Machineries, Equipment, Etc. of New Mines and Old Mines

Mining remains an important industry in the Philippines, supporting infrastructure, exports, and employment. To encourage investment and improve productivity, certain machineries, equipment, spare parts, and supplies imported for mining operations may qualify for customs tax and duty privileges under Philippine law (CMTA, Republic Act No. 10863), specifically Section 800.

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What Is Covered?

The term refers to imported goods intended for use in the development, operation, rehabilitation, or expansion of mining projects - applicable to both new mines and old mines requiring modernization or continued production. Covered imports may include:

• Heavy mining machinery, excavators, loaders, and drilling machines
• Crushing and screening equipment
• Hauling trucks and transport units
• Power generation equipment, pumps, and compressors
• Safety and environmental control systems
• Spare parts, replacement components, and specialized mining supplies

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Conditions for Duty Exemption for Mining Companies

To qualify for duty exemption, the following conditions must be met:

1. The goods must be imported by and for the use of new mines or old mines that resume operations.
2. The Secretary of DENR must certify the importation upon recommendation of the Director of the Mines and Geosciences Bureau (MGB).
3. The exemption only applies within five (5) years from the first date of actual commercial production of saleable mineral products.
4. The goods must not be locally available in reasonable quantity, quality, and price.
5. The goods must be necessary or connected to the proper operation of the mine.

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Conditions for Duty Exemption for Agro-Industrial Companies

Aircraft, spare parts, and accessories imported by agro-industrial companies may also qualify if:

1. The importer is an agro-industrial company.
2. The aircraft, spare parts, or accessories are used in agricultural or industrial operations or activities.
3. The Secretary of the Department of Agriculture (DA) or the Department of Trade and Industry (DTI), whichever applies, must certify the importation.

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Common Documents Required

• TEI with accompanying documents
• Goods Declaration
• Import Bill of Lading or Air Waybill
• Import Invoice/Packing List
• Mining permit or contract documents

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Step-by-Step Import Process

1. Secure Government Certification - The importer first secures certification from DENR-MGB, DA, or DTI depending on the type of importation.
2. Prepare Import Documents - Gather the Goods Declaration, Invoice, Packing List, Bill of Lading or Air Waybill, permits, and supporting certifications.
3. File Documents with the BOC - The importer or customs broker files the documents and applies for conditional duty exemption under Section 800(W) of the CMTA.
4. Customs Evaluation - The Bureau of Customs reviews the documents and checks if the importation qualifies for duty exemption.
5. Release of Shipment - Once approved, the imported goods may be released for mining, agricultural, or industrial operations.