Congratulations for securing your PEZA registration. Being a PEZA registered entity has a lot of perks. Be wary though as being a PEZA registered entity also means some responsibilities and accountabilities your company must comply with.
After a year of start of commercial operations, your company should secure its validation of ITH Entitlement. The requirements are:
- Letter-request for validation of ITH entitlement and/or compliance with required machinery and equipment (as indicated in the Registration/Supplemental Agreement).
- List of machines and equipment acquired for the project certified by two (2) of the company’s highest responsible officials and validated/attested to by the Zone Administrator/Manager/OIC in the prescribed format (See Annex A)
Attach copies of Invoices and Import Permits
- Balance sheet showing movement of property, plant and equipment per project as of the 1st year from date of approved actual SCO (Submit interim balance sheet if accounting period does not coincide with the date of start of commercial operation, certified by two of the company’s highest responsible officials).
- Lapsing schedule of machines and equipment per project (should match with the amount of the machines/equipment in the property, plant and equipment account in the balance sheet) certified by two (2) of the company’s highest responsible officials
The above requirements presupposes that (1) your company has been filing its 8105 (farm in) permits for every purchase made as this is tallied with the list of machineries to be submitted to PEZA and (2) your company has filed its Start of commercial operation (SCO) notice to PEZA.
Failure to timely file the ITH Validation shall mean penalties of (1) basic fine of 500 php and (2) a fine of 50 pesos per day.