Philippines: The Electric Vehicle Industry Development Act (EVIDA), Republic Act No. 11697, lapses into law

The Philippines introduces a Comprehensive Roadmap for the Electric Vehicle Industry.
10 May 2022    2 minute read
Transportation & Logistics Automotive

In brief

On 15 April 2022, Republic Act (R.A.) No. 11697 or the Electric Vehicle Industry Development Act (EVIDA) lapsed into law without being approved or vetoed by the President.

EVIDA will take effect 15 days following its complete publication in the Official Gazette or in a newspaper of general circulation. EVIDA was published in the online Official Gazette on 16 April 2022.

The passage of EVIDA is in line with the country's policy to ensure its energy security and independence by reducing reliance on imported fuel for the transportation sector. The law is instrumental for the formulation of regulations to promote an environment for competitive, equitable and non-discriminatory private sector participation.

Contents

EVIDA introduces a Comprehensive Roadmap for the Electric Vehicle Industry (CREVI)

The law establishes the CREVI, which is a national development plan for the electric vehicle (EV) industry with an annual work plan to accelerate the development, commercialization and utilization of EVs in the country. The CREVI is comprised of four components, as follows:

  • EVs and charging stations component;
  • Manufacturing component;
  • Research and development component; and
  • Human resource development component.

Incentives under EVIDA

EVIDA provides the following fiscal incentives:

  • The manufacture and assembly of EVs, charging stations, batteries and parts and components thereof shall undergo an evaluation process to determine its (i) inclusion in the strategic investment priority plan and (ii) possible entitlement to the incentives for the length of time as provided under the amendments introduced by the Corporate Recovery and Tax Incentives fo Enterprises Act or CREATE (R.A. No. 11534) to the Omnibus Investments Code of 1987 (Executive Order No. 226) and National Internal Revenue Code of 1997 (R.A. No. 8424).  
  • The importation of completely built EVs shall generally be entitled to incentives under the TRAIN Act (R.A. No. 10963).
  • The importation of completely built charging stations shall be exempt from the payment of duties for eight years from the effectivity of EVIDA.
  • The utilization of battery EVs and hybrid-EVs shall be entitled to a discount of 30% and 15%, respectively, from the payment of the motor vehicle user's charge, vehicle registration and inspection fee for eight years from the effectivity of EVIDA.

EVIDA also provides the following non-fiscal incentives:

  • Priority registration, priority renewal of registration and issuance of a special type of vehicle plate.
  • Exemption from the mandatory unified vehicular volume reduction program, number-coding scheme or other similar schemes implemented by different government agencies.
  • Expeditious processing of applications and renewals for the franchise to operate public utility vehicles for operators that are exclusively utilizing EVs.
  • Expeditious processing by the Bureau of Customs of the importations of EV manufacturers and importers.
  • Permit for foreign nationals to be employed under technology transfer agreements, subject to the guidelines of the relevant government agencies.

LOGO Philippines_QuisumbingTorres_Manila

Please contact QTInfoDesk@quisumbingtorres.com for inquiries.

VISIT QUISUMBING TORRES SITE

Contact Information
Kristine Anne Mercado-Tamayo
Partner
Quisumbing Torres, Manila
Read my Bio
kristine.mercado-tamayo@quisumbingtorres.com
Maria Ana Camila Jacinto-Lagustan
Associate
Quisumbing Torres, Manila
Read my Bio
camila.jacinto-lagustan@quisumbingtorres.com
Roberto Romalio Reyes
Associate
Quisumbing Torres, Manila
Read my Bio
robertoromalio.reyes@quisumbingtorres.com

Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.