To qualify for registration with the BOI for incentive purposes, the
proposed foreign investment must be made in any of the following:
a. Preferred areas of investment listed in the current Investment
Priorities Plan (IPP). A preferred area may be declared pioneer if it:
i. Engages in the manufacture, processing, or production (not
merely in the assembly or packaging) of goods, products,
commodities, or raw materials that have not been or are not
being produced in the Philippines on a commercial scale;
ii. Uses a design, formula, scheme, method, process, or system of
production or transformation of any element, substance, or raw
materials into another raw material or finished good which is
new and untried in the Philippines;
iii. Engages in the pursuit of agricultural, forestry, and mining
activities and/or services including the industrial aspects of
food processing whenever appropriate, pre-determined by
the concerned IPA to be feasible and highly essential to the
attainment of the national goal in relation to a declared specific
national food and agricultural program for self sufficiency and
other social benefits of the project; or
iv. Produces non-conventional fuels or manufactures equipment
which utilize non-conventional sources of energy or uses or
converts to coal or other non-conventional fuels of sources
of energy in its production, manufacturing, or processing
Pioneer status under any of the foregoing instances shall be subject to the
condition that the final product involves or will involve substantial use
and processing of domestic raw materials, whenever available; taking into
account the risks and raw magnitude of investment.
b. Enterprises engaged in preferred non-pioneer areas and exporting at
least 70% of their output.
c. Projects in less-developed areas provided that the activities in all of the
above cases are not reserved for Philippine nationals under the Foreign
Investment Negative List (FINL).
On the other hand, the projects that may qualify for registration with
PEZA or other IPAs are those that involve manufacturing for export and
the domestic market, free trade, tourism, agri-industrial export, bio-fuel
manufacturing, information technology, utilities, facilities enterprises, and
logistics service enterprises providing warehousing and trading operations
in the ecozones and development and operation of ecozones.
2. What possible obstacles would our application meet?
The obstacles normally encountered in the filing of applications include
non-compliance with the criteria set by the BOI, misinterpretation of the
coverage of activities listed in the IPP, failure to submit the required project
feasibility study and other supporting documents, and possible opposition
from sectors or enterprises which might be adversely affected by the
proposed project. The BOI requires publication of the notice of application
and conducts hearings if objections to the application are received.
For PEZA or other IPA applicants, the usual problem consists of noncompliance
with some of the criteria set by PEZA or other IPAs and failure
to submit required documents and information.