EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENY f 7 1
S.B. No. 
1 1 7 1
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•19 
NOV 13 
P 4«6
RECfi' ■■: c  cv:
Introduced by SENATOR IMEE R. MARCOS
AN ACT EXEMPTING THE IMPORTATION OF MEDICAL SUPPLIES AND 
EQUIPMENT FROM CUSTOMS DUTY AND VALUE-ADDED 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.
There are approximately one thousand seventy (1,071) licensed private 
hospitals, and only seven hundred twenty-one (721) public hospitals. Among the 
public hospitals, seventy (70) are being operated by the Department of Health 
(DOH). There have been earnest efforts to improve health service 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 imported, while local 
production of medical equipment is limited to prototype units, spare parts, and 
disposables.
Government hospitals rely on budget allocation and donations. Based on the 
2019 General Appropriations Act, the fund allocation for medical equipment 
amounted to 6,703,674,000.00, while in the proposed 2020 General Appropriations 
Bill, only 5,864,710,000.00 is allotted. Given the rising population of the Philippines, 
the proposed allocated budget for the year 2020 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 immediate passage of this 
measure is earnestly sought.
IMEE R. MARCOS
Senator


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
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[f of II): 
trrliup
*19 
NOV 13 
P 4:06
S. B. No.
1171
RECLIVlD lv
Introduced by SENATOR IMEE R. MARCOS
AN ACT EXEMPTING THE IMPORTATION OF MEDICAL SUPPUES AND 
EQUIPMENT FROM CUSTOMS DUTY AND VALUE-ADDED TAX
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Tax-Free Importation
2 
o f Medical Supplies and Equipment Act o f 2019."
3 
Section 2. Relief from Customs Duty and Value Added tax on the Importation
4 
o f Donated Medical Supplies and Equipment. -  The importation of the following are
5 
hereby exempt from the payment of customs duty and value-added tax:
6 
(l)A n y  medical supply or equipment intended for medical research and medical
7 
treatment which will be donated to the Department of Health (DOH),
8 
government hospitals, or any other medical research institution;
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(2) Any of its spare parts, components, and accessories, including spare parts and
10 
tools, especially designed for the maintenance, inspection, calibration, or repair
11 
of the medical supply or equipment; and
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(3) Any donation in relation to medicine, medical supplies or equipment from any
13 
person, government institution, corporation, international organization, or
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other similar entities to medical missions or disaster relief operations organized
15 
by the government or non-government organizations, accredited by the DOH.


1 
Section 3. List o f Supplies and Equipment -  The DOH shall provide a list of
2 
supplies and equipment that shall be tax-exempt under this Act. Provided that, medical
3 
supplies and equipment that are not included in the list may be submitted to DOH for
4 
evaluation and possible inclusion.
5 
Section 4. Prior Approval from die Food and Drug Administration. -  Pursuant
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to Republic Act No. 9711, otherwise known as the "Food and Drug Administration Act
7 
o f2009," the consignee shall obtain an import permit or clearance from the Food and
8 
Drug Administration (FDA) for the imported medical supply or equipment before the
9 
customs duty and value-added tax exemption may be availed.
10 
Section 5. Separability Clause. -  If for any reason, a provision or part hereof is
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declared invalid, other provisions not affected thereby shall remain in full force and
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effect.
13 
Section 6. Repealing Clause. -  Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative order, rule or regulation contrary
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to or is inconsistent with the provisions of this Act is hereby repealed, modified or
16 
amended accordingly.
17 
Section 7. Effectivity. -  This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
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Approved,