Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3071

House Bill No.

Introduced by Honorable ALFONSO V. UMALI, JR.

EXPLANATORY NOTE

The current but fast-changing nature of both global and
local economies, not to mention the increasing trend towards
globalization, highly encourages the establishment of Special
Economic Zones in strategic geographic areas in the
Philippines.

This bill seeks to establish the Special Economic Zone and
Freeport Zone in the Municipality of Mansalay in the Province
of Oriental Mindoro.

Be it known that Oriental Mindoro is not only an
agricultural haven, but also an emerging choice of area for
investment. Dubbed as the “Gateway to the South,” thousands
of goods and people traverse the Province of Oriental Mindoro
to and from the islands of Visayas and Mindanao. Further, the
province is also gifted with diverse natural resources,
progressive transportation infrastructure, power and abundant
supply of highly technical and skilled human resources. Today,
the Province of Oriental Mindoro continues to be one of the
preferred alternative areas for investment. Given its strategic
geographical location and profuse resources, the establishment
of a Special Economic and Freeport Zone in the province is
undeniably ideal and apposite.

Anchoring on the main objective of promoting the

1


countryside as alternative areas for investments which has been
one of the mechanisms in order to empower and develop other
provinces as early as in the 1990s when most of the Special
Economic Zones in the country were established, this bill
envisions to create an Ecozone that will also alleviate and
improve the economic condition not only of the Province of
Oriental Mindoro but the entire MIMAROPA Region as well as
its nearby provinces. By establishment of this Ecozone, local
economic activities will significantly increase. Industrialization
will spur development even in the far-flung areas in the Region,
thus uplifting the welfare of the rural folks while, at the same
time, decongesting the cities and urbans like Metro Manila.

The Special Economic and Freeport Zone is conceptualized
as a self-sustaining industrial, commercial and investment
center resulting to economic growth and employment
generation. This bill also envisions an Economic and Freeport
Zone to be operated as a separate customs territory to ensure
free flow of movement of goods and commodities in the area and
their exportation therefrom. Similar to other ecozones in the
country, it will provide various incentives, both tax and non-tax,
for businesses operating within the zone.

Emphasis must be made on the fact that the
establishment of Oriental Mindoro Special Economic and
Freeport Zones is consistent with the government’s policy to
encourage and promote investments, induce and accelerate
sound and balanced industrial, economic and __ social
development in the country.

Given the foregoing, consideration and early approval of
this bill is earnestly sought.



Republic of the Philippines

HOUSE OF REPRESENTATIVES

CONGRESS OF THE PHILIPPINES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

3071
HOUSE BILL NO.

Introduced by Honorable ALFONSO V. UMALI JR.

AN ACT ESTABLISHING THE SPECIAL ECONOMIC ZONE
AND FREEPORT IN THE MUNICIPALITY OF MANSALAY,
PROVINCE OF ORIENTAL MINDORO, CREATING FOR THIS
PURPOSE THE ORIENTAL MINDORO SPECIAL ECONOMIC
ZONE AND FREEPORT AUTHORITY, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

CHAPTER 1
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as
the “Oriental Mindoro Special Economic Zone and Freeport Act."

SEC. 2. Declaration of Policy. - It is declared the policy
of the State to encourage, promote and accelerate the sound
and balanced industrial, economic and social development of
the country. The establishment of special economic zones shall
attract legitimate and productive foreign investments in
strategic locations in the country. It shall generate employment
and increase productivity and individual, as well as family
incomes thereby enhancing the quality of life of the Filipino

people.

CHAPTER II


GOVERNING STRUCTURES

SEC. 3. Creation of the Oriental Mindoro Special
Economic Zone and Freeport Authority (OMSEZA). - There is
hereby created a body corporate to be known as the “Oriental
Mindoro Special Economic Zone and Freeport Authority”,
hereinafter referred to as the OMSEZA, which shall manage and
operate the Oriental Mindoro Special Economic Zone and
Freeport in accordance with the provisions of this Act. This
corporate franchise shall expire in fifty (50) years counted from
the first year after the effectivity of this Act, unless otherwise
extended by Congress. It shall be organized within one hundred
eighty (180) days after the effectivity of this Act.

SEC. 4. Capitalization. - The OMSEZA shall have an
authorized capital stock of two billion (2,000,000,000) no par
shares with a minimum issue of ten pesos (P10.00) each, the
majority shares of which shall be subscribed and paid for by the
National Government and the Local Government Units (LGUs)
embracing the Oriental Mindoro Ecozone and Freeport. The
Board of Directors of the OMSEZA may, with the written
concurrence of the Secretary of Finance, sell shares,
representing not more than forty per centum (40%) of the capital
stock of the OMSEZA to the general public under such policy as
the Board and the Secretary of Finance may determine. The
National Government and the LGUs shall in no case own less
than sixty per centum (60%) of the total issued and outstanding
capital of the OMSEZA.

The amount necessary to subscribe and pay for the shares
of the National Government to the capital stock of the OMSEZA
shall be included in the Annual General Appropriations Act. For
LGUs, the funds shall be taken from their internal revenue
allotment and other local funds.

SEC. 5. Principal Office of the OMSEZA. - The OMSEZA
shall maintain its principal office in the Municipality of
Mansalay, Province of Oriental Mindoro, but it may establish
branches within the Philippines as may be necessary for the
proper conduct of its business.

SEC. 6. Powers and Functions of the OMSEZA. - The

4


OMSEZA shall have the following powers and functions:

a)

b)

°)

a)

°)

To operate, administer, manage and develop the Oriental
Mindoro Ecozone according to the principles and provisions
set forth in this Act,

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

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

To regulate and undertake the establishment, construction,
operation and maintenance of public utilities, other
services, and infrastructure in the Oriental Mindoro
Ecozone such as, but not limited to, heat, light and power,
shipping, barging, stevedoring, cargo handling, hauling,
warehousing, storage of cargo, port services or concessions,
piers, wharves, bulkheads, bulk terminals, mooring areas,
storage areas, roads, telecommunications, transport,
bridges, 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 or infrastructure
necessary or incidental to the accomplishment of the
objectives of this Act;

To construct, acquire, own, lease, operate and maintain on
its own or through contracts, franchise, licenses, bulk
purchase from the private sector or permits under any of
the schemes allowed in Republic Act No. 6957 (the Build-
Operate-Transfer Law, as amended), or joint venture,
adequate facilities and infrastructure required or needed for
the operation and development of the Oriental Mindoro
Ecozone, in coordination with appropriate national and
local government authorities and in conformity with
applicable laws thereon;

To approve plans, programs and projects of the Oriental
Mindoro Ecozone to be submitted to the Regional
Development Council for inclusion and inputs to the overall


9)

h)

)

regional development plan;

To operate on its own, either directly or through licenses to
others, tourism-related activities, including games,
amusements, recreational and sports facilities, subject to
the approval and supervision of the Philippine 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 Bangko Sentral Ng Pilipinas (BSP), as the case
may be, adequate and necessary funds from local or foreign
sources, to finance its projects and programs under this Act
and for this 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 protect, preserve, maintain and develop the forests,
beaches, coral and coral reefs, and maintain ecological
balance within the Oriental Mindoro Ecozone.
Notwithstanding the power of the Oriental Mindoro Ecozone
to create rules for such purpose, the rules and regulations
of the Department of Environment and Natural Resources
(DENR) and other government agencies involved in the
above functions shall be implemented by the OMSEZA;

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

necessary;

To adopt, alter and use a corporate seal, contract, lease,
buy, acquire, own or otherwise dispose of personal and/or
real property of whatever nature, sue and be sued, and
otherwise carry out its functions and duties as provided for
in this Act;

To issue certificates of origin for products manufactured or
processed in the Oriental Mindoro Ecozone in accordance
with prevailing rules of origin and the pertinent regulations
of the Philippine Economic Zone Authority (PEZA), the
Department of Trade and Industry (DTI) and/or the


m

n)

°)

p)

Department of Finance (DOF);

To establish one-stop shops for the issuance of all necessary
permits, clearances, licenses, and other _ similar
certifications to conduct such activities intended to improve
the ease of doing business within the Oriental Mindoro
Ecozone, in coordination with government agencies having
jurisdiction over activities therein: Provided, That all
government agencies are directed to provide and extend
utmost and full cooperation to the Oriental Mindoro
Ecozone in the establishment of such one-stop shops;

To provide internal security to the Oriental Mindoro
Ecozone in coordination with the National Government and
affected LGU. For this purpose, the OMSEZA shall provide
and establish its own internal security and firefighting
forces or hire others to provide the same. Military forces
sent by the national government for the purpose of defense
shall not interfere in the internal affairs of the Oriental
Mindoro Ecozone and expenditures for these military forces
shall be borne by the National Government;

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

SEC. 7. Board of Directors of the OMSEZA. - The

powers of the OMSEZA 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 Chairperson, who shall at the same time be the
administrator of the OMSEZA;

A Vice-Chairperson, who shall come from among the
members of the Board;


c) The Board consists of the following as members:

1) The Governor or his duly-designated representative from
the Provincial Government of Oriental Mindoro;

2) The mayor of the municipality of Mansalay;

3) One (1) representative from the investor’s group; and

4) One (1) representative from the workers working in the
ecozone area.

The Governor or his designated representative from the
Provincial Government of Oriental Mindoro and the mayor of the
municipality covered by the ecozone shall serve as ex-officio
members of the Board, whose terms in the Board correspond to
their terms as elected officials.

The Chairperson-Administrator 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, the replacement shall serve only the
unexpired portion of the term.

The Chairperson-Administrator 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 shall each receive per diem at
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 a higher per diem for the members of the Board, such per
diem shall not be more than Ten thousand pesos (P10,000.00)
for every Board meeting.

SEC. 8. Powers and Duties of the Chairperson-
Administrator. — The Chairperson-Administrator shall have


the following powers and duties:

a)

b)

c)

a)

e)

8)

h)

To submit to the Board for its approval, policies, systems,
procedures, rules and regulations that are essential to the
operation of the Oriental Mindoro Ecozone;

To direct and manage the affairs of the OMSEZA in
accordance with the policies of the Board;

To establish the internal organization of the OMSEZA under
such conditions that the Board may prescribe;

To submit an annual budget and necessary supplemental
budget to the Board for its approval;

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;

To recommend to the Board the remuneration and other
emoluments of its officers and employees in accordance
with existing laws on compensation and _ position
classification;

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 Oriental Mindoro Ecozone; and

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

SEC. 9. Organization and Personnel. - The Board of

Directors of the OMSEZA 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.
It shall have exclusive and final authority to promote, transfer,
assign, reassign, or remove officers of the OMSEZA, any
provision of existing law to the contrary notwithstanding. The
chairperson-administrator may carry out removal of such
officers and employees.


The officers and employees of the OMSEZA, 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 OMSEZA, subject to civil
service laws and regulations, shall be removed or suspended
except for cause, as provided by law.

SEC. 10. Legal Counsel. - The OMSEZA shall have its
own internal legal counsel under the supervision of the
Government Corporate Counsel. When the exigencies of
businesses and operations demand it, the OMSEZA may engage
the services of an outside counsel either on a case to case or on
a fixed retainer basis.

CHAPTER III
CREATION OF THE ECONOMIC ZONE AND FREEPORT

SEC. 11. Creation of the Oriental Mindoro Special
Economic Zone and Freeport. - In accordance with the
foregoing declared policy and subject to the concurrence of the
concerned local government units of Oriental Mindoro affected
by the zone, there is hereby established a special economic zone
and freeport, hereinafter referred to as the Oriental Mindoro
Ecozone. The Oriental Mindoro Ecozone shall cover, so much as
necessary, areas in the Municipality of Mansalay, Province of
Oriental Mindoro. The specific metes and bounds of the Oriental
Mindoro Ecozone shall be more particularly defined in a
presidential proclamation that shall be issued for this purpose:
Provided, That the lands embraced therein shall be public lands
and contiguous to one another.

SEC. 12. Governing Principles. - The Oriental Mindoro
Ecozone shall be managed and operated by the Oriental
Mindoro Special Economic Zone and Freeport Authority,
hereinafter referred to as the OMSEZA, created under Section 3
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
Oriental Mindoro Ecozone shall be developed into and

10


b)

C)

a)

°)

operated as a decentralized, self-reliant and self-sustaining
industrial, commercial/trading, agro-industrial, tourist,
banking, financial and investment center with suitable
residential areas;

The Oriental Mindoro Ecozone shall be provided with
transportation, telecommunications and other facilities
needed to attract legitimate and productive investments,
generate linkage industries and employment opportunities
for the people of Oriental Mindoro Ecozone and its
neighboring towns and cities;

The Oriental Mindoro Ecozone may establish a mutually
beneficial economic relations with other entities or
enterprises within the country or, subject to the
administrative guidance of the Department of Foreign Affairs
(DFA), the PEZA, and/or the DTI, with foreign entities or
enterprises;

Foreign citizens and companies owned by non-Filipinos in
whatever proportion may set up enterprises in the Oriental
Mindoro Ecozone, either by themselves or in a joint venture
with Filipinos in any sector of industry, international trade
and commerce within the Oriental Mindoro Ecozone;

The Oriental Mindoro Ecozone shall be managed and
operated as a separate customs territory thereby ensuring
the free flow or movement of goods and capital within, into
and out of its territory, and shall likewise provide incentives
such as tax and duty-free importations of raw materials,
capital and equipment to registered enterprises located
therein. However, exportation or removal of goods from the
territory of the Oriental Mindoro Ecozone to the other parts
of the Philippine territory shall be subject to customs duties
and taxes under the Customs and Tariff Code and other
relevant tax laws of the Philippines;

The areas comprising the Oriental Mindoro Ecozone may be
expanded or reduced when necessary. For this purpose, the
Oriental Mindoro Ecozone, in consultation with the LGUs,
shall have the power to acquire either by purchase,
negotiation or condemnation proceedings, any private land

il


within or adjacent to the Oriental Mindoro Ecozone for the
following purposes: (1) consolidation of lands for zone
development; (2) acquisition of right of way to the Oriental
Mindoro Ecozone; and (3) the protection of watershed areas
and natural assets valuable to the prosperity of the Oriental
Mindoro Ecozone;

g) Goods manufactured by an Oriental Mindoro Ecotone
enterprise 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 OMSEZA together with the
PEZA, the Bureau of Customs (BOC) and the DTI. However,
in order to protect domestic industries, a Negative List of
industries shall be drawn up and regularly updated by
PEZA. Enterprises engaged in industries included in such
Negative List shall not be allowed to sell their products
locally;

h) The defense of the Oriental Mindoro Ecozone and the
security of its perimeter fence shall be the responsibility
y of the national government in coordination with the
OMSEZA and the LGUs.

CHAPTER IV
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS

SEC. 13. Investors Visa. - Any foreign national who
invests an amount of two hundred thousand US dollars
(US$200,000.00), either in cash and/or equipment, in a
registered enterprise shall be entitled to an investor's
visa: Provided, That the foreign national has the following
qualifications:

a) Must be at least eighteen (18) years of age;

b) Must not have been convicted by final judgment of a
crime involving moral turpitude;

c) Must not be afflicted with any loathsome, dangerous
or contagious disease;

d) Must not have been institutionalized for any mental
disorder or disability; and


e) Must establish by verifiable and credible evidence his
financial capability and capacity.

As a holder of investor's visa, an alien shall be entitled to
reside in the Philippines while his investment subsists. For this
purpose, the alien 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 said alien shall automatically expire and /or be withdrawn.

The authority to issue visas and work permits shall remain
with the Bureau of Immigration (BI) and the Department of
Labor and Employment (DOLE), respectively; Provided, That the
BI and the DOLE shall implement measures to expedite the
processing of such visas and permits for workers in the Oriental
Mindoro Ecozone and coordinate with the OMSEZA for the
purpose of improving ease of doing business.

SEC.14. Fiscal Incentives.- Registered enterprises
operating within the Oriental Mindoro Ecozone 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 the Special Economic Zone Act of 1995, or those
provided under Executive Order No. 226, as amended,
otherwise known as the Omnibus Investment Code of 1987;
and/or those that may be further granted as the need and
necessity arises by the appropriate government department,
agency or office: Provided, That in the administration,
implementation and monitoring of incentives, the OMSEZA may
impose its own conditions not otherwise prohibited by this Act:
Provided, further, That the OMSEZA shall not be limited to the
conditions provided under Republic Act No. 7916, Republic Act
No. 8748 or any other related issuance, rule or regulation.

SEC. 15. Imposition of a Tax Rate of Five Percent (5%)
on Gross Income Earned. - No taxes, local and national, shall
be imposed on business establishments operating within the
Oriental Mindoro Ecozone, including income, withholding,
donor’s, percentage, and documentary stamp taxes. In lieu
thereof, and subject to Section 17 of this Act, said business
establishments shall pay a five percent (5%) final tax on their

13


gross income earned; Provided, That the proceeds from such
final tax shall be shared by instrumentalities of the government
in accordance with the following percentages:

a) Three per centum (3%) to the National Government;

b) Two per centum (2%) shall be directly remitted by the
business establishments to the treasurer’s office of the
municipality where the enterprise is located.

The OMSEZA shall have the authority to grant income tax
holiday and net operating loss carry over subject to Section 17
of this Act and conditions as it may have imposed pursuant to
Section 14 of this Act.

SEC. 16. 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 OMSEZA shall be responsible for the administration,
management, enforcement and implementation of the
incentives granted to registered enterprises; Provided,
That the BOC shall set up and establish a customs
controlled area outside the gate of the Oriental Mindoro
Ecozone to facilitate payment of taxes on goods entering
the Philippine customs territory; Provided further, That
notwithstanding the limitations in this Act, the OMSEZA
and BOC may coordinate and jointly implement
measures on border protection; and

(b) In the interest of enhancing transparency in the
management and accounting of tax incentives in the
Oriental Mindoro Ecozone, the OMSEZA shall comply
with the provisions of Republic Act No. 10708, otherwise
known as “The Tax Incentives Management and
Transparency Act (TIMTA)’ and its implementing rules
and regulations.

SEC.17. Duration of Incentives. - Fiscal incentives under
this Act shall be terminated after a cumulative period of twenty
(20) years from date of registration or start of commercial
operation, whichever is applicable, except that it could be

14


extended with regard to industries deemed indispensable to
national development and interest. The industries exempted
from this provision shall be determined by the OMSEZA, in
consultation with other government agencies.

SEC. 18. Sequential Availment of Incentives. -
Registered enterprises may enjoy the income tax holiday (ITH)
granted by the OMSEZA prior to the availment of the five percent
(5%) final tax on gross income earned incentive: Provided, That
in the event a registered enterprise elects to avail of the final tax
incentive, such registered enterprise shall be barred from
availing the ITH incentive.

Registered enterprises, if eligible, may register for
incentives with other investment promotion agencies: Provided,
That registered enterprises electing to avail of the incentives of
other promotion agencies shall not be able to avail of the
incentives of the Oriental Mindoro Ecozone until the expiration
of the incentives with such other investment promotions
agencies.

SEC. 19. Extension of Period of Availment.- In the
event that a registered enterprise has suffered cessation or
suspension of operations due to force majeure, which has
impaired its viability or profitability, the OMSEZA may extend
the period of validity of the incentives extended to such
registered enterprise.

SEC. 20. Banking Rules and Regulations. — Banks and
financial institutions to be established in the Oriental Mindoro
Ecozone shall be under the supervision of the Bangko Sentral
ng Pilipinas (BSP) and subject to existing banking laws, rules
and regulations.

SEC. 21. Remittances.- In the case of foreign
investments, a duly registered entity or enterprise within the
Oriental Mindoro Ecozone shall have the right to remit earnings
from the investment in the currency in which the investment
was originally made and at the exchange rate prevailing at the
time of remittance, subject to the provisions of Republic Act No.
7653, otherwise known as “The New Central Bank Act”.

15


CHAPTER V
NATIONAL GOVERNMENT AND OTHER ENTITIES

SEC. 22. Supervision and Control. - For purposes of
policy direction and coordination, the OMSEZA shall be under
the direct control and supervision of the Office of the President
of the Philippines.

SEC. 23. Regional Development Council.- The
OMSEZA shall determine the development goals for the Mindoro
Oriental Ecozone within the framework of national development
plans, policies and goals. The Chairperson - Administrator
shall, upon approval by the Board, submit the Oriental Mindoro
Ecozone plans, programs and projects to the Regional
Development Council for inclusion and inputs to the overall
regional development plan.

SEC. 24. Relationship with Local Government Units. —
Except as herein provided, the LGUs comprising the Oriental
Mindoro Ecozone shall retain their basic autonomy and identity.
The Municipality of Mansalay, Province of Oriental Mindoro,
shall operate and function in accordance with the framework of
the 1987 Constitution, Local Government Code of 1991, and
Republic Act No. 7898, as amended by Republic Act No. 10349,
applicable provisions of the Local Government Code, and this
Act.

In case of any conflict between the OMSEZA and the LGUs
and the National Government on matters affecting the Oriental
Mindoro Ecozone, other than national defense and security
matters, the decision of the OMSEZA shall prevail.

SEC. 25. Interpretation/Construction.- The powers,
authorities and functions that are vested in the OMSEZA are
intended to establish national self-sufficiency and self-reliance
in the advancement of and protection of the national integrity,
enhancement of national security, decentralization of
governmental functions and authority, and promotion of an
efficient and effective working relationship among the OMSEZA,
the National Government and the LGUs. Any interpretation of
this Act shall consider such intentions. In the event of conflict
of interpretation and provided the intentions cannot be

16


harmonized, the provisions of this Act shall be construed in
favor of an interpretation that would tend to protect national
security.

SEC. 26. Audit. - The Commission on Audit (COA) shall
appoint a full - time auditor in the OMSEZA or may assign such
number of personnel as may be necessary in the performance
of their functions.

CHAPTER VI
MISCELLANEOUS

SEC. 27. Implementing Rules and Regulations. —- The
DTI, DOF and the National Economic Development Authority
(NEDA) shall formulate the implementing rules and regulations
of this Act within ninety (90) days after its approval. Such rules
and regulations shall take effect fifteen (15) days after its
publication in a newspaper of general circulation in the
Philippines.

SEC. 28. Applicability Clause. - Insofar as these are
consistent with the provisions of this Act, the provisions of
Sections 30 to 41 of Republic Act No. 7916, otherwise known as
"The Special Economic Zone Act of 1995", as amended, shall
likewise apply to the Oriental Mindoro Ecozone.

SEC. 29. Separability Clause. - If any provision of this
Act shall be held unconstitutional or invalid, the other
provisions not otherwise affected shall remain in full force and
effect.

SEC. 30. Repealing Clause. - All laws, executive orders
or issuances or any part thereof, which are inconsistent
herewith, are hereby repealed or amended accordingly.

SEC. 31. Effectivity Clause. - This Act shall take effect
after fifteen (15) days following its complete publication in the
Official Gazette or in two (2) newspapers of general circulation
whichever is earlier.

Approved.