RMC No. 33-2004: Prescribes the revised rules and regulations implementing R.A. No. 8502, otherwise known as the “Jewelry Industry Development Act of 1998.”.

Key points

1. Incentives for Qualified Jewelry Enterprises. Incentives include zero duty on imported raw materials and capital equipment, exemption from excise tax on jewelry goods, and an additional deduction of 50% of approved training expenses. Others are gold and silver sales by the BSP at minimal margins, authority to buy gold and silver directly from other sources (not from small-scale miners), and inclusion in tourist duty free shops.
2. Other special laws. Incentives under RA No. 7844, RA No. 7916 and Executive Order No. 226 also apply. The enterprise must register under those laws or be export-oriented, and there is no double availment of the same incentives.
3. Who may apply. The applicant is a single proprietorship, cooperative, corporation, partnership or organization authorized to do business under Philippine laws. A corporation’s activity must be within its corporate purposes, and the applicant needs a Mayor’s or Business Permit, BIR Registration, and endorsement by an accredited jewelry association certifying good standing.
4. Support activities. Assaying and precious stone appraisal and certification follow Bureau of Product Standards accreditation and standards. Subcontracting needs an agreement with another Qualified Jewelry Enterprise engaged in jewelry manufacturing.
5. Jewelry associations. An association must be registered with the SEC, have at least 10 active members, and be at least 1 year in existence if a member of the Confederation of Philippine Jewelers, Inc., otherwise at least 3 years. The Circular also specifies accreditation requirements and procedures for releasing tax- and duty-free imports and claiming the training deduction.

Who is affected

• Qualified Jewelry Enterprises
• Applicant jewelry enterprises
• Jewelry associations