MEMORANDUM CIRCULAR NO. 2003-001
Buyers of Scrap Materials from Economic Zone Enterprises
Economic Zone Locator Enterprise
Economic Zone Administrators and Managers
of Scrap Buyers, Documentation of Scrap Sales and Imposition
of a Fixed Scrap Sales Processing Fee
Registration of Scrap Buyers
The existing system requires buyers of
scrap materials generated by economic zone enterprises to register in
each and every zone in which they purchase their scrap materials.
Effective immediately, buyers shall register and / or renew their registration
with the PEZA Central Office (Attention: Office of the Deputy Director
General for Policy and Planning, 2nd Floor, Philippine Economic Zone
Authority, Roxas Boulevard corner San Luis Street, Pasay City).
The PEZA Central Office Registration, which shall be effective for a
period of two years, will enable scrap buyers to operate in all PEZA-registered
The PEZA Central Office shall receive and process applications only
in January and June every year, except for Year 2003, where registration
shall be undertaken in February until 31 March and in June.
Outside of January and June, PEZA may register buyers of "specialized"
scrap materials (i.e., scrap materials that may be used only for very
specific applications and are, therefore, not bought by most scrap buyers)
generated by economic zone locator enterprises which have just started
operations or which are generating the "specialized" scrap
materials for the first time, provided the application for registration
is accompanied by an endorsement of the CEOs / Presidents of the economic
zone locator enterprises that generate the "specialized" scrap
Scrap buyers shall submit their applications directly to the PEZA Central
Office and receive their Certificates of Registration within one-hour
of acceptance of the applications.
Alternatively, scrap buyers may submit their applications to the PEZA-Enterprise
Assistance Divisions (PEZA-EADs) in economic zones in which they operate.
The PEZA-EAD shall accept the applications, after verifying completeness
of the documentary requirements and accuracy of information submitted,
receive payment of the Registration Fee, and immediately forward the
applications to the PEZA Central Office. Scrap Buyers may secure their
Certificates of Registration from the PEZA-EAD where they submitted
their applications no later than five working days after acceptance
of the applications.
buyers shall submit, with their applications for Registration, original
or copies certified as true copies by an official of the company, of
the following documents:
Buyer's Registration Form (Please refer to the attached copy);
Certificate of Non-Coverage (for buyers of scrap materials not containing
toxic / hazardous matters) and / or
Accreditation / Environmental Compliance Certificate (for buyers of
scrap materials containing toxic and hazardous waste);
Mayor's Permit; and
5,000 Registration Application Filing Fee.
Permit to Transport (for buyers that shall transport scrap materials
containing toxic and hazardous waste); and
endorsement by the CEO / President of the economic zone locator enterprise
generating the "specialized" scrap materials (for buyers
that shall apply outside the months of January and June).
of Scrap Sales
The Bureau of Customs (BoC) shall be solely responsible for
the appropriate valuation of scrap materials, for the purpose of determining
import duties and taxes to be paid on the sale of the scrap materials.
Import duties and taxes assessed by the BoC on the scrap materials sold
shall be paid in the name of the economic zone enterprise which sells
Scrap buyers shall fill-out the PEZA Form 8106 and present the corresponding
original copy of the official receipts, evidencing payment of assessed
import duties and taxes, and submission of a copy of the same to the
PEZA-EAD, every time it shall withdraw scrap materials from the economic
The PEZA-EAD shall verify with the BoC the basis for the computation
of the import duties and taxes paid (i.e., the determined values of
the different scrap materials and corresponding commodity classifications
and tariff rates based on the Tariff and Customs Code of the Philippines).
Imposition of a Fixed Scrap Sales Processing Fee
A fixed Scrap Sales Processing Fee (SSPF) of P500.00 per scrap
sales transaction shall be imposed, in lieu of the existing SSPF of
5% of the value of the scrap materials sold. The SSPF shall apply to
a sales transaction on which import duties and taxes have been paid
to the BoC, withdrawn from the economic zone on the day the taxes and
duties were paid.
Withdrawal and Transport of Scrap Materials Containing Toxic
and Hazardous Waste
Scrap buyers withdrawing and transporting scrap materials containing
toxic and hazardous waste (e.g., plastic drums containing used oil,
methyl alcohol, solder dross) shall present upon demand, a copy of its
DENR-EMB Permit to Transport and Hazardous Waste Manifest, evidencing
it is in possession of a valid authority to transport such and to ensure
that the scrap materials containing hazardous and toxic substances are
delivered only to DENR-accredited storage, treatment, processing and/or
For your guidance and strict compliance.