Republic Act No. 8502: Jewelry Industry Act

• Republic Act No. 8502 is also known as the Jewelry Industry Development Act of 1998.
• The State aims to support, promote, and encourage the growth and development of small and medium scale jewelry industries.
• The State will encourage jewelry industry development by promoting local jewelers in the formal sector.
• The goal is to establish support structures and create a business environment that fosters viability, legalization, and development in the jewelry sector.
• This will be achieved by adopting appropriate tax incentives and programs.
• Effective promotion and participation of jewelry industry associations and cooperatives will be prioritized.
• This is to advance the skills and craftsmanship of Filipino workers.

Development Incentives for Qualified Jewelry Enterprises

• Zero duty on imported raw materials like precious metals, gems, jewelry parts, accessories and supplies.
• There is tax exemption for jewelry goods, whether real or imitation, and items made with precious metals.
• Zero duty on imported capital equipment, including spare parts and toolings.
• An additional 50% deduction from taxable income for approved training scheme expenses.
• Gold and silver sales by Bangko Sentral ng Pilipinas to jewelry enterprises at minimal margins.
• Jewelry enterprises have the authority to buy gold and silver directly from other sources.
• Locally-manufactured jewelry is included in government tourist duty free shops, including promotion and advertisement.

Government Assistance Eligibility

• To qualify for government assistance, counseling, and incentives, jewelry enterprises must be duly registered with government agencies.
• A jewelry enterprise includes those manufacturing fine and imitation jewelry, or processing materials, precious stones, etc.

Implementing Body

• The Department of Trade and Industry (DTI) is in charge of the implementation of this Act.
• DTI will present a yearly report to Congress.

Implementing Rules and Regulations

• The Secretary of Trade and Industry, after consulting with the Secretary of Finance, must issue implementing rules and regulations within 30 days of the Act's approval.

Separability Clause

• If any provision of the Act gets declared unconstitutional, the remaining provisions will stay in effect.

Repealing Clause

• The second paragraph of a specific subsection of the Tariff and Customs Code of the Philippines is repealed
• Any inconsistent laws, executive orders, rules and regulations are also repealed or modified.

Effectivity

• The Act takes effect 15 days after it is published in two newspapers of general circulation.
• Approved, February 13, 1998.

Republic Act No. 8502, or the Jewelry Industry Development Act of 1998, aims to support the growth of small to medium scale jewelry industries. The State aims to foster viability and development by adopting tax incentives and programs. It also prioritizes the promotion and participation of jewelry industry associations to advance the craftsmanship of Filipino workers.