DTI, DOF exempt medical supplies, equipment, medicine from import duties, fees

The Department of Trade and Industry (DTI) and the Department of Finance (DOF) have granted fiscal relief for manufacturers and importers of essential medical products and equipment amid the COVID-19 crisis.

The DTI and DOF's Joint Memorandum Circular (JMC) No. 20-02, series of 2020, issued on April 1, 2020, is pursuant to the Republic Act No. 11469 or the “Bayanihan to Heal as One Act,” which authorizes both departments to liberalize the grant of incentives for the manufacture and importation of critical equipment or supplies.

The importation of essential goods shall be exempt from import duties, taxes, and other fees.

“We need to ensure that the disruptions in the supply chain are minimized, as well as give enterprises a reprieve from commonly imposed taxes,” Trade Secretary Ramon Lopez said in a statement.

For his part, Finance Secretary Carlos Dominguez III said the government will help manufacturers, especially those partnering with medical institutions and hospitals, procure or produce these essential goods at reduced costs by providing them with tax breaks during this global health crisis.

“This is the least the Duterte administration could do to help our healthcare front-liners win the battle against COVID-19 by ensuring their access to personal protective equipment (PPEs) and other necessities to protect themselves and to medicines and medical supplies to treat their patients,” Dominguez said.

The Trade chief also noted that this was the government's way of showing gratitude to the cooperation of enterprises despite the restricted movement and conditions imposed during the quarantine period.

The joint circular also covers the production and manufacture of medicines identified as critical by the Department of Health (DOH), medical equipment and devices, personal protective equipment, surgical equipment and supplies, as well as laboratory equipment and its reagents.

The circular, likewise, covers raw materials and packaging materials exclusively used for the production of the essential medical products.

Dominguez said that the Bureau of Customs (BOC) will be able to assist in the timely release of the imports of raw materials, packaging, and articles required in the supply chain of production.

“We urge our partners in the private sector for their continued understanding on the importance of the unimpeded production and importation of these essential products," Lopez said.

Meanwhile, Dominguez said, "We thank these manufacturers, institutions, and hospitals that continue to innovate and produce essential goods to help save Filipino lives in the face of the pandemic."

The joint circular shall remain in effect only during the effectivity of RA 11469. — Ted Cordero/BM, GMA News