(News article drawn from iNFORMS, official e-newsletter of Export Development Council)
The Department of Trade and Industry – Export Marketing Bureau (DTI-EMB) is taking a step to boost the country’s export sector through the implementation of Department Administrative Order No. 25-03, which outlines the process for obtaining Export-Oriented Enterprise (EOE) Certification under the CREATE MORE Act (Republic Act No. 12066).
This initiative is designed to broaden access to vital tax incentives for enterprises with export sales comprising at least 70% of their total output or services.
By securing EOE certification, eligible exporters may avail of value-added tax (VAT) zero-rating on local purchases and VAT exemption on importation of goods—both of which are instrumental in reducing operational costs and enhancing global competitiveness.
Exporters may submit to DTI-EMB the following documents in applying EOE Certificate:
- Duly accomplished and notarized application form
- BIR certificate of Registration (BIR form No. 2303)
- Interim financial statement (For the first nine months of the taxable year prior to the covered period), along with quarterly tax returns filed with the BIR
- Audited Annual Financial Statement (AFS) and Annual Income Tax Return (ITR) filed with the BIR for the year preceding the taxable year to be covered
- BOC Certificate of Registration (COR) as an Exporter
- Bank Certification of Inward Remittance (showing export payments received in foreign currency for the preceding year)
- Summary of Export Remittances
- Summary of Export Sales (Goods and/or Services)
- Offsetting Schedule (if applicable)
- Schedule of receivables and payables offsetting, with supporting documents (if applicable)
- Export Declarations
- Final Bill of Lading or Airway Bill (whichever is applicable)
- Commercial Invoice
- Notarized affidavit certifying that at least 70% of total production was exported in the preceding taxable year.
The following are additional requirements for services exporters:
- Proof of Service Contract
- Any formal agreement with a foreign client such as purchase order, Letter of Engagement, Service Agreement or similar documents.
- Purchase Orders
- SEC Certification
- Original certification that the Non-Resident Foreign Corporation (NRFC) is not registered in the Philippines
- Corporate Documents of Foreign Client
- Photocopy of Articles or Certificate of Foreign Incorporation
Failure to submit required documents on time or to maintain the 70% export sales threshold may lead to revocation of the EOE Certificate. Applicants who initially fail to meet the criteria can request reconsideration within five working days of notification.
The guidelines emphasize transparency, accessibility, and strict adherence to the requirements to ensure that exporters can maximize the benefits offered under the CREATE MORE Act, thus fostering export-driven growth and enhancing the Philippines’ integration in global supply chains.
