INNOVATIVE PRODUCT. The production line of Accutech Steel and Service Center, Inc. (ASSCI) in Taguig City that uses advanced technology to manufacture a relatively new construction product in the Philippines. ASSCI is a product of DOST's Collaborative Research and Development to Leverage the Philippine Economy (CRADLE) program. (File photo courtesy of BOI)
The Board of Investments (BOI) said it has awarded the best set of fiscal incentives for domestic market activities for projects within Metro Manila under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law to a beneficiary of the Department of Science and Technology’s (DOST) Collaborative Research and Development to Leverage the Philippine Economy (CRADLE) program.
The BOI said in a statement Wednesday that it has approved the PHP125-million steel frame modules for structural building systems project of Accutech Steel and Service Center, Inc. (ASSCI).
The DOST endorsed the project for Tier III perks. This is also the first time that the BOI has registered a project under Tier III.
The BOI said ASSCI’s project qualified for the Tier III incentives of the Strategic Investment Priority Plan’s under the CREATE law, as it introduces a new production line dedicated to designing and manufacturing steel frame modules or panels from slit rolls of galvanized cold form steel (CFS), commonly referred to as light gauge steel (LGS).
The factory also uses computer-aided and controlled processes for project management, structural design, and engineering.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo has welcomed the project of ASSCI, noting that the use of CFS/LGS framing for structural building systems is a relatively new technology for the Philippine construction industry.
"We are forging ahead with groundbreaking investment opportunities in the Philippines. This project heralds a revolutionary chapter in our construction industry, showcasing cutting-edge innovations. The green light for this endeavor underscores our relentless dedication to driving the construction sector's growth and dynamism," Trade Secretary and BOI Chairman Alfredo Pascual said.
Under the Tier III, the ASSCI’s project is eligible for income tax holidays (ITH) for six years; a five-year enhanced deductions, or the additional deductions from gross income before the regular corporate income tax rate is applied after the ITH period; and duty exemption on importation of capital equipment, raw materials, spare parts and accessories for a maximum of 12 years.
Tier III incentives are given to projects covering research and development and activities adopting advanced digital production technologies of the Fourth Industrial Revolution.
It also covers highly technical manufacturing and production of innovative products and services.
This project of ASSCI represents the commercial implementation of the DOST’s CRADLE program —where the academe partners with Filipino companies for research and development to innovate local products.
For this Smart Manufacturing for Rapid Technology in Housing Construction project, ASSCI partnered with De La Salle University–Manila under the CRADLE program to develop an innovative CFS-based structure system incorporating screw piles and utilizing design for manufacturing and assembly technology. (PNA)
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