EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHIUPPINES ) 
Second Regular Session 
)
SENATE 
S.B. No. 1788
2020 m
f H.lfc
NDbX
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING THE SPECIAL ECONOMIC ZONE AND FREEPORT IN 
THE PROVINCE OF ILOCOS NORTE, CREATING FOR THIS PURPOSE THE 
ILOCOS NORTE SPECIAL ECONOMIC ZONE AND FREEPORT AUTHORITY, 
AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The 1987 Constitution, under Article II, Section 20 states that, " Vie State 
recognizes the indispensable roie of the private sector, encourages private enterprise, 
and provides incentives to needed investments." The State needs to significantly 
improve and develop tourism and economic activities in the country.
The Special Economic Zones (SEZs) have been used as an effective mechanism 
in addressing the challenges of globalization. The Countries like China, Singapore, 
Malaysia and South Korea have been very active in implementing SEZs as a means of 
attracting foreign investments, jobs opportunities, and the generation of exports. 
Moreover, SEZs have opened employment to more than 2,000,000 Filipinos and a total 
investments amounting to billions of pesos.
Ilocos Norte also known as the "Gateway to the North" is in close proximity to 
the major economic hubs in Asia such as China, Hong Kong and Taiwan, which makes 
the creation of a Special Economic Zone ideal. Most of the province's revenue comes 
from agriculture and, in recent years, tourism. The ecozone will definitely provide 
economic stability not just to the Province of Ilocos Norte but also to its neighboring 
provinces.
To keep pace with global competition, this bill seeks to establish a Speciai 
Economic Zone and Freeport in the Province of Ilocos Norte to further reduce poverty 
by promoting and accelerating sound and sustainable industrial, economic and sodai 
growth.
This measure was filed by Rep. Imelda R. Marcos during the 17th Congress and 
was approved on Third and Final Reading during the 17th Congress.
In view of the foregoing, passage of this biii is earnestiy sought.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBUC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S.B. No. 1788
2020 m
f Jf.iE
NOEX
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING THE SPECIAL ECONOMIC ZONE AND FREEPORT IN 
THE PROVINCE OF ILOCOS NORTE, CREATING FOR THIS PURPOSE THE 
I LOCOS NORTE SPECIAL ECONOMIC ZONE AND FREEPORT AUTHORITY, 
AND APPROPRIATING FUNDS THEREFOR
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 "liocos Norte Special
4 
Economic Zone and Freeport Act".
5 
SEC. 2. Dedaration of Policy. -It is declared the policy of the State to encourage,
6 
promote, and accelerate the sound and balanced industrial, economic, and social
7 
development of the country. The establishment of special economic zones shall attract
8 
legitimate and productive foreign investments in strategic locations in the country. It
9 
shall generate employment and increase productivity and individual, as well as family
10 
incomes, thereby enhancing the quality of life of the Filipino people.
11 
CHAPTER II
12 
CREATION OF ECONOMIC ZONE
13 
SEC. 3. Creation of the liocos Norte Special Economic Zone and Freeport. - In
14 
accordance with the foregoing declared policy and subject to the concurrence of the
15 
concerned local government units (LGUs) of liocos Norte affected by the zone, there
16 
is hereby established a Special Economic Zone and Freeport, hereinafter referred to
17 
as the liocos Norte Ecozone. The liocos Norte Ecozone shall cover particular areas
18 
located in the Municipalities of Badoc, Currimao, Paoay, and Laoag City. The specific
19 
metes and bounds of the liocos Norte Ecozone shall be more particularly defined in a
20 
presidential proclamation that shall be issued for this puimpose: Pmvided, That the
21 
lands embraced therein shall be public lands and contiguous to one another
22
23 
SEC. 4. Creation of the Iiocx)S Norte Special Economic Zone and Freeport Authority. -
24 
There is hereby created a body corporate to be known as the "liocos Norte Special
25 
Economic Zone Authority" hereinafter referred to as the INSEZA, which shall manage
26 
and operate the liocos Norte Ecozone, in accordance with the provisions of this Act.
27 
This corporate franchise shall expire in fifty (50) years and counted from the first year
28 
after the effectivity of this Act, unless otherwise extended by Congress. It shall be
29 
organized within one hundred eighty (180) days after the effectivity of this Act.
30


1 
SEC. 5. Governing Principles - The Ilocos Norte Special Economic Zone and
2 
Freeport shall be managed and operated by INSEZA under the following principles:
3 
a. Within the framework and limitations of the Constitution and applicable
4 
provisions of Republic Act No. 7160, othenwise known as the "Local
5 
Government Code of 1991", the Ilocos Norte Ecozone shall be developed
6 
into and operated as a decentralized self-reliant and self-sustaining
7 
industrial, commercial/trading, agro-industrial, tourist, banking, financial
8 
and investment center with suitable residential areas;
9 
b. The Ilocos Norte Ecozone shall be provided with transportation,
10 
telecommunications, and other facilities needed to attract legitimate and
11 
productive investments, generate linkage industries and employment
12 
opportunities for the people of Ilocos Norte and its neighboring towns and
13 
cities;
14 
c. The Ilocos Norte Ecozone may establish mutually beneficial economic
15 
relations with other entities or enterprises within the country or, subject to
16 
the administrative guidance of the Department of Foreign Affairs (DFA), the
17 
Philippine Economic Zone Authority (PEZA), and/or the Department of Trade
18 
and Industry (DTI), with foreign entities or enterprises;
19 
d. Foreign citizens and companies owned by non-Filipinos, in whatever
20 
proportion, may set up enterprise in the Ilocos Norte Zone, either by
21 
themselves or in a joint venture with Filipinos in any sector of industry,
22 
international trade and commerce within the Ilocos Norte Ecozone;
23 
e. The Ilocos Norte Ecozone shall be managed and operated as separate
24 
customs territory thereby ensuring the free flow or movement of goods and
25 
capital within, into and out of its territory, and shall likewise provide incentives
26 
such as tax and duty-free importations of raw materials, capital and
27 
equipment to registered enterprises located therein. However, exportation or
28 
remov al of goods from the territory of the Ilocos Norte Ecozone to the other
29 
parts of the Philippine territory shall be subject to customs duties and taxes
30 
under Republic Act No. 10863, otherwise known as the "Customs
31 
Modernization and Tariff Act" and other relevant tax laws of the Philippines;


1 
f. The areas comprising the Ilocos Norte Ecozone may be expanded or reduced
2 
when necessary. For this purpose, the INSEZA, in consultation with the LGUs,
3 
shall have the power to acquire either by purchase, negotiation or
4 
condemnation proceedings, any private land within or adjacent to the Ilocos
5 
Norte Ecozone for the following purposes: (1) consolidation of lands for zone
6 
development; (2) acquisition of right of way to the Ilocos Norte Ecozone; and
7 
(3) the protection of watershed areas and natural assets valuable to the
8 
property of Ilocos Norte Ecozone;
9 
g. Goods manufactured by an Ilocos Norte Ecozone enterprise shall be made
10 
available for immediate retail sale in the domestic market, subject to the
11 
payment of corresponding taxes on raw materials and other regulations that
12 
may be formulated by the INSEZA together with the PEZA, the Bureau of
13 
Customs (BOC), and the DTI. However, in order to protect domestic industries,
14 
a Negative List of industries shall be drawn up and regularly updated by PEZA.
15 
Enterprises engaged in industries included in such Negative List shall not be
16 
allowed to sell their products locally;
17 
h. The defense of the Ilocos Norte Ecozone and the security of its perimeter fence
18 
shall be the responsibility of the National Government in coordination with
19 
INSEZA and the LGUs.
20 
SEC. 6. Capitalization. - The INSEZA shall have an authorized capital stock of Two
21 
billion (2,000,000,000) no par shares with a minimum issue of Ten pesos (PhPlO.OO)
22 
each, the majority shares of which shall be subscribed and paid for by the National
23 
Government and LGUs embracing the Ilocos Norte Special Economic Zone and
24 
Freeport. The Board of Directors of INSEZA may, with the written concurrence of the
25 
Secretary of Finance may determine. The National Government and the LGUs shall in
26 
no case own less than sixty per centum (60%) of the total issued and outstanding
27 
capital of INSEZA.
28 
The amount necessary to subscribe and pay for the shares of the National
29 
Government to the capital stock of the INSEZA shall be included in the annual General
30 
Appropriations Act. For LGUs, the funds shall be taken from their internal revenue
31 
allotment and other local funds.
32 
SEC. 7. Prindpai Office of the INSEZA. -The INSEZA shall maintain its principal
33 
office at Laoag City, Ilocos Norte, but it may establish branches within the Philippines
34 
as may be necessary for the proper conduct of its business.
35 
SEC. 8. Powers and Functions of the INSEZA. - The INSEZA shall have the following
36 
powers and functions:
37 
a. To operate, administer, manage and develop the Ilocos Norte Ecozone
38 
according to the principles and provisions set forth in this Act;


1 
b. To register, regulate and supervise the enterprises In the Ilocos Norte Ecozone
2 
in an efficient and decentralized manner, subject to existing laws;
3 
c. To coordinate with LGUs and exercise general supervision over the
4 
development plans, activities and operations of the Ilocos Norte Ecozone;
5 
d. To regulate and undertake the establishment and construction, operation and
6 
maintenance of public utilities, other services, and infrastructure in the Ilocos
7 
Norte Ecozone such as light and power, shipping, barging, stevedoring, cargo
8 
handling, hauling, warehousing, storage and cargo, port services or
9 
concessions, piers, wharves, bulkheads, bulk terminals, mooring areas, storage
10 
areas, roads, telecommunications, transport, bridges, terminals, conveyors,
11 
water supply and storage, sewage, drainage, airport operations in coordination
12 
with the Civil Aviation Authority of the Philippines (CAAP), and such other
13 
sendees and concessions or infrastructure necessary? or incidental to the
14 
accomplishment of the objectives of this Act;
15 
e. To construct, acquire, own, lease, operate and maintain on its own or through
16 
contracts, franchise, licenses, bulk purchase from the private sector or permits
17 
under any of the schemes allowed in Republic Act No. 6597, otherwise known
18 
as the "Built-Operate-Transfer Law" as amended, or joint venture, adequate
19 
facilities and Infrastructure required or needed for the operation and
20 
development of the Ilocos Norte Ecozone, in coordination with the appropriate
21 
national and local government authorities and in conformity with applicable
22 
law's thereon;
23 
f. To approve plans, programs and projects of the Ilocos Norte Ecozone to be
24 
submitted to the Regional Development Council for inclusion and inputs to the
25 
overall regional development plan;
26 
g. To operate on its own, either directly or through licenses to others, tourism-
27 
related activities, including games, amusements, recreational and sports
28 
facilities, subject to the approval and supervision of the Philippine Amusement
29 
and Gaming Corporation (PAGCOR);
30 
h. To raise or borrow, within the limitation provided by law, and subject to the
31 
approval or opinion of the Monetary Board of the Bangka Sentra! ng Pilipinas
32 
(BSP), as the case may be, adequate and necessary funds from local or foreign
33 
sources, to finance its projects and programs under this Act and for this
34 
purpose, to issue bonds, promissory notes and other forms of securities, and
35 
to secure the same by a guarantee, pledge, mortgage, deed of trust or an
36 
assignment of all or part of its property or assets;


1 
i. To protect, preserve, maintain and develop the forests, beaches, coral and coral
2 
reefs, and maintain ecological balance within the Ilocos Norte Ecozone.
3 
Notwithstanding the authority of the INSEZA to create rules for such purpose,
4 
the rules and regulations of the Department of Environment and Natural
5 
Resources (DENR) and other government agencies Involved in the above
6 
functions shall be implemented by the INSEZA;
7 
j. To create, operate and/or contract to operate such functional units or offices
8 
of the INSEZA as it may deem necessary;
9 
k. To adopt, alter and use a corporate seal; contract, lease, buy, acquire, own or
10 
otherwise dispose of personal and/or real property of whatever nature; sue and
11 
be sued; and otherwise carry out its functions and duties as provided for in this
12 
Act;
13 
I. To issue certificates of origin for products manufactured or processed in the
14 
Ilocos Norte Ecozone In accordance with prevailing rules of origin and the
15 
pertinent regulations of the PEZA, the DTT, and/or the Department of Finance
16 
(DOF);
17 
m. To establish one-stop shops for the issuance of all necessary permits,
18 
clearances, licenses, and other similar certifications to conduct such activities
19 
intended to Improve the ease of doing business within the Ilocos Norte
20 
Ecozone, in coordination with government agencies having jurisdiction over
21 
activities therein; Provided, That all government agencies are directed to provide
22 
and extend utmost and full cooperation to the Ilocos Norte Ecozone in the
23 
establishment of such one-stop shops;
24 
n. To provide internal security to the Ilocos Norte Ecozone in coordination with
25 
the National Government and affected LGU. For this purpose, the INSEZA shall
26 
provide and establish its own internal security and fire fighting forces or hire
27 
others to provide the same. Military forces sent by the National Government for
28 
the purpose of defense shall not interfere in the internal affairs of the Ilocos
29 
Norte Ecozone and expenditures for these military forces shall be borne by the
30 
National Government;
31 
0. To recommend to the President of the Philippines the issuance of a
32 
proclamation to fix and delimit the site of Ilocos Norte Ecozone;
33 
p. To exercise such powers as may be essential, necessary or incidental to the
34 
powers granted to it hereunder, as weil as those that shall enable to carry? out,
35 
implement and accomplish the purposes, objectives and policies of this Act;
36 
and
37 
q. To issue, rules and regulations consistent with the provisions of this Act as may
38 
be necessary to accompiish and implement the pur poses, objectives and
39 
policies provided herein.


1 
SEC. 9. Board of DirectDrs of the INSEZA. - The powers of the INSEZA shall be
2 
vested in and exercised by a Board of Directors, hereinafter referred to as the Board,
3 
which shall be composed of the following:
4 
a. The Chairperson, who shall at the same time be the administrator of the
5 
INSEZA;
6 
b. Governor of the Province of Ilocos Norte or a duly-authorized representative;
7 
c. One of the mayors of the city and municipalities covered by the ecozone;
8 
d. One (1) representative from the investor's group; and
9 
e. One (1) representative from among the workers in the Ilocos Norte Ecozone.
10 
The Vice Chairperson shall be selected from among the members of the Board.
11 
The representative from the Provincial Government and the one of the mayors of
12 
the city and municipalities covered by the ecozone shall serve as ex-officio members of
13 
the Board, whose terms in the Board correspond to their terms as elected officials.
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
The Chairperson and members of the Board, except ex-offido members, shall be 
appointed by the President of the Philippines to serve for a term of six (6) years unless 
sooner separated from service due to death, voluntary resignation or removal for 
cause. In case of death, resignation or removal for cause, their replacements shall 
serve only the unexpired portion of the respective terms.
The Chairperson of the Board must be 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 in the field of management or public administration.
The members of the Board, except the ex-offido members, shall each receive per 
diemeX. rates to be determined 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. Unless and until the President of the Philippines has fixed for a higher per 
diem for the members of the Board, such per diem shall not be more than Ten 
thousand pesos (PhP10,000.00) for every Board meeting.
SEC. 10. Organization and Personnei. - The Board of Directors of INSEZA shall 
provide for its organization and staff. 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. The Board shall have exclusive and final 
authority to promote, transfer, assign, reassign or remove officers of the INSEZA, any 
provision of existing law to the contrary notwithstanding. The Chairperson- 
Administrator shall cam' out the decisions of the Board.
41 
The officers and employees of INSEZA, Including all members of the Board,
42 
shall not engage directly or indirectly in partisan activities nor take part in any
43 
election, except to vote.
44
No officer or employee of the INSEZA, subject to civil service laws and


1 
regulations, shall be removed or suspended except for cause, as provided by law.
2 
SEC. 11. Powers and Duties of the Oiairpenson-Administrator. -The Chairperson-
3 
Administrator shall have the following powers and duties:
4 
a. To direct and manage the affairs of the INSEZA in accordance with the polices
5 
of the Board;
6 
b. To establish the internai organization of the INSEZA under such conditions
7 
that the Board may prescribe;
8 
c. To submit an annuai budget and necessary suppiemental budget to the Board
9 
for its approval;
10 
d. To submit within thirty (30) days after the close of each fiscal year and annual
11 
report to the Board and such other reports as may be required;
12 
e. To submit to the Board for its approval, policies, systems, procedures, rules
13 
and regulations that are essential to the operation of the I locos Norte
14 
Ecozone;
15 
f. To recommend to the Board the remuneration and other emoluments of its
16 
officers and employees in accordance with existing laws on compensation and
17 
position ciassification;
18 
g. To create a mechanism in coordination with relevant agencies for the promotion
19 
of industrial peace, the protection of the environment, and the advancement of
20 
the quality of life in the liocos Norte Ecozone; and
21 
h. To perform such other duties as may be assigned by the Board or which are
22 
necessary or incidental to the office.
23 
SEC. 12. Legal Counsel. - The INSEZA shall have its own legai counsei under the
24 
supervision of the government corporate counsel. When the exigencies of its
25 
businesses and operations demand it, the INSEZA may engage the services of an
26 
outside counsel either on a case to case or on a fixed retainer basis.
27
28
29 
Chapter III
30 
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS
31 
SEC. 13. Investors Visa. - Any foreign national who invests an amount of Two
32 
hundred thousand US dollars (US$200,000.00), either in cash and/or equipment, in a
33 
registered enterprise shall be entitled to an investor's visa: Provided, That the foreign
34 
national has the following qualifications:
35 
a. Must be at least eighteen (18) years of age;
36 
b. Must not have been convicted by final judgment of a crime invoiving moral
37 
turpitude;
38 
c. Must not be afflicted with any loathsome, dangerous or contagious disease;
39 
d. Must not have been institutionalized for any mental disorder or disability; and


1 
e. Must establish financial capability and capacity through verifiable and credible
2 
evidence.
3 
A foreign national may reside in the Philippines while the investment herein
4 
required subsists. To prove this, the foreign national should submit an annual report,
5 
in the form duly prescribed for the purpose. Should said investments be withdrawn
6 
from the Philippines, then the investor's visa issued to said foreign national shall
7 
automatically expire and/or be withdrawn.
8 
The authority to issue visas and work permits shall remain with the Bureau of
9 
Immigration (BI) and the Department of labor and Employment (DOLE), respectively;
10 
Provided, That the BI and the DOLE shall implement measures to expedite the
11 
processing of such visas and permits for workers in the Ilocos Norte Ecozone and
12 
coordinate with the INSEZA for the purpose of improving ease of doing business.
13 
SEC. 14. Fiscal Inc&itives. - Registered enterprises operating within the Ilocos
14 
Norte Ecozone may be entitled to the pre-existing pertinent fiscal incentives as
15 
provided for under Republic Act No. 7916, as amended by Republic Act No. 8748, also
16 
known as the Special Economic Zone Act of 1995, or those provided under Executive
17 
Order No. 226, as amended, otherwise known as the Omnibus Investment Code of
18 
1987, and/or those that may be further granted as the need and necessity arises by
19 
appropriate government department, agency, or office: Provided, That in the
20 
administration, implementation and monitoring of incentives, the INSEZA may impose
21 
its own conditions not otherwise prohibited by this Act: Provided, further, That the
22 
INSEZA shall not be limited to the conditions provided under Republic Act No. 7916,
23 
Republic Act No. 8748 or any other related issuance, rule or regulation.
24
25 
SEC. 15. Imposition of a Tax Rats of Five Percent (5%) on Gross Income Earned. -
26 
No taxes, local and national, shall be imposed on business establishments operating
27 
within the Ilocos Norte Ecozone, including income tax withholding tax, donor's tax,
28 
percentage tax, and documentary stamp tax. In lieu thereof and subject to Section
29 
17 of this Act, said business establishments shall pay a five percent (5%) final tax
30 
on their gross income earned: Pmvided, That the proceeds from such final tax shall
31 
be shared by instrumentalities of the government in accordance with the following
32 
schedule:
33 
a. Three per centum (3%) to the National Government;
34 
b. Two per centum (2%) shall be directly remitted by the business
35 
establishments to the treasurer's office of the municipality or city where the
36 
enterprise is located.
37 
The INSEZA shall have the authority to grant income tax holiday and net
38 
operating loss carry over subject to Section 17 of this Act and conditions as it may
39 
have imposed pursuant to Section 14 of this Act.
40 
SEC. 16. Administration Implementation and Monitnring of Incentives. - In the
41 
interest of enhancing transparency in the management and accounting of tax
42 
incentives in the Ilocos Norte Ecozone, the INSEZA shall comply with the provisions
43 
of Republic Act No. 10708, otherwise known as "The Tax Incentives Management
44 
and Transparency Act (TIMTA)" and its implementing rules and regulations for proper
45 
administration, management, enforcement, implementation and monitoring of tax
46 
incentives under this law.
8


1 
The BOC shall set up and establish a customs-controlled area outside the gate
2 
of the Ilocos Norte Ecozone to facilitate payment of taxes on goods entering the
3 
Philippine customs territory: Provided, That notwithstanding the limitations in this Act,
4 
the INSEZA and BOC may coordinate and jointly implement measures on border
5 
protection.
6 
SEC. 17. Duration and Incentives. - Fiscal incentives under this Act shall be
7 
terminated after a cumulative period of twenty (20) years from date of registration or
8 
start of commercial operation, whichever is applicable, except that it could be
9 
extended with regard to industries deemed indispensable to national development and
10 
interest. The industries exempted from this provision shall be determined by the
11 
INSEZA, in consultation with other government agencies.
12 
SEC. 18. Sequential Availment of Incentives. - Registered enterprises may enjoy
13 
the income tax holiday (ITH) granted by INSEZA prior to the availment of the five
14 
percent (5%) final tax on gross income earned incentive: Provided, That in the event
15 
a registered enterprise elects to avail of the final tax incentive, such registered
16 
enterprise shall be barred from availing the ITH incentive.
17
18 
Registered enterprises, if eligible, may register for incentives with other
19 
investment promotion agencies: Pi'ovided, That registered enterprises electing to
20 
avail of the Incentives of other promotion agencies shall not be able to avail of the
21 
incentives of the Ilocos Norte Ecozone until the expiration of the incentives with such
22 
other investment promotion agencies.
23
24 
SEC. 19. Extension ofPenod of Availment - The INSEZA may extend period of the
25 
validity of the incentives extended to a registered enterprise in the event that it suffers,
26 
due to force majeure, a cessation or suspension of operations that impairs its viability
27 
or profitability.
28 
SEC. 20. Banking Rules and Regulations. - Banks and financial institutions to be
29 
established in the Ilocos Norte Ecozone shall be under the supervision of the BSP and
30 
subject to existing banking laws, rules and regulations.
31 
SEC. 21. Remittances. - In the case of foreign investments, a duly registered
32 
entity or enterprise within the Ilocos Norte Ecozone shall have the right to remit
33 
earnings from the investment in the currency in which the investment was originally
34 
made and at the exchange rate prevailing at the time of remittance, subject to the
35 
provisions of Republic Act No. 7653, otherwise known as the "New Central Bank Act".
36 
CHAPTER IV
37 
NATIONAL GOVERNMENT AND OTHER ENTITIES
38 
SEC. 22. Supervision and Control - For purposes of policy direction and
39 
coordination, the INSEZA shall be under the direct control and supervision of the Office
40 
of the President of the Philippines.
41 
SEC. 23. Development Goals of the Ilocos Norte Ecozone. - The INSFyA shall
42 
determine the development goals for the Ilocos Norte Ecozone within the framework
43 
of national development plans, policies, and goals. The Chairperson and Administrator
44 
shall, upon approval by the Board, submit the Ilocos Norte Ecozone plans, programs
45 
and projects to the Regional Development Council for inclusion and inputs to the
46 
overall regional development plant.
47


1 
SEC. 24. Relationship with Local Government Units. - Except as herein provided,
2 
the LGUs comprising the llocos Norte Ecozone shali retain their basic autonomy and
3 
identity. The Municipalities of Badoc, Currimao, Paoay, and Laoag City in llocos Norte
4 
shall operate and function in accordance with the framework of the 1987
5 
Constitution, Local Government Code of 1991, and this Act.
6 
In case of any conflict among the INSEZA, the LGUs, and the National
7 
Government on matters affecting the llocos Norte Ecozone, other than national
8 
defense and security matters, the decision of the INSEZA shall prevail.
9
10 
SEC. 25. Audit - The Commission on Audit shall appoint a full-time editor in the
11 
INSEZA or may assign such number of personnel as may be necessary' in the
12 
performance of their functions.
13
14 
CHAPTER V
15 
MISCELLANEOUS PROVISIONS
16 
SEC. 26. Interpretation/Constniction. - The powers, authorities and functions that
17 
are vested in the INSEZA are intended to establish national self-sufficiency and self-
18 
reliance in the advancement of and protection of the national integrity, enhancement
19 
of national security, decentralization of government functions and authority, and
20 
promote an efficient and effective working relationship among the INSEZA, the
21 
National Government and the LGUs. Any interpretation of this Act shall consider such
22 
intentions. In the event of conflict of interpretation and provided by the intentions
23 
cannot be harmonized, the provisions of this Act shall be construed in favour of an
24 
interpretation that would tend to protect national security.
25 
SEC. 27. Applicability Clause. - Insofar as they are inconsistent with the provisions
26 
of this Act, the provisions of Section 30 to 41 of Republic Act No. 7916, otherwise
27 
known as "The Special Economic Zone Act of 1995", as amended, shall likewise apply
28 
to the llocos Norte Ecozone.
29 
SEC. 28. Implementing Rules and Regulations. - The National Economic and
30 
Development Authority (NEDA), in coordination with the DTI and DOF, shall formulate
31 
the implementing rules and regulations of this Act within ninety (90) days after its
32 
approvai.
33 
SEC. 29. Separability Clause. - If any provision of this Act shali be held
34 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
35 
full force and effects
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SEC. 30. Repealing Oause. - All laws, executive orders or issuances or any part
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thereof, which are inconsistent herewith, are hereby repeaied or amended
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accordingly.
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SEC. 31. Effectivity Oause. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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