NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
s. No. 2246
ot “1? 
' ■:r;ir^?
23 «I\Y 24 P 5 23
Cp
Introduced by Senator Robinhood Padilla
AN ACT
ESTABLISHING THE JOSE PANGANIBAN SPECIAL ECONOMIC ZONE AND 
FREEPORT, PROVINCE OF CAMARINES NORTE AND APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
This biil seeks to create a special economic zone and freeport in the municipality 
of Jose Panganiban, 1st District of Camarines Norte. This is consistent with Article II, 
Section 20 of the 1987 Phiiippine Constitution which provides that, "The State 
recognizes the indispensable roie of the private sector, encourages private enterprise, 
and provides incentives to needed investments."
Special economic zones are selected areas with highly developed or which have 
the potential to be developed into agro-industrial, industrial tourist/recreational, 
commercial banking, investment and financial centers. On the other hand, freeports 
are areas where imported goods may be unloaded for immediate transshipment or 
stored, repacked, sorted, mixed, or otherwise manipuiated with being subject to 
import duties.
The special economic zone and freeport operate under speciai economic 
reguiations and poiicies to attract investments - both domestic and foreign. These 
zones are designed to stimulate economic growth, increase and promote trade 
activities, and achieve regional development.
By providing a favorable business environment and offering different types of 
incentives, the special economic zones and freeport can unlock opportunities 
especially to more than 600,000 Bicolanos who consider the province of Camarines 
Norte as their home.


In the 2022 Ranking of Provinces conducted by the Department of Trade and 
Industry (DTI), all provinces were ranked based on economic dynamism, government 
efficiency, infrastructure, resiliency and innovation, Camarines Norte ranked 48th out 
of 81 provinces, garnering a low score of 29.2050.
The proposed measure is expected to bring in needed investments to improve 
the economic situation of the province. More investments imply many enterprises 
doing business in the province, which in effect, generate jobs for Bicolanos.
As a proud Bicolano, it is my fervent hope that this proposed measure will bring 
the much needed development in the province of Camarines Norte.
It is in this regard, that the passage of this bill is earnestly sought.
BINHOOD C. PADILLA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
s. No. 2246
Senate
of t\)t ^ ^ •• Jt'-KT
23 MM 24 P5'-23
Introduced by Senator Robinhood Padilla
AN ACT
ESTABLISHING THE JOSE PANGANIBAN SPECIAL ECONOMIC ZONE AND 
FREEPORT, PROVINCE OF CAMARINES NORTE AND APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
GENERAL PROVISIONS
3 
Section 1. Short Title. — This Act shall be known as the "Jose Panganiban
4 
Special Economic Zone and Freeport Act."
5 
Sec. 2. Declaration of Policy. — It is declared the policy of the State to
6 
encourage, promote, and accelerate the sound and balanced industrial, economic and
7 
social development of the country. The establishment of special economic zones
8 
attract legitimate and productive foreign investments in strategic locations in the
9 
country which will result in general employment, increase productivity, and per capita
10 
income thereby enhancing the quality of life of the Filipino people.
11 
CHAPTER II
12 
CREATION OF THE ECONOMIC ZONE AND FREEPORT
13 
Sec. 3. Creation of the Jose Panganiban Special Economic Zone and Freeport.
14 
— Subject to the concurrence of the 
local government units (LGUs) of Jose
15 
Panganiban, there Is hereby established a Special Economic Zone and Freeport which
16 
shall cover a particular land area In the municipality of Jose Panganiban as may be
1


1 
determined hereinafter. Its specific metes and bounds shall be particularly defined in
2 
a presidential proclamation that shall be issued by the President: Provided, That the
3 
lands embraced therein shall be contiguous and adjacent.
4 
Sec. 4. Creation of the Jose Panganiban Special Economic Zone and Freeport
5 
Authority. — There is hereby created a body corporate to be known as the "Jose
6 
Panganiban Special Economic Zone and Freeport Authority" (JPSEZFA) which shall
7 
manage and operate the Jose Panganiban Ecozone and shall be organized within one
8 
hundred eighty (180) days after the effectivity of this Act.
9 
It shall have a corporate life of fifty (50) years counted from the effectivity of
10 
this Act, unless otherwise extended by Congress.
11 
SEC. 5. Governing Principles. — The JPSEZFA shall manage and operate the
12 
Jose Panganiban Ecozone under the following principles:
13 
a) Within the framework and limitations of the Constitution and applicable
14 
provisions of the Local Government Code;
15 
b) IThe Jose Panganiban Ecozone shall have a domestic and international airport
16 
and be developed into and operated as a decentralized, self-reliant and self-
17 
sustaining industrial, commercial, trading, agro-industrial, tourist, banking,
18 
financial, and investment center. It shall also provide suitable residential areas
19 
within Jose Panganiban Ecozone;
20 
c) The Jose Panganiban Ecozone shall be equipped with transportation,
21 
telecommunications, and other facilities needed to attract legitimate and
22 
productive investments, generate linkage Industries and employment
23 
opportunities for the people of the Municipality of Jose Panganiban and Its
24 
neighboring towns and cities;
25 
d) The Jose Panganiban Ecozone may establish mutually beneficial economic
26 
relations with other entities or enterprise within the country and, with respect
27 
to foreign entities or enterprise, it shall be subject to the administrative
28 
guidance of the Department of Foreign Affairs (DFA), the Philippine Economic
29 
Zone Authority (PEZA), and/or the Department of trade and Industry (DTI);
30 
e) Foreign citizens and companies owned by non-Filipinos in whatever proportion
31 
may set up enterprises in the Jose Panganiban Ecozone, either by themselves


1 
or in a joint venture with Filipinos in any sector of industry, international trade,
2 
and commerce within the Jose Panganiban Ecozone;
3 
0 The Jose Panganiban Ecozone shall be managed and operated as a separate
4 
customs territory thereby ensuring the free flow or movement of goods and
5 
capital within, into, and out of its territory, and shall likewise provide incentives
6 
such as tax and duty-free importations of raw materials, capital and equipment
7 
to registered enterprises located therein, as provided under Republic Act No.
8 
11534, otherwise known as the "Corporate Recovery and Tax Incentives For
9 
Enterprises Act";
10 
g) The areas comprising the Jose Panganiban Ecozone may be expanded or
11 
reduced, when necessary, through a Presidential Proclamation issued for the
12 
purpose.
13 
h) Goods manufactured by a Jose Panganiban Ecozone entities or enterprises shall
14 
be made available for immediate retail sale in the domestic market, subject to
15 
the payment of corresponding taxes on raw materials and other regulations
16 
that may be formulated by the JPSEZFA together with the PEZA, the Bureau of
17 
Customs (BOC), and the DTI. However, in order to protect domestic industries,
18 
a Negative List of industries shall be drawn up and regularly updated by PEZA.
19 
Entities or enterprises engaged in industries included in the Negative List shall
20 
not be allowed to sell their products locally; and
21 
i) The defense of the Jose Panganiban Ecozone and the security of its perimeter
22 
fence shall be the responsibility of the National Government, in coordination
23 
with the JPSEZFA and the LGUs.
24 
Sec. 6. Development Goals of the Jose Panganiban Ecozone. — The JPSEZFA
25 
shall Include in its development goals for the Jose Panganiban Ecozone the
26 
construction and operation of a domestic and international airport and allied
27 
businesses within the framework of national development plans, policies, and goals.
28 
The Chairperson-Administrator shall, upon approval by the Board, submit the Jose
29 
Panganiban Ecozone plans, programs, and projects to the Regional Development
30 
Council for inclusion and inputs to the overall regional development plan.
31 
Sec. 7. Capitalization. — The JPSEZFA shall have an authorized capital stock of
32 
two billion (2,000,000,000) no-par shares at a minimum issue of Ten pesos (PIO.OO)


1 
each, the majority shares of which shall be subscribed and paid for by the National
2 
Government and the LGUs embracing the JFSEZFA. The Board of Directors of the
3 
JPSEZFA may, with the written concurrence of the Secretary of Finance, sell shares,
4 
representing not more than forty per centum (40%) of the capital stock of the JPSEZFA
5 
to the general public under such policy as the Board and the Secretary of Finance may
6 
determine. The National Government and the LGUs shall in no case own less than
7 
sixty per centum (60%) of the total issued and outstanding capital of the JPSEZFA.
8 
The amount necessary to subscribe and pay for the shares of the National
9 
Government to the capital stock of the JPSEZFA shall be included in the annual General
10 
Appropriations Act. For the LGUs concerned, the funds shall be taken from their
11 
National Tax Allocation (NTA) and other local funds.
12 
Sec. 8. Principal Office of the JPSEZFA. — The JPSEZFA shall maintain Its
13 
principal office at the Jose Panganiban, but It may establish liaison offices within the
14 
Philippines, as may be necessary, for the proper conduct of its business.
15 
Sec 9. Powers and Functions of the JPSEZFA. — The JPSEZFA shall have the
16 
following powers and functions:
17 
a) To operate, administer, manage, and develop the Jose Panganiban Ecozone
18 
according to the principles and provisions set forth in this Act,
19 
b) To register, regulate, and supervise the entities and enterprises in the Jose
20 
Panganiban Ecozone in an efficient and decentralized manner, subject to
21 
existing laws;
22 
c) To coordinate with LGUs and exercise control and supervision over the
23 
development plans, activities, and operations of the Jose Panganiban Ecozone;
24 
d) To undertake the establishment, construction, operation, and maintenance of
25 
public utilities, other services, and infrastructure in the Jose Panganiban
26 
Ecozone including, but not limited to, light and power, shipping, barging,
27 
stevedoring, cargo handling, hauling, warehousing, storage of cargo, port
28 
services or concessions, piers, wharves, bulkheads, bulk terminals, mooring
29 
areas, storage areas, roads, telecommunications, transport, bridges, terminals,
30 
conveyors, water supply and storage, sewerage, and drainage: Provided, That
31 
such shall be in compliance and coordination with the rules and regulations of
32 
the concerned departments and agencies;


1 
e) To construct, acquire, own, lease, operate, and maintain on its own or through
2 
contracts, franchise, licenses, bulk purchase from the private sector or permits
3 
under any of the schemes allowed in Republic Act No. 6957, otherwise known
4 
as the "BuHd-Operate-Transfer Law"^s amended, or joint venture, adequate
5 
facilities and infrastructure required or needed for the operation and
6 
development of the Jose Panganiban Ecozone, in coordination with appropriate
7 
national and local government authorities and in conformity with applicable
8 
laws thereof;
9 
0 To approve plans, programs, and projects of the Jose Panganiban Ecozone, to
10 
be submitted to the Regional Development Council for Inclusion and inputs to
11 
the overall Regional Development Plan;
12 
g) To raise or borrow, within the limitation provided by law, and subject to the
13 
approval of the President of the Philippines and the Monetary Board of the
14 
Bangko Sentral Ng Pilipinas (BSP), upon recommendation of the Department of
15 
Finance, as the case may be, adequate and necessary funds from local or
16 
foreign sources, to finance Its projects and programs under this Act and for this
17 
purpose, to issue bonds, promissory notes and other forms of securities, and
18 
to secure the same by a guarantee, pledge, mortgage, deed of trust or an
19 
assignment of all or part of its property or assets;
20 
h) To create, operate, or contract to operate such functional units or offices of the
21 
JPSEZFA, as it may deem necessary;
22 
i) To adopt, alter, and use a corporate seal; contract, lease, buy, acquire, own or
23 
otherwise dispose of personal and/or real property of whatever nature; sue and
24 
be sued; and otherwise carry out its functions and duties, as provided for in
25 
this Act;
26 
j) To issue certificates of origin for products manufactured or processed in the
27 
Jose Panganiban Ecozone, in accordance with prevailing rules of origin and the
28 
pertinent regulations of the PEZA, 
the DTI and/or, the Department of Finance
29 
(DOF);
30 
k) To establish one-stop shops for the issuance of all necessary permits,
31 
clearances, licenses, and other similar 
certifications to conduct such activities
32 
intended to improve the ease of doing business within the Jose Panganiban


1 
Ecozone, in coordination with government agencies having jurisdiction over
2 
activities therein: Provided, That all government agencies are directed to
3 
provide and extend utmost and full cooperation to the Jose Panganiban
4 
Ecozone in the establishment of such one-stop shops;
5 
I) To provide internal security to the Jose Panganiban Ecozone, in coordination
6 
with the Philippine National Police and other agencies and the affected LGU.
7 
For this purpose, the JPSEZFA shall provide and establish its own Internal
8 
security and firefighting forces or hire others to provide the same;
9 
m) To issue rules and regulations consistent with the provisions of this Act, as may
10 
be necessary, to accomplish and implement the purposes, objectives, and
11 
policies provided herein; and
12 
n) To exercise such powers as may be essential, necessary, or incidental to the
13 
powers granted to it hereunder, as well as those that shall enable it to carry
14 
out, implement and accomplish the purposes, objectives, and policies of this
15 
Act.
16 
Sec. 10. Board of Directors of the JPSEZFA. — The powers of the JPSEZFA shall
17 
be vested in and exercised by a Board of Directors (Board) which shall be composed
18 
of the following:
19 
a) The Chairperson, who shall at the same time be the Administrator of the
20 
JPSEZFA;
21 
b) A Vice-Chairperson who shall be elected from among the Members of the Board
22 
of Directors;
23 
c) Members consisting of:
24 
1) The Socioeconomic Planning Secretary or a designated representative of
25 
the National Economic and Development Authority (NEDA) as ex officio
26 
member;
27 
2) The Secretary or a designated representative of the DTI as ex officio
28 
member;
29 
3) The Secretary or a designated representative of the DOF as ex officio
30 
member;
31 
4) One (1) representative from the Province of Camarines Norte as ex
32 
officio member;


1 
5) One (1) representative from the Municipality of Jose Panganiban as ex
2 
officio member;
3 
6) One (1) representative from business sector whose business is located
4 
within the legislative district covering the premises of the Jose
5 
Panganiban Ecozone as regular member;
6 
7) One (1) representative from the domestic investors in the Jose
7 
Panganiban Ecozone as regular member;
8 
8) One (1) representative from the foreign investors in the Jose Panganiban
9 
Ecozone as regular member; and
10 
9) One (1) representative from the workers working in the Jose Panganiban
11 
Ecozone as a regular member.
12 
The Chairperson and the members of the Board shall be appointed by the
13 
President of the Philippines to serve for a term of six (6) years, unless sooner
14 
separated from service due to death, voluntary resignation, or removal for cause. In
15 
case of death, resignation or removal for cause, their replacements shall serve only
16 
the unexpired portion of the respective terms.
17 
Regular members shall be appointed by the President of the Philippines as a
18 
member of the Board unless he is Filipino citizen, of good moral character, of proven
19 
probity and integrity, and a degree-holder in any of the following fields: economics,
20 
business, public administration, law, management or their equivalent, and with at least
21 
ten (10) years relevant working experience preferably in the field of management or
22 
public administration.
23 
The members of the Board shall each receive per diem at rates to be
24 
determined by the Department of Budget and Management (DBM), in accordance with
25 
existing rules and regulations: Provided, however, That the total per diem collected
26 
each month shall not exceed the equivalent per diem for four (4) meetings. Unless
27 
the President has fixed a higher per diem for the members of the Board, such per
28 
diem shall not be more than ten thousand pesos (P10,000.00) for every Board
29 
meeting.
30 
Sec. 11. Organization andPersonnei. — The Board of Directors of the JPSEZFA
31 
shall provide for its organizational structure and staff. The Board shall appoint and fix
32 
the remuneration and other emoluments of its officers and employees in accordance


1 
with existing laws on compensation and position classification. The Board shall have
2 
exclusive and final authority to promote, transfer, assign, reassign, or remove officers
3 
of the JPSEZFA, any provision of existing law to the contrary notwithstanding. The
4 
Chairperson-Administrator shall execute the decisions of the Board.
5 
The officers and employees of the JPSEZFA, including all members of the Board,
6 
shall not engage directly or indirectly in partisan political activities nor take part in any
7 
election, except to vote.
8 
No officer or employee of the JPSEZFA, subject to civil service laws and
9 
regulations, shall be removed or suspended except for cause, as provided by Civil
10 
Service Commission's laws and regulations.
11 
Sec. 12. Powers and Duties of the Chairperson-Administrator. — The
12 
Chairperson-Administrator shall have the following powers and duties:
13 
a) To direct and manage the affairs of the JPSEZFA in accordance with the policies
14 
of the Board;
15 
b) To implement internal organization of the JPSEZFA under such conditions that
16 
the Board may prescribe;
17 
c) To submit an annual budget and necessary supplemental budget to the Board
18 
for its approval;
19 
d) To submit within thirty (30) days after the close of each fiscal year an annual
20 
report to the Board and such other reports as may be required;
21 
e) To recommend to the Board for its approval, policies, systems, procedures,
22 
rules and regulations that are essential to the operation of the Jose Panganiban
23 
Ecozone;
24 
f) To recommend to the Board the remuneration and other emoluments of its
25 
officers and employees in accordance with existing laws on compensation and
26 
position classification;
27 
g) To create a mechanism in coordination with relevant agencies for the promotion
28 
of industrial peace, the protection of the environment, and the advancement of
29 
the quality of life in the Jose Panganiban Ecozone; and
30 
h) To perform such other duties as may be assigned by the Board or which are
31 
necessary or incidental to the office.


1 
Sec. 13. Legal Counsel. — The JPSEZFA shall have its own internal legal counsel
2 
under the supervision of the government corporate counsel. When the exigencies of
3 
its businesses and operations demand it, the JPSEZFA may engage the services of an
4 
outside counsel either on a case to case or on a fixed retainer basis.
5 
CHAPTER III
6 
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS
7 
Sec. 14. Investors Visa. — Any foreign national who invests an amount of Two
8 
hundred thousand US dollars (US$200,000.00), either in cash or equipment, in a
9 
registered enterprise shall be entitled to an investor's visa: Provided, That the foreign
10 
national:
11 
a) Must be at least eighteen (18) years of age;
12 
b) Must not have been convicted by final judgment of a crime involving moral
13 
turpitude;
14 
c) Must not be afflicted with any loathsome, dangerous or contagious disease;
15 
d) Must not have been confined in an institution for any mental disorder or
16 
disability; and
17 
e) Must be financially capable as borne out by credible and verifiable evidence.
18 
A foreign national may reside in the Philippines while the investment subsists.
19 
To prove this, the foreign national shall submit an annual report in the form duly
20 
prescribed for the purpose. Should said investments be withdrawn from the
21 
Philippines, the investor's visa issued to said foreign national shall be automatically
22 
revoked.
23 
The authority to issue visas and work permits shall remain with the Bureau of
24 
Immigration (BI) and the Department of Labor and Employment (DOLE), respectively:
25 
Provided, That the BI and the DOLE shall implement measures to expedite the
26 
processing of such visas and permits for workers in the Jose Panganiban Ecozone and
27 
coordinate with the JPSEZFA for the purpose of improving ease of doing business.
28 
Sec. 15. Fiscal Incentives. — Registered enterprises operating within the Jose
29 
Panganiban Ecozone may be entitled to the existing fiscal incentives provided and
30 
granted under Title XIII (Tax Incentives) of the National Internal Revenue Code of
31 
1997, as amended by Republic Act No. 11534, otherwise known as the "Corporate
32 
Recovery and Tax Incentives for Enterprises Act."


1 
Sec. 16. Administration, Implementation and Monitoring of Incentives. — In the
2 
interest of enhancing transparency in the management and accounting of tax
3 
incentives in the Jose Panganiban Ecozone, and ensuring the proper administration,
4 
management, enforcement, implementation and monitoring of tax incentives, the
5 
JPSEZFA shall comply with the provisions of Republic Act No. 11534, otherwise known
6 
as the "Corporate Recovery and Tax Incentives for Enterprises Act'.
7 
The BOC shall set up and establish a customs-controlled area outside the
8 
premises of the Jose Panganiban Ecozone to facilitate payment of duties and taxes on
9 
goods entering the Philippine customs territory: Provided, That notwithstanding the
10 
limitations on this Act, the JPSEZFA and BOC may coordinate and jointly implement
11 
measures on border protection.
12 
Sec. 17. Banking Rules and Regulations. — Banks and financial institutions to
13 
be established in the Jose Panganiban Ecozone shall be under the supervision of the
14 
BSP and subject to existing banking laws, rules and regulations.
15 
Sec. 18. Remittances. — In the case of foreign investments, a duly registered
16 
entity or enterprise within the Jose Panganiban Ecozone shall have the right to remit
17 
earnings from the investment in the currency in which the investment was originally
18 
made and at the exchange rate prevailing at the time of remittance, subject to the
19 
provisions of Republic Act No. 7653, otherwise known as "The New Central Bank Act"
20 
as amended.
21 
CHAPTER IV
22 
NATIONAL GOVERNMENT AND OTHER ENTITIES
23 
Sec. 19. General Supervision. - For purposes of policy direction and
24 
coordination, the JPSEZFA shall be under the general supervision of the Philippine
25 
Economic Zone Authority (PEZA).
26 
Sec. 20. Relationship with Local Government Units. — Except as herein
27 
provided, the LCDs comprising the Jose Panganiban Ecozone shall retain their basic
28 
autonomy and identity. The Municipality of Jose Panganiban, Province of Camarines
29 
Norte, shall operate and function in accordance with the framework of the
30 
Constitution, Local Government Code of 1991, and this Act.
10


1 
In case of any conflict among the JPSEZFA and the LCDs and the National
2 
Government on matters affecting the Jose Panganiban Ecozone, other than national
3 
defense and security matters, the decision of the JPSEZFA shall prevail.
4 
Sec. 21. Audit — Given that the national government shall subscribe to the
5 
majority shares of the capital stock of JPSEZFA, the Commission on Audit shall appoint
6 
a full-time auditor in the JPSEZFA and assign such number of personnel, as may be
7 
necessary, to assist the full-time auditor in the performance of his/her duties. The
8 
salaries and emoluments of the assigned auditor and personnel shall be in accordance
9 
with pertinent laws, rules, and regulations.
10 
CHAPTER V
11 
MISCELLANEOUS
12 
Sec. 22. Interpretation and Construction. — The powers, authorities and
13 
functions that are vested in the JPSEZFA are intended to establish national self-
14 
sufficiency and self-reliance in the advancement of and protection of the national
15 
integrity, enhancement of national security, decentralization of governmental
16 
functions and authority, and promote an efficient and effective working relationship
17 
among the JPSEZFA, the National Government and the LGUs. Any interpretation of
18 
this Act shall consider such intentions. In the event of conflict of interpretation and
19 
provided the intentions cannot be harmonized, the provisions of this Act shall be
20 
construed in favor of an interpretation that would tend to protect national security.
21 
Sec. 23. Appiicabiiity Cause. — Insofar as these are consistent with the
22 
provisions of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916
23 
otherwise known as "The Special Economic Zone Act of 1995" shall likewise apply to
24 
the Jose Panganiban Ecozone.
25 
Sec. 24. Impiementing Ruies and Regulations. — The DTI, DOF and the NEDA
26 
shall formulate the implementing rules and regulations of this Act.
27 
Sec.25. Separability Cause. — If any portion or provision of this Act Is declared
28 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall
29 
remain in force and effect.
30 
Sec. 26. Repealing Cause. — Any law, presidential decree or issuance,
31 
executive order, letter of instruction, rule or regulation inconsistent with the provisions
32 
of this Act is hereby repealed or modified accordingly.
11


1 
Sec. 27. Effectivity Clause. — This Act shall take effect after fifteen (15) days
2 
following its complete publication in the Official Gazette or a newspaper of general
3 
circulation.
Approved,
12