NINETEENTH CONGRESS OF THE ) 
republic of the PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 645
oi ^ : eVxy
■22 JUL14 P4--02
RECEIVED i;JJ ..
Introduced by SENATOR IMEE R. MARCOS
AN ACT
EXEMPTING THE IMPORTATION OF MEDICAL SUPPLIES AND 
EQUIPME NT FROM CUSTOMS DUTY AND VALUE-ADDCD TAX
EXPLANATORY NOTE
Article II, Section 15 of the Constitution states that the State shall protect and 
promote the right to health of the people and instill health consciousness among them. 
However, the World Health Organization refers to the Filipino Healthcare System as 
"fragmented."There is a history of unfair and unequal access to health services that 
significantly affect the poor.
Tnere have been earnest efforts to improve health ser/ice delivery in the 
country, however, regional and socioeconomic disparities are prominent in the 
availability and accessibility of resources. According to the International Trade 
Administration (ITA), almost 100% of the medical equipment and devices in the 
Philippines are 'mpcrted, while local production of medical equipment Is limited to 
prototype units, spare parts, and disposables.
Government or public hospitals rely on budget allocation and donations. 
However, given the rising population of the Philippines, the proposed annual 
appropriations would not be enough to provide quality healthcare for the Filipino 
communities. Thus, donations from foreign governments. Institutions and individuals 
are badly needed.


Although donations, in favor of government institutions, are exempt from 
donors' taxes, such donations are, however, subject to customs duties and value 
added-taxes (VAT). This discourages prospective donors from donating to public 
hospitals. This measure proposes to exempt the importation of medical devices and 
equipment from customs duties and value added taxes which are donated and imported 
by foreign government, entities, and citizens. Such exemption will facilitate the 
development and innovation in medical research, medical diagnoses, and most 
especially, provide a more efficient and accessible medical treatment to Filipinos.
Given the abovementioned circumstances, the immed nte passage of this 
measure is earnestly sought.
IMEE R. MARCOS^


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES j 
First Regular Session 
)
S.B. No.
SENATE
645
'’#ff CP 0i the i ■■
't. Hi'
72 JUL 14 P4 :02
RliCEiV- 'j Bt.
Introduced by SENATOR IMEE R. MARCOS
AN ACT
EXEMPTING THE IMPORTATION OF MEDICaL SUPPLIES 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:
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SECTION 1. Short Title. - This Act shall be known as the 'Tax-Free Importation
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of Medical Supplies and Equipment Act"
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SEC. 2. Relief from Customs Duty and Value Added tax on the Importation of
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Donated Medical Supplies and Equipment - The importation of the following are hereby
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exempt from the payment of customs duty and value-added tax:
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(1) Any medical supply or equipment intended for medical research and
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medical treatment which will be donated to the Department of Health (DOH),
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government hospitals, or any other medical research Institution;
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(2) Any of Its spare parts, components, and accessories, including spare parts
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and tools, especially designed for the maintenance, inspection, calibration, or repair of
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the medical supply or equipment; and
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(3) Any donation In relation to medicine, medical supplies or equipment from
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any person, government institution, corporation, international organization, or other
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similar entities to medical missions or disaster relief operations organized by the
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government or non-government organizations, accredited by the DOH.
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SEC. 3. List of Supplies and Equipment - The DOH shall provide a list of supplies
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and equipment that shall be tax-exempt under this Act. Provided that, medical supplies
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and equipment that are not included in the list may be submitted to DOH for evaluation
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and possible inclusion.


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SEC. 4. Prior Approval front the Food and Urug Administration. - Pursuant to 
Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act of 
2009" the consignee shall obtain an import permit or clearance from the Food and Drug 
Administration (FDA) for the imported medical supply or equipment before the customs 
duty and value-added tax exemption may be availed.
SEC. 5. Separability Clause. - If for any reason any part or provision of this Act 
shall be deemed unconstitutional or invalid, the other sections or provisions hereof shall 
not be affected and shall remain In force and effect.
SEC. 6. Repealing Clause. - All provisions of existing laws, orders and 
regulations contrary to or inconsistent with this Ac*, are hereby rep;taled or modified 
accordingly.
SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days after Its 
publication in the Official Gazette or In a newspaper of general circulation.
Approved,