Advisory on Accreditation of Manufacturers of COVID-19 Related Products
By: Saliha Naila A. Abdullah
On 01 April 2020, the Department of Trade and Industry (DTI) and the Department of Finance (DOF) issued a Joint Memorandum Circular (JMC) No. 2020-02, which authorizes the grant of support, in the form of liberalizing investment incentives, for manufacturers or producers, suppliers of raw materials, manufacturers of packaging materials, and suppliers of raw materials for the packaging of COVID-19-related products. A full text of the Joint Memorandum Circular (JMC) No. 2020-02 may be accessed through: http://boi.gov.ph/wp-content/uploads/2020/04/DOF-DTI-JMC-2020-02_final.pdf
The liberalization by DTI and DOF on the grant of incentives for the manufacturing of critical COVID-19-related equipment and supplies has the objective of ensuring the availability of these essential goods and minimizing disruptions in the supply chain.
The said joint memorandum circular covers the following covid-19-related products:
(a) Medicine identified as critical and necessity by the Department of Health;
(b) Medical equipment and devices such as test kits, thermometers, thermal scanners, ventilators;
(c) Personal Protective Equipment (PPE);
(d) Surgical equipment and supplies;
(e) Laboratory equipment and its reagents;
(f) Support and maintenance for laboratory and medical equipment;
(g) Medical supplies, tools and consumables, such as alcohol, sanitizers, tissue, hand soap, detergent, sodium hydrochloride, cleaning materials, povidone iodine, and common medicines;
(h) Such other supplies or equipment as may be determined by the Department of Health (DOH) and other relevant government agencies;
Raw materials and packaging materials exclusively used for the production of the above-enumerated products shall also be covered.
Likewise, the qualified enterprises comprising the supply chain to ensure availability of the covered products are as follows:
(a) Manufacturer or producer;
(b) Suppliers of raw materials;
(c) Manufacturer of packaging materials; and
(d) Suppliers of raw materials for the packaging.
The duly-accredited or qualified manufacturers and suppliers of COVID-19-related products are exempt from import duties, taxes and fees such as import processing fees and other fees imposed by the Bureau of Customs (BOC), Food and Drug Administration (FDA), and other relevant agencies.
In line with the above-mentioned mandate, DTI, through the Board of Investments (BOI), is accepting applications for accreditation of manufacturers of COVID-19-related products starting April 15, 2020.
Those enterprises applying for accreditation shall submit a duly filled application Form 1 JMC No. 2020-02, and shall comply with the documentary requirements enumerated in the checklist provided in Form 2 JMC No. 2020-02. The documentary requirements may be submitted through BOI’s email: JMCAccreditation@boi.gov.ph.
In order to avail the exemption from import duties, taxes, and other fees, the accredited enterprise or IPA-registered manufacturer must first secure a Certificate of Authority (CA) from the BOI, provided that such importations are reasonably needed and will be used exclusively in the manufcature of the registered products. A copy of the application for CA or Form 3 JMC No. 2020-02 is downloadable at the official website of BOI. CA Applications may be submitted through email at: JMCcertificateofauthority@boi.gov.ph. Please stay tuned for new issuances and releases from the national government. We will accordingly provide updates as new announcements are given from time to time.