Section 3. Definition of Terms. —
For purposes of this Act:
"Board of Investments" or simply "Board" shall mean the Board of Investments created by Republic Act Numbered fifty-one hundred eighty-six, known as the Investment Incentives Act.
"Registered Export Producer" shall mean any person, corporation, partnership or other entity organized and existing under Philippine laws, (1) registered with the Board in accordance with this Act, (2) engaged or proposing to engage in the manufacture or processing of export products as hereinbelow defined, and (3) directly exporting its export products, or selling them (a) to a registered export trader that subsequently exports the said products, or (b) to other export producers who utilize said products as direct inputs in products subsequently manufactured or processed by them and thereafter exported, or (c) to foreign tourists and foreign travelers in areas covered by Tourism Priorities Plan and subject to the guidelines prepared by the Philippine Tourist Commission and the Board.
Registered Export Trader shall mean any person, corporation or partnership or other entities organized and existing under Philippine laws (1) registered with the Board in accordance with this Act and (2) engaged or proposing to engage in the sale abroad of export products bought by it from one or more export producers.
"Registered Service Exporter" shall mean a person, corporation, partnership or other entity organized and existing under Philippine laws, (1) registered with the Board in accordance with this Act and (2) engaged or proposing to engage (a) rendering technical, professional or other services which are paid for in foreign currency including, but not limited to, the fields of law, medicine, accounting, management, valuation and appraisals, engineering, construction, geodetics, surveying, teaching, pharmacy, nursing, cultural presentations or promotions, works of art, and entertainments; (b) in exporting television and motion pictures and musical recordings made or produced in the Philippines, either directly or through a registered export trader; or (c) in rendering services for foreign tourists and foreign travellers covered by the Tourism Priorities Plan and subject to the guidelines prepared by the Philippine Tourist Commission and the Board.
"Export products" shall mean manufactured or processed products: (1) not more than eighty per cent (80%) of whose individual F.O.B. Philippine port value is attributable to imported law materials, but said maximum percentage may, after three (3) years from the enactment of this Act, progressively be decreased by the Board of Investments at such annual rate as may be warranted by technological advancement, the availability of domestic raw materials, and similar factors; (2) the total F.O.B. Philippine port value of the exports of which did not exceed five million dollars in United States currency in the calendar year 1968; and (3) which meet standards of quality set by the Bureau of Standards or, in default of such standards, by the Board or by such public or private organization, chamber, group or body as the Board may designate.
"Export sale" shall mean the Philippine port F.O.B. value, determined from invoices, bills of lading, inward letters of credit, landing certificates and other commercial documents, of export products exported directly by a registered export producer or registered export trader, or the net selling price of export products sold by a registered export producer to a registered export trader who subsequently exports the same; but sales of export products to a registered export trader shall only be deemed export sales when actually exported by the latter as evidenced by landing certificates or similar commercial documents. Exportation of goods on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee.
"Export fees" shall mean the total foreign exchange which is charged or received by a registered service exporter for furnishing or performing services, or permitting the showing or playing, outside of the Philippines, of television or motion pictures or musical recordings.
"Production cost" shall mean the total of the cost of direct labor, raw materials, and manufacturing overhead, determined in accordance with generally accepted accounting principles, which are incurred in manufacturing or processing the products of a registered export producer.
"Processing" shall mean converting raw materials into marketable form by a special treatment or a series of actions that results in a change of the nature or state of the products, such as by slaughtering, milling, pasteurizing, drying or desiccating, quick freezing, and the like. Merely packing, packaging, or sorting out and classifying shall not, by themselves, constitute processing.