G/SCM/N/38 /PHL , G/SCM/N/48 /PHL , 
G/SCM/N/60 /PHL , G/SCM/N/71/PHL,  
G/SCM/N/95 /PHL , G/SCM/N/123 /PHL , 
G/SCM/N/155 /PHL , G/SCM/N/186 /PHL , 
G/SCM/N/220 /PHL , G/SCM/N/253/PHL,  
G/SCM/N/284 /PHL , G/SCM/N/315 /PHL  
 
22 November 2017  
(17-6380) Page: 1/12 
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1 OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON 
SUBSIDIES AND COUNTE RVAILING MEASURES  
PHILIPPINES  
The following communication, dated 14 November  2017, is being circulated at the request of t he 
Delegation of the Philippines . 
 
_______________  
 
 
In the interest of transparency, please find herewith the Philippines'  new and full notification 
pursuant to Article XVI:1 of the GATT 1994, and Article 25 of the Agreement on Subsidies and 
Countervailin g Measures (ASCM) covering the period 1998 to 2016.  
 
As provided under Article 25.7 of the ASCM, this notification does not prejudge the legal status, 
effects or nature of the notified programs or measures under GATT 1994 and the ASCM.  G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 2 - 
 
  1  ALL SECTORS  
1.1  Invest ment Promotion Program  
1. Period covered by the notification  
 
1998-2016.   
 
2. Policy objective  
 
Encourage investments in activities that will create more jobs and contribute to industry 
development .   
 
3. Background and authority for the incentives  
 
a. Executive Orde r (EO) No. 226 ( Omnibus Investments Code of 1987 ), as amended . 
b. EO No. 70, s. 2012 (succeeded by EO No. 22, s. 2017), entitled Reducing the Rates of Duty 
on Capital Equipment, Spare Parts and Accessories Imported by Board of Investments (BOI) -
Registered New  and Expanding Enterprises . 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Qualified Board of Investments (BOI) -registered enterprises, which should apply for availment of 
the incentives . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Ongoing but duty -free importation of capital equipment EO No. 22 s ' 2017 is available only until 
18 May 2018.  
 
8. Statistical data   
 
Not available . 
 
1.2  Market Competitiveness Program  
1.2.1   Economic Zones and Industrial Areas  
1. Period covered by the notification  
 
1998-2016. 
 
2. Policy objective  
 
Transform disadvantaged areas into productive centers of businesses and livelihood . 
 
3. Background and authority for the incentives  
 
a. Republic Act (RA) No. 7916  (The Special Economic Zone Act of 1995 ), as amended  
b. RA No. 7922 ( Cagayan Special Economic Zone Act of 1995 ) 
c. RA No, 7903 ( Zamboanga City Special Economic Zone Act of 1995 ) G/SCM /N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 3 - 
 
  d. Presidential Decree (PD) No. 538 ( Creating and Establishing the PHIVIDEC Industrial 
Authority and Making it a Subsidiary Agency of the Philippine Veterans Investment Development 
Corporation Defining its Powers, Functions and Responsibilities, and for Other Purposes ), as 
amended  
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how th e incentives are provided  
 
Qualified Philippine Economic Zone Authority (PEZA), Cagayan Economic Zone Authority (CEZA), 
Zamboanga City Special Economic Zone Authority (ZAMBOECOZONE) or PHIVIDEC Industrial 
Authority (PIA) -registered enterprises, which shoul d apply to avail of incentives . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Ongoing . 
 
8. Statistical data   
 
Not available . 
 
1.2.2   Market Access  
1. Period covered by the notification  
 
1998-1999. 
 
2. Policy objecti ve 
 
Encourage investments i n and develop the export sector.  
 
3. Background and authority for the incentives  
 
RA No. 7844 ( Export Development Act of 1994 ). 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Eligible exporte rs. 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Incentives provision lapsed on 31 December 1999 . 
 
8. Statistical data   
 
Not available . G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 4 - 
 
  1.3  Micro, Small and Medium Enterprises  
1. Period covered by the notific ation 
 
1998-2016. 
 
2. Policy objective  
 
Promote entrepreneurship by strengthening development and assistance programs to Micro, Small 
and Medium Enterprises (MSMEs) . 
 
3. Background and authority for the incentives  
 
RA No. 6977 ( Magna Carta for Small Enterprises ), as amended . 
 
4. Form of the incentives  
 
Enterprise credits . 
 
5. To whom and how the incentives are provided  
 
Eligible MSMEs, which should apply with relevant authorities . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime atta ched to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
 
2  INDUSTRIAL  
Industry Promotion Program  
 
2.1  Overseas Shipping  
1. Period covered by the notification  
 
1998-2014. 
 
2. Policy objective  
 
Promote the development and expansion of Philippine overseas shipping.  
 
3. Background and authority for the program  
 
RA No. 7471 ( Philippine Overseas Shipping Development Act ), as amended . 
 
4. Form of the incentives  
 
Tax concessions . 
 G/SCM /N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 5 - 
 
  5. To whom and how the incentives are provided  
 
Philippine shipping enterprises and their local supplie rs of machinery, equipment, materials and 
spare parts . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Incentives provision lapsed in July 2014 . 
 
8. Statistical data  
 
Not available . 
 
2.2  Downstream Oil Indust ry 
1. Period covered by the notification  
 
1998-2016. 
 
2. Policy objective  
 
Deregulate the downstream oil industry by promoting new investments/participants in the 
downstream oil industry . 
 
3. Background and authority for the program  
 
RA No. 8479 ( Downstream Oil Ind ustry Deregulation Act of 1998 ). 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Qualified BOI -registered enterprises, which should apply to avail of incentives . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of  the incentives and/or anytime attached to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
2.3  Mining  
1. Period covered by the notification  
 
1998-2016. 
 G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 6 - 
 
  2. Policy objective  
 
Promote investments in rational exploration, development, utilization and conservation of all 
mineral resources . 
 
3. Background and authority for the program  
 
a. RA No. 7942 ( Philippine Mining Act of 1995 ) 
b. EO No. 79, s. 2012 ( Institutionalizing and Implementing Reforms in the Philippine Mining 
Sector, Providing Policies and Guidelines to Ensure Envir onmental Protection and Responsible 
Mining in the Utilization of Mineral Resources ) 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Qualified BOI -registered enterprises with valid mineral agreements . 
 
6. Amount of the i ncentive  
 
Not available . 
 
7. Duration of the incentive and/or anytime attached to it  
 
Put on hold since 2012 in view of the issuance of EO 79 . 
 
8. Statistical data  
 
Not available . 
 
2.4  Renewable Energy  
1. Period covered by the notification  
 
2008-2016. 
 
2. Policy objective  
 
Accelerate the exploration and developmen t of renewable energy resources.  
 
3. Background and authority for the program  
 
RA No. 9513 ( Renewable Energy Act of 2008 ). 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Qualified BOI -registered enterprises, which should apply to avail of the incentives . 
 
6. Amount of the incentives  
 
Not available . 
 G/SCM /N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 7 - 
 
  7. Duration of the incentives and/or anytime attached to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
2.5  Coal 
1. Period covered by the no tification  
 
1998-2016. 
 
2. Policy objective  
 
Accelerate the exploration, development, exploitation production and utilization of the country 's 
coal resources.  
 
3. Background and authority for the program  
 
Presidential Decree (PD) No. 972 ( The Coal Development Ac t of 1976 ), as amended . 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
Qualified contractors with coal operating contracts . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attach ed to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
2.6  Biofuel  
1. Period covered by the notification  
 
2006-2016. 
 
2. Policy objective  
 
Develop and utilize indigenous renewable and sustainably -sourced clean energy sources . 
 
3. Background and authority for the progr am 
 
RA No. 9367 ( Biofuels Act of 2006 ). 
 
4. Form of the incentives  
 
Tax concessions . G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 8 - 
 
  5. To whom and how the incentives are provided  
 
Department of Energy (DOE) -accredited producers and distributors  of biofuels . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration  of the incentives and/or anytime attached to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
2.7  Footwear, Leather Goods and Tannery  
1. Period covered by the notification  
 
2004-2014. 
 
2. Policy objective  
 
Support, promote and encourage the growth and development of the SMEs belonging to the 
footwear, leather goods and tannery industries . 
 
3. Background and authority for the program  
 
RA No. 9290, s. 2004 ( Footwear, Leather Goods and Tannery Industries Development Act ). 
 
4. Form of the incentive  
 
Tax concession . 
 
5. To whom and how the incentive is provided  
 
BOI-accredited enterprises engaged in the foot wear, leather goods and tannery.  
 
6. Amount of the incentive  
 
Not available . 
 
7. Duration of the incentive and/or anytime attached to it  
 
Incentives provision lapsed on 15 April 201 4. 
 
8. Statistical data  
 
Not available . 
 
2.8  Iron and Steel  
1. Period covered by the notification  
 
1998-2006. 
 G/SCM /N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 9 - 
 
  2. Policy objective  
 
Promote industrialization through the immediate establishment of an integrated iron and steel 
industry . 
 
3. Background and authority for the  program  
 
RA No. 7103, s. 1991 ( Iron and Steel Industry Act ). 
 
4. Form of the incentives  
 
Tax concessions . 
 
5. To whom and how the incentives are provided  
 
BOI-registered enterprises engaged in the production and refinement of primary or intermediate 
steel produ cts. 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Incentives provision lapsed on 8 August 2006 . 
 
8. Statistical data  
 
Not available . 
 
2.9  Motor Vehicle  
2.9.1   Manufacture and Assembly  
1. Period covered by the notifi cation  
 
2002-2016. 
 
2. Policy objective  
 
Accelerate the sound development of the motor vehicle industry in the Philippines.  
 
3. Background and authority for the program  
 
EO No. 156 ( Providing for a Comprehensive Industrial Policy and Directions for the Motor Veh icle 
Development Program and its Implementing Guidelines ), s. 2002 (now EO No. 877 -A although not 
being fully implemented) . 
 
4. Form of the incentive  
 
Tax concession on the importation of completely knocked -down (CKD) parts and components . 
 
5. To whom and how th e incentive is provided  
 
BOI-registered enterprises engaged in the manufacture/assembly of motor vehicles . 
 
6. Amount of the incentive  
 
Not available . 
 G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 10 - 
 
  7. Duration of the incentive and/or anytime attached to it  
 
Ongoing.  
 
8. Statistical data  
 
Not available . 
 
2.10  Market  Access  
1. Period covered by the notification  
 
2003-2009. 
 
2. Policy objective  
 
Support, strengthen and encourage the growth and development of the motor vehicle industry . 
 
3. Background and authority for the incentives  
 
EO No. 244, s. 2003 (later modified by EO No . 312, s. 2004) Automotive Export Program . 
 
4. Form of the incentives  
 
Tax concession . 
 
5. To whom and how the incentives are provided  
 
BOI-registered enterprises engaged in the assembly of motor vehicles . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of t he incentives and/or anytime attached to them  
 
Law expired on 31 December 2009 . 
 
8. Statistical data   
 
Not available . 
 
2.11   Jewelry  
1. Period covered by the notification  
 
1998-2016. 
 
2. Policy objective  
 
Encourage the development of the jewelry industry . 
 
3. Background an d authority for the program  
 
RA No. 8502 ( Jewelry Industry Development Act of 1998 ). 
 
4. Form of the incentives  
 
Tax concessions . 
 G/SCM /N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 11 - 
 
  5. To whom and how the incentives are provided  
 
Qualified BOI -accredited jewelry enterprises, which should a pply with relevant auth orities.  
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
Ongoing . 
 
8. Statistical data  
 
Not available . 
 
3  AGRICULTURAL  
3.1  Rural Development  
1. Period covered by the notification  
 
1998-2016. 
 
2. Policy objective  
 
Assist disadvantaged areas and sectors of the economy through rural development . 
 
3. Background and authority for the program  
 
a. PD No. 717, s. 1975 ( The Agri -Agra Law ) 
b. EO No. 83, s. 1998 ( National Development Company (NDC) Agri -Agra Economic Recovery 
through Agri cultural Productivity (ERAP) Bonds for Rural Development ) 
c. RA No. 10000 ( The Agri -Agra Reform Credit Act of 2010 ) 
d. RA No. 8435 ( Agriculture and Fisheries Modernization Act of 1997 ), as amended  
e. RA No. 8550 ( The Philippine Fisheries Code of the Philippines of 1998)  
f. EO No. 133, s.1999 ( Modifying the Rates of Import Duty on Certain Imported Articles under 
Section 104 of the Tariff and Customs Code of 1978 (Presidential Decree No. 1464) as Amended in 
order to Implement Section 109 of Republic Act 8435, otherwise k nown as the "Agriculture And 
Fisheries Modernization Act of 1997 ) 
g. EO No. 376, s. 2004 ( Modifying the Rates of Import Duty on Certain Imported Articles under 
Section 104 of the Tariff and Customs Code of 1978 as amended, in order to Implement Section 1 
of Republic Act 9281, Reinstating the Effectivity of Tax Incentives under Section 109 of Republic 
Act 8435 Otherwise Known as the Agriculture and Fisheries Modernization Act of 1997)  
 
4. Form of the incentives  
 
Agricultural credits and tax concessions . 
 
5. To whom a nd how the incentives are provided  
 
a. Agrarian Reform Beneficiaries (ARBs) which includes tillers, tenant -farmers, settlers, 
agricultural lessees, amortizing owners, owner -cultivators, farmer cooperatives and compact 
farms; fisherfolk and farmers other than the ARBs, fishworkers and fisherfolk 's cooperatives  
b. Qualified Department of Agriculture (DA) -certified enterprises engaged in agriculture and 
fisheries  
 
6. Amount of the incentives  
 
Not available . G/SCM/N/38 /PHL • G/SCM/N/48 /PHL • G/SCM/N/60 /PHL • G/SCM/N/71 /PHL • G/SCM/N/95 /PHL • 
G/SCM/N/123 /PHL • G/SCM/N/155 /PHL • G/SCM/N/186 /PHL • G/SCM/N/220 /PHL • 
G/SCM/N/253 /PHL • G/SCM/N/284 /PHL • G/SCM/N/315 /PHL 
 
- 12 - 
 
  7. Duration of the incentives and/or anytime attached to them  
 
Ongoing for agricultural credits but duty -free importation of capital equipment and supplies under 
Executive Orders 133 and 376 expired in 2003 and 2015, respectively . 
 
8. Statistical data  
 
Not available . 
 
3.2  Fisheries Industry Support Programs  
1. Period covered by t he notification  
 
1998-2016. 
 
2. Policy objective  
 
To encourage commercial fishing vessel operators to fish farther in the Exclusive Economic Zone 
and beyond.  
 
3. Background and authority for the program  
 
a. Section 104 of the Tariff and Customs  Code  
b. RA 8550 as ame nded by RA 10654  
c. RA 8435  
 
Support to Commercial Fisheries (Section 35 of RA 8550)  
Incentives for the improvement of fishing vessels and acquisition of fishing equipment which 
include: a limited period of tax and duty exemptions on the importation of fishi ng vessels as 
provided in Section 35, paragraph b ; and duty and tax rebates on fuel consumption for commercial 
fishing operators of Philippine registry in the high seas as provided in Section 35, paragraph c  were 
not implemented by the Department of Agricu lture since funds were not appropriated to the 
Department for the afore -mentioned purpose.  
 
Exemption from payment of tariff and duties for importation of all types of agriculture and fisheries 
inputs, equipment and machinery of all enterprises duly certif ied by the Department of Agriculture 
as provided in Executive Order 376  dated October 22, 2004 were granted in 2005 to 2015 through 
the Department of Finance (DOF) and the Board of Investment (BOI).  
 
4. Form of the incentives  
 
Tax and duty exemption . 
 
5. To whom  and how the incentives are provided  
 
Commercial fishing operators, agriculture and fisheries enterprises . 
 
6. Amount of the incentives  
 
Not available . 
 
7. Duration of the incentives and/or anytime attached to them  
 
2005-2015. 
 
8. Statistical Data  
 
Not available . 
 
__________