THE Bureau of Investments (BOI) said all manufacturing and agro-processing projects or investments are now qualified to apply for incentives but have to meet a certain criteria before applying.
"In the past, we have limited the type of manufacturing products that we can qualify for registration. Under the 2017 Investment Priority Plan, we are opening it up to all manufacturing and agro-processing," said Lucita Reyes, BOI's Board of Governors member, during the 2017 IPP roadshow at Pinnacle Hotel and Suites last September 21.
She said manufacturing and agro-processing are among the important sectors in the country because they employ the most number of skill and non-skilled workers. This allows all projects in these sectors to apply for incentives.
Under the 2017 IPP, preferred activities listed under "all qualified manufacturing activities including agro-processing" covers the manufacture of industrial goods and processing of agricultural and fishery products, including Halal and Kosher food, into semi-finished or intermediate goods for use as inputs in the production of other goods, or finished products of consumer goods for final consumption.
But Reyes said to qualify for registration, the investors have to make sure the technology they use for the product is up-to-date and market-appropriate.
She said once they meet the requirement of using the latest technology, the investor must also satisfy any of the following criteria to qualify for registration:
* Applicant will manufacture or process products, the importation of which grew by an annual average of at least 10 percent from 2012 to 2016, or share of imports to total apparent demand is at least 60 percent
* Project's value creation is at least 50 percent, except for consumer durables and industrial products or their intermediate goods that should be at least 25 percent
* Manufacture or process products that will utilize new technology and/or world-class design
* The project has a core capital equipment cost to direct labor ration of not higher than $28,000:1 worker at full capacity
* Adheres to Halal or Kosher standards for food manufacturing, as accredited by Philippine Accreditation Bureau while processing centers for the Halal industry will be located in the Autonomous Region of Muslim Mindanao.
Reyes said cement projects will now also be included but to qualify for registration, they must integrate clinker production.
"Except for modernization projects, only projects located outside Metro Manila may qualify for registration," the 2017 IPP stated. (RJL)