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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

HOUSE BILL No. 7201

Introduced by Representative ZALDY “JECOY” S. VILLA

AN ACT
ESTABLISHING THE SIQUIJOR SPECIAL ECONOMIC ZONE IN THE
MUNICIPALITY OF MARIA, PROVINCE OF SIQUIJOR, CREATING FOR THE
PURPOSE THE SIQUIJOR SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

EXPLANATORY NOTE

This measure seeks for the establishment of the Siquijor Special Economic Zone (“SEZ”)
in the Municipality of Maria, Province of Siquijor. It is worthy to note that there has been
a steady decrease of poverty incidence in the Province of Siquijor. However, in 2022 the
poverty incidence among families is 2.2%', There is also a steady increase in Consumer
Price Index and Inflation Rate’, The National Economic and Development Authority
noted that among the provinces in the region, the Province of Siquijor is the only one
classified as a 5" class province, It bears emphasis, that the key drivers of growth in the
region, among others, are Business Process Outsourcing, Tourism, Retail and Trade as
well as Real Estate and Construction*

The establishment of SEZ in the Province of Siquijor not only addresses above-
mentioned negative statistics but the actual effect to the constituents and nearby regions
is undeniably beneficial in more ways than one. If not totally cradicating poverty, but
with the view and objective of limiting poverty at levels that the Province can adequately
manage is a feat that most strive for. Through the establishment of SEZ, the drivers of
growth will be fueled and redound to the benefit again by the constituents and nearby
regions.

Similar to other economic zones previously established, SEZ will be a great tool for
ensuring progress and sustainable development in the Province of Siquijor.

* Philippine Statistics Authority, Quickstat December 2022.

Ibid.

* https://nro7.neda.gov.ph/wp-content/uploads/2021/11/Briefer-Central-Visayas-as-of-May-7-2020-1.pdf
Ibid,


In view of the foregoing, the passage of this measure is earnestly sought.

ZALI ™ S. VILLA


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

Nineteenth Congress
First Regular Session

HOUSE BILL No, 7201

Introduced by Representative ZALDY “JECOY” S, VILLA

AN ACT
ESTABLISHING THE SIQUIJOR SPECIAL ECONOMIC ZONE IN THE
MUNICIPALITY OF MARIA, PROVINCE OF SIQUIJOR, CREATING FOR THE
PURPOSE THE SIQUIJOR SPECIAL ECONOMIC ZONE AUTHORITY,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in the congress
assembled:

SECTION 1. Short Title. - This Act shall be known as the “Siquijor Special Economic
Zone”.

SECTION 2. Declaration of Policy. - It is hereby declared the State policy to actively
encourage, promote, induce and accelerate a sound and balance industrial, economic and
social development of the country in order to provide jobs to the people especially those
in rural areas, increase productivity and individual and family income, and thereby
improved the level and quality of living condition through the establishment, among
others, of special economic zone in suitable and strategic locations in the country and
through measures that will attract legitimate and productive foreign investments.

SECTION 3. Creation of Siquijor Special F-conomic Zone. In pursuit of the foregoing
declared policy, there is hereby established a special economic zone in the Province of
Siquijor, which shall be referred hereinafter as the “SEZ.”

‘The SEZ may cover the land territories in the Province of Siquijor comprising an area of
approximately 110 hectares. The “SEZ main zone’ shall be located in the Municipality of
Siquijor, Province of Siquijor. Other expansion areas may be established within the Province
of Siquijor which may be declared as part of the SEZ in compliance with Sec 4(G) of this Act,
including all municipal waters within the SEZ main zone and of the expansion areas located
at the coastline of the Province of Siquijor (the “other SEZ zones’)

‘The metes and bounds of the SEZ main zone, and the other SEZ zones, which will be fenced
and include the establishment of an administrative office for ease of customs administration
and border control, shall be determined based on the technical description and coordinates
verified and approved by the Land Management Bureau, the National Mapping and Resource
Information Authority, and other government agencies as may be provided by pertinent law.


Prospective developers and locators may choose to register with the SEZ, PEZA or such other
investment promotion agency: Provided, That in no case shall a registered enterprise enjoy
incentives from two (2) or more investment promotion agencies: Provided, further, That in no
case shall a SEZ-registered enterprise be located within an ecozone administered and managed
by another investment promotion agency.

SECTION 4. Governing Principles. — The Siquijor Special Economic Zone shall be
managed and operated by the Siquijor Special Economic Zone Authority, herein referred
to as “SEZA,” created under Section 13 of this Act, under the following principles:

A. Within the framework and limitations of the Constitution and applicable
provisions of the Local Government Code, the SEZ shall be developed into
and operated as the decentralized, self-reliant and self-sustaining industrial,
commercial/trading, research and development, engineering, medical,
education, information and communications technology including
emerging and future technologies such as artificial technology, blockchain,
business process outsourcing, cloud computing, cybersecurity, distributed
ledger technology, financial technology solutions, internet of things, and
virtual reality, retirement, and healthcare services, agro-industrial, tourism,
banking financial, multinational trading and investment center with
provision for suitable residential areas;

B. Notwithstanding the autonomy provided in Section 4(A) of this Act, the SEZA.
shall continue to be provided by the National Government and or local
government with transportation, telecommunications, high-speed internet
cables and other facilities needed to attract legitimate and productive
investments, generate linkage with industries and employment opportunities
for the people of the Province of Siquijor and its neighboring provinces and
region. The SEZA shall also have priority and preferential access to such
National Government and or local government transportation and
telecommunications infrastructure, high-speed internet cables and other
facilities, and access to the SEZ shall be incorporated in the planning,
construction, and operation of such infrastructure or expansions: Provided,
That the autonomy and self-reliance of the SEZA shall not be hindrance to
assist and or partnerships with other units and instrumentalities of the
government: Provided, further, That no assistance or partnership shall be
construed as a waiver of the autonomy of the SEZA;

C. The SEZA may established mutually beneficial economic relations with
other entities or enterprises within the country or, subject t0 the
administrative guidance of the Department of Foreign Affairs (DFA), the
Philippine Economic Zone Authority (PEZA) and or the Department of
Trade and Industry (DTI), with foreign entities or enterprises;

D. Foreign citizens and companies owned by non-Filipinos in whatever proportion
may set up enterprises in the SEZA, either by themselves or in joint venture with
Filipinos in any sector of industry, international trade and commerce within the
territorial jurisdiction of the SEZA as provided in Section 3 of this Act:
Provided, That the SEZA may inquire a minimum investment in freely
convertible currencies from any enterprise seeking registration as a SEZ
enterprise;


E. The SEZ shall be managed and operated as a separate custom territory thereby
ensuring the free flow or movement of goods and capital within, into and out of
its territory; Provided, That in accordance with Section 301 and 817 of the
Republic Act No. 10863, the Bureau of Customs (BOC) shall continue to
exercise border protection and customs control authority over the customs
territory adjacent to the SEZ: Provided, further, That the SEZA shall allow
patrol and other law enforcement arrangement by the BOC and other
government agencies within the municipal waters covered by the other SEZA
zones, subject to coordination with the SEZA to enhance its protection and
control capacity and ensure compliance with customs, fisheries and other laws
and regulations;

F. The SEZA shall provide incentives such as tax and duty-free importation of raw
materials, capital and equipment to registered enterprises located therein.
However, exportation or removal of goods from the territory of the SEZ to other
parts of the Philippine territory shall be subject to customs duties and taxes
under the Tariff and Customs Codes of the Philippines, as amended, the National
Internal Revenue Code (NIRC) of 1997, as amended and Corporate
Recovery and Tax Incentives for Enterprises Law;

G. The areas comprising the SEZ may be expanded or reduced when necessary.
For this purpose, the SEZA, with the concurrence of the appropriate and affected
local government units (LGUs) and the agreement of appropriate national
government agencies, government owned and controlled corporations and
instrumentalities, and the approval of the SEZA Board in accordance and in
compliance with existing laws and local ordinances, shall have the power to
acquire, procure and or expand either by purchase, negotiation, condemnation
proceedings, or any other arrangement, any private or alienable and disposable
public lands and or their respective water territories within the territorial
jurisdiction of the Province of Siquijor, if any, for the following purposes: (1)
consolidation of lands for SEZ development and establishment of new industrial
estates and economic zones under the SEZ; (2) acquisition of right-of-way to
the SEZ; and (3) the protection and safeguard of watershed areas and the
maintenance and improvement of its water yield and natural assets valuable to
the prosperity of the SEZ, the LGU, and the National Government, the effective
management of solid waste in compliance with existing national laws and local
ordinances, and its impact to adjacent areas within the local government
concerned: Provided, That any expansion shall be aligned with the
comprehensive land use plan of the affected LGUs: Provided, further, That the
SEZA and the relevant LGUs and national government agencies shall provide
for the immediate and responsive mechanisms, best management practices and
suitable environmental protection programs for land and coastal management to
address any abuse and or exploitation of the natural environment within the
territorial jurisdiction of SEZ as provided in Section 3 of this Act;

H. Goods manufactured by SEZ enterprises shall be made available for immediate
retail sale in the domestic market, subject to the payment of corresponding taxes
on raw-materials and other regulations that may be formulated by the SEZA,
together with PEZA, the Banko Sentral ng Pilipinas (BSP), the Department of


Finance (DOF), the BOC and DTI in accordance with NIRC of 1997, as
amended, and the Tariff and Customs Code of the Philippines, as amended:
Provided, That the value of the goods at the time of importation shall be the
basis in determining the appropriate duties and taxes: Provided, further, That
the cooperation with the SEZA, the foregoing agencies shall provide and
implement measures to support the improvement of ease and cost of doing
business within the SEZ and the enhancement of the investment promotion
capacity of the SEZA. In order to protect domestic industries, a negative list of
industries shall be drawn up and regularly updated by the SEZA. Enterprises
engaged in industries included in such negative list shall not be allowed to sell
their products locally, notwithstanding the registration of such enterprises in the
SEZ; and

I. The defense of SEZ and the security of its perimeter fence shall be the
responsibility of the National Government in coordination with the SEZA and
the LGUs. The SEZA shall provide its own internal security and firefighting
forces.

SECTION 5. Fiscal Incentives. ~ The registered enterprises operating within the SEZ may be
entitled to the existing pertinent fiscal incentives as provided for under Republic Act No. 7916,
as amended by Republic Act No. 8748, also known as “Special Economic Zone Act of 1995”,
those provided under Executive order No. 226, as amended, otherwise known as the “Omnibus
Investment Code of 1987.”, and Republic Act No. 11534, otherwise known as the “Corporate
Recovery and Tax Incentives for Enterprises” (CREATE) Law.

SECTION 6, Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned. —
No taxes, local and national, shall be imposed on registered business establishments
operating within the SEZ. In lieu thereof, and subject to Section 10 of this Act, said

business establishments shall pay a five percent (5%) final tax on their gross income
earned in the following percentages:

a) One per centum (1%) to the National Government;

b) One per centum (1%) to the Province of Siquijor;

c) One per centum (1%) to the host municipality; and

d) Two per centum (2%) to the SEZA;
SECTION 7. Incentives to Investors. — Any foreign national who invest an amount of One
Hundred Thousand US dollars (US$100,000.00), either in cash and or equipment, in a
registered enterprise shall be entitled to an investor’s visa: Provided, That he has the
following qualifications:

(A) He is at least eighteen (18) years of age;

(B) He has not been convicted of a crime involving moral turpitude;

(C) He is not afflicted with any loathsome, dangerous or contagious disease;
and


(D) He has not been institutionalized for any mental disorder or disability

As holder of investor's visa, an alien shall be entitled to reside in the Philippines while his
investment subsists. For this purpose, he should submit an annual report, in the form duly
prescribed for the purpose, to prove that he has maintained his investment in the country

Should said alien withdraw his investments from the Philippines, then the investor's visa
issued to him shall automatically expire.

SECTION 8. Administration, Implementation and Monitoring of Incentives. ~ For the proper
administration, implementation and monitoring of tax incentives provided under this law, the
following are herein mandated:

(a) The SEZA_ shall be responsible for the administration and
implementation of the incentives granted to its respective registered
enterprises. Among others, it shall adopt and implement systems and
procedures affecting trade and customs policies. The BOC shall set up
and established a customs controlled area outside the gate of the SEZ to
facilitate payment of taxes on goods entering the Philippine customs
territory; and

(b) The SEZA shall likewise submit to DOF its annual tax expenditures
based on the tax incentives granted to its registered enterprises. The
DOF, for its part, shall create a single database of all incentives provided
by the governing authority. The DOF shall monitor the incentives
granted and submit all annual reports to the President:

SECTION 9. Extension of Period of Availment. - The availment period of the incentives
provided herein may be extended by SEZA, in the event that the registered enterprise has
suffered operational force majeure that has impaired its viability or any event equivalent
thereto,

SECTION 10. Duration of Incentives. - Enterprises registered with SEZA may enjoy the
income tax holiday (ITH) or the net operating loss carryover (NOLCO) granted by the
Authority prior to the availment of the five percent (5%) Gross Income Earned (GIE). Fiscal
incentives under this Act shall be terminated after cumulative period of twenty (20) years from
date of registration or start of commercial operation, whichever is applicable, except that it
could be extended with regard to the industries deemed indispensable to national development.
The industries exempted from this provision shall be determined by the SEZA.

SECTION 11. Online Gaming Centers within SEZ. ~ The SEZ will be open for hosting online
gaming centers and establishments, with the end in view of facilitating the rapid economic
development of the province and its neighboring areas. In coordination with concerned LGUs,
the Department of Information and Communications Technology (DICT) and other relevant
government agencies, the establishment of high-speed internet cables, the adequate number of
cell sites and other facilities and infrastructures necessary to support the satisfactory
performance of this online gaming centers will be introduced with the SEZ.

Prospective online gaming centers must first register with and be granted accreditation by the
SEZA before they are given the license to operate within the SEZ. Qualified and SEZ-


registered online gaming centers will enjoy the same incentives and benefits as provided above
qualified and SEZA-registered enterprises.

SECTION 12. Technology Hub for Start-Ups within SEZ, - To support job creation,
technological buildup and startup development, the SEZ will be home to enterprise
technological start-ups which shall be catered and nurtured inside the SEZ technological hub.
In coordination with PEZA, DTI and other concerned agencies, the SEZ will be a distinct
ecozone that is at the forefront of accepting and housing start-up technological businesses.
These businesses will be nurtured until they are well-developed into productive and
commercial enterprises.

Prospective technological start-ups must first register and be granted accreditation by the
SEZA before they are given the license to operate within the SEZ. Qualified and SEZA-
registered technological start-ups will enjoy the same incentives and benefits as provided
above to qualified and SEZA-registered enterprises.

Along with these benefits and incentives, these technological start-ups will gain access to the
One-Stop Shop envisioned under Section 36 of Republic Act No. 7916. This access to the
One-Stop Shop will promote ease of doing business inside the SEZ.

Pursuant to this mandate, a One-Stop Shop for Business Structure and Registration (“One-
Stop Shop”) will be established within the SEZ to assist and fast-track the registration and
framework finalization of prospective technological start-ups and other enterprises, Thus, the
One-Stop Shop will also serve all prospective online gaming centers which seek to operate
inside the SEZ, To ensure effective formation of this One-Stop Shop, all appropriate
government agencies that are involved in registering, licensing and issuing permits to investors
shall assign their representatives to the SEZ to attend to investors’ requirements. The SEZA
will supervise and assure that the One-Stop Shop consistently and effectively fulfills its
mandate.

SECTION 13. Creation of the Siquijor Special Economic Zone Authority. — There is hereby
created a body corporate to be known as the Siquijor Special Economic Zone Authority,
hereafter referred to as the “SEZA,” which shall mange and operate the SEZ, in accordance
with the provisions of this Act.

SECTION 14, Principal Office of the SEZA. ‘The SEZA shall maintain its principal office
in the Municipality of Maria, Province of Siquijor, but it may establish liaison offices within
the Philippines as may be necessary for the proper conduct of its business

SECTION 15. Powers and Functions of the SEZA. — The SEZA shall have the following
functions:

(a) To adopt, use a corporate seal, to contract, lease, buy, sell, acquire, own
and dispose properties of whatever nature;

(b) To sue and be sued in order to carry out its duties, responsibilities, privileges,
powers and functions as granted and provided for in this Act and to exercise
the power of eminent domain for public use and public purpose;

(c) To operate, administer, manage, develop, in accordance with Executive Order


(d)

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No. 525, as amended, the SEZ according to the principles and provisions set
forth in this Act and to coordinate with the LGUs for the development plans,
activities and operation of the SEZA;

To recommend to the President the issuance of a proclamation to fix and
delimit the site of the SEZ;

To register, regulate and supervise the enterprises in the SEZ in an efficient
and decentralized manner, subject to existing laws;

To coordinate with the LGUs and exercise general supervision over the
development plans, activities and operations of the SEZ;

To authorize or undertake, on its own or through others, and to regulate the
establishment, construction, operation and maintenance of public utilities,
services, and infrastructure in the SEZ such as shipping, barging, stevedoring,
cargo, handling, hauling, warehouse, storage of cargo, port services or
concessions, piers, wharves, bulkheads, bulk terminals, conveyors, water
supply and storage, sewerage, drainage, airport operations in coordination
with the Civil Aviation Authority of the Philippines (CAAP) and such other
services or concessions and infrastructures necessary or incident to the
accomplishment of the objectives of this Act. Provided, however, That the
private investors in the SEZ shall be given priority in the awarding of
contracts, franchises, licenses, or permits for the establishment, operation and
maintenance of utilities, services and infrastructures in the SEZ;

To license, set fees, regulate, and undertake the establishment, operation
and maintenance of utilities, other services, educational and medical
institutions and infrastructure in the SEZ such as, but not limited to, heat,
light and power, water supply, telecommunications, mobile, internet, and
other data facilities, transport, toll roads and bridges. port services, etc.,
and to fix just, reasonable and competitive rates, fares, charges and prices
thereof,

To construct, acquire, own, lease, operate and maintain on its own or through
contracts, franchises, licenses, bulk purchase from the private sector and
build-operate-transfer scheme, or under a joint venture with the private sector,
any or all of the public utilities and infrastructure required or needed for the
operation and development of the SEZ, including transportation, access and
connection to, and out of the SEZ, in coordination with appropriate national
and local government authorities and in conformity with applicable laws
thereon. For this purpose, the SEZA shall exercise the power of eminent
domain or private lands granted in paragraph (b) of this Section insofar as it
may be reasonably necessary, without prejudice to the execution of
agreements with public agencies, and subject to the limitations prescribed
therein and the observance of the prerequisites of taking of possession and the
determination and payment of just compensation in accordance with Republic
Act No. 10752, otherwise known as “The Right-of-Way Act,”

To operate on its own, either directly or through license to other tourism-
related activities, including games, amusements, recreational and sports
facilities, subject to the approval and supervision of the Philippine


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Amusement and Gaming Corporation (PAGCOR);

To raise or borrow, within the limitation provided by law, and subject to the
approval or opinion of the Monetary Board of the BSP, in accordance with
law, adequate and necessary funds from local and foreign sources, to finance
its projects and programs under this Act, and for that purpose, to issue bonds,
Promissory notes, and other forms of securities, and to secure the same by a
guarantee, pledge, mortgage, deed of trust, or an assignment of all or part of
its property or assets;

To exclusively enforce and administer the provisions of the National Building
Code of the Philippines and the Fire Code of the Philippines, as amended,
within the territorial jurisdiction of the SEZ: Provided, That the SEZA shall
be fully responsible and accountable for the enforcement and administration
of the National Building Code of the Philippines and the Fire Code of the
Philippines, as amended, within the SEZ.

The SEZA Administrator, or his official representative, shall function as the
SEZA building official, who shall issue all building permits and other related
Permits subject to the collection by the SEZA of the corresponding permit
fees: Provided, That the SEZA building official shall also be authorized to
require owners of houses, buildings, or other structures constructed without
the necessary SEZA permit/s, or those that are condemned and or abated by
the SEZA in accordance with the conditions set forth in the National Building
Code or Civil Code, as the case may be, whether constructed on public or
private lands, to remove or demolish such houses, buildings, or structures
within fifteen (15) days from receipt of notice. Upon failure of such owner to
remove or demolish such house, building, or structure within such period, the
SEZA may summarily cause its removal or demolition at the expense of the
‘owner and the occupants;

The SEZA may evict any person who refuses to vacate such premises in
accordance with Republic Act No. 7279, otherwise known as “Urban
Development and Housing Act of 1992,” and other existing laws. A
temporary or permanent relocation site shall be made available for qualified
individuals or families;

To provide security for the SEZ in coordination with the national and local
governments. For this purpose, the SEZA may establish and maintain its
security forces and firefighting capability or hire others to provide the same.
In the event that an assistance of the military force is necessary, it shall not
interfere in the internal affairs of the SEZ except to provide the necessary
security and defense, and their expenses shall be borne by the National
Government. To ensure the maintenance of law and order within the
boundaries of SEZ, including the conduct of police investigations, arrests,
search and seizure for violation of penal laws inside the SEZ, the Philippine
National Police (PNP) shall establish a police substation, if necessary, under
the supervision of the PNP Provincial Director, to be manned by such number
of personnel as will allow them to effectively and efficiently pursue its
mandate.

The SEZA shall also be authorized to install control gates at strategic points


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of the national roads within the SEZ, through which access into and departure
from the SEZ shall be fully controlled by the SEZA;

To protect, preserve, maintain and develop the forests, beaches, coral and
coral reefs, and maintain ecological balance within the SEZ. For this purpose,
the rules and regulations of the Department of Environment and Natural
Resources (DENR) and other government agencies involve in the above
functions shall be implemented by the SEZA: Provided, That the issuance,
enforcement and monitoring of environmental compliance certificates
(ECCS), tree cutting permits, foreshore leases and all other related permits
and clearances issued by the DENR and other government agencies shall be
under the exclusive control and jurisdiction of the SEZA;

To create, operate and/or contract to operate such functional units or offices
of the SEZA as it may deem necessary,

To issue certificates of origin for products manufactured or processed in the
SEZ;

To recommend the issuance of working visas renewable every three (3) years
to foreign executives and foreign technicians with highly specialized skills
which no Filipino possesses, subject to the issuance of the certification and
alien employment permit by the Department of Labor and Employment
(DOLE);

Subject to Republic Act. No. 7653, otherwise known as the “New Central
Bank Act,” other issuances of the BSP, Republic Act No. 8799, otherwise
known as the “Securities Regulations Code,” existing applicable laws, and
such other laws as may be required that are consistent with the objectives of
the SEZA, to act as an offshore financial center that engage in, or allow, any
or all international financial and business services, including banking,
offshore fund management, collective investment schemes, and
cryptocurrency mining, and provide the necessary and pertinent fiscal
incentives as provided for under Republic Act No. 7916, as amended by
Republic Act No, 8748, also known as “Special Economic Zone Act of 1995,”
and/or those provided under Executive Order No. 226, as amended, otherwise
known as “The Omnibus Investments Code of 1987.” Banks and financial
institutions engaged in quasi-banking functions to be established in the SEZ
shall be under the supervision of the BSP, and shall be subject to existing
banking laws, rules and regulations. Other financial institutions not engaged
in quasi-banking functions, and those engaged in collective investment
schemes and cryptocurrency mining withing the SEZ shall be under the
supervision of the Securities and Exchange Commission;

To issue special regulations for the benefit of particular industries designed
to improve ease of doing business, decrease cost of doing business, and lower
bureaucratic burdens of investing and doing business within the SEZ:
Provided, That such special regulations shall not be contrary to existing laws;

To endorse Special Resident Retiree’s Visas (SRRVs) for retirees that intend
to reside in the SEZ, in collaboration with the Philippine Retirement
Authority (PRA): Provided, That the PRA and the SEZA shall issue joint


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regulations on the processing of SRRVs in accordance with existing laws;

To establish, operate and maintain utilities, facilities, infrastructure, services,
businesses, activities, and concessions in the SEZ, pertaining to shipping and
maritime business and activities including stevedoring and port terminal
services or concessions: Provided, That the Maritime Industry Authority
(MARINA) shall continue to exercise its power to regulate and supervise the
shipbuilding and ship repair of any merchant marine vessel operated or to be
operated in the domestic trade and the domestic shipping industry within the
SEZ;

To establish and supervise one-stop shops for the issuance of all necessary
permits, clearances, licenses, and other similar certifications to conduct
activities, to improve ease of doing business within the SEZ, in coordination
with government agencies having jurisdiction over activities in the SEZ not
otherwise solely reserved to the SEZ in this Act: Provided, That all
government agencies are directed to provide and extend utmost and full
cooperation to the SEZA in the establishment of such one-stop shops;

To issue rules and regulations consistent with the provisions of this Act as
may be necessary to implement and accomplish the purposes, objectives and
policies provided herein;

To exercise such powers as may be essential, necessary or incidental to the
powers granted to it hereunder as well as those that shall enable it to carry
‘out, implement and accomplish the purposes, objectives and policies of this
Act; and

To be vested with other powers enjoyed or exercised by other freeport zone
authorities.

SECTION 16. Board of Directors of the SEZA. — The powers of the SEZA shall be vested
in and exercised by a Board of Directors, hereinafter referred to as the Board, which shall
be composed of the following:

(a)

(b)

The Chairman and Vice Chairman, both of whom shall be elected from
among the members of the Board;

The Administrator, who shall in no case be at the same time, the Chairman and
Vice Chairman;

(c) Members consisting of:

(J) To (2) representatives from the National Government;

(2) One (1) representative from the Province of Siquijor;

(3) One (1) representative from the district covering the site of the SEZ;

(4) One (1) representative from the Municipality of Maria, Province of
Siquijor;

(5) One (1) representative for the SEZA-registered domestic investors;

(6) One (1) representative from the SEZA-registered foreign investors;
and


(7) One (1) representative from the workers employed in the SEZ
Provided, That all members of the Board shall be Filipino citizens.

‘The Administrator and the members of the Board, shall be appointed by the President of the
Philippines to serve for a term of six (6) years, unless sooner separate from service due to
death, voluntary resignation and removal for cause. In case of death resignation or removal
for cause, the replacement shall serve on the unused portion of the term.

No person shall be appointed by the President of the Philippines as a member of the Board
unless he is a Filipino citizen, of good moral character, 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 from the field of management or public administration.

The members of the Board shall each receive per diem at rates to be determine by the
Department of Budget and Management (DBM) in accordance with existing rules and
regulations: Provided, however, That the total per diem collected each month shall not exceed
the equivalent per diem for four (4) meetings.

SECTION 17. Powers and Duties of the Administrator. ~ The powers of the SEZA shall
be vested in and exercised by a Board of Directors, hereinafter referred to as the Board,
which shall be composed of the following:

(a) To direct and manage the affairs of the SEZA in accordance with the
policies of the Board;

(b) To establish the internal organization of the SEZA under such conditions that
the Board may prescribe;

(c) To submit an annual budget and necessary supplementary budget to the Board
for its Board approval:

(d) To submit within thirty (30) days after the close of each fiscal year an annual
report to the Board and such other reports as may be required;

(e) To submit to the Board for its approval policies, systems, procedures, rules and
regulations that are essential to the operation of the SEZA;

(®) To create a mechanism in coordination with relevant agencies for the
promotion of industrial peace, the protection of the environment, and the
advancement of the quality of life in the SEZ; and

(g) To perform such other duties as may be assigned to him by the Board or which
are necessary or incidental to his office.

SECTION 18. Organization and Personal. ~The SEZA Board of Directors shall provide
for an organizational structure and appoint employees, subject to the Civil Service Law
Upon the recommendation of the Administrator, the Board shall appoint and fix the
remuneration and other emoluments of its officers and employees in accordance with
existing laws on compensation and position classification. Provided, That the salary and


other compensation of the Administration shall be comparable with the President and the
Chief Executive Officer of Clark Development Corporation: Provided, further, That the
Board shall exercise administrative supervision over their employees

The officers and employees of the SEZA, including all members of the Board, shall not
engage directly or indirectly in partisan activities nor take part in any election, except to
vote.

No officer or employee of the SEZA, subject to civil service laws and regulations, shall
be removed or suspended except for cause, as provided by law.

SECTION 19. Labor Center, Health and Housing.

(a) A labor center shall be established within the SEZA. This center shall be
responsible for studying and amicable settling professional and labor
relations and disputes, interpretation of employment contracts, and
monitoring work, hygiene and safety standards within the SEZ. The labor
center shall comprise a labor office, an industrial health and safety office,
and an inspections and disputes office:

Except as otherwise provided in this Act, labor and management relations
in the SEZ shall be governed by applicable rules and regulations under the
Labor Code of the Philippines, as amended. Employees and personnel in
the registered enterprises shall receive salaries and benefits, and shall enjoy
working conditions provided under the Labor Code and other relevant laws
and issuances of the Philippine Government and the DOLE. The SEZA
shall allow the visitorial power of the Secretary of the DOLE or his duly
authorized representative, and or may assign its personnel to join the DOLE
Regional Office VII in the conduct of labor inspection.

(b) The Department of Health shall establish, fund, operate and maintain a
tertiary hospital in the SEZ;

(c) The National Housing Authority, pursuant to its mandate, shall undertake
vertical and horizontal development for the marginalized informal settlers and
low income earners within the SEZ, and shall source the necessary funds
thereof through National Government subsidy.

SECTION 20. Banking Rules and Regulations. — Existing banking laws, rules and
regulations of the BSP shall apply to banks and financial institution to established in the
SEZ.

SECTION 21. Remittances. ~ In the case of foreign investments, a registered enterprise
in the SEZ shall have the right to remit earnings from the investment in favor of the
investor and or intended beneficiary, subject to the provisions of Republic Act No. 7653,
otherwise known as the “New Central Bank Act,” the manual of regulations on foreign
exchange transactions, as well as other relevant rules and regulations.

SECTION 22. Applicability Clause. ~ The provisions Sections 30-4 lof Republic Act No.
7616, otherwise known as “The Special Economic Zone Act of 1995,” as amended, shall
likewise apply to the SEZ


SECTION 23. Capitalization. — The capital stock to be contributed by the government,
shall be:

(a) Two Billion Five Hundred Million pesos (Php2,500,000,000.00), with option
to increase capitalization upon the discretion of the SEZA;

(b) All lands embraced and covered by the SEZ, as well as permanent
improvements and fixtures upon proper inventory not otherwise alienated,
conveyed, or transferred to another government agency; and

(c) All other assets which the President may transfer to the SEZA as part of the
equity contribution of the government.

SECTION 24. Supervision and Control, ~ For purposes of policy direction and
coordination, the SEZA shall be under the direct control and supervision of the Office of
the President of the Philippines

SECTION 25. Regional Development Council. - The SEZA shall determine the
development goals for the SEZ within the framework of the national development plans,
policies and goals. The Administrator shall, upon approval by the Board, submit the SEZ
plans, programs and projects to the Regional Development Council for inclusion and
inputs to the overall regional development plan

SECTION 26. Relationship with Local Government Units. — Except as herein provide, the
Municipality of Maria in the Province of Siquijor shall operate and function in accordance
with the Local Government Code of 1991. In case of any conflict between the SEZA and
the local government units (LGUs) and National Government (NG) on matters affecting
the SEZ, other than defense and security matters, decision of the SEZA shall prevail.

SECTION 27. Legal Counsel. —‘The SEZ shalll have its own internal legal counsel under
the supervision of the Government Corporate Counsel. When the agencies of its business
and operations demand, the SEZA may engage the services of an outside counsel either
on a case-to-case or on fixed retainer basis.

SECTION 28. Interpretation Construction. ~ The powers, authorities and functions that
are vested in the SEZA are intended to establish decentralization of governmental
functions and authority and promote an efficient and effective working relationship
between the SEZA, the National Government and the LGU.

SECTION 29. Audit. ~ The Commission on Audit shall appoint a full-time auditor in the
SEZA or may assign such number of personnel as may be necessary in the performance
of their functions,

SECTION 30. Implementing Rules and Regulations. - The DTI, the DOF, the LGU and
the Department of the Interior and Local Government shall formulate the implementing
rules and regulations of this Act within thirty (30) 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.


SECTION 31. Separability Clause. - If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not affected shall remain in full force and
effect.

SECTION 32. Repealing Clause. ~ All laws, presidential decrees, executive orders, rules
and regulations and other issuances or any part thereof which are inconsistent herewith
are hereby repealed, amended or modified accordingly.

SECTION 33. Effectivity Clause. - This Act shall take effect fifteen (15) days following

its complete publication in the Official Gazette or in two (2) newspaper of general
circulation

Approved.