Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILLNo.__ 3589

Introduced by Honorable Lucy Torres-Gomez

EXPLANATORY NOTE

In the aftermath of Supertyphoon Yolanda (international name:
“Haiyan”), one of the international humanitarian organizations which
promptly came to the relief and rehabilitation of the victims in the
Visayas was the Tzu Chi Foundation (“Tzu Chi”, for brevity).

Considered one of the most effective aid agencies in the Asian
region, Tzu Chi is a non-profit Buddhist organization based in Taiwan. It
is a major civil society actor, with approximately ten (10) million
members, and chapters in forty-seven (47) countries. The group’s core
activities span charity, medicine, education and humanistic culture, and it
provides aid to all people regardless of race, religion or nationality.

The largest non-governmental organization (NGO) in the Chinese-
speaking world, Tzu Chi enjoys a special consultative status at the United
Nations Economic and Social Council. It is for this vital fact that this bill
is being filed.

Under our laws, the United Nations, as well as its specialized
agencies, enjoy tax-exempt privileges. Hence, in the course of relief and
rehabilitation efforts following “Yolanda’s” onslaught, the UNICEF was
able to secure for the Filipino victims donations from various
international sources which were treated tax-free.

There is no particular reason why Tzu Chi, which has a special
consultative status with the United Nations Economic and Social Council,
should not be granted similar tax-exempt privileges, at least insofar as its
importation of relief goods and aid equipment are concerned. While,
technically, its “special consultative status” doesn’t make Tzu Chia U.N.
specialized agency covered by international conventions and treaties,



SEC. 3. Rules and Regulations. — The Secretary of Finance shall
promulgate the rules and regulations necessary for the effective

implementation of this Act.

SEC. 4. Repealing Clause. - All other laws, decrees and orders or
rules and regulations, or parts thereof, which are inconsistent with this

Act are hereby repealed or modified accordingly.
SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days
after its publication either in the Official Gazette or in a newspaper of

general circulation.

Approved,

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Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILL NO._3589

Introduced by Honorable Lucy Torres-Gomez

AN ACT

EXEMPTING FROM TAX GOODS, EQUIPMENT AND OTHER
ARTICLES FOR RELIEF AND REHABILITATION IMPORTED
INTO THE COUNTRY BY THE TZU CHI FOUNDATION
Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Exemption from Taxes. All goods, equipment and
other articles for relief and rehabilitation imported into the Philippines by
the Tzu Chi Foundation, a charitable and non-profit organization based in

the Republic of China in Taiwan, shall be exempt from customs duties

and taxes of whatever nature.

SEC. 2. Certification from the Department of Social Welfare and
Development. — The Department of Social Welfare and Development
shall issue the appropriate documentation certifying to the necessity of

the importation under Section | hereof.


there is no dispute however with respect to its purely charitable and non-
profit character.

In view of the foregoing premises, the early consideration and
passage of this bill into law are eamestly requested.

LUC Li
Representative

Fourth District of Leyte