Exporters may now secure online accreditation under Republic Act 7844, also known as the Export Development Act (EDA) of 1994, through the Department of Trade and Industry’s Export Marketing Bureau (EMB).
EDA accreditation allows exporters to claim zero-rated value-added tax in the purchase of raw materials and packaging supplies; and free annual renewal of the Bureau of Customs Client Profile Registration System account.
Exporters have to report export sales of more than 70% of their total annual production to qualify for EDA accreditation.
Exporter-applicants need only email EMB scanned copies of the following documents (saved in a portable document format): application form; notarized affidavit of compliance with the minimum wage and Social Security System laws; audited financial statement immediately preceding the taxable calendar year; and original copies of bank certifications summarizing inward remittances or export sales payment received by the company for the preceding year.
Forms may be downloaded at https://www.dti.gov.ph/negosyo/exports/accreditation-of-exporters/.
Applications are processed within one week from receipt of the complete set of documents. EDA-accredited companies are given an electronic certificate valid for one year.
Monthly endorsements are forwarded by the EMB to the Bureau of Internal Revenue, after consolidating the list of approved applications nationwide.
Under the EDA, EMB submits and endorses a list of accredited exporters to the BIR’s Audit Information, Tax Exemption, and Incentives Division. The endorsement, together with the certificate of accreditation, is used by exporters as proof of their qualification in the EDA’s zero-rated VAT incentive in the purchase of raw materials and packaging supplies.
“Through this incentive, the country’s export competitiveness is reinforced through reducing the purchase cost of raw materials and packaging supplies for export products,” DTI said in a statement.
Aside from EMB, the Cebu and Manila offices of the Philippine Exporters Confederation, Inc. are also deputized to process EDA accreditations.
The EMB EDA online accreditation service is an initiative anchored on the Ease of Doing Business Act where automation of frontline services is aimed at streamlining procedures to reduce processing time in securing permits and licenses for business-related transaction through a zero-contact policy. Online issuance is also a response to recommendations made by the Anti-Red Tape Authority in its Advisory No. 01, s. 2020 on the “Adoption of Fast-Track Measures During the COVID-19 State of Calamity”.