EIGHTEENTH CONGRESS OF THE ) 
REPUBUC OF THE PHILIPPINES 
) 
First Regular Session 
)
*19 JUL 16 A 8-.57
S E N A T E
S. No. ^^08
I'u  '
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING THE IMPORTATION OF MEDICAL DEVICES AND EQUIPMENT 
FROM CUSTOMS DUTY AND VALUE-ADDED TAX
EXPLANATORY NOTE
The Philippine medical equipment market remains highly dependent on imports 
with majority of the medical equipment used in the country being imported.1 Imported 
medical equipment are subject to three (3) per cent customs duty in addition to 12 per 
cent value added tax.2 All these add to the already exorbitant cost of medical diagnosis 
and care in the country.
This bill thus seeks to address this concern by exempting the importation of 
medical devices and equipment intended for medical research, diagnoses or treatment 
from the payment of customs duties and taxes. The Department of Health is tasked to 
come up with a list of these devices and equipment to ensure that this will only include 
those that are necessary and will make a difference in the cost of medical treatment in 
the Philippines.
This will not only make medical care accessible and affordable, but will also 
facilitate development and innovation in medical research, aid in medical diagnoses, and 
provide accurate and effective medical treatment.
In view of the foregoing, the swift passage of this bill is earnestly sought.
PIA S. CAYETAND
1 US Department of Commerce-International Trade Administration, (n.d.). Healthcare Resource Guide: 
Philippines. Retrieved from
https://2016.export.gov/industry/health/healthcareresourceguide/eg_main_108611.asp.
2 Ibid.


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
)
S E N A T E  
S. No. ^r u8
. i f
*19 JUL 16 A 8 57
Introduced by Senator PIA S. CAYETANO
AN ACT
EXEMPTING THE IMPORTATION OF MEDICAL DEVICES AND EQUIPMENT 
FROM CUSTOMS DUTY AND VALUE-ADDED TAX
Be it enacted by the Senate and House o f Representatives o f the Philippines in Congress 
assembled:
1 
Section 1. Short Tide. -This Act shall be known as the "Tax-Free Importation of
2 
Medical Devices and Equipment Act".
3 
Sec. 2. Declaration o f Policy. -  It is declared the policy of the State to protect and
4 
promote the health of the Filipino people and to, consequently, endeavour to make
5 
healthcare services available to its citizens at a more affordable cost.
6 
Towards this end, the State shall adopt fiscal measures to encourage the entry of
7 
devices and equipment in the country to facilitate development and innovation in
8 
medical research, aid in medical diagnoses and provide accurate and effective medical
9 
treatment.
10 
Sec. 3. Relief from Customs Duty and Value-Added Tax on the Importation o f
11 
Medical Devices and Equipment.3 -  The importation of the following are hereby exempt
12 
from paying customs duty and value-added tax:
13 
(1) Any medical device or equipment intended for medical research, establishing
14 
medical diagnoses, or intended for medical treatment that is donated to the Department
15 
of Health (DOH), government and private hospitals, or any other medical institutions;
16 
(2) Any medical device or equipment intended for medical research, establishing
17 
medical diagnoses, or intended for medical treatment purchased with public funds;4
3 Irish Tax and Customs CORN 16 http://www.revenue.ie/en/custom s/leaflets/relief-for-im portation- 
medical-equipment.html
4 Notes:
1. VAT-exemption for medicines in TRAIN law reads as: "Sec. 109. Exempt Transactions. -  (1) Subject 
to the provisions of Subsection (2) hereof, the following transactions shall be exempt from the value-


1 
(3) Any medical device or equipment intended for medical research, establishing
2 
medical diagnoses, or intended for the medical treatment of its patients purchased by
3 
private hospitals or medical institutions; and
4 
(4) Any of its spare parts, components, and accessories, including spare parts
5 
and tools, especially designed for the maintenance, inspection, calibration, or repair of
6 
the medical device or equipment.
7 
Sec. 4. List o f Devices and Equipment. -T he DOH shall provide a list of devices
8 
and equipment that shall be tax-exempt under this Act: Provided, That medical devices
9 
and equipment that are not included in the list may be submitted to DOH for evaluation
10 
and possible inclusion.
11 
Sec. 5. Prior Approval from die Food and Drug Administration. -  Pursuant to
12 
Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act of
13 
2009", the consignee shall obtain an import permit or clearance from the Food and Drug
14 
Administration (FDA) for the imported medical device or equipment before relief from
15 
customs duty and value-added tax can be availed.
16 
Sec. 6. Separability Clause. -  If for any reason, a provision or part hereof is
17 
declared invalid, other provisions not affected thereby shall remain in full force and
18 
effect.
19 
Sec. 7. Repealing Clause. -  Any law, presidential decree or issuance, executive
20 
order, letter of instruction, administrative order, rule or regulation contrary to or is
21 
inconsistent with the provisions of this Act is hereby repealed, modified or amended
22 
accordingly.
23 
Sec. 8. Effectivity. -  This Act shall take effect fifteen (15) days after its
24 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
added tax: xxx (AA) Sale o f drugs and medicines prescribed for diabetes, high cholesterol, and 
hypertension beginning January 1, 2019."
2. VAT-exemption for Senior Citizens read as: "SEC. 4. Privileges for the Senior Citizens. -  The senior 
citizens shall be entitled to the following: "(a) the grant of tw enty percent (20%) discount and 
exemption from  the value -added tax (VAT), if applicable, on the sale of the following goods and 
services from all establishments, for the exclusive use and enjoyment or availment of the senior 
citizen"