Ms. LILLIAN C. COTAZ Resource-Based Industries Department Board of Investments 10 May 2013 Sulo Riviera Hotel, Quezon City Regional Workshop on Enhancing Farmers’ Market Power Workshop

 An attached agency of the Department of Trade and Industry  Promote investments in preferred areas as identified in the annual Investments Priorities Plan (IPP)  Administer incentives: Fiscal Non-fiscal Board of Investments

Agriculture/Agribusiness and Fishery Commercial Production Commercial Processing Services in Support of Agriculture / Agribusiness and Fishery Irrigation Harvesting Services Post Harvesting Services 2012 Investment Priorities Plan

Agribusiness 2012 to Q Total Registered Investments (PhP B)14.04 Total Number of Projects50 Employment10,327

Board of Investments  income tax holiday (ITH)  exemption from wharfage dues and export tax, duty, impost and fees  tax exemption on breeding stocks and genetic materials  employment of foreign nationals  Simplification of customs procedures  Duty exemption on imported capital equipment, spare parts and accessories  Tax credits on imported raw materials  Tax and duty free importation of consigned equipment  Additional deduction from labor expense  Access to bonded manufacturing warehouse Incentives

 Foreign Investments Act – R.A  Foreign Investment Act of 1991 basic law governing foreign investments in the Philippines liberalized the entry of foreign investments in the country  Key Features of FIA concept of negative list opened domestic market to 100% foreign investment except those in the Foreign Investment Negative List (FINL) allowed 100% foreign ownership of business activities outside FINL but WITHOUT incentives Foreign Investments

Foreign Investment Negative Lists  List A - areas of activities reserved to Philippine nationals where foreign equity participation in any domestic or export enterprise engaged in any activity listed therein (limited to a maximum of 40%)  List B - areas of activities where foreign ownership is limited pursuant to law such as defense or law enforcement-related activities, which have negative implications on public health and morals, and small and medium-scale enterprises. Foreign Investments

Qualifications for BOI Registration  Entity organized under Philippine laws at least 60% Filipino owned  If not Filipino: » proposes to engage in Pioneer project for domestic- oriented projects » Commits to export at least 70% of production/ manufacturing revenues  Activity must be listed in the Investments Priorities Plan Registration

BOI Resource-Based Industries Department 385 Sen. Gil Puyat Ave. Makati City Tel. (+632) Fax (+632) Registration