Rules, which indicates the proposed imported and local acquisition of raw materials / supplies, machinery and equipment, tools and spare parts, as well as the projected production and sales covering its year of accreditation.
(d) “Assaying” – shall mean the determination of precious metal content in jewelry or precious metal alloys used for jewelry.
(e) “Base Metals” – shall mean iron and steel, copper, nickel, aluminum, lead, zinc, tin and their articles thereof, and other base metals and their articles as defined in Section XV of the Tariff and Customs Code of the Philippines, as amended.
(f) “Bill of Lading” – shall refer to the document issued by a carrier to a shipper, signed by a captain, agent, or owner of a vessel, furnishing written evidence regarding receipt of articles (cargo), the conditions on which transportation is made (contract of carriage), and the engagement to deliver goods at the prescribed port of destination to a lawful holder of the bill of lading, as well as proof of ownership or title to the goods.
(g) “BIR” – shall mean the Bureau of Internal Revenue.
(h) “Board” or “BOI” – shall mean the Board of Investments.
(i) “BOC” – shall mean the Bureau of Customs.
(j) “BPS” – shall mean the Bureau of Product Standards.
(k) “CDA” – shall mean the Cooperative Development Authority.
(l) “Certificate of Accreditation” – shall refer to the evidence issued by the Board attesting to the compliance of an applicant with all the qualifications for accreditation, and which shall serve as a proof of the registration of the applicant with the Board for the activity/ies so accredited. The Certificate of Accreditation shall be valid for one (1) year and renewable thereafter upon compliance with the requirements set under these Rules.
(m) “Commercial Invoice” – shall refer to the document issued by an exporter to signify sales. This document identifies the seller and buyer of articles, invoice number, date, shipping date, mode of transport, delivery and payment terms, and a complete listing and description of the articles sold including prices, discounts, and quantities.
(n) “Cutting” – shall mean the process of shaping precious stones on revolving diamond charged or other abrasive grinding wheels.
(o) “Date of Accreditation” – shall mean the date when the Certificate of Accreditation is issued after the completion of the Board's evaluation of the applicant for accreditation.
(p) “Date of Official Acceptance” – shall mean the date stamped on the application and recorded in the Record of Application Book of the Board. However, for applications for accreditation filed with the BOI Extension Offices, the date of official acceptance, in relation to the ten (10) working day period for automatic approval, shall be the date the application is recorded in the Record of Application Book of the Board until such time that the extension offices are fully equipped to accept and process the applications.
(q) “DOF” – shall mean the Department of Finance.
(r) “DTI” – shall mean the Department of Trade and Industry.
(s) “Electroplating” – shall mean the process of depositing a layer of metals on to a conductive surface through the use of electricity.
(t) “Exclusive use of jewelry inputs, machinery and equipment” – shall refer to the employment, application, use or consumption by a Qualified Jewelry Enterprise of jewelry inputs, machinery and equipment acquired with incentives under this Act, solely for the purpose of manufacturing jewelry or any aspect of such manufacturing process.
(u) “Fine Jewelry” – shall mean:
- Articles of personal adornment made of precious metals, stones, pearls or combinations thereof (for example: rings, bracelets, necklaces, brooches, earrings, watch-chains, fobs, pendants, tie pins, cuff links, combs, tiaras, dress-studs, religious or other medals and insignia); and
- Articles made of precious metals, with or without stones for personal use of a kind normally carried in the pocket, handbag or in the person (for example: cigarette cases, powder boxes, chain purses, cachou boxes).
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