BOI relaxes rules on Auto Export Program

The Board of Investments (BOI) has liberalized its guidelines for the availment of preferential tariff rates under the Automotive Export Program (AEP).

Originally, the availment of preferential tariff rates for completely built-up units (CBUs) was rigidly set for four specific categories which were regular CBU exports, developmental CBU exports, niche CBU exports and high-value, low volume CBU exports.

Under the amended guidelines, AEP participants will now be allowed to combine their total exports for all four categories.

Previously, for regular CBU exports, a minimum total yearly volume of 10,000 units with a base figure set at 2002 CBU exports at minimum FOB (freight on board) value of $5,000 per unit.

For developmental CBU exports, a minimum total yearly volume of 5,000 units with base figure set at 2002 CBU exports at minimum FOB value of $5,000 per unit.

For niche CBU exports, minimum total yearly volume of 2,500 units with base figure set at 2002 CBU exports at minimum FOB value of $10,000 per unit.

For high-value, low volume CBU exports, minimum volume of 2,500 units with base figure set at 2002 CBU exports at a minimum FOB value of $20,000 per unit.

The amendment now allows program participant’s export performance per specific category registration to be accumulated and that the total minimum export hurdle is based on the total accumulated volume or total accumulated FOB value.