HERE'S ANOTHER GOOD NEWS, AND ALSO PROBABLY TO FILIPINO INVENTORS.
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With attractive incentives
Alternative fuel vehicle program set
By BERNIE CAHILES–MAGKILAT
The government is crafting an Alternative Fuel Vehicle Program (AFVP) granting juicy tax perks to assemblers and manufacturers of vehicles and auto components powered by alternative fuel sources.
Documents showed this new program aims to grant incentives to four vehicle categories: hybrid, electric, flex-fuel vehicles (FFV) and compressed natural gas (CNG) vehicles.
The BOI, which administers the Motor Vehicle Development Program (MVDP), shall also be the implementing agency of the program except for the assembly of NGV which shall be handled by the Department of Energy in coordination with the BOI.
Hybrid vehicles are those that use electric batteries and gasoline/diesel to power internal-combustion engines and electric motors while the electric vehicles are those that are designed to run solely on electric power.
The FFVs are vehicles that are designed to run on regular unleaded gasoline and an alcohol fuel. To qualify for this category, the FF vehicle must run on gasoline and minimum ethanol content/blend of at least 20 percent or the FFV run on diesel and a minimum coco-methyl ester blend of at least 5 percent
On the other hand, the NG vehicles are vehicles that are dedicated to use CNG.
Based on the plan, importation of knocked-down parts and components for the assembly/manufacture of the four categories for alternative fuel vehicles is duty fee.
The duty-free tariff lines covers ASEAN Harmonized Tariff Nomenclature 8702, 8703, 8704 and 87011encompassing all vehicle categories under the existing Motor Vehicle Development Program (MVDP).
To qualify for registration under the AFVP, the applicant must be an existing MVDP participant of good standing. New applicants must first register under the MVDP to be able to participate in the AFVP.
Registration and assembly of AFVP shall be covered by existing rules and regulations of the MVDP, which will treat the alternative fuel vehicles as new basic models.
After two years from its commercial operation, program participants are required to develop a vehicle parts development program in coordination with concerned morot vehicle parts manufacturers association.
The assembly or manufacture of NGVs shall be covered by existing rules and regulations under Executive Order 290, implementing the NGVP for public transport.
The creation of the ALVP is based on earlier EOs that seek to promote motor vehicle development in the country.
EO 156 was issued in 2002 establishing a Comprehensive Industrial Policy Directions for the MVDP, which provides for the development of the Philippines as the manufacturing hub for certain motor vehicles, parts and components.
In addition, EO 472 was issued in 1998 institutionalized the Committee on Fuel Conservation and Efficiency in Road Transport and targets 5 percent reduction in fuel consumption by road transport users.
The government also sees the need for the transport sector, being one of the highest fuel-consuming sector to address the ever increasing cost of fuel in the world market.
In addition, the government is implementing the Philippine Clear Air Act.
The promotion of AFVP is expected to create additional investment, employment opportunities, tax revenue and provide positive export earnings to the Philippine economy.