BOI Investment Priorities Plan: Export Activities

Below are the activities covered by BOI’s Investment Priorities Plan (IPP) of 2013, such as the manufacture of export products, services exports and activities in support of exporters.


A. Production and Manufacture of Export Products

This covers the production/manufacture of non-traditional export products and with export requirement of at least 50% of its output, if Filipino-owned or at least 70%, if foreign-owned.

Export products include electronics, garments and textiles (including brassieres, gloves and mittens, and infant’s wear), footwear and leather goods, furniture, jewelry, marine and aquaculture, mineral products and others.

In the export of mineral products, the Specific Guidelines for R.A. No. 7942 of this IPP shall apply suppletorily.

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B. Services Exports

This covers service activities rendered to clients abroad and paid for in foreign currency with export requirement of at least 50% of its revenue, if Filipino-owned or at least 70%, if foreign-owned.

This also covers non-voice business processing operations such as administrative and business services, transcription services, engineering and architectural services.

Mere deployment of people or individual practice of profession abroad is not qualified for registration.

For contact centers, project must have a minimum investment cost of the Philippine Peso equivalent of US$5,000 per seat to qualify for registration. This amount covers the cost of equipment (hardware and software), office furniture and fixture, building improvements and renovation, and other fixed assets except land, building and working capital. If equipment used were leased, the same should be converted to assets in terms of commercial interest rates and amortized over a five-year period. If equipment were consigned, the same should have an assigned value to be considered as part of the project cost.

In the case of contact centers, revenues shall be unbundled to show the breakdown of servicing domestic and overseas markets.

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C. Activities in Support of Exporters

This covers activities directly supporting export producers as follows:

• Manufacture of parts/components and materials and supplies directly/ reasonably needed in the production of the export product;
• Services comprising a portion of the manufacturing process;
• Product testing and inspection;
• Repair and maintenance; and
• Logistics services.

This also covers service providers to foreign film and television production projects in the country as endorsed by the Philippine Film Export Services Office (PFESO) as mandated by E.O. No. 674.


Reference:
http://oshdp.com/wp-content/uploads/2014/02/2013-IPP-General-Policies-and-Specific-Guidelines.pdf (accessed June 18, 2014).