FURTHER AMENDING SECTION 105 OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, EXEMPTING IMPORTATIONS OF DOMESTIC SCHEDULED AIRLINES AND OF NEW MINES AND OLD MINES …

WHEREAS, the domestic scheduled airlines had been granted
under their respective congressional franchises exemption from customs duty and
compensating tax in consideration of the franchise tax on gross receipts therein
imposed and of the essential air transportation service they provide the
public;

WHEREAS, there is a pressing need to rehabilitate our
faltering civil aviation industry, to expand and improve the service being
provided by the domestic scheduled airlines, to assure a favorable
competitive position of our national flag carrier in the international field and
to make the operations of our scheduled airlines financially sound and
economically viable to effect the desired social and economic development of our
country;

WHEREAS, the Philippines is blessed with bountiful mineral
resources, the development and exploitation of which is essential to our
economic development; and

WHEREAS, the mining industry requires large amounts of high
risk capital and needs tax incentives during the initial years of commercial
operations;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and pursuant to
Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated
September 22, 1972, as amended, do hereby amend Section 105 of the Tariff and
Customs Code, as amended, to wit:

SECTION 1. Section One Hundred five of Republic Act Numbered
Nineteen hundred and thirty-seven, otherwise known as the “Tariff and Customs
Code of the Philippines,” is further amended by inserting two new paragraphs
“(u)” and “(v)” therein after paragraph (t) thereof which shall read as
follows:

“SEC. 105. Conditionally-Free
Importations.

x x x

“(u) Aircraft, equipment and machinery, spare parts commissary and catering
supplies, aviation gas, fuel and oil, whether crude or refined, and such other
articles or supplies imported by and for the use of scheduled airlines operating
under Congressional franchises: Provided, That such articles or
supplies are not locally available in reasonable quantity, quality and price and
are necessary or incidental for the proper operation of the scheduled airline
importing the same”; and

“(v) Machineries, equipment, tools for production, plants to convert mineral
ores into saleable form, spare parts, supplies, materials, accessories,
explosives, chemicals, transportation and communication facilities imported by
and for the use of new mines and old mines which resume operations, when
certified to as such by the Secretary of Agriculture and Natural Resources upon
the recommendation of the Director of Mines, for a period ending five (5) years
from the first date of actual commercial production of saleable mineral product:
Provided, That such articles are not locally available in reasonable
quantity, quality and price and are necessary or incidental in the proper
operation of the mine.”

SEC. 2. This Decree is hereby made part of the law of the
land and shall take effect immediately.

Done in the City of Manila, this 9th day of July, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ROBERTO V. REYES
		Assistant Executive Secretary