In the Philippines, the export industry is a dynamic engine of economic growth, fueled by top-performing sectors like electronics, semiconductors, and agricultural products. The country leverages its strategic location in Southeast Asia, competitive labor force, and strong trade alliances to connect seamlessly with global markets and strengthen its reputation as a reliable export hub.
Foreign Investments Act (FIA) of 1991
The Foreign Investments Act of 1991 (R.A. 7042) has liberalized the Philippine economy by allowing 100% foreign ownership in most businesses, except those listed in the Foreign Investment Negative List (FINL). It has attracted foreign investments that significantly contribute to national industrialization, socioeconomic development, and the expansion of livelihood and employment opportunities for Filipinos.
While the law imposes no limits on foreign ownership of export enterprises, it clearly mandates that these businesses export at least 60% of their total manufacturing output or domestic trade purchases. To ensure compliance, foreign export enterprises must submit annual reportorial requirements to the Board of Investments (BOI).
Board of Investments (BOI)
An agency attached to the Department of Trade and Industry (DTI), the Board of Investments (BOI) promotes investment in the Philippines under Executive Order 226, or the Omnibus Investments Code of 1987. It supports enterprises listed in the Investment Priorities Plan (IPP) and serves as a one-stop shop for both local and foreign investors, helping them explore and succeed in key economic sectors.
What is an Annual Export Performance Report (AEPR)?
An Annual Export Performance Report (AEPR) is a yearly reportorial requirement filed by registered export enterprises with the Board of Investments (BOI), serving as proof of their ongoing compliance with the mandate to export at least sixty percent (60%) of their total output.
Who Requires AEPRs?
All foreign export enterprises registered with the BOI are mandated to file the AEPR. As defined in the FIA, an “export enterprise” is an enterprise wherein a manufacturer, processor, or service (including tourism) enterprise exports sixty percent (60%) or more of its output, or wherein a trader purchases products domestically and exports sixty percent (60%) of such purchases.
When Must Export Enterprises File Their AEPRs?
The filing period for AEPRs depends on the export enterprise’s accounting period (i.e., either fiscal year or calendar year). If the company follows a calendar year (31st December), the deadline is on the 30th day of May of each year; otherwise, it must be filed within four (4) months from the end of the fiscal year.
AEPR Form and Other Supporting Documents
Before filing the AEPR with the Board of Investments (BOI), prepare the following documentary requirements:
- Duly accomplished Annual Export Performance Report (AEPR) of Foreign Export Enterprises Form
- Audited Financial Statements (AFS) with BIR stamp
- Income Tax Return (ITR) with BIR stamp
- Summary of Monthly Sales for the year, delineating export and domestic revenue
- Other additional documents if filed by an authorized representative (board resolution, secretary’s certificate, and valid IDs).
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How to File the Annual Export Performance Report (AEPR)
Filing the Annual Export Performance Report (AEPR) is a straightforward process, but it still requires experience and documentation expertise, as penalties apply for late submissions and fraudulent reports.
1. Prepare the Documentary Requirements.
Fill out the Annual Export Performance Report (AEPR) for Foreign Export Enterprises Form properly and accurately. You need to indicate the applicable taxable year, all special registration numbers, company details, sales and ratios, and other information. Attach all supporting documents as indicated.
2. File the AEPR with the BOI via Email.
Draft a formal transmittal email, attach the form and other documentary requirements, and send it to the designated emails of the Board of Investments (BOI). You may coordinate with the agency for these email addresses.
3. Submit the Same Documents (in Hard Copies) with the BOI Office.
After filing via email, submit the same documents (in hard copies) to the BOI Office at the Industry and Investments Building, 385 Senator Gil Puyat Avenue, Makati City, 1200.
4. Receive the Acknowledgement of the Report.
Wait for the BOI Officer to send an acknowledgement receipt via email. A receiving copy of the AEPR with a “received” stamp will also be returned upon submission of the hard copies.
AEPR Filing Violations and Penalties
Section 1 of Rule XVII (Administrative Sanctions) of the Implementing Rules and Regulations (IRR) of R.A. 7042 provides that non-compliance by any duly registered export enterprise with Rule VI, Sections 3 and 4, shall be subject to the following sanctions:
Late Submission of the AEPR
Violation | Penalty |
First Violation | Written Warning |
Second Violation | Basic Fine of PHP 1,000 + Daily Fine of PHP 50 |
Third Violation | Basic Fine of PHP 2,000 + Daily Fine of PHP 100 |
Subsequent Violations | Basic Fine of PHP 5,000 |
Submission of Fraudulent Reports
Violation | Penalty | |
Partnership/Corporation | Sole Proprietorship | |
First Violation | PHP 100,000 | PHP 50,000 |
Second Violation | PHP 150,000 | PHP 70,000 |
Third Violation | Fine in an amount not exceeding 1⁄2 of 1% of the total paid-in capital but not more than PHP5 Million | PHP 100,000 |
Subsequent Violations | Cancellation of registration granted under the Act | |
For non-submission of the required reports within twelve (12) months after the taxable year, the certificate of registration granted under the Act shall be subject to cancellation.
For failure of any duly registered export enterprise to comply, without justifiable reason, with the Securities and Exchange Commission (SEC) or Bureau of Trade Regulation and Consumer Protection (BTRCP) order to increase its export to at least sixty percent (60%) of total sales, the penalties are the same as for the submission of fraudulent reports (See table above).
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