In line with Section 24 of Republic Act No. 6847, otherwise known as "The Philippine Sports Commission Act", empowering the Philippine Sports Commission, hereinafter called as the "Commission," to call upon any government entity for assistance in the performance of its functions and duties, and enjoining all heads of departments, agencies, corporations and offices of the government to render full assistance and cooperation to the Commission, the Department of Finance and the Commission hereby jointly promulgate these guidelines for the implementation of the Tax Exemption of the Commission as provided for under Section 19 of said Act.

"Sec. 19. Tax exemption of the Commission - The Commission shall be exempted from the payment of customs duties, taxes and tariffs on the importation of sportswear, equipment, supplies, instruments and materials, including those donated to the Commission, which are of international sports standard not available from local manufacturers and only such numbers as may be required in the development of various sports and/or training of the national pool of athletes. The importation of sportswear, equipment, supplies, instruments and materials donated to the Philippine Olympic Committee and, through the Commission, to the various national sports associations certified under oath by the Commission to be required and necessary for the development of sports, in the country shall also be exempt from the payment of customs duties, taxes and tariffs."

SECTION 1. Scope - This Order implements Section 19 of Republic Act 6847 granting tax exemptions on importations by the Philippine Sports Commission (PSC), the Philippine Olympic Committee (POC) and to the various National Sports Associations (NSAs) as of January 24, 1990, the effectivity date of R.A. 6847.

SECTION 2. Definition of Terms - As used herein, the following terms and phrases shall have the meaning hereunder indicated:

a. International Sports Standard - shall refer to the specifications and dimensions of sports materials, equipment, facilities, instruments, supplies and the like as set forth, prescribed or approved by the International Sports Bodies like the International Olympic Committee and International Sports Federation.

b. Equipment - shall include goods, articles, machines, sports accessories and the like without which the game cannot be played and/or necessary for the development of sports in the country and/or the establishment, operation, management and maintenance of sports facilities/complexes in the country to conform to the prescribed international standard.

c. Supplies/Materials - shall refer to items which are actually needed for the use of the player, coach, trainor, officials and/or teams during training or actual competition. It shall also include articles and goods which are needed in the maintenance and operation of sports facilities in the country as well as for the establishment, construction, maintenance and operation of fully equipped facilities in the country owned by the national government and as far as practicable, such modern complexes adequate for major international competitions.

d. Sportswear - shall refer to those items worn by the athletes, trainers, coaches and/or officials during training and/or actual competitions.

e. Local availability - refers to items (sportswear, equipment, supplies, materials) certified by the Department of Trade and Industry to be locally manufactured and available in the Philippines.

f. Instrument - a special type of sports equipment used to measure weight, distance, time and other parameters necessary for training and/or competitions.

It is understood that the definitions of b, c, d and f cover and apply to amateur sports only. Moreover, vehicles may also be imported, provided the same is for more than nine (9) passengers.

SECTION 3. Conditions for Availment - In order to avail of the exemption from the payment of customs duties, taxes and tariffs, by the Philippine Sports Commission, the Philippine Olympic Committee and the National Sports Associations, the following guidelines are hereby prescribed:

3.1 Direct importation - Letter Application signed by the Chairman of the Commission or his duly authorized representative, attaching therewith the usual import documents, such as:

1. Bill of Lading, Airway Bill, Parcel Post Notice or other shipping documents;
   
   
2. Commercial Invoice and packing list; and
   
   
3. Other relevant documents covering the shipment.
   

   3.1.1.  Certification from the Commission that the imported are of international sports standard as defined in Section 2 hereof and the same are required in the development of various sports and/or training of the national pool of athletes, provided that said articles shall not be for sale, hire, lease, barter nor transferred for any consideration; and
   
   3.1.2.  Certification from the Department of Trade and Industry (DTI) that the imported articles are not locally available.

In case the DTI certifies the local availability of the articles to be imported, the Commission can still avail of the exemption provided that the local manufactured and available articles, upon certification of the Commission, are not of international sports standard as defined in Section 2 hereof.

3.2 Importation by Way of Donation

	3.2.1	In case of importation by way of Donation to the Commission -
		1) Letter-application signed by the Chairman of the Commission; and
		2) Deed of Acceptance by the Commission.
	3.2.2.	In the case of importation by way of Donation to the Philippine Olympic Committee -
		1) Letter-application duly signed by the POC President addressed to the Commission;
		2) Certification under oath by the Chairman of the Commission or his duly authorized representative stating that the donated articles are required and necessary for the development of sports in the country;
		3) Indorsement-letter from the Commission recommending to the Department of Finance the importation without payment of customs duties, taxes and tariff pursuant to Sec. 19 of Republic Act No. 6847;
		4) Deed of Donation duly authenticated by the Philippine Consulate at the place of donation; and
		5) Deed of Acceptance by the Philippine Olympic Committee.
	3.2.3.	In case of importation by way of Donation to the NSA -
		1) Letter-Application duly signed by the NSA head concerned addressed to the Commission;
		2) Certification under oath by the Chairman of the Commission stating that the donated articles are required and necessary for the development of sports in the country;
		3) Indorsement-letter from the Commission recommending to the Department of Finance the importation without payment of the customs duties, taxes and tariff under Sec. 19 of Republic Act No. 6847;
		4) Certification by the Commission that the NSA concerned is duly accredited with or recognized by the Commission;
		5) Deed of Donation duly authenticated by the Philippine Consulate at the place of donation; and
		6) Deed of Acceptance by the National Sports Association.
	3.2.4.	All requests of POC and national sports associations for availment of exemption from customs duties, taxes and tariff under Section 19 of Republic Act No. 6847 shall be coursed though the Philippine Sports Commission for proper indorsement to the Department of Finance before ultimate grant of the tax exemption privilege.
	3.2.5	The Department of Finance may require the submission of additional documents/undertaking or other related documents should the need arise.
	3.2.6.	The Department of Finance based on the recommendation of the Commission and upon completion of the above conditions in the availment of the tax exemptions, may allow the importation of sportswear, equipment, supplies, instrument and materials without payment of customs duties, taxes and tariffs pursuant to Section 19 of R.A. 6847.

SECTION 4. Inspection - The Department of Finance, in the presence of any authorized representative from the Commission, may conduct periodic pre and post inspection of imported articles authorized to be released duty and tax free pursuant to Section 19 of R.A. 6847 as implemented by this Joint Order. Copies of its findings/report shall be furnished the Commission. The Commission may likewise conduct pre and post inspection and audit of the imported articles donated to the POC and the NSAs based on the internal rules and regulations of the Commission.

SECTION 5. Penalty - The penalty provided for under existing laws shall be imposed for any violations of the provisions of this Order or any revenue laws.

SECTION 6. Repealing Clause - All orders, circulars, rules and regulations inconsistent herewith are hereby revoked or modified accordingly.

SECTION 7. Effectivity - This Order shall take effect ten (10) days after publication in a newspaper of general circulation.

Adopted: 1990