BOI to look into duties on imported books

The Board of Investments (BOI) may look into the complaint of the domestic printing industry of the continued imposition of tax and duty on imported books even at a time when the industry is slowing down with the shift towards digital media.

BOI Governor Napoleon Concepcion told reporters covering the ASEAN Printing Forum, the firstever industry forum in the region, to look into the complaint with the Bureau of Customs (BOC). The regional forum seeks to address the demands of regional integration and global markets opportunities in the printing industry.

“We will look into that and we know that Commissioner Isidro Lapeña is very cooperative,” Concepcion said.

In December 2011, the Department of Finance issued Department Order No. 57-2011 exempting all imported books into the Philippines, whether for personal or commercial use, from taxes.

The order signed by then Finance Secretary Cesar Purisima emphasized the duty- and VAT-free status of imported books, and detailing guidelines covering clearance procedures from customs.

The DOF issued the order as part of the country’s compliance to the UNESCO Florence Agreement, where the Philippines was a signatory. The Florence Agreement has waived tariffs on books and other printed materials in order to facilitate the free flow of educational, scientific and cultural materials. The DOF order requires commercial book importers to present an endorsement from the department's Revenue Office so it can be exempted from duties and VAT on books and other materials.

Concepcion admitted that although the industry is in a decline, the outlook still remains positive. There is just a need to update the Printing Industry Roadmap, which was done in 2014, to address the challenges of the industry.

“The outlook for the printing industry remains positive, not just for printers, but for suppliers of ink, rollers, and equipment,” he added.

He added that while the need for publication companies has slowed down there are new sources of growth for new printing applications like packaging materials.

“The small players have already shutdown their operations,” he said even as he urged for more collaboration among industry players in the country and the region so as not to expose themselves to higher capital cost everytime technology changes.

“We know it (printing) is going down, but we have to stop it and restore the value of this industry,” he added.

Being one of the activities coinciding with the Philippine chairmanship of ASEAN 2017, the highlight of the forum is the signing of an agreement on the next steps to move forward each member country’s printing industry and the ASEAN printing industry as a whole.