Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
FIRST REGULAR SESSION

1440

House Bill No.

Introduced by Representative Luis Jose Angel N. Campos, Jr.

EXPLANATORY NOTE

Overseas Filipino Workers (OFWs) contribute immensely to our economy. From 2011 to 2015,
personal remittances of OFWs totaled USD126.222 Billion. The amount has increased steadily
during the same period ~ from USD21.92 Billion in 2011 to USD28.308 Billion in 2015.

The remittances help fuel consumer spending in the country. The Consumer Expectation Survey of
the Bangko Sentral ng Pilipinas (BSP) for the 3" quarter of 2016 showed that 95% of OFW
households spent their remittances on food and other household needs. A significant number (39.8%)
said that they allocated money for debt payments and purchase of consumer durables (20.2%)

However, only 3.8% of OFW households reported that they allotted a portion of the remittance that
they received for investment purposes.

‘As these statistics show, remittances are used mainly to augment the needs and wants of the
households and are rarely used in building new enterprises. On the positive side, more OFW
households are utilizing the remittances for saving purposes (39.6% in 2016 up from 33.2% ten years
ago). These savings are important as potential source of capital for OF Ws who would like to return
home for good

There is an urgent need to start hamessing the remittances and savings into more productive
endeavors, primarily through entrepreneurial or business activities. Business activities will augment
the income of the OFW households and will generate much-needed local employment.

While there are existing government facilities to assist OFWs, such as Go Negosyo and OWWA
loans, these should be integrated and strengthened to meet the needs of aspiring OFW entrepreneurs.
These should also be complemented by fiscal incentives such as tax breaks and institutional support
mechanisms both on-site and at the local level.

The proposed measure seeks to consolidate government support programs and services for OF Ws,
expand their access to credit, markets, and information, and institute support mechanisms and
networks for business planning, operations, and expansion. The measure will also help minimize
administrative obstacles in establishing businesses for OFWs

It is for these reasons that this humble representation seeks the timely passage of this bill.

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REP. LUIS N. CAMPOS,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
FIRST REGULAR SESSION

House Bill No. 1440

Introduced by Representative Luis Jose Angel N. Campos, Jr.

AN ACT PROVIDING INCENTIVES FOR OVERSEAS FILIPINO WORKERS AND
FILIPINOS RESIDING OVERSEAS TO INVEST AND ESTABLISH BUSINESSES IN
THE PHILIPPINES

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

Section 1. Title. — the Act shall be known as the Overseas Filipino Workers (OFW)
Business Incentive Act of 2019,

Section 2. Declaration of Policies. — It is hereby declared the policy of the State to foster
national development by encouraging and enabling our modern-day heroes, the Overseas
Filipino Workers (OFWs) and Filipinos residing overseas, to invest in the establishment of
enterprises towards the creation of decent work, production, and trade within the country. To
this end, the State shall provide fiscal incentives, open up access to capital, training, market, and
information, ensure ease-of-doing business, and provide the institutional support necessary for
overseas Filipino investors to contribute to the economy and to nation-building

Section 3. OFW Business. ~“OFW Business” shall refer to newly-registered businesses
engaged in manufacturing, agribusiness, and/or services, whether a single proprietorship,
partnership, or corporation, owned and controlled by an OFW or a Filipino residing
overseas. Provided, that the said business shall be accredited by the OFW Business Council,
which shall be created under this law.

Section 4. Fiscal Incentives. — An “OFW Business” shall be exempted from all national
and local taxes for the first two (2) years of its operations.

The exemption shall be extended to six (6) years if the OFW Business is a pioneering
business in the Philippines or if it will introduce and utilize a state-of-the-art technology in its
operations.

Section 5. Exemption from Customs Tariff and Duties. — Equipment that will be
brought in by OFW Businesses for exclusive use in their operations shall be exempt from
customs tariff and duties for the first two years of the existence of the OFW Business. Provided,
that the total value of said equipment shall not exceed Five (5) Million Pesos. Provided, further,
that the OFW Business shall not sell or re-sell the said equipment for a period of five (5) years
from the time the exemption was granted

Section 6. Access to Credit. ~ The Overseas Workers Welfare Administration (OWWA)
shall set aside a portion of its fund for reintegration for the purpose of establishing a credit
facility for the start-up or expansion of an OFW Business. The credit facility shall be managed
by the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines
(DBP)

Section 7. Ease of Doing Business. ~ The Local Government Units (LGUs), in
coordination with the OFW Business Council, shall allot an “express lane” at the Business
Permits and Licensing Offices (BPLO) of their LGU where they can file, process and secure the



necessary permits for a maximum of 30 days from the time of filing and presenting the complied
requirements.

Section 8. Inclusion in PEOS and PDOS. — All Pre-Employment Orientation Seminars
(PEOS) and Pre-Deployment Orientation Seminars (PDOS) shall include the following topics:

Basic information on how to start a business
Relevant agencies and institutions who can help OFWs in starting a business
Accreditation process for OFW Businesses

Source of information on businesses, capitals, and markets

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Section 9. Access to Information On-Site. ~ The Commercial/Trade Attaché shall make
available information on funds, services, programs, and opportunities for OFWs.

Section 10. OFW Business Council. - An OF W Business Council is hereby created.
The Council shall be composed of:

‘The Secretary of the Department of Labor and Employment (DOLE) as chair

‘The Secretary of the Department of Trade and Industry (DT!) as co-chair

‘The Secretary of the National Economic Development Authority (NEDA)

‘The Secretary of the Department of Finance (DOF)

The Secretary of the Department of Interior and Local Government (DILG)

A Representative from a duly-recognized and accredited OFW Chamber of Commerce &
Industry

AUAwWNe

The OWWA shall serve as the Secretariat for the Council,
Section 11. Functions of the Council.
The Council shall.

1. Formulate and implement policies to ensure ease-of-doing-business for OFW Businesses
in all levels

2. Issue accreditation certificates to OFW Businesses for them to receive tax-exempt or
duty-free status

3. Develop and execute an information dissemination plan to encourage OFWs and
Filipinos residing abroad to invest

4. Coordinate with relevant agencies and local government units to institute on-site and
regional support mechanisms on business planning, conducting feasibility plans,
preparing bid proposals to OFW Businesses

5. Establish and nurture linkages with experts who will serve as mentors for start-up OFW
Businesses

Section 12. Accreditation and Registration of OFW Investors. — The OFW Business
Council shall prescribe rules and regulations for the accreditation of OFW investors. In
coordination with the OWWA, the Business Council shall establish and maintain a data base of
OFW Businesses and Entrepreneurs for the purpose of exploring other possible means of support
including matching with markets, suppliers, and other investors.

Section 13. Linkages with Filipino Inventors and Other Local Entrepreneurs. ~The OFW
Business Council shall establish close ties with Filipino inventors and local entrepreneurs for the
purpose of matching technology, investment opportunities, and the needs of OFW Businesses

Section 14. Appropriations. ~The Funds for the operation of the Business Council shall be
sourced from the regular appropriations of Overseas Workers Welfare Administration (OWWA).
The Credit Facility shall be sourced from the OWWA Reintegration Fund as mandated by the
new OWWA Charter (RA 10801).



Section 15. Implementing Rules and Regulations. ~The DOLE, in coordination with the
DTI, shall formulate the implementing rules and regulations 90 days after the enactment of this
Law,

Section 16. Separability Clause. — \f any provision of this Act shall be held unconstitutional,
the remainder of the Act not otherwise affected shall remain in full force and effect.

Section 17. Repealing Clause. — All existing laws, presidential decrees, executive orders,
proclamations, or administrative regulations that are not consistent with the provisions of this
Act are hereby amended, modified, or repealed accordingly

Section 18. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication in

the Official Gazette and/or in a newspaper of general circulation

Approved,