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Engine Motor Vehicle Manufacturing
Section 2. Participants
2.1 Entities organized under the Philippine laws that will engage in the manufacture and assembly of brand new motor vehicles shall qualify as participant under the NIVIVDP. The participants shall:
2.1.1 Obtain a technical licensing agreement, for those assembling foreign-branded vehicles with the foreign OEM that will supply the KID and provide technology transfer, technical and production assistance, adequate parts and support services;
2.1.2
Secure a long-term supply agreement, for those assembling locally-developed
vehicles utilizing imported major parts and components; 2.1.3 Establish new manufacturing and assembly facility or utilize an existing assembly facility, which is either idle or in operation, provided that there is investment in the manufacturing of parts and components.
2.1.4 Registered participants shall assemble/manufacture brand new quality motor vehicles.
The manufacturing and assembly operation shall involve at least the basic assembly processes i.e., welding, painting, trimming and quality testing/inspection.
2.2 A new participant of the NMVDP refers to a local manufacturer /assembler, that is not registered under EO 156 or its predecessor programs.
2.3 Each new participant, within one (1) year from date of registration with the NMVDP, shall invest in the manufacture and assembly of motor vehicles and its parts and components at least US$ 10 million for passenger car assembly, or US$8 million for commercial vehicle assembly or US$2 million for motorcycle assembler; provided that the aforementioned investment requirement shall be subject to periodic review by the BOI.
The required investments mentioned above may be allowed on a purely assembly operation subject to such conditions as may be imposed by the BOI.
The BOI shall set the investment requirement for the parts and components manufacture in compliance with the requirement for new participants that will utilize an existing assembly facility, which is either idle or in operation'
2.4 Investments in the manufacture of motor vehicle parts and components shall be in any or a combination of the following schemes.
2.4.1 Investments in in-house motor vehicle parts and components manufacturing; or 2.4.2 Equity investment, either minor or major stockholdings in new or existing motor vehicle parts and components manufacturing company; or
2.4.3 Cost sharing schemes with existing motor vehicle parts and components manufacturing companies in terms of tooling and/or modernization/upgrade and technology.
In the case of 2.4.2 and 2.43, such investments shall result to increased production capacity or improved production efficiency
2.5 Application for registration as participant in the NMVDP shall be submitted to the BOI, together with commitment/s and undertaking to invest/bring in investments in the manufacture of motor vehicles and its parts and components. The BOI shall decide on the application within thirty (30) working days from the date of its official acceptance.
2.6 The approved participant shall be issued a Certificate of Registration by the BOI, which shall include the commitments made by the participant in the proposal and the terms and conditions imposed by the BOI. The participant shall present proof of investments in the manufacture of motor vehicles and its parts and components within one (1) year from the date of registration; otherwise the BOI shall automatically cancel after due process the Certificate of Registration, subject to imposition of penalties, such as refund of incentives availed, if any.
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