NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE 
s. No. ^52
FrF'X SR
ot tl)i‘ ^rcvctni’i’
•22 il 11 
:06
RECEIVED BV
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING FOR A PERIOD OF FIVE (5) YEARS THE IMPORTATION OF 
MEDICAL DEVICES AND EQUIPMENT FROM CUSTOMS DUTY AND VALUE- 
ADDED TAX
EXPLANATORY NOTE
The right to health for all people means that everyone should have access to 
the health services that they need, without suffering from financial hardship.1 While 
we recognize that strengthening primary health care is the main solution, there is still 
a need to ensure that our health care institutions are equipped with sufficient medical 
devices and equipment to properly diagnose and treat medical conditions in order to 
promote the constitutional right to health of Filipinos. This is also consistent with our 
national objectives and our country's commitment to the International Health 
Regulations of the World Health Organization (WHO) and the Sustainable 
Development Goals (SDGs), particularly, SDG 3 requires the State to ensure healthy 
lives and promote well-being for all at all ages. However, in the Philippines, our medical 
equipment market remains highly dependent on imports, as the majority of our 
medical equipment is being imported. These medical equipment are subjected to three 
percent (3%) customs duty, in addition to twelve percent (12%) value-added tax 
(VAT). All of these impositions add to the already expensive costs for medical diagnosis 
and health care in the country.
1 Health is Fundamental Right. (2017, December 10). WHO. https://www.who.int/news- 
room/commentaries/detail/health-is-a-fundamental-human-right


When the undersigned was Chairman of the Senate Committee on Health and 
Demography in the 13th and 14th Congress, one of the concerns identified was the 
lack of medical equipment, especially in the medical centers outside of Metro Manila. 
This proposed measure, which was first filed by the undersigned in the 18th Congress, 
seeks to exempt from custom duties and taxes the importation of medical devices and 
equipment that are intended for medical research, diagnosis or treatment for the next 
five (5) years in order to help the country as it recovers from the negative impacts of 
the pandemic. The Department of Health (DOH) is thus tasked to determine which 
medical devices and equipment shall be covered by this Act, such that exempting 
these items from custom duties would help lessen the cost of healthcare in our 
country.
The five (5)-year period is meant to provide an incentive for the purchase of 
much needed medical devices and equipment, and thereafter, the regular tax rates 
shall apply.
The enactment of this bill will bring us one step closer to making health care 
and treatment more accessible and affordable, as well as facilitate development and 
innovation in medical research, aid in medical diagnosis, and provide accurate and 
effective medical treatment.
In view of the foregoing, the swift passage of this bill is earnestly sought.
PIA S. CAYOTANOyV^


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
•22 JUL 11 P4 :06
SENATE
252
S. No.
RECElVtOm".
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING FOR A PERIOD OF FIVE (5) YEARS THE IMPORTATION OF 
MEDICAL DEVICES AND EQUIPMENT FROM CUSTOMS DUTY AND VALUE- 
ADDED TAX
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Tax-Free Importation
2 
of 
Medical 
Devices 
and 
Equipment 
Act".
3 
Sec. 2. Declaration of Policy. - It is the declared policy of the State to protect
4 
and promote the health of Filipinos and instill health consciousness among them. The
5 
State shall ensure to lessen, if not remove, the costs burdened upon Filipinos when
6 
accessing health care and medical services. Towards this end, the State shall adopt
7 
fiscal measures to encourage the entry of medical devices and equipment in the
8 
country to, among others, aid in affordable medical diagnoses and treatment, and
9 
facilitate development and innovation in medical research that would provide accurate
10 
and effective medical treatment in the country.
11 
Sec. 3. Relief from Customs Duty and Value-Added Tax on the Importation of
12 
Medical Devices and Equipment.2 - The importation of the following are hereby
13 
exempted from customs duty and value-added tax (VAT) for a period of five (5) years
14 
from the effectivity of this Act:
15 
(1) Any medical device or equipment intended for medical research.
2 Irish Tax and Customs CDPN 16 http://www.revenue.ie/en/customs/leaflets/relief-for-importation- 
medical-equipment.html


1 
establishing medical diagnoses, or intended for medical treatment that is
2 
donated to the Department of Health (DOH), government and private hospitals,
3 
or any other any other medical institutions;
4 
(2) Any medical device or equipment intended for medical research,
5 
establishing medical diagnoses, or intended for medical treatment purchased
6 
with public funds;
7 
(3) Any medical device or equipment intended for medical research,
8 
establishing medical diagnoses, or intended for the medical treatment of its
9 
patients purchased by private hospitals or medical institutions; and
10 
(4) Any of its spare parts, components, and accessories, including spare
11 
parts and tools, especially designed for the maintenance, inspection, calibration
12 
or repair of the medical device or equipment.
13 
Sec. 4. List of Devices and Equipment - The DOH shall determine and provide
14 
a list of medical devices and equipment that shall be covered by the tax exemption
15 
under this Act.
16 
Sec. 5. Prior Approvai from the Food and Drug Administration. - Pursuant to
17 
Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act of
18 
2009", the consignee shall obtain an import permit or clearance from the Food and
19 
Drug Administration (FDA) for the imported medical device or equipment before the
20 
availment of the tax exemption from customs duty and value-added tax as provided
21 
under 
this 
Act.
22 
Sec. 6. Separabiiity Ciause. - If for any reason, a provision or part hereof is
23 
declared invalid, other provisions not affected thereby shall remain in full force and
24 
effect.
25 
Sec. 7. Repeaiing Clause. - Any law, presidential decree or issuance, executive
26 
order, letter of instruction, administrative order, rule or regulation contrary to or is
27 
inconsistent with the provisions of this Act is hereby repealed, modified or amended
28 
accordingly.
29 
Sec. 8. Effectivity. - This Act shall take effect fifteen (15) days after its
30 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,