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ARTICLE II
ARTICLE VII
SECTION 20. The President may contract or guarantee foreign loans on behalf
of the Republic of the Philippines with the prior concurrence of the Monetary
Board, and subject to such limitations as may be provided by law. The
Monetary Board shall, within thirty days from the end of every quarter of the
calendar year, submit to the Congress a complete report of its decisions on
applications for loans to be contracted or guaranteed by the Government or
government-owned and controlled corporations which would have the effect of
increasing the foreign debt, and containing other matters as may be provided
by law.
ARTICLE IX
The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make
full and efficient use of human and natural resources, and which are
competitive in both domestic and foreign markets. However, the State shall
protect Filipino enterprises against unfair foreign competition and trade
practices.
In the pursuit of these goals, all sectors of the economy and all regions of the
country shall be given optimum opportunity to develop. Private enterprises,
including corporations, cooperatives, and similar collective organizations, shall
be encouraged to broaden the base of their ownership.
SECTION 21. Foreign loans may only be incurred in accordance with law and
the regulation of the monetary authority. Information on foreign loans obtained
or guaranteed by the Government shall be made available to the public.
ARTICLE XVI
SECTION 11. (1) The ownership and management of mass media shall be
limited to citizens of the Philippines, or to corporations, cooperatives or
associations, wholly-owned and managed by such citizens.
The Congress shall regulate or prohibit monopolies in commercial mass media
when the public interest so requires. No combinations in restraint of trade or
unfair competition therein shall be allowed.
(2) The advertising industry is impressed with public interest, and shall be
regulated by law for the protection of consumers and the promotion of the
general welfare.
CHAPTER 1
TITLE AND DECLARATION OF POLICY
ARTICLE 1. Short Title. - This Order shall be known as the "Omnibus
Investments Code of 1987."
ART. 2. Declaration of Investment Policies. - To accelerate the sound
development of the national economy in consonance with the principles
and objectives of economic nationalism and in pursuance of a planned
economically feasible and practical dispersal of industries and the
promotion of small and medium scale industries, under conditions which
will encourage competition and discourage monopolies, the following are
declared policies of the State:
1. The State shall encourage private Filipino and foreign investments in
industry, agriculture, forestry, mining, tourism and other sectors of the
economy which shall: provide significant employment opportunities
relative to the amount of the capital being invested; increase productivity
of the land, minerals, forestry, aquatic and other resources of the
country, and improve utilization of the products thereof improve
technical skills of the people employed in the enterprise; provide a
foundation for the future development of the economy; meet the tests of
international competitiveness; accelerate development of less developed
regions of the country; and result in increased volume and value of
exports for the economy.chanrobles virtual law library
2. The State shall ensure holistic development by safeguarding the well-
being of the social, cultural and ecological life of the people. For this
purpose, consultation with affected communities will be conducted
whenever necessary.chanrobles virtual law library
3. The State shall extend to projects which will significantly contribute to
the attainment of these objectives, fiscal incentives without which said
projects may not be established in the locales, number and/or pace
required for optimum national economic development. Fiscal incentive
systems shall be devised to compensate for market imperfections, to
reward performance contributing to economic development, be cost-
efficient and be simple to administer.chanrobles virtual law library
4. The State considers the private sector as the prime mover for economic
growth. In this regard, private initiative is to be encouraged, with
deregulation and self-regulation of business activities to be generally
adopted where dictated by urgent social concerns.chanrobles virtual law
library
5. The State shall principally play a supportive role, rather than a
competitive one, providing the framework, the climate and the incentives
within which business activity is to take place.chanrobles virtual law
library
6. The State recognizes that there are appropriate roles for local and
foreign capital to play in the development of the Philippine economy and
that it is the responsibility of Government to define these roles and
provide the climate for their entry and growth.chanrobles virtual law
library
7. The State recognizes that industrial peace is an essential element of
economic growth and that it is a principal responsibility of the State to
ensure that such a condition prevails.chanrobles virtual law library
8. Fiscal incentives shall be extended to stimulate the establishment and
assist initial operations of the enterprise, and shall terminate after a
period of not more than 10 years from registration or start-up of
operation unless a specific period is otherwise stated.chanrobles virtual
law library
The foregoing declaration of investment policies shall apply to all
investment incentive schemes.chanrobles virtual law library
CHAPTER II
BOARD OF INVESTMENTS
ART. 3. The Board of Investments. - The Board of Investments shall
implement the provisions of Books One to Five of this Code.chanrobles
virtual law library
ART. 4. Composition of the Board. - The Board of Investments shall be
composed of seven (7) governors: The Secretary of Trade and Industry,
three (3) Undersecretaries of Trade and Industry to be chosen by the
President; and three (3) representatives from other government agencies
and the private sector. The Secretary of Trade and Industry shall be
concurrently Chairman of the Board and the Undersecretary of the
Department of Trade and Industry for Industry and Investments shall be
concurrently the Vice-Chairman of the Board and its Managing Head. The
three (3) representatives from the other government agencies and the
private sector shall be appointed by the President for a term of four (4)
years: Provided, That upon the expiration of his term, a governor shall
serve as such until his successor shall have been appointed and
qualified: Provided, further, That no vacancy shall be filled except for the
unexpired portion of any term, and that no one may be designated to be a
governor of the Board in an acting capacity but all appointments shall be
ad interim or permanent.chanrobles virtual law library
ART 5. Qualifications of Governors of the Board. - The governors of the
Board shall be citizens of the Philippines, at least thirty (30) years old, of
good moral character and of recognized competence in the fields of
economics, finance, banking, commerce, industry, agriculture,
engineering, law, management or labor.chanrobles virtual law library
ART. 6. Appointment of Board Personnel. - The Board shall appoint its
technical staff and other personnel subject to Civil Service Law, rules and
regulations.chanrobles virtual law library
ART 7. Powers and Duties of the Board. - The Board shall be responsible
for the regulation and promotion of investments in the Philippines. It
shall meet as often as may be necessary generally once a week on such
day as it may fix. Notice of regular and special meetings shall be given all
members of the Board. The presence of four (4) governors shall constitute
a quorum and the affirmative vote of four (4) governors in a meeting
validly held shall be necessary to exercise its powers and perform its
duties, which shall be as follows:
(1) Prepare annually the Investment Priorities Plan as defined in Article
26, which shall contain a listing of specific activities that can qualify for
incentives under Book 1 of this Code, duly supported by the studies of
existing and prospective demands for such products and services in the
light of the level and structure of income, production, trade, prices and
relevant economic and technical factors of the regions as well as existing
facilities;
(2) Promulgate such rules and regulations as may be necessary to
implement the intent and provisions of this Code relevant to the Board;
(3) Process and approve applications for registration with the Board,
imposing such terms and conditions as it may deem necessary to promote
the objectives of this Code, including refund of incentives when
appropriate, restricting availment of certain incentives not needed by the
project in the determination of the Board, requiring performance bonds
and other guarantees, and payment of application, registration,
publication and other necessary fees and when warranted, may limit the
availment of the tax holiday incentive to the extent that the investor's
country law or treaties with the Philippines allows a credit for taxes paid
in the Philippines;
(4) After due hearing, decide controversies concerning the
implementation of the relevant books of this Code that may arise between
registered enterprises or investors therein and government agencies,
within thirty (30) days after the controversy has been submitted for
decision: Provided, That the investor or the registered enterprise may
appeal the decision of the Board within thirty (30) days from receipt
thereof to the President;
(5) Recommend to the Commissioner of Immigration and Deportation the
entry into the Philippines for employment of foreign nationals under this
Code;
(6) Periodically check and verify, either by inspection of the books or by
requiring regular reports, the proportion of the participation of Philippine
nationals in a registered enterprise to ascertain compliance with its
qualification to retain registration under this Code;
(7) Periodically check and verify the compliance by registered enterprises
with the relevant provisions of this Code, with the rules and regulations
promulgated under this Code and with the terms and conditions of
registration;
(8) After due notice, cancel the registration or suspend the enjoyment of
incentives benefits of any registered enterprise and/or require refund of
incentives enjoyed by such enterprise including interests and monetary
penalties, for (a) failure to maintain the qualifications required by this
Code for registration with the Board or (b) for violation of any provisions
of this Code, of the rules and regulations issued under this Code, of the
terms and conditions of registration, or of laws for the protection of labor
or of the consuming public: Provided, That the registration of an
enterprise whose project timetable, as set by the Board is delayed by one
year, shall be considered automatically cancelled unless otherwise
reinstated as a registered enterprise by the Board;
(9) Determine the organizational structure taking into account Article 6 of
this Code; appoint, discipline and remove its personnel consistent with
the provisions of the Civil Service Law and Rules;
(10) Prepare or contract for the preparation of feasibility and other pre-
investment studies for pioneer areas either upon its own initiative; or
upon the request of Philippine nationals who commit themselves to invest
therein and show the capability of doing so: Provided, That if the venture
is implemented, then the amount advanced by the Board shall be repaid
within five (5) years from the date the commercial operation of said
enterprise starts;
(11) When feasible and considered desirable by the Board, require
registered enterprises to list their shares of stock in any accredited stock
exchange or directly offer a portion of their capital stock to the public
and/or their employees;
(12) Formulate and implement rationalization programs for certain
industries whose operation may result in dislocation, overcrowding or
inefficient use of resources, thus impeding economic growth. For this
purpose, the Board may formulate guidelines for progressive
manufacturing programs, local content programs, mandatory sourcing
requirements and dispersal of industries. In appropriate cases and upon
approval of the President, the Board may restrict, either totally or
partially, the importation of any equipment or raw materials or finished
products involved in the rationalization program;
(13) In appropriate cases, and subject to the conditions which the Board
deems necessary, suspend the nationality requirement provided for in
this Code or any other nationalization statute in cases of ASEAN projects
or investments by ASEAN nationals in preferred projects, and with the
approval of the President, extend said suspension to other international
complementation arrangements for the manufacture of a particular
product on a regional basis to take advantage of economies of scale;
(14) Extend the period of availment of incentives by any registered
enterprise; Provided, That the total period of availment shall not exceed
ten (10) years, subject to any of the following criteria:
(a) The registered enterprise has suffered operational force majeure that
has impaired its viability;
(b) The registered enterprise has not fully enjoyed the incentives granted
to it for reasons beyond its control;
(c) The project of the registered enterprise has a gestation period which
goes beyond the period of availment of needed incentives; and
(d) The operation of the registered enterprise has been subjected to
unforeseen changes in government policies, particularly, protectionism
policies of importing countries, and such other supervening factors which
would affect the competitiveness of the registered firm;
(15) Regulate the making of investments and the doing of business within
the Philippines by foreigners or business organizations owned in whole or
in part by foreigners;
(16) Prepare or contract for the preparation of industry and sectoral
development programs and gather and compile statistical, technical,
marketing, financial and other data required for the effective
implementation of this Code;
(17) Within four (4) months after the close of the fiscal year, submit
annual reports to the President which shall cover its activities in the
administration of this Code, including recommendations on investment
policies;
(18) Provide, directly or through Philippine diplomatic missions, such
information as may be of interest to prospective foreign investors:
(19) Collate, analyze and compile pertinent information and studies
concerning areas that have been or may be declared preferred areas of
investments; and
(20) Enter into agreements with other agencies of government for the
simplification and facilitation of systems and procedures involved in the
promotion of investments, operation of registered enterprises and other
activities necessary for the effective implementation of this Code;
(21) Generally, exercise all the powers necessary or incidental to attain
the purposes of this Code and other laws vesting additional functions on
the Board.chanrobles virtual law library
ART. 8. Powers and Duties of the Chairman. - The Chairman shall have
the following powers and duties:
(1) To preside over the meetings of the Board;
(2) To render annual reports to the President and such special reports as
may be requested;
(3) To act as liaison between investors seeking joint venture arrangements
in particular areas of investment;
(4) Recommend to the Board such policies and measures he may deem
necessary to carry out the objectives of this Code; and
(5) Generally, to exercise such other powers and perform such other
duties as may be directed by the Board of Governors from time to
time.chanrobles virtual law library
ART. 9. Powers and Duties of the Vice-Chairman. - The Vice-Chairman
shall have the following powers and duties:
(1) To act as Managing Head of the Board;
(2) To preside over the meetings of the Board in the absence of the
Chairman;
(3) Prepare the Agenda for the meetings of the Board and submit for its
consideration and approval the policies and measures which the Chairman
deems necessary and proper to carry out the provisions of this Code;
(4) Assist registered enterprises and prospective investors to have their
papers processed with dispatch by all government offices, agencies,
instrumentalities and financial institutions; and
(5) Perform the other duties of the Chairman in the absence of the latter,
and such other duties as may be assigned to him by the Board of
Governors.chanrobles virtual law library
Section 1. Title. - This Act shall be known as the, "Foreign Investments Act
of 1991".
Section 4. Scope. - This Act shall not apply to banking and other financial
institutions which are governed and regulated by the General Banking Act and
other laws under the supervision of the Central Bank.
Export enterprises which are non-Philippine nationals shall register with BOI
and submit the reports that may be required to ensure continuing compliance
of the export enterprise with its export requirement. BOI shall advise SEC or
BTRCP, as the case may be, of any export enterprise that fails to meet the
export ratio requirement. The SEC or BTRCP shall thereupon order the non-
complying export enterprise to reduce its sales to the domestic market to not
more than forty percent (40%) of its total production; failure to comply with
such SEC or BTRCP order, without justifiable reason, shall subject the
enterprise to cancellation of SEC or BTRCP registration, and/or the penalties
provided in Section 14 hereof.
A domestic market enterprise may change its status to export enterprise if over
a three (3) year period it consistently exports in each year thereof sixty per cent
(60%) or more of its output.
The petition shall be subjected to a public hearing at which affected parties will
have the opportunity to show whether the petitioner industry adequately serves
the economy and the consumer, in general, and meets the above stated criteria
in particular. NEDA may delegate evaluation of the petition and conduct of the
public hearing to any government agency having cognizance of the petitioner
industry. The delegated agency shall make its evaluation report and
recommendations to NEDA which retains the right and sole responsibility to
determine whether to recommend to the President to promulgate the area of
investment in List C of the Negative List. An industry or area of investment
included in List C of the Negative List by Presidential Proclamation shall
remain in the said List C for two (2) years, without prejudice to re-inclusion
upon new petition, and due process.
Section 10. Strategic Industries. - Within eighteen (18) months after the
effectivity of this Act, the NEDA Board shall formulate and publish a list of
industries strategic to the development of the economy. The list shall specify,
as a matter of policy and not as a legal requirement, the desired equity
participation by Government and/or private Filipino investors in each strategic
industry. Said list of strategic industries, as well as the corresponding desired
equity participation of government and/or private Filipino investors, may be
amended by NEDA to reflect changes in economic needs and policy directions
of Government. The amended list of strategic industries shall be published
concurrently with publication of the Foreign Investment Negative List.
The term "strategic industries" shall mean industries that are characterized by
all of the following:
In addition to the foregoing, any person, firm or juridical entity involved shall
be subject to forfeiture of all benefits granted under this Act.
During the initial transitory period of thirty-six (36) months after issuance of
the Rules and Regulations to implement this Act, the Transitory Foreign
Investment Negative List shall consist of the following:
A. List A:
B. List B:
C. List C:
Section 16. Repealing Clause. - Articles forty-four (44) to fifty-six (56) of Book
II of Executive Order No. 226 are hereby repealed.
All other laws or parts of laws inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.
Section 18. Effectivity. - This Act shall take effect fifteen (15) days after
approval and publication in two (2) newspaper of general circulation in the
Philippines.
The IPP is a list of priority investment activities that may be given incentives.
With the theme “Scaling Up and Dispersing Opportunities,” the 2017 IPP
brings forth significant additions and changes, following the President’s zero +
10-point Socio Economic Agenda, the aspirations embodied in AmBisyonNatin
2040, and the Philippine Development Plan 2017-2022.
The IPP also helped as one of the basis in shaping the priority product and
investment targets for the Philippine Trade and Investment Centre London –
with efforts to be directed in the manufacturing, aerospace, electronics, IT-
BPM, chemicals, design-driven, retail, agri-business and infrastructure sectors
among others.
Section 1. Short Title. — This Act shall be known as the "Bases Conversion
and Development Act of 1992."
It shall be organized within thirty (30) days after approval of this Act. It shall
have a term of fifty (50) years from its organization: provided, that Congress, by
a joint resolution, may dissolve the Conversion Authority whenever in its
judgment the primary purpose for its creation has been accomplished. It shall
establish its principal office in Metropolitan Manila unless otherwise provided
by the Conversion Authority and may put up such branches as may be
necessary.
(a) To own, hold and/or administer the military reservations of John Hay Air
Station, Wallace Air Station, O'Donnell Transmitter Station, San Miguel Naval
Communications Station, Mt. Sta. Rita Station (Hermosa, Bataan) and those
portions of Metro Manila military camps which may be transferred to it by the
President;
(a) To succeed in its corporate name, to sue and be sued in such corporate
name and to adopt, alter and use a corporate seal which shall be judicially
noticed;
(c) To enter into, make, perform and carry out contracts of every class, kind
and description which are necessary or incidental to the realization of its
purposes with any person, firm or corporation, private or public, and with
foreign government entities;
(d) To contract loans, indebtedness, credit and issue commercial papers and
bonds, in any local or convertible foreign currency from any international
financial institutions, foreign government entities, and local or foreign private
commercial banks or similar institutions under terms and conditions
prescribed by law, rules and regulations;
(f) To construct, own, lease, operate and maintain public utilities as well as
infrastructure facilities;
(h) To acquire, own, hold, administer, and lease real and personal properties,
including agricultural lands, property rights and interests and encumber,
lease, mortgage, sell, alienate or otherwise dispose of the same at fair market
value it may deem appropriate;
(i) To receive donations, grants, bequests and assistance of all kinds from
local and foreign governments and private sectors and utilize the same;
(j) To invest its funds and other assets other than those of the Special
Economic Zones under Section 12 and 15 of this Act in such areas it may deem
wise;
(l) To exercise oversight functions over the Special Economic Zones declared
under this Act and by subsequent presidential proclamations within the
framework of the declared policies of this Act;
(n) To perform such other powers as may be necessary and proper to carry
out the purposes of this Act.
(b) Such other properties including, but not limited to, portions of Metro
Manila military camps, pursuant to Sec. 8 of this Act: provided, however, that
the areas which shall remain as military reservations shall be delineated and
proclaimed as such by the President.
Phase II
(a) Approximately 148.80 hectares in Fort Bonifacio for the National Capital
Region (NCR) Security Brigade, Philippine Army (PA) officers' housing area, and
Philippine National Police (PNP) jails and support services (Presently Camp
Bagong Diwa);
(b) Approximately 99.91 hectares in Villamor Air Base for the Presidential
Airlift Wing, one squadron of helicopters for the NCR and respective security
units;
(16) 172, series of 1987; (Upper, Lower and Western Bicutan and Signal
Housing)
(19) 467, series of 1968; (Greater Manila Terminal Food Market Site)
The President is hereby authorized to sell the above lands, in whole or in part,
which are hereby declared alienable and disposable pursuant to the provisions
of existing laws and regulations governing sales of government properties:
provided, that no sale or disposition of such lands will be undertaken until a
development plan embodying projects for conversion shall be approved by the
President in accordance with paragraph (b), Sec. 4, of this Act. However, six (6)
months after approval of this Act, the President shall authorize the Conversion
Authority to dispose of certain areas in Fort Bonifacio and Villamor as the
latter so determines. The Conversion Authority shall provide the President a
report on any such disposition or plan for disposition within one (1) month
from such disposition or preparation of such plan. The proceeds from any sale,
after deducting all expenses related to the sale, of portions of Metro Manila
military camps as authorized under this Act, shall be used for the following
purposes with their corresponding percent shares of proceeds:
(2) Fifty percent (50%) — To finance the conversion and the commercial uses
of the Clark and Subic military reservations and their extentions;
(3) Five Percent (5%) — To finance the concessional and long-term housing
loan assistance for the homeless of Metro Manila, Olongapo City, Angeles City
and other affected municipalities contiguous to the base areas as mandated
herein; and
(4) The balance shall accrue and be remitted to the National Treasury to be
appropriated thereafter by Congress for the sole purpose of financing programs
and projects vital for the economic upliftment of the Filipino people.
Provided, that, in the case of Fort Bonifacio, two and five tenths percent (2.5%)
of the proceeds thereof in equal shares shall each go to the Municipalities of
Makati, Taguig and Pateros: provided, further, that in no case shall farmers
affected be denied due compensation.
With respect to the military reservations and their extensions, the President
upon recommendation of the Conversion Authority or the Subic Authority
when it concerns the Subic Special Economic Zone shall likewise be authorized
to sell or dispose those portions of lands which the Conversion Authority or the
Subic Authority may find essential for the development of their projects.
(a) A full-time chairman who shall also be the president of the Conversion
Authority; and
(b) Eight (8) other members from the private sector, two (2) of whom coming
from the labor sector.
The chairman and members shall be appointed by the President with the
consent of the Commission on Appointments. Of the initial members of the
Board, three (3) including the chairman, a representative from the private
sector and a representative from the labor sector shall be appointed for a term
of six (6) years, three (3) for a term of four (4) years and the other three (3) for a
term of two (2) years. In case of vacancy in the Board, the appointee shall serve
the unexpired term of the predecessor.
The chairman and president of the Conversion Authority shall have a fixed
term of six (6) years.
Members of the Board shall receive a per diem of not more than Five thousand
pesos (P5,000) for every board meeting: provided, however, that the per diem
collected per month does not exceed the equivalent of four (4) meetings:
provided further, that the amount of per diem for every board meeting may be
increased by the President but such amount shall not be increased within two
(2) years after its last increase.
SECTION 10. Functions of the Board. — The Board of Directors shall be the
policy-making body of the Conversion Authority and shall perform the following
functions:
(b) Appoint all officials down to the third level and authorize the president of
the Conversion Authority to appoint all others: provided, that all appointments
shall be on the basis of merit and fitness and all personnel action shall be in
pursuance of Civil Service Laws, rules and regulations, except those
coterminous employees of the members of the
Board;
(e) Carry out the purposes of the Conversion Authority with the following
terms and references:
(2) Starting the fourth year of the Conversion Authority's full operation, a
privatization or divestment program of its projects and subsidiaries shall begin
under general guidelines prescribed by the President of the Philippines.
(d) To represent the Conversion Authority in all dealings with offices, agencies
and instrumentalities of the Government and with all persons and entities,
public or private, domestic or foreign;
(e) To direct and supervise the preparation of the agenda for the meeting of
the Board, and to submit for the consideration of the Board such policies and
measures as he believes necessary to carry out the purposes and objectives of
this Act; and
(f) To exercise such other powers and functions provided in the bylaws and as
may be vested in him by the Board.
(a) Within the framework and subject to the mandate and limitations of the
Constitution and the pertinent provisions of the Local Government Code, the
Subic Special Economic Zone shall be developed into a self-sustaining,
industrial, commercial, financial and investment center to generate
employment opportunities in and around the zone and to attract and promote
productive foreign investments;
(b) The Subic Special Economic Zone shall be operated and managed as a
separate customs territory ensuring free flow or movement of goods and capital
within, into and exported out of the Subic Special Economic Zone, as well as
provide incentives such as tax and duty-free importations of raw materials,
capital and equipment. However, exportation or removal of goods from the
territory of the Subic Special Economic Zone to the other parts of the Philippine
territory shall be subject to customs duties and taxes under the Customs and
Tariff Code and other relevant tax laws of the Philippines;
(c) The provisions of existing laws, rules and regulations to the contrary
notwithstanding, no taxes, local and national, shall be imposed within the
Subic Special Economic Zone. In lieu of paying taxes, three percent (3%) of the
gross income earned by all businesses and enterprises within the Subic Special
Economic Zone shall be remitted to the National Government, one percent (1%)
each to the local government units affected by the declaration of the zone in
proportion to their population area, and other factors. In addition, there is
hereby established a development fund of one percent (1%) of the gross income
earned by all businesses and enterprises within the Subic Special Economic
Zone to be utilized for the development of municipalities outside the City of
Olongapo and the Municipality of Subic, and other municipalities contiguous to
be base areas.
In case of conflict between national and local laws with respect to tax
exemption privileges in the Subic Special Economic Zone, the same shall be
resolved in favor of the latter;
(d) No exchange control policy shall be applied and free markets for foreign
exchange, gold, securities and future shall be allowed and maintained in the
Subic Special Economic Zone;
(e) The Central Bank, through the Monetary Board, shall supervise and
regulate the operations of banks and other financial institutions within the
Subic Special Economic Zone;
(f) Banking and finance shall be liberalized with the establishment of foreign
currency depository units of local commercial banks and offshore banking
units of foreign banks with minimum Central Bank regulation;
(g) Any investor within the Subic Special Economic Zone whose continuing
investment shall not be less than Two hundred fifty thousand dollars
($250,000), his/her spouse and dependent children under twenty-one (21)
years of age, shall be granted permanent resident status within the Subic
Special Economic Zone. They shall have freedom of ingress and egress to and
from the Subic Special Economic Zone without any need of special
authorization from the Bureau of Immigration and Deportation. The Subic Bay
Metropolitan Authority referred to in Section 13 of this Act may also issue
working visas renewal every two (2) years to foreign executives and other aliens
possessing highly-technical skills which no Filipino within the Subic Special
Economic Zone possesses, as certified by the Department of Labor and
Employment. The names of aliens granted permanent residence status and
working visas by the Subic Bay Metropolitan Authority shall be reported to the
Bureau of Immigration and Deportation within thirty (30) days after issuance
thereof;
(h) The defense of the zone and the security of its perimeters shall be the
responsibility of the National Government in coordination with the Subic Bay
Metropolitan Authority. The Subic Bay Metropolitan Authority shall provide
and establish its own internal security and firefighting forces; and
(i) Except as herein provided, the local government units comprising the
Subic Special Economic Zone shall retain their basic autonomy and identity.
The cities shall be governed by their respective charters and the municipalities
shall operate and function in accordance with Republic Act No. 7160, otherwise
known as the Local Government
Code of 1991.
(b) Powers and Functions of the Subic Bay Metropolitan Authority. — The
Subic Bay Metropolitan Authority, otherwise known as the Subic Authority,
shall have the following powers and functions:
(1) To operate, administer, manage and develop the ship repair and ship
building facility, container port, oil storage and refueling facility and Subic Air
Base within the Subic Special Economic and Free-Port Zone as a free market in
accordance with the policies set forth in Section 12 of this Act;
(4) To construct, acquire, own, lease, operate and maintain on its own or
through contract, franchise, license permits bulk purchase from the private
sector and build-operate-transfer scheme or joint-venture the required utilities
and infrastructure in coordination with local government units and appropriate
government agencies concerned and in conformity with existing applicable laws
therefore;
(5) To adopt, alter and use a corporate seal, to contract, lease, sell, dispose,
acquire and own properties; to sue and be sued in order to carry out its duties
and functions as provided for in this Act and to exercise the power of eminent
domain for public use and public purpose;
(6) Within the limitation provided by law, to raise and/or borrow the
necessary funds from local and international financial institutions and to issue
bonds, promissory notes and other securities for that purpose and to secure
the same by guarantee, pledge, mortgage, deed of trust, or assignment of its
properties held by the Subic Authority for the purpose of financing its projects
and programs within the framework and limitations of this Act;
(c) Board of Directors. — The powers of the Subic Authority shall be vested in
and exercised by a Board of Directors, hereinafter referred to as the Board,
which shall be composed of fifteen (15) members, to wit:
(1) Representatives of the local government units that concur to join the
Subic Special Economic Zone;
(3) Five (5) representatives from the private sector coming from the present
naval stations, public works center, ship repair facility, naval supply depot and
naval air station; and
The chairman and the members of the Board shall be appointed by the
President to serve for a term of six (6) years, unless sooner removed for cause
except for the representatives of the local government units who shall serve for
a term of three (3) years. In case of removal for cause, the replacement shall
serve only the unexpired portion of the term.
Members of the Board shall receive a per diem of not more than Five thousand
pesos (P5,000.00) for every board meeting: provided, however, that the per
diem collected per month does not exceed the equivalent of four (4) meetings:
provided, further, that the amount of per diem for every board meeting may be
increased by the President: provided finally, that the amount of per diem shall
not be increased within two (2) years after its last increase.
(d) Chairman/Administrator. — The President shall appoint a professional
manager as administrator of the Subic Authority with a compensation to be
determined by the Board subject to the approval of the Secretary of Budget,
who shall be the ex officio chairman of the Board and who shall serve as the
chief executive officer of the Subic Authority: provided, however, that for the
first year of its operations from the effectivity of this Act, the mayor of the City
of Olongapo shall be appointed as the chairman and chief executive officer of
the Subic Authority.
(1) All lands embraced, covered and defined in Section 12 hereof, as well as
permanent improvements and fixtures upon proper inventory not otherwise
alienated, conveyed, or transferred to another government agency;
(2) All other assets which the President may transfer to the Subic Authority
as part of the equity contribution of the Government; and
SECTION 14. Relationship with the Conversion Authority and the Local
Government Units. —
(a) The provisions of existing laws, rules and regulations to the contrary
notwithstanding, the Subic Authority shall exercise administrative powers,
rule-making and disbursement of funds over the Subic Special Economic Zone
in conformity with the oversight function of the Conversion Authority.
(b) In case of conflict between the Subic Authority and the local government
units concerned on matters affecting the Subic Special Economic Zone other
than defense and security, the decision of the Subic Authority shall prevail.
SECTION 15. Clark and Other Special Economic Zones. — Subject to the
concurrence by resolution of the local government units directly affected, the
President is hereby authorized to create by executive proclamation a Special
Economic Zone covering the lands occupied by the Clark military reservations
and its contiguous extensions as embraced, covered and defined by the 1947
Military Bases Agreement between the Philippines and the United States of
America, as amended, located within the territorial jurisdiction of Angeles City,
Municipalities of Mabalacat and Porac, Province of Pampanga, and the
Municipality of Capas, Province of Tarlac, in accordance with the policies as
herein provided insofar as applicable to the Clark military reservations.
The governing body of the Clark Special Economic Zone shall likewise be
established by executive proclamation with such powers and functions
exercised by the Export Processing Zone Authority pursuant to Presidential
Decree No. 66 as amended.
The policies to govern and regulate the Clark Special Economic Zone shall be
determined upon consultation with the inhabitants of the local government
units directly affected which shall be conducted within six (6) months upon
approval of this Act.
SECTION 16. Subsidiaries. — The Conversion Authority shall have the power
to form, establish, organize and maintain a subsidiary corporation or
corporations. Such subsidiary or subsidiaries shall be formed in accordance
with the Philippine Corporation Law and existing rules and regulations
promulgated by the Securities and Exchange Commission, unless otherwise
provided in this Act. In all cases, the Conversion Authority shall own initially at
least fifty-one per centum (51%) of the capital stock of a subsidiary. The
Conversion Authority shall also initially have the majority of the Board of
Directors of the subsidiaries, of which at least one (1) director shall be the
chairman of the Conversion Authority and a second director shall be the
president of the Conversion Authority or his designated representative.
Such subsidiaries shall be exempt from the coverage of the Civil Service Laws,
rules and regulations.
Sec. 20. Interim Capacity. — Except for the chairman of the Subic Authority,
the chairman and other members of the Board of the Conversion Authority and
the Subic Authority shall act in an interim capacity and shall serve until the
31st of July 1992 or until such time that their successors shall have been duly
appointed.
Sec. 22. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall
remain in full force and effect.
Sec. 23. Repealing Clause. — All laws, executive issuances or parts thereof
which are inconsistent herewith are hereby repealed or amended accordingly.
Sec. 24. Effectivity Clause. — This Act shall take effect upon its publication
in at least one (1) newspaper of general circulation.
CHAPTER I
SEC. 1. Title. – This act shall be known and cited as "The Special Economic
Zone Act of 1995."
(a) "The State recognizes the indispensible role of the private sector, encourages
private enterprise, and provides incentives to needed investments." (Sec. 20,
Art II)
(b) "The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods and adopt measures that help make
them competitive." (Sec. 12, Art XII)
(a) To establish the legal framework and mechanisms for the integration,
coordination, planning and monitoring of special economic zones, industrial
estates / parks, export processing zones and other economic zones;
(b) To transform selected areas in the country into highly developed agro
industrial, industrial, commercial, tourist, banking, investment, and financial
centers, where highly trained workers and efficient services will be available to
commercial enterprises;
(c) To promote the flow of investors, both foreign and local, into special
economic zones which would generate employment opportunities and establish
backward and forward linkages among industries in and around the economic
zones;
(e) To promote financial and industrial cooperation between the Philippines and
industrialized countries through technology-intensive industries that will
modernize the country’s industrial sector and improve productivity levels by
utilizing new technological and managerial know-how; and
(f) To vest the special economic zones on certain areas thereof with the status
of a separate customs territory within the framework of the Constitution and
the national sovereignty and territorial integrity of the Philippines.
SEC. 4. Definition of Terms. – For purposes of this Act, the following definitions
shall apply to the following terms:
(b) "Industrial Estate (IE)" – refers to a tract of land subdivided and developed
according to a comprehensive plan under a unified continuous management
and with provisions for basic infrastructure and utilities, with or without pre-
built standard factory buildings and community facilities for the use of the
community of industries.
(d)"Free Trade Zone" - an isolated policed area adjacent to a port of entry (as a
seaport) and/or airport where imported goods may be unloaded for immediate
transshipment or stored, repacked, sorted, mixed, or otherwise manipulated
without being subject to import duties. However, movement of these imported
goods from the free-trade area to a non-free-trade area in the country shall be
subject to import duties.
Enterprises within the zone are granted preferential tax treatment and
immigration laws are more lenient.
(c) So much as may be necessary of that portion of the City of Cagayan de Oro
in the Province of Misamis Oriental;
(d) So much as may be necessary of that portion of the City of Iligan in the
Province of Lanao del Norte;
(f) So much as may be necessary of that portion of the City of Laoag in the
Province of Ilocos Norte;
(g) So much as may be necessary of that portion of Davao City and Samal
Island in the Province of Davao del Norte;
(i) So much as may be necessary of that portion of Tubalan Cove, Malita in the
Province of Davao del Sur;
(z) So much as may be necessary of that portion of Butuan City and the
Province of Agusan del Norte, including its territorial waters and islets and its
immediate environs;
(aa) So much as may be necessary of that portion of Roxas City including its
territorial waters and islets and its immediate environs in the Province of
Capiz;
(bb) So much as may be necessary of that portion of San Jacinto, San Fabian,
Mangaldan, Lingayen, Sual, Dagupan, Alaminos, Manaoag, Binmaley in the
Province of Pangasinan;
(hh)So much as may be necessary of that portion of the Province of Ilocos Sur;
(mm) Any private industrial estate which shall voluntarily apply for conversion
into an ECOZONE.
i. Private initiative;
ii. Local government initiative with the assistance of the national government;
and
The metes and bounds of each ECOZONE are to be delineated and more
particularly described in a proclamation to be issued by the President of the
Philippines, upon the recommendation of the Philippine Economic Zone
Authority (PEZA), which shall be established under this Act, in coordination
with the municipal and / or city council, National Land Use Coordinating
Committee and / or the Regional Land Use Committee.
(a) The proposed area must be identified as a regional growth center in the
Medium-Term Philippine Development Plan or by the Regional Development
Council;
(c) The availability of water source and electric power supply for use of the
ECOZONE;
(d) The extent of vacant lands available for industrial and commercial
development and future expansion of the ECOZONE as well as of lands
adjacent to the ECOZONE available for development of residential areas for the
ECOZONE workers;
(e) The availability of skilled, semi-skilled and non-skilled trainable labor force
in and around the ECOZONE;
(f) The area must have a significant incremental advantage over the existing
economic zones and its potential profitability can be established;
(h) The area must be situated where controls can easily be established to
curtail smuggling activities.
Other areas which do not meet the foregoing criteria may be established as
ECOZONES: Provided, That the said area shall be developed only through local
government and/or private sector initiative under any of the schemes allowed
in Republic Act No. 6957 (the build-operate-transfer law), and without any
financial exposure on the part of the national government: Provided, further,
That the area can be easily secured to curtail smuggling activities: Provided,
finally, That after five (5) years the area must have attained a substantial
degree of development, the indicators of which shall be formulated by the
PEZA.
The ECOZONE may establish mutually beneficial economic relations with other
entities within the country, or, subject to the administrative guidance of the
Department of Foreign Affairs and/or the Department of Trade and Industry,
with foreign entities or enterprises.
The PEZA is hereby vested with the authority to issue certificate of origin for
products manufactured or processed in each ECOZONE in accordance with the
prevailing rules or origin, and the pertinent regulations of the Department of
Trade and Industry and/or the Department of Finance.
SEC. 9. Defense and Security. – The defense of the ECOZONE and the security
of its perimeter fence shall be the responsibility of the national government in
coordination with the PEZA. Military forces sent by the national government for
the purpose of defense shall not interfere in the internal affairs of any of the
ECOZONE and expenditure for these military forces shall be borne by the
national government. The PEZA may provide and establish the ECOZONES’
internal security and firefighting forces.
SEC. 10. Immigration. – Any investor within the ECOZONE whose initial
investment shall not be less than One Hundred Fifty Thousand Dollars
($150,000.00), his/her spouse and dependent children under twenty-one (21)
years of age shall be granted permanent resident status within the ECOZONE.
They shall have freedom of ingress and egress to and from the ECOZONE
without any need of special authorization from the Bureau of Immigration.
The PEZA shall issue working visas renewable every two (2) years to foreign
executives and other aliens, processing highly-technical skills which no Filipino
within the ECOZONE possesses, as certified by the Department of Labor and
Employment. The names of aliens granted permanent resident status and
working visas by the PEZA shall be reported to the Bureau of Immigration
within thirty (30) days after issuance thereof.
CHAPTER II
GOVERNING STRUCTURES
SEC. 11. The Philippine Economic Zone Authority (PEZA) Board. – There is
hereby created a body corporate to be known as the Philippine Economic Zone
Authority (PEZA) attached to the Department of Trade and Industry. The Board
shall have a director general with the rank of department undersecretary who
shall be appointed by the President. The director general shall be at least forty
(40) years of age, of proven probity and integrity, and a degree holder in any of
the following fields: economics, business, public administration, law,
management or their equivalent, and with at least ten (10) years relevant
working experience preferably in the field of management or public
administration.
"The director general shall be assisted by three (3) deputy directors general
each for policy and planning, administration and operation, who shall be
appointed by the PEZA Board, upon the recommendation of the director
general. The deputy directors general shall be at least thirty-five (35) years old,
with proven probity and integrity, and a degree holder in any of the following
fields: economics, business, public administration, law, management or their
equivalent."
Members of the Board shall receive a per diem of not less than the amount
equivalent to the representation and transportation allowances of the members
of the Board and / or as may be determined by the Department of Budget and
Management: Provided, however, That per diems collected per month does not
exceed the equivalent of four (4) meetings.
SEC. 12. Functions and Powers of PEZA Board. – The Philippine Economic
Zone Authority (PEZA) Board shall have the following functions and powers:
(a) Set the general policies on the establishment and operations of the
ECOZONES, industrial estates, export processing zones, free trade zones, and
the like;
(b) Review proposals for the establishment of ECOZONES based on the set
criteria under Section 6 and endorse to the President the establishment of the
ECOZONES, industrial estates, export processing zones, free trade zones and
the like. Thereafter, it shall facilitate and assist in the organization of said
entities;
(d) Approve the annual budget of the PEZA and the ECOZONE development
plans;
(e) Issue rules and regulations to implement the provisions of this Act in so far
as its power and functions are concerned;
(f) Exercise its powers and functions as provided for in this Act; and
SEC. 13. General Powers and Functions of the Authority. – The PEZA shall
have the following powers and functions:
(a) To operate, administer, manage and develop the ECOZONE according to the
principles and provisions set forth in this Act;
(c) To coordinate with local government units and exercise general supervision
over the development, plans, activities and operations of the ECOZONES,
industrial estates, export processing zones, free trade zones, and the like;
(e) To create, operate and/or contract to operate such agencies and functional
units or offices of the authority as it may deem necessary;
(f) To adopt, alter and use a corporate seal; make contracts, lease, own or
otherwise dispose of personal or real property; sue and be sued; and otherwise
carry out its duties and functions as provided for in this Act;
SEC. 14. Powers and Functions of the Director General. – The director general
shall be the overall coordinator of the policies, plans and programs of the
ECOZONES. As such, he shall provide overall supervision over and general
direction to the development and operations of these ECOZONES. He shall
determine the structure and the staffing pattern and personnel complement of
the PEZA and establish regional offices, when necessary, subject to the
approval of the PEZA Board.
(a) To safeguard all the lands, buildings, records, monies, credits and other
properties and rights of the ECOZONES;
(b) To ensure that all revenues of the ECOZONE are collected and applied in
accordance with its budget;
(c) To ensure that the investors/firms and employees of the ECOZONES are
properly discharging their respective duties;
(d) To give such information and recommend such measures to the Board, as
he shall deem advantageous to the ECOZONE;
(e) To submit to the Board, the ongoing and proposed projects, work and
financial program, annual budget of receipts, and expenditures of the
ECOZONE;
(f) To represent the ECOZONE in all its business matters and sign on its behalf
after approval of the Board, all its bonds, borrowings, contracts, agreements
and obligations made in accordance with this Act;
(j) To take such emergency measures as may be necessary to avoid fires, floods
and mitigate the effects of storms and other natural or public calamities;
(k) To prepare and make out plans for the physical and economic development
of the ECOZONE, including zoning and land subdivision, and issue such rules
and regulations which shall be submitted to the Board for its approval; and
(l) To perform such other duties and exercises such powers as may be
prescribed by the Board, and to implement the policies, rules and regulations
set by the PEZA.
(a) The administrator who shall be appointed by the PEZA Board upon
recommendation of the director general; and
SEC. 16. Personnel. – The PEZA Board of Directors shall provide for an
organization and staff of officers and employees of the PEZA, and upon
recommendation of the director general with the approval of the Secretary of
the Department of Trade and Industry, appoint and fix the remunerations and
other emoluments: Provided, That the Board shall have exclusive and final
authority to promote, transfer, assign and reassign officers of the PEZA, any
provision of existing law to the contrary notwithstanding: Provided, further,
That the director general may carry out removal of such officers and
employees.
The PEZA officers and employees including all Members of the Board shall not
engage directly or indirectly in partisan activities or take part in any election,
except to vote.
No officer or employee of the PEZA subject to Civil Service laws and regulations
shall be removed or suspended except for cause, as provided by law.
SEC. 17. Investigation and Inquiries. – Upon a written formal complaint made
under oath, which on its face provides reasonable basis to believe that some
anomaly or irregularity might have been committed, the PEZA or the
administrator of the ECOZONE concerned, shall have the power to inquire into
the conduct of firms or employees of the ECOZONE and to conduct
investigations, and for that purpose may subpoena witnesses, administer
oaths, and compel the production of books, papers, and other evidences:
Provided, That to arrive at the truth, the investigator(s) may grant immunity
from prosecution to any person whose testimony or whose possessions of
documents or other evidence is necessary or convenient to determine the truth
in any investigation conducted by him or under the authority of the PEZA or
the administrator of the ECOZONE concerned.
SEC. 18. Prohibition Against Holding Any Other Office. – The director general,
deputy director general, administrators, officials and staff or assistants of the
PEZA shall not hold any other office or employment within or outside the PEZA
during their tenure. They shall not, during their tenure, directly or indirectly,
practice any profession, participate in any business, or be financially interested
in any contract with, or in any franchise, or special privilege granted by the
PEZA or national government, or any subdivision, agency, or instrumentality
thereof, including any government-owned-controlled corporation, or its
subsidiary.
SEC. 19. Disbursement of Funds. – No money shall be paid out of the funds of
any ECOZONE except in pursuance of the budget as formulated and approved
by the PEZA.
SEC. 20. Full Disclosure of Financial and Business Interests. – Every member
of the Board of the PEZA, the director general, the deputy directors general,
and their staff shall, upon assumption of office, make full disclosure of their
financial and business Interests.
CHAPTER III
SEC. 21. Development Strategy of the ECOZONE. - The strategy and priority of
development of each ECOZONE established pursuant to this Act shall be
formulated by the PEZA, in coordination with the Department of Trade and
Industry and the National Economic and Development Authority; Provided,
That such development strategy is consistent with the priorities of the national
government as outlined in the medium-term Philippine development plan.
It shall be the policy of the government and the PEZA to encourage and provide
Incentives and facilitate private sector participation in the construction and
operation of public utilities and infrastructure in the ECOZONE, using any of
the schemes allowed in Republic Act No. 6957 (the build-operate-transfer law).
Furthermore, tax credits for exporters using local materials as Inputs shall
enjoy the same benefits provided for in the Export Development Act of 1994.
SEC. 24. Exemption from National and Local Taxes.- Except for real property
taxes on land owned by developers, no taxes, local and national, shall be
imposed on business establishments operating within the ECOZONE. In lieu
thereof, five percent (5%) of the gross income earned by all business enterprises
within the ECOZONE shall be paid and remitted as follows:
SEC. 25. Applicable National and Local Taxes. – All persons and services
establishments in the ECOZONE shall be subject to national and local taxes
under the National Internal Revenue Code and the Local Government Code.
The PEZA, in coordination with the Department of Trade and Industry and the
Bureau of Customs, shall jointly issue the necessary implementing rules and
guidelines for the effective Implementation of this section.
SEC. 28. After Tax Profits. – Without prior Bangkok Sentral approval, after tax
profits and other earnings of foreign investments in enterprises in the
ECOZONE may be remitted outward in the equivalent foreign exchange
through any of the banks licensed by the Bangko Sentral ng Pilipinas in the
ECOZONE: Provided, however, That such foreign investments in said
enterprises have been previously registered with the Bangko Sentral.
SEC. 30. Leases of Lands and Buildings. – Lands and buildings in each
ECOZONE may be leased to foreign investors for a period not exceeding fifty
(50) years renewable once for a period of not more than twenty-five (25) years,
as provided for under Republic Act No. 7652, otherwise known as the Investors’
Lease Act. The leasehold right acquired under long-term contracts may be sold,
transferred or assigned, subject to the conditions set forth under Republic Act
No. 7652.
SEC. 32. Shipping and Shipping Register. – Private shipping and related
business including private container terminals may operate freely in the
ECOZONE, subject only to such minimum reasonable regulations of local
application which the PEZA may prescribe.
The PEZA shall, in coordination with the Department of Transportation and
Communications, maintain a shipping register for each ECOZONE as a
business register of convenience for ocean-going vessels and issue related
certification.
Ships of all sizes, descriptions and nationalities shall enjoy access to the ports
of the ECOZONE, subject only to such reasonable requirement as may be
prescribed by the PEZA In coordination with the appropriate agencies of the
national government.
SEC. 36. One Stop Shop Center. - The PEZA shall establish a one stop shop
center for the purpose of facilitating the registration of new enterprises in the
ECOZONE. Thus, all appropriate government agencies that are Involved In
registering, licensing or issuing permits to investors shall assign their
representatives to the ECOZONE to attend to Investor’s requirements.
CHAPTER IV
SEC. 39. Master Employment Contracts. - The PEZA, in coordination with the
Department of Tabor and Employment, shall prescribe a master employment
contract for all ECOZONE enterprise staff members and workers, the terms of
which provide salaries and benefits not less than those provided under this
Act, the Philippine Labor Code, as amended, and other relevant issuances of
the national government.
SEC. 41. Migrant Worker. - The PEZA, in coordination with the Department of
Labor and Employment, shall promulgate appropriate measures and programs
leading to the expansion of the services of the ECOZONE to help the local
governments of nearby areas meet the needs of the migrant workers.
The PEZA, the Department of Labor and Employment, and the Department of
Finance shall jointly make a review of the incentive scheme provided In this
section every two (2) years or when circumstances so warrant.
CHAPTER V
SEC. 43. Relationship with the Regional Development Council. - The PEZA
shall determine the development goals for the ECOZONE within the framework
of national development plans, policies and goals, and the administrator shall,
upon approval by the PEZA Board, submit the ECOZONE plans, programs and
projects to the regional development council for inclusion in and as inputs to
the overall regional development plan.
SEC. 44. Relationship with the Local Government Units. - Except as herein
provided, the local government units comprising the ECOZONE shall retain
their basic autonomy and identity. The cities shall be governed by their
respective charters and the municipalities shall operate and function In
accordance with Republic Act No. 7160, otherwise known as the Local
Government Code of 1991.
Government personnel whose services are not retained by the PEZA or any
government office within the ECOZONE shall be entitled to separation pay and
such retirement and other benefits they are entitled to under the laws then in
force at the time of their separation: Provided, That in no case shall the
separation pay be less than one and one-fourth (1 1/4) month of every year of
service.
CHAPTER VI
MISCELLANEOUS PROVISIONS
SEC. 47. Appropriation. - Upon the effectivity of this Act, all funds of the
former Export Processing Zone Authority (EPZA) shall be transferred to the
newly-created Philippine Economic Zone Authority, Thereafter, any sum as
may be necessary to augment its capital outlay shall be Included In the
General Appropriations Act to be treated as an equity of the national
government.
(a) The annual subsidies, appropriations and/or other assets of the exports
processing zone, and the industrial estates and other economic areas that have
been absorbed/transferred to the PEZA as mandate in this Act;
(b) The proceeds from the rent of lands, buildings, and other properties of the
ECOZONES concerned;
(c) The proceeds from fees, charges and other revenue-generatlng Instruments
which the PEZA is authorized to impose and collect under this Act,
(d) The proceeds from bonds which the PEZA authorized to float both domestic
and abroad; and
(e) The advance rentals, license fees, and other charges which the PEZA is
authorized to impose under this Act and which an investor is willing to advance
payment for.
SEC. 48. Applicability of National Laws. - National laws shall prevail vis-a- vis
ECOZONE rules, regulations and standards, unless there is a clear intent in
this Act or other Acts of Congress to vest the ECOZONE specific power and
privileges not otherwise allowed under existing laws.
SEC. 52. Separability Clause. - The provisions of this Act are hereby declared
separable, and in the event one or more of such provisions or part thereof are
declared unconstitutional, such declaration of unconstitutionality shall not
affect the validity of the other provisions thereof.
SEC. 54. Repealing Clause. - All laws, acts, presidential decrees, executive
orders, proclamations and / or administrative regulations which are
inconsistent with the provisions of this Act, are hereby amended, modified,
superseded or repealed accordingly.
SEC. 55. Implementing Rules and Regulations. - The Department of Trade and
Industry, the National Economic and Development Authority, the Department
of Finance, the Bureau of Customs, the Department of Agrarian Reform, the
Department of Interior and local Government, the Philippine Economic Zone
Authority, and the representatives from the technical staff of the Committee on
Economic Affairs of both Houses of Congress shall formulate the implementing
rules and regulations of this Act within ninety (90) days after its approval.
Such rules and regulations shall take effect fifteen (15) days after their
publication in a newspaper of general circulation in the Philippines.
ARTICLE II
INSTITUTIONAL STRUCTURES AND STRATEGIES
SEC. 5. Philippine Export Development Plan [PEDP]. - The President of
the Republic of the Philippines shall approve a rolling three-year
Philippine Export Development Plan prepared by the Department of Trade
and Industry [DTI] which shall form part of the medium-term Philippine
Development Plan [MTPDP]. It shall be formulated in consultation with
the private sector, validated and updated semestrally.chanrobles virtual
law library
The PEDP shall define the country's annual and medium-term export
thrusts, strategies, programs and projects and shall be jointly
implemented by the government, export and other concerned
sectors.chanrobles virtual law library
SEC. 6. Export Development Council. - The existing Export Development
Council, hereinafter referred to as the Council, which was created by
Executive Order No. 98 [1993] as modified by Executive Order No. 110
[1993], and Executive Order No. 180 [1994], shall be strengthened and
institutionalized for the purpose of overseeing the implementation of the
PEDP and coordinating the formulation and implementation of policy
reforms to support the said Plan.chanrobles virtual law library
SEC. 7. Powers and functions. - The Council shall:
[a] approve the PEDP; coordinate, monitor and assess the implementation
thereof, and when necessary, institute appropriate adjustments thereon
in the light of changing conditions in both the domestic and international
environment;
[b] periodically review and assess the country's export performance,
problems and prospects;
[c] identify the main bottlenecks, problem areas and constraints in all
areas/sectors/activities which influence the development of exports,
including but not limited to, such matters as policy framework, physical
infrastructure, finance, technology, production, promotions and
marketing;
[d] mandate specific departments and agencies to attend to the
bottlenecks and problems constraining the development of exports in any
of the areas mentioned in paragraph [c] above, and require the concerned
Secretaries to deliver progress report[s] on the actions/initiatives taken
to resolve these areas of concern at the next meeting[s];
[e] ensure export quality control by overseeing the formulation and
implementation of quality control guidelines by appropriate agencies to
make Philippine exports at par with world-class products;
[f] impose sanctions on any government agency or officer or employee
thereof, or private sector entity that impedes efficient exportation of
Philippine goods;
[g] recommend to Congress any proposed legislation that would
contribute to the development of exports;
[h] submit quarterly reports to Congress;
[i] formulate policies or recommend measures and draw up a study within
ninety [90] days from the approval of this Act, relative to the
rationalization of the government's export promotion and development
functions/activities and programs for the eventual transfer of government
export promotions and development activities to the sector within a
period of two [2] years after the approval of this Act;
[j] formulate the policies for the granting of incentives to exporters;
[k] adopt such policies, rules, procedures and administrative systems for
the efficient and effective exercise of its powers and functions, including
the creation or adoption of an executive committee or secretariat; and
[l] grant and review the accreditation of the organization of exporters,
according to the guidelines which it shall later promulgate for the said
purpose: Provided, That the organization accredited shall be the dominant
one among the other existing export organizations as determined under
the guidelines promulgated by the Council hereof.chanrobles virtual law
library
[m] issue standards and policies to be observed by Local Government
Units [LGUs] in order to :
[1] ensure that LGUs' plans and budgets are supportive of agri-industrial
growth and export competitiveness thrusts of the national government;
and
[2] ensure optimal allocation of expenditures.chanrobles virtual law
library
The DILG and the regional development councils shall be the channels
through which these standards and policies shall be coursed.chanrobles
virtual law library
Sec. 8. Composition of the Council. - The Council shall be composed of
the following:
[a] Secretary of the Department of Trade and Industry as chairman;
[b] Director-General of the National Economic and Development
Authority;
[c] Secretary of the Department of Finance;
[d] Governor of the Bangko Sentral ng Pilipinas;
[e] Secretary of the Department of Science and Technology;
[f] Secretary of the Department of Agriculture;
[g] Secretary of the Department of Foreign Affairs;
[h] Secretary of the Department of Labor and Employment;
[i] Nine [9] representatives from the private sector, the majority of whom
shall be recommendees of the accredited organization, and one of whom
shall be appointed as vice-chairman.chanrobles virtual law library
Other heads of executive agencies, private organizations or individuals
can be called upon by the Council to attend any Council meeting and
assist the Council to resolve issues and problems that concern their
respective offices.chanrobles virtual law library
Likewise, such heads of executive agencies, private organizations or
individuals shall respond to the queries of the Council within two [2]
weeks from the time such queries are received.chanrobles virtual law
library
SEC. 9. Mode of selection and tenure of private sector representatives.-
The President shall appoint the private sector representatives, who are
not ex officio members, upon nomination of the accredited organization,
ensuring balanced representations from the Visayas and Mindanao and
various sectors, such as the labor sector, agricultural and traditional
export sectors as against the non-agricultural and non-traditional export
sectors and the like.chanrobles virtual law library
The private sector representatives of the Council shall serve for a period
of two [2] years. When a vacancy occurs due to the resignation, death or
incapacity of a member, a replacement who shall serve for the remainder
of the member's term of office shall be appointed by the
President.chanrobles virtual law library
SEC. 10. Meeting of the Council. - The Council shall meet once a
month: Provided, That the President or the chairman may convene the
Council anytime whenever he deems it necessary.chanrobles virtual law
library
The President shall preside over meetings of the Council on a quarterly
basis.chanrobles virtual law library
SEC. 11. Funding. - The activities and operational expenses of the
Council shall be funded jointly by budgetary appropriations from the
government and by private sector contributions as provided for in
Executive Order No. 98.chanrobles virtual law library
SEC. 12. Accredited export organization. - The Council shall accredit a
single umbrella organization of exporters pursuant to section 7[1] of this
Act to represent the export sector concerns and interests for three [3]
years, after which the Council shall undertake a review of the
accreditation prior to the granting or re-granting of the said
accreditation.chanrobles virtual law library
The accredited organization shall:
[a] recommend private sector representatives to the Council with
consideration of balanced sectoral representation, as provided in Section
9 hereof;
[b] represent the interests of the export sector;
[c] be responsible for coordinating, supporting and assisting the DTI
relative to the formulation and implementation of the government's
export promotion programs and policies: Provided, That in the event that
some of the export promotion functions of the government are privatized
in accordance with the Act, it shall be responsible for the performance of
such privatized export promotion function; and
[d] manage the Philippine Trade Center, which shall include, among
others, the authority to enter into contracts with promotion facilities or
functions.chanrobles virtual law library
SEC. 13. Export financing guarantee and insurance. - Pursuant to
Section 7[1] of this Act, the Council shall make the necessary legal and
feasibility study/recommendation on the alignment and rationalization of
government programs relative to export financing and existing
organizations dealing primarily and exclusively with export financing
guarantee and insurance and likewise considering the creation of a
private sector led export financing institution whose services shall be
primarily devoted towards supporting the operations of exporters and
indirect exporters, particularly the SMEs.chanrobles virtual law library
The study shall include the powers , functions, and operations of the
proposed institution, and government contributions to the said
institution, and if and when necessary the preparation of a bill creating
the same which the Council may recommend to Congress within six (6)
months after the effectivity of this Act.chanrobles virtual law library
The government counterpart funds shall come from direct budgetary
appropriations and from consolidated capital funds of government
institutions involved in export financing and guarantees, or from equity
contributions from government financial institutions.chanrobles virtual
law library
SEC. 14. Export promotion and information. - As provided in Section 7[1]
of this Act, the Council through the DTI shall prepare an export
promotion privatization program within ninety [90] days from the
approval of this Act and shall subsequently identify the appropriate
funding mechanism for such a programThe privatization process shall be
completed within a period two [2] years.
While the appropriate funding mechanism is not yet in place, financial
and technical assistance to the accredited organization on a project-to-
project basis shall be granted. In this regard, the national government
shall appropriate such sums as may be necessary to the Council to be
exclusively earmarked for export promotion and information until such
time that the Council establishes the funding mechanism. The Council
shall formulate the criteria to avail of this financial and technical
assistance and the extent to which the assistance shall be granted with
the primary consideration of encouraging the formation of a nationwide
marketing cooperative for export promotion.chanrobles virtual law library
SEC. 15. Philippine Trade Center. - The government shall hereby assist
the private sector in the establishment of Philippine Trade Centers which
shall house the trade promotion offices and shall serve as permanent
exhibit sites of the country's export products. In this regard, the
government shall provide the land for the center, through a land grant or
long term lease to the accredited organization, and shall arrange
financing for the construction of the trade complexes. Upon its
establishment, the centers shall be managed by the accredited
organization.chanrobles virtual law library
ARTICLE III
OTHER INCENTIVES
SEC. 16. Incentives. - In addition to existing incentives provided by the
Board of Investments, the following incentives shall likewise be granted to
exporters:
[a] Exemption from Presidential Decree No. 1853, provided that the
importation shall be used for the production of goods and services for
export.chanrobles virtual law library
[b] Importation of machinery and equipment and accompanying spare
parts which are used in the manufacture of exported products at zero
percent [0%] duty for a period of three [3] years, until 1997.chanrobles
virtual law library
[c] Tax credit for imported inputs and raw materials primarily used for
the production and packaging of export goods, which are not readily
available locally , shall be valid for five [5] years. Provided, That the tax
credit shall be issued within thirty [30] days from
exportation.chanrobles virtual law library
[d] Tax credit for increase in current year's export revenue computed as
follows:
The first 5% increase in annual export revenue over the previous year
would mean a credit of 2.5% to be applied on the incremental export
revenue converted to pesos at the current rate;
ARTICLE IV
TRANSITORY PROVISIONS
SEC. 18. Appointment of private sector representatives. - Upon the
effectivity of this Act, the President of the Republic of the Philippines
shall appoint the nine [9] private sector representatives to the Council
who shall serve for a term of two [2] yearsThereafter, the determination of
the private sector representatives shall be governed by Section 9 of this
Act.chanrobles virtual law library
SEC. 19. Funding of the Council. - Upon the effectively of this Act, the
budget granted to the old Export Development Council shall be
transferred to the new Council created under this Act. Thereafter, such
sums as may be necessary for its operation and maintenance shall be
included in the annual General Appropriations Act.chanrobles virtual law
library
SEC. 20. Operation of the Council. - the Council shall immediately
function one [1] month after the approval of this Act.chanrobles virtual
law library
ARTICLE V
CRIMINAL OFFENSES AND PENALTIES
SEC. 21. Non-compliance of the mandatory provisions of this Act. - Any
person, entity, government instrumentality or institution, found to be
willfully violating or grossly negligent in executing the mandates of this
Act shall result in the expulsion from office of its chief executive and
operating officers, as well as the responsible officers thereof.
Notwithstanding any provision of law to the contrary, they shall likewise
be prohibited from holding any government position for least two [2]
years.chanrobles virtual law library
ARTICLE VI
ADMINISTRATIVE PROCEDURES AND SPECIAL CLAUSE
SEC. 22. Implementing rules and regulations. - The Secretaries of Trade
and Industry and Finance, in consultation with the Council, shall
formulate the rules and regulations to implement the provisions of this
Act.chanrobles virtual law library
SEC. 23. Separability clause. - The provisions of this Act are hereby
declare separable and in the event any of such provisions is declared
unconstitutional, the other provisions which are not affected thereby
shall remain in force and effect.chanrobles virtual law library
SEC. 24. Repealing clause. - All other laws, decrees, executive orders,
administrative orders, rules and regulations or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed ,
amended or modified accordingly.chanrobles virtual law library
SEC. 25. Effectivity. - This Act shall take effect two [2] weeks after its
publication in the Official Gazette or in at least two [2] national
newspapers of general circulation in the Philippines, whichever comes
earlier.chanrobles virtual law library
This Act which is a consolidation of House Bill No. 12073 and Senate Bill
No. 1863 was finally passed by the House of Representatives and the
Senate on December 20, 1994.chanrobles virtual law library
Approved: 21 December 1994
SECTION 1. Title. – This Act shall be known as the “Investors’ Lease Act.”
SEC. 3. Definitions. – For purposes of this Act, unless the context indicates
otherwise, the term:
(2) “Withdrawal of approved investment” shall mean either; (a) the failure to
operate the investment project for any three (3) consecutive years; or (b)
outright abandonment of the investment project at any time during the
approved lease period: Provided, That failure to pay lease rental for three (3)
consecutive months coupled with the failure to operate the investment project
for the same period shall be deemed an outright abandonment of the project.
(1) No lease contract shall be for a period exceeding fifty (50) years, renewable
once for a period of not more than twenty- five (25) years;
(2) The leased area shall be used solely for the purpose of the investment upon
the mutual agreement of the parties;
(3) The leased premises shall comprise such area as may reasonably be
required for the purpose of the investment subject however to the
Comprehensive Agrarian Reform Law and the Local Government Code.
The leasehold right acquired under long-term lease contracts entered into
pursuant to this Act may be sold, transferred, or assigned: Provided, That when
the buyer, transferee, or assignee is a foreigner or a foreign-owned enterprise,
the conditions and limitations in respect to the use of the leased property as
provided for under this Act shall continue to apply.
(2) Withdrawal of the approved investment in the Philippines within the period
of the lease agreement entered into under this Act, or use of the leased area for
the purpose other than that authorized, shall warrant the ipso
facto termination of the lease agreement without prejudice to the right of the
lessor to be compensated for the damages he may have suffered thereby.
(3) Any lease agreement under this Act which is renewable at the option of the
lessee subject to the same terms and conditions of the original contract shall
be interpreted to mean as renewable upon the mutual agreement of the parties.
(4) In addition to the conditions for the renewal of a lease agreement after the
period of fifty (50) years as provided herein, the foreign lease shall show that it
has made social and economic contributions to the country.
(5) In the case of tourism projects, lease of private lands by foreign investors
qualified herein shall be limited to projects with an investment of not less than
five million (5M) US dollars, seventy percent (70%) of which shall be infused in
said project within three years from the signing of the lease contract.
(1) Any provision in the lease agreement stipulating a lease period in excess of
that provided in paragraph (1) of Section 4;
(2) Use of the leased premises for the purpose contrary to existing laws of the
land, public order, public policy, morals, or good customs;
(3) Any agreement or agreements resulting is the lease of land in excess of the
area approved by the DTI: Provided, That, where the excess of the totality of the
area leased is due to the acts of the lessee, the lessee shall be held solely liable
therefor: Provided, further, That, in the case of corporations, associations, or
partnerships, the president, manager, director, trustee, or officers responsible
for the violation hereof shall bear the criminal liability.
SEC. 10. Effectivity Clause. – this Act shall take effect immediately upon its
approval.
SEC. 17. Separability Clause. - If any provision of this Act is held invalid,
the other provisions not affected thereby shall continue in
operation.chanrobles virtual law library
SEC. 18. Effectivity Clause. - This Act shall take effect fifteen [15] days
after its publication in at least two (2) newspapers of general circulation.
Pursuant to Section 11 of R.A. No. 6957, as amended by R.A. No. 7718, the
following Implementing Rules and Regulations are hereby prescribed to carry
out the provisions of said Act.
RULE 1
PRELIMINARY PROVISIONS
Sec. 1.1. Policy. - It is the policy of the State to encourage the private sector as
the nation's main engine for growth and development to engage in or undertake
the financing, construction, operation and maintenance of private sector
infrastructure and development projects, as hereunder defined. Towards this
end, the Government shall provide appropriate incentives, such as, but not
limited to, financial incentives as provided by law, a climate of minimum
regulations and procedures, and specific government undertakings in support
of the private sector.
Sec. 1.2. Coverage. - These Implementing Rules and Regulations shall
cover all private sector infrastructure or development projects, as
hereunder defined, undertaken by Agencies or Local Government Units in
accordance with such contractual arrangement or scheme authorized
under and pursuant to R.A. No. 6957, as amended by R.A. No. 7718.cralaw
For Local Government Unit projects, concerned Local Government Units
may formulate additional guidelines/procedures not in conflict with this
Act and these Implementing Rules and Regulations and pertinent
provisions of Republic Act 7160 (Local Government Code of 1991) and its
implementing rules and regulations.cralaw
Sec. 1.3. Definition of Terms. - For purposes of these Implementing Rules
and Regulations, the terms and phrases hereunder shall be understood as
follows:chanrobles virtual law library
a. Act. - shall mean Republic Act No. 6957, as amended by Republic
Act No. 7718.
b. Agency/Agencies. – Refers to any department, bureau, office,
commission, authority or agency of the national government,
including government-owned or -controlled corporations, authorized
by law or their respective charters to contract for or undertake
infrastructure or development projects.cralaw
c. Contractual Arrangements. – Refer to any of the following
contractual arrangements or schemes, as well as other variations
thereof as may be approved/authorized by the President, by which
infrastructure and/or development projects may be undertaken
pursuant to the provisions of these IRR:chanrobles virtual law
library
to the ICC of the NEDA Board for those costing above P200 million.
Final approval of projects classified under b) i. to b) iv. of this section is
vested on the Local Sanggunians per provision of the Local Government
Code.cralaw
Sec. 2.8. ICC Approval of Projects. - The review and approval of projects
by ICC, as indicated above, including those proposed for BOO
implementation, shall be in accordance with the guidelines of the ICC,
attached hereto as Annex B.
For publicly-bid projects, the ICC approval of the project should be
secured prior to bidding and for unsolicited proposals prior to negotiation
with the original proponent.cralaw
Sec. 2.9. ICC/Local Sanggunian Clearance of the Contract Prior to
Award. - ICC/Local Sanggunian clearance of contracts shall likewise be
required only for projects requiring national government undertakings.
ICC clearance of the contract shall be secured prior to award in the case
of publicly bid projects or prior to solicitation of comparative proposals
for unsolicited proposals.cralaw
The concerned Agency/LGU shall, prior to the schedule of submission of
bids, submit the draft contract to the ICC for clearance on a no-objection
basis. The agency shall submit the contract to ICC anytime from
finalization of the bid terms of reference to bid preparation. The agency
may opt to submit the contract after the pre-bid conference to consider
any comments or suggestions that the bidders may have on the
contract. Annex B of these IRR provides the guidelines of ICC for contract
review. ICC shall act on the final draft contract within fifteen (15) working
days upon submission of complete documentation. Unless otherwise
previously notified in writing by the ICC, failure to act within this
prescribed period shall mean that the concerned Agency/LGU may
proceed with contract award. If the draft contract includes government
undertakings within the scope of an earlier ICC approval, then the
submission will only be for the information of the ICC. However, should it
include additional government undertakings over and above the original
scope then the draft contract will have to be reviewed by the ICC.cralaw
However, failure on the part of the agency to submit the contract or if
submitted, to comply with the requirements of the ICC shall render the
Notice of Award and/or contract invalid.cralaw
Sec. 2.10. Presidential Approval, When Required. - Projects undertaken
through the BOO scheme shall require Presidential approval. For this
purpose, the Head of Agency/LGU shall submit the proposed project to
ICC, which shall evaluate the proposal and forward the same to the Office
of the President with its recommendations. Projects which will be
undertaken through contractual arrangements or schemes other than
those defined under Section 1.3.c of these IRR shall also require approval
by the President. Following ICC contract approval, all BOO contracts are
presented to the President, through the NEDA Board, for approval. Since
the President chairs the NEDA Board, NEDA Board approval already
carries with it the President's approval.cralaw
Sec. 2.11. Deadline for Approval of Projects. - The ICC or the concerned
Local Development Council (LDC) and concerned Sanggunian shall act on
the projects within thirty (30) working days upon satisfactory compliance
by the concerned Agency/LGU of the requirements. Unless otherwise
notified in writing by the ICC or LDC, failure of the ICC or LDC and its
Sanggunian to act on the projects within the specified period shall mean
that the project is deemed approved and that the concerned Agency/LGU
may proceed with the solicitation of proposals.
RULE 3
THE PREQUALIFICATION, BIDS, AND AWARDS COMMITTEE
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RULE 4
BID/TENDER DOCUMENTS
Sec. 8.1. The First Stage Evaluation. - The evaluation of bids shall be
undertaken in two (2) stages in accordance with the procedures described
below.
The first stage evaluation shall involve the assessment of the technical,
operational, environmental, and financing viability of the proposal as
contained in the bidders' first envelopes vis-a-vis the prescribed
requirements and criteria/minimum standards and basic parameters
prescribed in the bidding documents. Only those bids that have been
determined to have positively passed the first stage of evaluation shall be
qualified and considered for the second stage of evaluation.cralaw
The Agency/LGU concerned shall evaluate the technical proposals of the
bidder in accordance with the following criteria:chanrobles virtual law
library
a. Technical soundness (preliminary engineering design): The basic
engineering design of the project should conform to the minimum
design and performance standards and specifications set by the
Agency/LGU concerned as prescribed in the bidding documents. The
engineering surveys, plans and estimates should be undertaken
within +/- 20% of the final quantities. The construction methods
and schedules should also be presented and shown to be feasible or
"doable".
b. Operational feasibility: The proposed organization, methods, and
procedures for operating and maintaining the completed facility
must be well defined, should conform to the prescribed performance
standards, and should be shown to be workable. Where feasible, it
should provide for the transfer of technology used in every phase of
the project.cralaw
c. Environmental Standards: The proposed design and the
technology of the project to be used must be in accordance with the
environmental standards set forth by the Department of
Environment and Natural Resources (DENR) as indicated in the bid
documents. Any adverse effects on the environment as a
consequence of the project as proposed by the project proponent
must be properly identified, including the corresponding
corrective/mitigating measures to be adopted.cralaw
d. Project Financing: The proposed financing plan should positively
show that the same could adequately meet the construction cost
and operating and maintenance costs requirements of the project.
The Agency/LGU concerned shall assess the financing proposals of
the bidders if the same matches and adequately meets the cost
requirements of the project under bidding.cralaw
e. Enhancements: Other terms which the project proponent may
offer to the government to make the proposals more attractive, such
as, but not limited to, provisions allowing the government to share
in revenues; less government guarantees or reduction in the level of
government undertakings or support.cralaw
The PBAC of the Agency/LGU concerned shall complete the evaluation of
the technical proposal within thirty (30) calendar days from the date the
bids are opened.
Sec. 8.2. The Second Stage Evaluation. - The second stage evaluation
shall involve the assessment and comparison of the financial proposals of
the bidders:chanrobles virtual law library
a. For BOT, BOO, CAO, DOT, ROT, ROO and other similar schemes
that may be approved/authorized by the President, assessment and
comparison of the financial proposals of bidders shall be based on
the lowest present value of the proposed tolls, fees, rentals and
other charges over a fixed term for the facility to be constructed,
rehabilitated, operated and maintained according to the prescribed
minimum design and performance standards, plans and
specifications.
b. For BT, BLT, and other similar schemes that may be
approved/authorized by the President, assessment and comparison
of the financial proposals of the bidders shall be based on the
present value of the proposed schedule of amortization payments
for the facility to be constructed according to the prescribed
minimum design and performance standards, plans and
specifications.cralaw
c. For BTO and other similar schemes that may be
approved/authorized by the President, assessment and comparison
of the financial proposals of bidders shall be based on either the
lowest present value of the proposed tolls, fees, rentals and other
charges over a fixed term for the facility to be constructed, operated
and maintained, or the present value of the proposed schedule of
amortization payments for the facility to be constructed according
to the prescribed minimum design and performance standards,
plans and specifications.cralaw
The evaluation criteria for a BTO shall be stated in the Instructions
to Bidders.cralaw
The Agency/LGU concerned shall award the contract to the bidder
whose proposed tolls/fees/rentals/charges in case of BOT, BOO,
CAO, DOT, ROT, ROO, BTO, and other similar schemes, or proposed
schedule of amortization payments in case of BT, BLT, BTO, and
other similar schemes, are determined to have the lowest present
value. However, in the case of BT, BLT and BTO schemes, a Filipino
project proponent who submits an equally advantageous bid with
exactly the same price and technical specifications as that of a
foreign project proponent shall be given preference.
CHAPTER I
SECTION 1. Title.—This Act shall be known as the “Magna Carta for Small
Enterprises.”
f) By instituting safeguards for the protection and stability of the credit delivery
system;
In a generic sense, all enterprises with total assets of Five million pesos
(P5,000,000) and below shall be called small enterprises.
The above definitions shall be subject to review and adjustment by the said
Council as deemed necessary, taking into account inflation and other economic
factors.
However, this requirement shall not preclude a small and medium enterprise
from accepting subcontracts from large enterprises or firms joining in
cooperative activities with other small and medium enterprises.
SEC. 5. Guiding Principles.—To set the pace for small and medium enterprise
development, the State shall be guided by the following principles:
b) Role of the private sector. In order to hasten growth and expansion of small
and medium enterprises, the private sector throughout the country shall be
encouraged to assist m the effective implementation of this Act by constantly
policing their ranks; and by participating in government programs for small
and medium enterprises strictly in accordance with law, and consistent with
the attainment of the purposes hereof. The government shall encourage the
organization and establishment of small and medium enterprise industry
associations at the local and regional levels preferably unified under a national
federation/association.
CHAPTER II
The Council shall be the primary agency responsible for the promotion, growth
and development of small and medium enterprises in the country by way of
facilitating and closely coordinating national efforts to promote the viability and
growth of small and medium enterprises, including assisting relevant agencies
in the tapping of local and foreign funds for small and medium enterprise
development, as well as promoting the use of existing guarantee programs.
b) Secretary of Agriculture;
g) Chairman of the small and medium enterprises promotion body which the
President shall undertake to establish under this Act; and
h) Three (3) representatives from the private sector, all Filipino citizens, to
represent Luzon, Visayas and Mindanao to be appointed by the President, one
of whom shall come from the banking industry.
The private sector members of the Council shall initially receive per diem of
One thousand pesos (P1,000.00) per meeting.
The Department of Trade and Industry shall allocate Five million pesos
(P5,000,000.00) out of its savings for the initial operating expenses of the
Council, after which the Council’s budget shall be included in the annual
appropriation of the Department of Trade and Industry.
The Council may, from time to time, call upon the participation of any
government agency or association of local government officials in its
deliberations especially when such agency is directly or indirectly concerned
with and/or affecting the growth and development of small and medium
enterprises in any particular area or manner.
b) To recommend to the President and the Congress all policy matters affecting
small and medium scale enterprises;
10) Easier access to and availment of tax credits and other tax and duty
incentives as provided by the Omnibus Investment Code and other laws;
j) To submit to the President and the Congress a yearly report on the status of
small and medium enterprises in the country, including the progress and
impact of all relevant government policies, programs and legislation as well as
private sector activities;
l) Generally, to exercise all powers and functions necessary for the objectives
and purposes of this Act.
4) To prepare, collate and integrate all inputs to the Council’s yearly report on
the status of small and medium enterprises in the country;
CHAPTER III
SEC. 10. Rationalization of Existing Small and Medium Enterprise Programs and
Agencies.—The Small and Medium Enterprise Development Council shall
within one hundred eighty (180) days from its establishment, recommend to
the President, measure/s to rationalize and integrate under a unified
institutional framework all government programs for the promotion and
development of small and medium enterprises.
The Corporation shall become liable under its guarantees upon proof that the
loan has become past due under such terms and guidelines adopted by its
Board and printed on the contract of guarantee.
a) Be attached to the Department of Trade and Industry and shall be under the
policy, program and administrative supervision of the SMED Council;
b) Have its principal place of business in Metro Manila and endeavor to have
one or more branch offices in every province of the country;
c) Exercise all the general powers conferred by law upon corporations under
the Corporation Code as are incidental or conducive to the attainment of the
objectives of this Act; and
d) Have a board of directors upon which the powers of the Corporation shall be
vested, to be composed of five (5) members including:
1) Three (3) members from the private sector appointed by the President upon
recommendation of the SMED Council and from among whom the Chairman of
the Board shall be appointed by the President to serve on a full-time basis:
The Central Bank in consultation with the Council, shall formulate rules for
the effective implementation of this provision: Provided, That the purchase of
government notes, securities, and other negotiable instruments, with the
exception of such instruments as may be offered by the SBGFC, shall not be
deemed compliance with the foregoing provision.
The SMED Council shall set up the appropriate systems to monitor all loan
applications of small enterprises in order to account for the absorptive capacity
of the small enterprise sector.
The Central Bank shall furnish to the Small and Medium Development Council
on a semestral basis regular reports on the lending institutions’ compliance
with the above provisions on the mandatory credit allocation for small
enterprises.
CHAPTER IV
SEC. 15. Separability Clause.—The provisions of this Act are hereby declared to
be separable. If any provision of this Act shall be held unconstitutional, the
remainder of the Act not otherwise affected shall remain in full force and effect.
SEC. 16. Revealing Clause.—All laws, executive orders, rules and regulations,
or parts thereof, inconsistent herewith are hereby repealed or modified
accordingly.
SEC. 17. Effectivity Clause.—This Act shall take effect upon its approval.
SECTION 1. Article 7 (13) of Executive Order No. 226, otherwise known as the
Omnibus Investments Code of 1987, is hereby amended to read as follows:
“(13) To the extent that such activities are allowed by the Constitution and
relevant laws, to recommend to the President of the Philippines, the suspension
of the nationality requirement provided in this Code in cases of ASEAN
projects, or investments by ASEAN nationals, regional ASEAN or multilateral
financial institutions including their subsidiaries in preferred projects and/or
projects allowed through either financial or technical assistance agreements
entered into by the President, and in the case of regional complementation for
the manufacture of a particular product which seeks to take advantage of
economies of scale. For the purpose of this Act, a multilateral financial
institution shall refer to a financial agency or entity, and its affiliates which
satisfy the following qualifications:
“(1) The institution is either owned or controlled by member countries but does
not possess any national identity;
“(2) The institution sources its funds from capital stock subscriptions and
contributions by member countries; and
Approved,
Pursuant to this policy, the Philippine banking and financial system is hereby
liberalized to create a more competitive environment and encourage greater
foreign participation through increase in ownership in domestic banks by
foreign banks and the entry of new foreign bank branches.
Sec. 2. Modes of Entry. — The Monetary Board may authorize foreign banks to
operate in the Philippine banking system through any of the following modes of
entry: (i) by acquiring, purchasing or owning up to sixty percent (60%) of the
voting stock of an existing bank; (ii) by investing in up to sixty percent (60%) of
the voting stock of a new banking subsidiary incorporated under the laws of
the Philippines; or (iii) by establishing branches with full banking authority:
Provided, That a foreign bank may avail itself of only one (1) mode of entry:
Provided, further, That a foreign bank or a Philippine corporation may own up
to a sixty percent (60%) of the voting stock of only one (1) domestic bank or
new banking subsidiary.
Only those among the top one hundred fifty (150) foreign banks in the world or
the top five (5) banks in their country of origin as of the date of application
shall be allowed entry in accordance with Section 2 (ii) and (iii) hereof.
In the exercise of this authority, the Monetary Board shall adopt such
measures as may be necessary to: (i) ensure that at all times the control of
seventy percent (70%) of the resources or assets of the entire banking system is
held by domestic banks which are at least majority-owned by Filipinos; (ii)
prevent a dominant market
approval of the Monetary Board. An additional four (4) foreign banks may be
allowed entry on recommendation of the Monetary Board, subject to
compliance with Sections 2, 3, 4, and 5 of this Act, upon approval of the
President as the national interest may require.
The basis for computing the ratio shall be the capital of the foreign bank
branch in the Philippines.
The foreign banks shall guarantee the observance of the rights of their
employees under the Constitution.
Sec. 12. Applicability of Other Banking Laws. — The provisions of Republic Act
No. 337, as amended, otherwise known as the General Banking Act, insofar as
they are applicable and not in conflict with any provision of this Act, shall
apply to banks authorized pursuant to this Act.
Sec. 14. Amendment and Repeal of Inconsistent Laws. — Sections 11, 12, 12-
A, 12-B, 13, 14-A, 21-B, and 68 of Republic Act No. 337, as amended,
otherwise known as the General Banking Act: Sections 4 and 5 of Republic Act
No. 7353, otherwise known as the Rural Banks Act; Sections 4 and 14 of
Republic Act No. 3779, as amended, otherwise known as the Savings and Loan
Association Act; and Section 4 of Republic Act No. 4093, as amended,
otherwise known as the Private Development Banks Act insofar as they are
inconsistent with this Act, are hereby repealed or modified accordingly.
Sec. 15. Effectivity Clause. — This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in two (2) national newspapers of
general circulation.
Section 1. The title of Book III of Executive Order No. 226, otherwise known as
the Omnibus Investments Code of 1987, is hereby amended as follows:
"BOOK III
"CHAPTER I
The Securities and Exchange Commission shall, within thirty (30) days
from the effectivity of this Code, issue the implementing rules and
regulations. The following minimum requirements shall, however, be
complied with by the said foreign entity:
Section 4. Book III of the same Code is hereby further amended by adding a
new chapter designated as Chapter II to read as follows:
"CHAPTER II
- Business development.
"CHAPTER III
"INCENTIVES TO EXPATRIATES
"The admission and stay shall be coterminous with the validity of the
multiple entry special visa. The stay, however, is extendible for three
years upon submission to the Bureau of Immigration of a sworn
certification by a responsible officer of the regional or area headquarters
or regional operating headquarters: that its license to operate remains
valid and subsisting and that the regional or area headquarters or
regional operating headquarters has withheld tax due on compensation
and the same has been paid to the Bureau of Internal Revenue.
"Art. 62. Tax and Duty Free Importation. - An alien executive of the
regional or area headquarters and regional operating headquarters of a
multinational company shall enjoy tax and duty free importation of
personal and household effects as provided for under Section 105(h) of
the Tariff and Customs Code, as amended, and Section 109(I) of the
National Internal Revenue Code, as amended: Provided, That the
personal and household effects shall arrive in the Philippines within
ninety (90) days before or after conversion of the alien executive's
admission category to multiple entry visa issued under this Act.
Section 6. Chapter III of the same Code is hereby amended and designated as
Chapter IV. Articles 63, 64, 65, 66 and 67 are hereby amended to read as
follows:
"CHAPTER IV
"Art. 66. Exemption From All Kinds of Local Taxes, Fees, or Charges. - The
regional or area headquarters and regional operating headquarters of
multinational companies shall be exempt from all kinds of local taxes,
fees, or charges imposed by a local government unit except real property
tax on land improvements and equipment.
"Art. 67. Tax and Duty Free Importation of Training Materials and
Equipment; Importation of Motor Vehicles. - Regional or area headquarters
and regional operating headquarters shall enjoy tax and duty free
importation of equipment and materials for training and conferences
which are needed and used solely for their functions as regional or area
headquarters or regional operating headquarters and which are not
locally available subject to the prior approval of the Board of
Investments.
"BOOK IV
"INCENTIVES TO MULTINATIONAL COMPANIES ESTABLISHING REGIONAL
WAREHOUSES TO SUPPLY SPARE PARTS, COMPONENTS, SEMI-FINISHED
PRODUCTS AND RAW MATERIALS TO THE ASIA-PACIFIC REGION AND
OTHER FOREIGN MARKETS"
Section 7. Articles 68, 69, 70, 71 and 72 of the same Code are hereby
amended to read as follows:
"Art. 70. Exemption From the Maximum Storage Period Under the Tariff
and Customs Code; Period of Storage in the Regional Warehouse. - The
provision of the law in Section 1908 of the Tariff and Customs Code of
the Philippines, as amended, to the contrary notwithstanding, articles
duly entered for warehousing may remain in the regional warehouses for
a period of two (2) years from the time of their transfer to the regional
warehouse, which period may be extended with the approval of the Board
of Investments for an additional period of one (1) year upon payment of
the corresponding storage fee on the unexported articles, as provided for
under Article 68(4) for each extension until they are re-exported in
accordance with the guidelines implementing Book IV of this Code. Any
articles withdrawn, released or removed contrary to the provisions of said
guidelines shall be forfeited pursuant to the provisions of Article 69,
paragraph (b) hereof.
"Art. 71. Rules and Regulations on the Jurisdiction, Operation and Control
Over Qualified Goods in the Regional Warehouse. - The Board of
Investments, the PEZA, concerned ecozone authorities and the Bureau of
Customs shall jointly issue special rules and regulations on the
receiving, handling, custody, entry, examination, classifications, delivery,
storage, warehousing, manipulation and packaging, release for
reexportation or for importation and delivery to a Philippine distributor
and for the safekeeping, recording, inventory and liquidation of said
qualified goods, any existing law notwithstanding. Such rules and
regulations shall be formulated in consultation with the
applicants/operators of regional warehouses.
"The Board, the PEZA or concerned ecozone authorities, as the case may
be, shall have the authority to impose such fines in amounts that are
just and reasonable in cases of late submission or non-compliance on
the part of registered enterprises, with reporting and other requirements
under this Code and its implementing rules and regulations."
Section 11. Repealing Clause. - All laws, decrees, orders, rules and
regulations or issuances or parts thereof inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.
Section 12. Effectivity Clause. - This Act shall take effect after thirty (30)
days following its full publication in at least two (2) newspapers of general
circulation in the Philippines.
CHAPTER I
GENERAL PROVISIONS
Section 1. Short Title. - This Act shall be known as "The Tourism Act of
2009".
(e) Develop the country as a prime tourist hub in Asia, as well as a center
of world congresses and conventions, by promoting sustainable tourism
anchored principally on the country’s history, culture and natural
endowments, and ensuring the protection, preservation and promotion of
these resources; and
(a) Develop a national tourism action plan and work for its adoption and
implementation by national and local governments;
(c) All things being equal, grant preferential treatment to the employment
of Filipino nationals in tourism - related enterprises;
(h) Ensure the right of the people to a balanced and healthful ecology
through the promotion of activities geared towards environmental
protection, conservation and restoration;
Section 4. Definition of Terms. - The following terms, as used in this Act, are
defined as follows:
(c) "Duty Free Philippines (DFP)" refers to the government agency created
pursuant to Executive Order No. 46 (1986).
(i) "TEZ overseer" refers to any person who shall be appointed by the
TIEZA in specific zones to perform such functions as may be delegated by
the TIEZA in accordance with law. enterprise zones created pursuant to
this Act.
(q) "Primary tourism enterprises" refers to travel and tour services; land,
sea and air transport services exclusively for tourist use; accommodation
establishments; convention and exhibition organizers; tourism estate
management services; and such other enterprises as may be identified by
the Secretary, after due consultation with concerned sectors.
(r) "Secondary tourism enterprises" refers to all other tourism enterprises
not covered by the preceding subsection.
CHAPTER II
TOURISM GOVERNANCE
Section 6. Powers and Functions. - The Department shall have the following
powers and functions:
(a) Formulate tourism policies, plans and projects for the development of
tourism as an engine of socioeconomic and cultural growth;
(c) Call upon all agencies of government to properly carry out their
programs in relation to and in coordination with the policies, plans and
projects of the Department and to assist in the implementation thereof;
(d) Communicate to the President, and the heads of departments,
agencies and instrumentalities of the government, the impact upon
tourism and the economy of proposed governmental actions;
(I) Formulate and promulgate, in consultation with the LGUs, the private
sector industries and other tourism stakeholders, rules and regulations
governing the operation and activities of all tourism enterprises
including, but not limited to, a national standard for licensing,
accreditation and classification of tourism enterprises, prescribing
therein minimum levels of operating quality and efficiency for their
operation in accordance with recognized international standards, impose
reasonable penalties for violation of accreditation policies and
recommend to the LGUs concerned the suspension or prohibition of
operation of a tourism enterprise;
(r) Collect necessary fees and charges for the proper implementation of
tourism policies, plans and projects; and
Section 9. Office of the Secretary. - The Office of the Secretary shall consist of
the Secretary and his or her immediate staff.
(a) Conceptualize and develop new products which will enhance tourism
sites and facilities;
(c) Encourage and promote joint undertakings with the private sector for
the development of new tourism - related products and programs.
(g) Provide technical assistance to the LGUs and the TIEZA in the
preparation of local tourism development plans to ensure adherence to
national policies and programs;
(h) Coordinate with government agencies, LGUs, NGOs and other private
entities for the development and implementation of the national tourism
plans and policies and other relevant concerns;
(i) Source grants or loans from local and foreign funding institutions to
implement tourism policies, plans and projects;
(i) Create and supervise management information systems for the entire
Department;
(a) Formulate and enforce standards for the operation and maintenance
of tourism enterprises, prescribing minimum and progressive levels of
operating quality and efficiency consistent with local and international
standards;
(b) Call upon the assistance and support of any or all of the government
agencies in the implementation of the policies of the Department; and
Section 16. Office of Tourism Resource Generation. - In line with the objective
of ensuring a sustainable funding mechanism for the implementation of
tourism policies, plans, programs, projects and activities, the Office of Tourism
Resource Generation shall be tasked with the collection of necessary fees and
charges which shall be used by the Department in the promotion and
marketing efforts of the requiring governmental coordination. TPB and the
development of infrastructure facilities, utilities and services of the TIEZA. The
proceeds of such collection shall accrue directly and automatically to the
Department. The guidelines for the collection and disbursement of these
proceeds shall be defined in the implementing rules and regulations of this Act.
Section 17. Regional Offices. - The Department shall establish, operate and
maintain a regional office in each administrative region in the country. A
regional office, headed by a regional director, shall have the following functions:
(c) Undertake research and data gathering on local tourism trends and
other relevant tourism information;
(d) Together with LGUs, establish such tourist information and
assistance centers at strategic locations as are necessary to disseminate
relevant information pertaining to the tourist locations and products and
to assist tourists and tourism enterprises;
(e) Conduct trainings and information campaigns, and assist the TPB in
domestic promotions in the pertinent region on subject matters such as
this Act, the functions of the Department, tourism traffic and new
tourism sites, among others; and
Section 19. Office of Special Concerns. - The Office of Special Concerns shall
be responsible in effectively coordinating and monitoring the various directives,
pronouncements and issuances of the President pertaining to the priorities of
the government and the Department.
Section 22. Legal Affairs Service. - The Legal Affairs Service shall provide the
Department with staff advice and assistance on all legal matters affecting the
Department and perform such other related functions as may be assigned or
delegated to it by the Secretary.
Section 23. Internal Audit Service. - The Internal Audit Service shall be
responsible for instituting and conducting an audit program for the
Department to ensure compliance with17 existing rules and regulations for an
efficient and effective fiscal administration and performance of department
affairs.
Section 24. Legislative Liaison Unit. - The Legislative Liaison Unit shall
establish and maintain regular coordination and liaison with Congress,
monitor the passage of legislative measures that are in the Department’s
agenda, provide relevant information and technical support to Members of
Congress, and perform such other related functions as may be assigned or
delegated by the Secretary.
Section 28. Attached Agencies and Corporations. - The TPB, the TIEZA and the
DFPC shall be attached to the Department and shall be under the supervision
of the Secretary for program and policy coordination. Furthermore, the
following agencies and corporations shall be attached to the Department under
the supervision of the Secretary for program and policy coordination: the IA;
the National Parks Development Committee (NPDC), created under Executive
Order No. 30 (1963); the Nayong Pilipino Foundation (NPF), created under
Presidential Decree No. 37 (1972), as amended; the PRA; and the Philippine
Commission on Sports Scuba Diving (PCSSD). Except as hereinafter provided,
each of the attached agencies and corporations shall continue to operate under
their respective charters.
Section 29. Intramuros Administration, National Parks Development Committee
and Nayong Pilipino Foundation. - The Intramuros Administration, the National
Parks Development Committee and the Nayong Pilipino Foundation shall
continue to be attached to the Department and operate under their respective
charters. They may be authorized to operate TEZs, under the supervision of the
TIEZA, as provided under Chapters IV and V of this Act, within their respective
jurisdictions: Provided, That any restoration activity undertaken by the IA, the
NPDC or the NPF may be entitled to a tax deduction equivalent to the full cost
of the restoration activity directly incurred in accordance with the provisions of
the National Internal Revenue Code, as amended.
Section 32. Rationalization of Tourism Areas, Zones and Spots. - Any other area
specifically defined as a tourism area, zone or spot under any special or general
law, decree or presidential issuance shall, as far as practicable, be organized
into a TEZ under the provisions of this Act. With respect to tourism zones,
areas or spots not organized into TEZs, the Department, through appropriate
arrangements, may transfer control over the same or portions thereof, to
another agency or office of the government, or to a LGU. This shall only be
effected upon the submission by the latter, within a reasonable time, of
comprehensive development plans for the use, preservation and promotion of
these zones, areas or spots and upon the approval thereof by the Department.
Such transfer shall not have the effect of diminishing the jurisdiction of the
Department over these zones, areas or spots.
The Department shall exercise supervisory powers over such agency, office or
LGU in accordance with the terms of the transfer or the development plan of
the zone, area or spot. Where a government agency or office or a LGU fails to
implement the comprehensive plan approved by the Department, the
Department may rescind the arrangement transferring control over the tourism
zone, area or spot and regain such control thereof.
Section 33. National Integrated Protected Areas System (NIPAS) and the
National Ecotourism Policy. - The Department, in coordination with the
Department of Environment and Natural Resources (DENR), shall identify
areas covered by the NIPAS with ecotourism potentials and cultural heritage
value, and prepare policies, plans and programs for their development,
preservation, operation or conversion into TEZs. The designation of these areas
as TEZs shall be subject to the provisions of Subchapter IV - A of this Act.
Section 38. Reports. - In order to monitor the resources of the Department and
to ascertain the economic and social impact of tourism, all LGUs shall provide
an inventory of all the resources available to the Department for use in the
implementation of this Act. They shall likewise periodically report to the
Department on the status of tourism plans and programs, tourist arrivals and
tourism enterprises, among others, within their jurisdictions.
(c) Its registered owner or proprietor and the business address thereof;
and
(e) The statement that the advisory shall only be lifted upon continued
compliance of the enterprise with the terms of accreditation.
Tourism enterprises registered with the TIEZA in accordance with the pertinent
provisions below and availing of the incentives under this Act shall further be
ordered to pay back taxes in the amount equivalent to the difference23 between
the taxes that they should have paid had they not availed of the incentives
under this Act and the actual amount of taxes being paid by them under the
same incentive scheme. The back taxes to be collected shall be computed up to
three (3) years directly preceding the date of promulgation of the decision or
order finding that the tourism enterprise violated the terms of its accreditation.
For this purpose, the Department shall enlist the assistance of the Bureau of
Internal Revenue in arriving at an accurate computation of back taxes to be
paid by the pertinent tourism enterprise. The proceeds of these back taxes
shall be distributed as follows:
Nothing in this section shall diminish the powers of the LGUs under the Local
Government Code, pertaining to the issuance of business permits, licenses and
the like. When an enterprise fails to obtain or loses accreditation, the
Department shall not,$ the LGU concerned so that it may take appropriate
action in relation to an enterprise’s licenses and permits to operate.
The Department may, under such relevant terms and conditions stipulated,
delegate the enforcement of the system of accreditation to LGUs that have
adopted and successfully implemented their tourism development plans.
Section 46. Mandate. - The TPB shall be responsible for marketing and
promoting the Philippines domestically and internationally as a major global
tourism destination, highlighting the uniqueness and assisting the
development of its tourism products and services, with the end in view of
increasing tourist arrivals and tourism investment. Specifically, it shall market
the Philippines as a major convention destination in Asia. To this end, it shall
take charge of attracting, promoting, facilitating and servicing large - scale
events, international fairs and conventions, congresses, sports competitions,
expositions and the like. It shall likewise ensure the regular advertisement
abroad of the country‘s major tourism destinations and other tourism
products, not limited to TEZs. It may also provide incentives to travel agencies
abroad which are able to draw tourists and tourism investments to the
country.
Section 47. Board of Directors. - The TPB shall be governed and its powers
exercised by a Board of Directors ("Tourism Board), composed as follows:
The Secretaries ,of the DFA, the DTI and the DOTC shall each designate a
permanent representative in the Board, who must possess relevant experience.
The permanent representative shall be duly authorized to act on behalf of the
Secretary in his or her absence.
The Chairperson of the Tourism Board shall have voting rights in case of a tie.
The Tourism Board shall appoint a corporate secretary whose functions shall
include the preparation of agenda for board meetings, in consultation with the
Chairperson.
Section 48. The Chief Operating Officer. - The TPB shall have a Chief Operating
Officer who must be a Filipino, with a bachelor’s degree in any of the following
fields: business, law, tourism, public administration or other relevant fields
and have demonstrated expertise therein. He or she must have been engaged in
a managerial capacity for at least five (5) years prior to his or her appointment.
He or she shall be elected by the Board from a list of qualified applicants and27
appointed by the Secretary, and shall have a term of office of six (6) years,
unless removed for cause in accordance with law.
Section 50. Powers and Functions of the Tourism Promotions Board. - The TPB
shall have all the general powers of a corporation provided under the
Corporation Code. Furthermore, it shall have the following powers and
functions:
(a) Organize the TPB in a manner most efficient and economical for the
conduct of its business and the implementation of its mandate;
(c) Direct and coordinate the resources and efforts of the government and
the private sector in the tourism and allied fields for the full realization of
the tourism plans and programs;
(f) Contract loans, indebtedness and credit, and issue commercial papers
and bonds, in any local or convertible foreign currency from international
financial institutions, foreign government entities, and local or foreign
private commercial banks or similar institutions under terms and
conditions prescribed by law, rules and regulations:
(h) Receive donations, grants, bequests and assistance of all kinds from
local and foreign governments and private sectors and utilize the same;
(j) Obtain the services of local and foreign consultants, and enter into
contracts locally and abroad in the performance of its functions: and (k)
Perform all other powers and functions of a corporation.
Section 51. Meetings of the Board. - The Tourism Board shall meet at least
once a month at the principal office of the TPB, unless the Tourism Board
previously agrees in writing to meet at another location.
Section 52. Capitalization. - The TPB shall have an authorized capital of Two
hundred fifty million pesos (Php250,000,000.00) which shall be fully
subscribed by the national government.
Section 53. Strategic Marketing Plan. - The TPB shall draft comprehensive
short - , medium - and long - term marketing plans for the Philippines as a
destination for travel, business and investment, particularly tourism
investment. It shall coordinate, insofar as practicable, with relevant agencies of
the government and the private sector in the preparation of such plans.
Such plans shall be duly approved by the Tourism Board. The Chief Operating
Officer shall ensure that the marketing plans are duly implemented, and shall
periodically report to the Tourism Board the status of their implementation. He
or she shall also coordinate to ensure that the other agencies of the
government and the private sector which assisted in the preparation of
marketing plans perform their respective duties under the plans.
Section 54. Tourism Promotions Trust. - Within one hundred and twenty (120)
days from the effectivity of this Ad, an audit shall be conducted by the
Commission on Audit to determine the true value of the assets and liabilities of
the PTA. After such audit, the TIEZA and the Department, in coordination with
the Privatization Council, shall determine which assets shall be put up for sale
or lease: Provided, That concerned LGUs interested to manage and operate said
assets shall have the right of first refusal. The TIEZA and the Department shall
take into consideration the importance of maintaining and preserving the PTA
assets which may already be considered cultural treasures and heritage sites,
such as the Banaue Hotel and similar assets, which shall not be sold or in any
way disposed of and shall be placed under the ownership of the TIEZA for their
continued maintenance.
The Tourism Promotions Trust shall hereby be established from the proceeds of
the sale or lease of the assets of the PTA. The trust shall be managed by a
government - owned bank or financial institution selected by the Tourism
Board. Said bank or institution shall report the status and profitability of the
trust on a quarterly basis to the Tourism Board, the Secretary, and the Joint
Congressional Tourism Oversight Committee created under this Act.
Section 55. Tourism Promotions Fund. - The proceeds of the following shall be
placed in a special Tourism Promotions Fund to finance the activities of the
TPB:
(a) The investment earnings from the Tourism Promotions Trust;
(b) An appropriation from the national government of not less than Five
hundred million pesos (Php500,000,000.00) annually for at least five (5)
years from the time of its constitution;
(c) Seventy percent (70%) of the fifty percent (50%) net income of the
DFPC accruing to^ the Department, in lieu of its statutory remittance to
the national government under Republic Act No. 7656, otherwise known
as the Dividends Law of 1994;
(d) At least twenty - five percent (25%) of the fifty percent (50%) national
government share remitted by the Philippine Amusements and Gaming
Corporation (PAGCOR) to the National Treasury pursuant to Republic Act
No. 7656; and
(e) At least twenty - five percent (25%) of the national government share
remitted by the international airports and seaports to the National
Treasury pursuant to Republic Act No. 7656.
In no case shall promotions and marketing activities receive less than fifty
percent (50%) of the annual utilization of the fund. Not more than ten percent
(10%) of the fund shall be used for all other administrative and operating
expenses of the TPB. The unallocated portion of the fund shall be earmarked by
the TPB as follows:
(c) For such other purposes as may contribute to the development of the
tourism industry. Portions of the net income of government corporations
and other enterprises provided under this section due the TPB shall be
remitted directly thereto on a quarterly basis.
Section 56. Special Contingency and. - At the beginning of each year, ten
percent (10%) of the allocation for promotions and marketing shall be set aside
as a Special Contingency Fund of the TPB. This shall be used in the event of
emergencies to provide the TPB with sufficient resources to undertake
marketing and promotions activities that will encourage sustained tourism
interest in the Philippines and that will address the adverse effects of these
emergencies.
Section 57. Exemption From Payment of Corporate Income Tax. -
Notwithstanding any provision of existing laws, decrees, executive orders to the
contrary, the TPB shall be exempt from the payment of corporate income tax,
as provided under the National Internal Revenue Code (NIRC) of 1997, as
amended.
Section 58. Membership. - The TPB shall be open for membership to entities,
groups and individuals with economic, social or cultural interest in travel
trade, congresses and conventions
CHAPTER IV
TOURISM ENTERPRISE ZONES
Section 59. Tourism Enterprise Zones. - Any geographic area with the following
characteristics may be designated as a Tourism Enterprise Zone:
(a) The area is capable of being defined into one contiguous territory;
(d) It is sufficient in size, such that it may be further utilized for bringing
in new investments in tourism establishments and services; and
Section 60. Designation of TEZs. - The TIEZA shall designate TEZs, upon the
recommendation of any LGU qr private entity, or through joint ventures
between the public and the private sectors. Such designation shall be subject
to the provisions of this Act and to minimum requirements which the TIEZA
shall subsequently promulgate.
TEZs shall not proliferate in a manner that diminishes their strategic economic
and developmental value to the national economy.
(a) Tourism focal points and resources available within the proposed TEZ
and adjoining areas;
(b) Features which satisfy the requisites for the designation of a TEZ
enumerated under Section 59 of this Act;
(e) Studies on the economic impact of development within the TEZ and in
surrounding communities;
Lands identified as part of a TEZ shall qualify for exemption from the coverage
of Republic Act No. 7279, otherwise known as the Urban Development and
Housing Act of 1992, and Republic Act No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law, subject to rules and regulations to be
crafted by the TIEZA, the Housing and Urban Development Coordinating
Council and the Department of Agrarian Reform.
Section 62. Operation of TEZs. - The TEZ proponent shall establish a corporate
entity, to be known as the TEZ operator, which shall administer the TEZ and
supervise its activities. The designation of a TEZ does not vest ownership of the
resources therein upon the TEZ operator. Where the TEZ operator possesses
rights to land or other resources within the TEZ, the TEZ operator shall be
entitled to exercise such rights as allowed by existing laws in a manner
consistent with the duly - approved development plan as provided above.
Where rights to land and other resources within the TEZ are vested in a private
third party, the TEZ operator shall encourage the private third party to
participate in policy making, planning and program development and
implementation by encouraging its registration as a tourism enterprise where
appropriate, and through the judicious administration of incentives and
provision of services.
The government shall encourage, facilitate and provide incentives for private
sector participation in the construction and operation of public utilities and
infrastructure in the TEZs using any of the schemes allowed under Republic
Act No. 6957, as amended, otherwise known as the Build - Operate - and -
Transfer Law.
Section 63. The Tourism Infrastructure and Enterprise Zone Authority. - Under
the supervision of the Secretary and attached to the Department for purposes
of program and policy coordination shall be a body corporate known as the
Tourism Infrastructure and Enterprise Zone Authority (TIEZA).
Section 64. Mandate. - The TIEZA shall be a body corporate which shall
designate, regulate and supervise the TEZs established under this Act, as well
as develop, manage and supervise tourism infrastructure projects in the
country. It shall supervise and regulate the cultural, economic and
environmentally sustainable development of TEZs toward the primary objective
of encouraging investments therein. It shall ensure strict compliance of the
TEZ operator with the approved development plan. Pursuant thereto, the TIEZA
shall have the power to impose penalties for failure or refusal of the tourism
enterprises to comply with the approved development plan, which shall also be
considered a violation of the terms of accreditation. Such power shall further
be defined under the implementing rules and regulations of this Act.
The TIEZA shall continue to exercise functions previously exercised by the PTA
under Presidential Decree No. 564, unless otherwise inconsistent with the
other provisions of this Act. It shall however cease to operate the DFP.
In addition to its mandate to regulate and supervise TEZs, the TIEZA shall
likewise be deemed a government infrastructure corporation under the
provisions of Executive Order No. 292, otherwise known as the Administrative
Code of 1987.
Section 65. Board of Directors. - The TIEZA shall be governed and its powers
exercised by a Board of Directors ("TIEZA Board"), composed as follows:
The Secretaries of the DPWH, the DENR and the DILG shall each designate a
permanent representative in the Board, who must possess relevant experience.
The permanent representative shall be duly authorized to act on behalf of the
Secretary in his or her absence.
The Chairperson of the TIEZA Board shall have voting rights in case of a tie.
The TIEZA Board shall appoint a corporate secretary whose functions shall
include the preparation of agenda for board meetings, in consultation with the
Chairperson.
Section 66. The Chief Operating Officer. - The TIEZA shall have a Chief
Operating Officer who must be a Filipino, with a bachelor’s degree in any of the
following fields: business, law, tourism, public administration or other relevant
fields and have demonstrated expertise therein. He or she must have been
engaged in a managerial capacity for at least five (5) years prior to his or her
appointment. He or she shall be elected by the Board from a list of qualified
applicants and appointed by the Secretary, and shall have a term of office of six
(6) years, unless removed for cause in accordance with law.
Section 68. Meetings of the Board. - The TIEZA Board shall meet at least once
a month at the principal office of the TIEZA, unless the TIEZA Board previously
agreed in writing to meet at another location.
Section 69. General Powers and Functions of the TIEZA Board. - The TIEZA
Board shall have the general powers of a corporation as provided under the
Corporation Code. Furthermore, it shall also have the following powers:
(a) Organize the TIEZA in a manner most efficient and economical for the
conduct of its business and the implementation of its mandate;
(c) Enter into, make, perform and carry out contracts of every class, kind
and description which are necessary or incidental to the realization of its
purposes with any person, firm or corporation, private or public, and
with foreign government entities;
(i) Receive donations, grants, bequests and assistance of all kinds from
local and foreign governments and private sectors and utilize the same;
(j) Exercise eminent domain and police power, including, but not limited
to, the power to recommend to the Department the removal of structures
which may be considered nuisances per se or which impede or impair the
enjoyment of historical, cultural and natural endowments;
(k) Coordinate with LGUs and other government agencies for the
provision of basic services, utilities and infrastructure required by TEZs;
(l) Review and approve proposals for the designation of TEZs based on
the criteria provided herein, and approve, facilitate and assist in the
organization of TEZ operators;
(m) Regulate and supervise the operations of TEZ operators, review and
ensure compliance with the development plans, and establish and
implement other policies, plans and programs for the development and
operation of TEZs;
(b) Coordinate with the Philippine National Police and other concerned
agencies of government for the maintenance of peace and order within
the TEZs;
(c) Ensure that all revenues of the TEZs are collected and applied in
accordance with law;
(d) Submit to the Board the ongoing and proposed projects, work and
financial programs, annual budget of receipts and expenditures of the
TEZs;
(i) Coordinate with the TPB for the promotion of tourism and the
encouragement of investments in TEZs; and
(j) Exercise such other powers and functions as are necessary to the
implementation of this Act.
Section 71. Capitalization. - The TIEZA shall have an authorized capital of Two
hundred fifty million pesos (Php250,000,000.00) which shall be fully
subscribed by the national government.
Section 72. Funding. - The TIEZA shall obtain the funds for its operations from
the following:
(a) Fifty percent (50%) of the proceeds from travel tax collections;
(d) Subsidies or grants from local and foreign sources that may be
received by the TIEZA.
At least five percent (5%) from the travel tax collection which shall accrue to
the TIEZA shall be earmarked for the development of historic, cultural,
religious and heritage sites and prime tourist destinations. Another five percent
(6%) shall be earmarked for the development of ecotourism sites in depressed
provinces with strong tourism potentials.
Section 73. Collection and Allocation of Travel Taxes. - For purposes of this
Act, the TIEZA shall be the principal agency responsible for the timely
collection of travel taxes.
Pursuant to Section 72 of this Act, fifty percent (50%) of the proceeds from
travel tax collections shall accrue to the TIEZA.
Section 76. Registration. - Tourism enterprises within a TEZ shall register with
the TIEZA to avail of incentives and benefits provided for in this Act.
Section 77. One - Stop Shop Processing. - The TIEZA shall establish offices
where prospective TEZ investors can register to obtain the incentives and
benefits under this Act and all necessary permits and licenses from all national
and local government offices. All government agencies shall coordinate with the
TIEZA for the issuance of such permits and licenses. The TlEZA shall collect
fees necessary for the issuance of these permits and licenses.
Section 81. Boards of Directors and Consultative Bodies of TEZ Operators. - The
seats of the Board of Directors of a TEZ operator shall be allocated pro - rata
according to the respective capital contributions of the TEZ operator’s
shareholders.
TEZ operators are encouraged to reserve seats on their Boards of Directors for
relevant interest groups, such as those representing environmental, religious,
cultural, TEZ investors’, TEZ residents’ and other interests. In ally case, TEZ
operators may form consultative bodies for such special interest groups to
assist them in the formulation and implementation of policies, plans and
projects.
Section 82. TEZ Administrator. - The Board of Directors of each TEZ operator
shall appoint its TEZ Administrator, who shall be responsible for implementing
the policies, plans and projects of the TEZ operator's Board of Directors. The
TIEZA shall provide guidelines on the necessary educational and practical
qualifications required of a TEZ Administrator. In addition to such
qualifications, all TEZ Administrators must undergo and pass a training
program of the Department to provide TEZ Administrators with knowledge and
skills relevant to the operation of the TEZ.
Section 83. Civil Dispute Resolution. - The TIEZA shall establish a civil dispute
mediation office to effectively and efficiently resolve civil disputes concerning
tourism enterprises and/or tourism - related issues within a TEZ where at
least one of the parties to the dispute was residing in the TEZ at the time the
dispute arose, and is still residing within the TEZ at the time the complaint is
filed with the mediation office. No civil dispute may be filed in court without
having undergone mediation proceedings as provided under this section except
in extraordinary cases where a party may suffer irreparable damage. The TIEZA
shall charge reasonable fees for civil dispute mediation. This provision is
without prejudice to the application of the rules pertaining to Katarungang
Pambarangay with respect to other matters.
CHAPTER V
INCENTIVES
The TIEZA shall further coordinate with the Bureau of Customs and the
Bureau of Internal Revenue in the preparation and enforcement of rules
and regulations to prevent the abuse of these incentives.
(b) The Department and the DTI shall promulgate rules and regulations
to govern the relationship between TEZs created under this Act, and
economic zones created under Republic Act No. 7227, otherwise known
as the Bases Conversion and Development Act of 1992, and Republic Act
No. 7916, as amended, otherwise known as the Special Economic Zone
Act of 1995, where an area comprising a TEZ overlaps, falls within or
encompasses that of an economic zone: Provided, That such rules and
regulations shall consider the special nature and requirements of
tourism in relation to other industries, establishments and operations in
economic zones. TEZs proclaimed as such prior to the passage of this Act
shall be transferred to the supervision of the TIEZA.
(c) The investment incentives offered under this Act shall be without
prejudice to availing other incentives provided under other laws, decrees
and presidential issuances. However, where such other laws, decrees or
presidential issuances provide for similar or identical incentive schemes,
the investor may only elect to avail of the scheme provided under one
particular law, decree or presidential issuance.
(3) One - third to the TIEZA for the funding of its operations and its
programs in the TEZs, which shall include the protection,
maintenance and enrichment of the environment, tangible cultural
and historical heritage, and the intangible cultural heritage of
communities within and surrounding the TEZs.
Gross income as used herein is defined under Section 27(A) of the NIRC,
and further defined under relevant rules and regulations.
(e) Goods and Services. Subject to rules and regulations which properly
define goods and services necessary for various kinds of tourism
enterprises, registered enterprises shall be entitled to the following: (1)
Importation of goods actually consumed in the course of services actually
rendered by or through registered enterprises within a TEZ shall enjoy
one hundred percent (100%) exemption from all taxes and customs
duties: Provided, however, That no goods shall be imported for the
purpose of operating a wholesale or retail establishment in competition
with the DFPC; and
Section 87. Non - fiscal Incentives Available to TEZ Operators and Registered
Tourism Enterprises. - The following incentives may, in the discretion of the
TIEZA Board, be granted to registered tourism enterprises within TEZs:
(3) Foreign Loans and Contracts. The right to remit at the exchange
rate prevailing at the time of remittance such sums as may be
necessary to meet the payments of interest and principal on foreign
loans and foreign obligations arising from technological assistance
contracts.
(a) Upon compliance with the requirements provided by law, they shall be
entitled to avail of any economic incentives found under existing laws,
such as Executive Order No. 226 (1987), otherwise known as the
Omnibus Investments Code; Republic Act No. 7042, as amended by
Republic Act No. 8179, otherwise known as the Foreign Investments Act;
the Special Economic Zone Act; and the Bases Conversion and
Development Act, among others, subject to the last paragraph of Section
86(a), at the option of the said enterprises.
(3) The income tax holiday provided under Section 39.1 of the
Omnibus Investments Code shall also apply to existing
accommodation enterprises undergoing substantial capital
infusion for expansion or substantial upgrade of facilities; and
(e) The incentives offered under this Act shall be without prejudice to the
availment of other incentives provided under other laws, such as, but not
limited to, those concerning infrastructure, or micro - , small - and
medium enterprises. However, where such laws provide for similar
incentive schemes as those contained herein, the investor may elect to
avail of the scheme provided only under one particular law, decree or
issuance.
CHAPTER VI
DUTY AND TAX - FREE MERCHANDISING SYSTEM FOR TOURISM
PURPOSES
Section 89. Duty Free Philippines Corporation. - The Duty Free Philippines
shall be reorganized to become the Duty Free Philippines Corporation (DFPC),
which shall be attached to the Department.
Section 90. Mandate. - The DFPC shall be a body corporate to operate the
duty - and tax - free merchandising system in the Philippines to augment the
service facilities for tourists and to generate foreign exchange and revenue for
the government, as established by the Department under Executive Order No.
46.
In the performance of its functions, the DFPC shall have all the general powers
of a corporation established under the Corporation Code, in furtherance of its
charter.
The DFPC shall have the exclusive authority to operate or franchise out stores
and shops that would sell, among others, duty. and tax - free merchandise,
goods and articles, in international airports and seaports, and in TEZs and
ports of entry throughout the country in a manner that
Such merchandise, goods and articles shall only be sold to persons departing
for abroad. Under such limitations, rules and regulations that may be provided
by the Department and in consultation with the Department of Finance (DOF),
such merchandise, goods and articles may be sold to passengers arriving into
the Philippines from abroad, including those covered by the existing
Balikbayan Program, under Republic Act No. 6768, as amended.
The DFPC shall likewise be authorized to operate stores and shops within the
immediate vicinity of international airports and seaports to service the
requirements of the international duty - free market.
The DFPC shall operate without prejudice to any privatization in the future,
subject to existing laws on privatization and procedures on public bidding.
Section 91. The DFPC Board of Directors. - The DFPC shall be governed by a
Board of Directors, composed as follows:
The Secretaries of the DOF and the DTI shall each designate a permanent
representative in the Board, who must possess relevant experience. The
permanent representative shall be duly authorized to act on behalf of the
Secretary in his or her absence.
The Chairperson of the DFPC Board shall have voting rights in case of a tie.
The DFPC Board shall appoint a corporate secretary whose functions shall
include the preparation of agenda for board meetings, in consultation with the
Chairperson.
Section 92. The Chief Operating Officer. - The DFPC shall have a Chief
Operating Officer who must be a Filipino, with a bachelor's degree in any of the
following fields: business, law, tourism, public administration or other relevant
fields and have demonstrated expertise therein. He or she must have been
engaged in a managerial capacity for at least five (5) years prior to his or her
appointment. He or she shall be elected by the Board from a list of qualified
applicants and appointed by the Secretary, and shall have a term of office of six
(6) years, unless removed for cause in accordance with law.
Section 93. Capitalization and Funding. - The DFPC shall have an authorized
capitalization of Five hundred million pesos (Php500,000,000.00) which shall
be fully subscribed by the national government. A minimum of fifty percent
(50%) of the annual net profits of the DFPC shall be remitted automatically to
the Office of the Secretary to fund tourism programs and projects, in lieu of its
statutory remittance to the national government under Republic Act No. 7656,
seventy percent (70%) of which shall be given to the TPB.
Section 94. General Powers and Functions of the DFPC. - The DFPC Board
shall have the power to sue and be sued; to contract and be contracted with; to
own and hold such real and personal property as shall be necessary for
corporate purposes; to receive real and personal property by gift, devise or
bequest: to adopt a seal and alter the same; to adopt bylaws, rules and
regulations; to exercise all the general powers of a corporation under the
Corporation Code; and to perform all such acts as may be necessary to carry
out this section.
Section 95. Duty and Tax Exemptions. - Consistent with the nature of its
operations and primary function to operate as a tax - and duty - free
merchandising system, and to enable it to compete in the international tax -
and duty - free market, DPPC shall be entitled to exemption from the following:
(a) Duties and taxes, including excise and VAT, relative to the
importation of merchandise for sale;
CHAPTER VII
INCREASED TOURIST ACCESS
(a) The Secretary shall be the ex officio Vice Chairperson of the Civil
Aviation Board;
(d) The Secretary shall be a member of the Civil Aviation Authority of the
Philippines Board.
Section 97. Visas. - The Department, the DFA and the Department of Justice
shall develop a system of granting visas that encourages the arrival and longer
stay of tourists in the Philippines.
CHAPTER VIII
CREATING A CULTURE OF TOURISM
Section 98. Tourism Coordinating Council. - A council that shall serve as a
coordinating body for national tourism development efforts shall be formed,
consisting of the Secretary, as Chairperson; the TPB Chief Operating Officer;
the TIEZA Chief Operating .Officer; the heads of other agencies attached to the
Department; the Secretaries of the DOTC, the DPWH, the DFA, the DENR, the
DILG, the DOLE and the Department of Education (DepEd); and the heads of
the Philippine National Police (PNP), the BI, the National Historical Institute,
the National Commission for Culture and the Arts, the PAGCOR, the leagues of
LGUs and such other government agencies that the President may designate; a
representative each from the Tourism Congress, an accredited NGO or PO
engaged in ecotourism, and a recognized indigenous people’s federation.
The Council shall prepare a five (5) - year strategic plan to develop and enhance
a culture of tourism. It shall also approve an annual infrastructure
development plan that shall promote access to and from airports and seaports,
and TEZ and other tourism destinations which shall be accorded priority by
the relevant infrastructure agencies of the national government.
Section 99. Education. - The Department shall work closely with the DepEd for
the development of basic education programs - formal, informal and non -
formal learning systems and interventions - for in - school and out - of - school
youth in the promotion of a cultwe of tourism through the development and
integration of tourism concepts and the enhancement of education in
languages, history and culture and the arts.
The Department shall also work closely with the CHED in the regulation of
colleges and universities that grant undergraduate and postgraduate degrees in
tourism.
Section 100. Peace and Order. - The PNP shall establish a Tourism Security
Force to assist in maintaining peace and order within areas of high tourism
traffic. A tourist police assistance desk office shall likewise be established in
such areas. The Department shall coordinate with the DILG in training the
members of the force in cultural sensitivity, languages and relevant laws.
The Secretary shall report to the Oversight Committee on a monthly basis the
latest statistics on tourist arrivals and other relevant data. He or she shall also
report, on a quarterly basis, the status of implementation of this Act based on
the monthly report submitted thereto by all attached agencies of the
Department with respect to the implementation of their respective programs.
Section 104. The Tourism Congress. - Within thirty (30) days from the
publication of the implementing rules and regulations of this Act, the Secretary
shall convene a Tourism Congress of representatives of all accredited tourism
enterprises and former government officials involved in the tourism industry to
serve as the private sector consultative body to assist the government in the
development, implementation and coordination of Philippine tourism policy.
The Tourism Congress shall adopt and ratify its constitution, shall elect its
officers and shall establish a secretariat, both for the Tourism Congress as a
whole and for component sectors. It shall also nominate such representatives
as required under this Act. Finally, it shall endeavor to meet annually to carry
out its mandate.
CHAPTER IX
MISCELLANEOUS PROVISIONS
The budgets of the TPB, the TIEZA and the DFPC reported to the Oversight
Committee shall contain detailed information on the compensation and
benefits received by their employees.
As such, all offices under the Department and all attached agencies affected by
the provisions of this Act shall continue to function under their present
mandates until transition is effected as provided for under this Act.
All officers currently serving in the PCVC, the PTA and the DFP Boards shall
continue to serve the unexpired portion of the term of the position in the
Boards of the TPB, the TIEZA and the DFPC, respectively.
The heads of the agencies shall continue to serve until replaced as provided for
under this Act.
Section 110. Transfer of Rights and Liabilities. - The TPB, the TIEZA and the
DFPC shall, by virtue of this Act, be subrogated to all rights and assume all
liabilities of the PCVC, the PTA and the DFP, respectively, in accordance with
pertinent laws, rules and regulations.
Section 111. Repealing Clause. - The provisions of Executive Order No. 120
(Reorganizing the Ministry of Tourism, Defining its Powers and Functions and
for Other Purposes); Executive Order No. 292, as amended (The Administrative
Code of 1987); Presidential Decree No. 189, as amended, (Creating the
Philippine Tourism Authority); Presidential Decree No. 1448, as amended,
(Creating the Philippine Convention and Visitors Corporation); Executive Order
No. 46 (Granting the Department of Tourism, Through the Philippine Tourism
Authority, Authority to Establish and Operate a Duty - and Tax - Free
Merchandising System); Executive Order No. 30 (Creating an Executive
Committee for the Development of Quezon Memorial, Luneta and Other
National Parks); Presidential Decree No. 37 (Creating the Nayong Pilipino
Foundation); Presidential Decree No. 1616 (Creating the Intramuros
Administration); Presidential Decree No. 442, as amended (Labor Code);
Republic Act No. 7160 (The Local Government Code); Republic Act No. 7722
(Creating the Commission on Higher Education); Republic Act No. 9497
(Creating the Civil Aviation Authority of the Philippines); and all other laws,
presidential decrees, executive orders, proclamations and administrative
regulations inconsistent with the provisions of this Act are hereby amended,
modified, superseded or repealed accordingly.
Section 112. Separability Clause. - In the event that any provision of this Act
or parts thereof be declared unconstitutional, such declaration shall not affect
the validity of the other provisions.
Section 113. Effectivity Clause. - This Act shall take effect thirty (30) days after
its publication in the Official Gazette or in at least two (2) newspapers of
national circulation.