EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S.B. No. 2193
FLED
DATE
SILt.fr
Introduced by SENATOR IMEE R. MARCOS
AN ACT ESTABLISHING THE SPECIAL ECONOMIC ZONE IN THE 4TH 
DISTRICT OF CEBU PROVINCE, CREATING FOR THIS PURPOSE THE 4TH 
DISTRICT SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 20 of Article II of the 1987 Philippine Constitution provides that "The 
State recognizes the indispensable roie of the private sector, encourages private 
enterprise, and provides incentives to needed investments."
The United Nations Conference on Trade and Development (UNCTAD) defines 
Special Economic Zones (SEZs) in its World Investment Report 2019 as geographically 
delimited areas within which governments facilitate industrial activity through fiscal 
and regulatory incentives and infrastructure support. Currently, there are over 5,300 
SEZs in over 140 economies.
According to the United Nations (UN) Habitat, SEZs have been a popular policy 
instrument to stimulate economic growth. It has widely been present globally in both 
developed and developing countries. Moreover, economies benefit from the clustering 
of industries either as firms in the same sector (localization economies) or as diverse 
firms in the same location (urbanization economies). Studies also show that a strategic 
location close to key infrastructure hubs, large markets and labor pools is fundamental 
to attracting investors into a zone. SEZs that are located in urban centers which are 
densely populated tend to be successful.
Cebu is a province of the Philippines located in the Central Visayas (Region VII) 
region, and consists of 7 legislative districts. The district consists of the northern city 
of Bogo and adjacent municipalities of Bantayan, Daanbantayan, Madridejos, Medellin, 
San Remigio, Santa Fe, Tabogon and Tabuelan. According to the 2015 Population 
Census of the Philippine Statistics Authority (PSA), the district has a population of 
484,198 people. The special economic zone proposes to establish its principal office 
in the 2nd class Municipality of Medellin, Cebu.


No doubt that the 4th district of Cebu possesses the characteristics that will most 
likely achieve the objectives set forth in establishing a special economic zone within 
its territory. The populous district have skilled residents who can benefit with the 
opening of establishments offering job vacancies of varying levels. In addition, many 
residents who used to work abroad but were forced by the pandemic to stay in the 
Philippines can take this opportunity to gain employment again.
During this time, when the world felt the harsh effect of the pandemic to the 
economy of every country, it is but fitting that countries work hand-in-hand through 
international trade. The Organisation for Economic Cooperation and Development 
(OECD) estimates that some countries will channel over 70% of their exports through 
SEZs, which function mostly as separate customs territories. According to the 
Hamburg Port Consulting (HPC), SEZs are vital to the development of international 
trade due to their capabilities to boost export volumes. Consequently, they represent 
an important element in the recovery of the economy after the pandemic.
This bill seeks to foster economic growth by creating employment opportunities, 
increasing industrial infrastructure investments, and facilitating foreign investments 
through the creation of a special economic zone in the 4th District of Cebu Province.
In view of the foregoing, the speedy passage of this bill is earnestly sought.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES )
Second Regular Session
)
SENATE
S.B. No.
2193
Introduced by SENATOR IMEE R. MARCOS
RECEIVED
i-FILED
DATE 
TIME
AN ACT ESTABLISHING THE SPECIAL ECONOMIC ZONE IN THE 4TH 
DISTRICT OF CEBU PROVINCE/CREATING FOR THIS PURPOSE THE 4TH 
DISTRICT SPECIAL ECONOMIC ZONE AUTHORITY, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
CHAPTER I
GENERAL PROVISIONS
1 
SECTION 1. Short Title. - This Act shall be known as the "Cebu 4th District Special
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Economic Zone Act."
3 
SEC. 2. Declaration of Policy. -It is declared the policy of the state to encourage,
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promote, and accelerate the sound and balanced industrial, economic and social
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development of the country. The establishment of special economic zones shall attract
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legitimate and productive foreign investments in strategic locations in the country. It
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shall generate employment and increase productivity and individual, as well as family
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incomes thereby enhancing the quality of life of the Filipino people.
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CHAPTER II
10 
GOVERNING STRUCTURES
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SEC. 3. Creation of the Cebu 4th District Special Economic Zone Authority. -
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There is hereby created a body corporate to be known as the "Cebu 4th District Special
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Economic Zone Authority" hereinafter referred to as the CEZA, which shall manage
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and operate the Cebu 4th District Ecozone, in accordance with the provisions of this
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act. This corporate franchise shall expire in fifty (50) years counted from the first year
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after the effectivity of this act. Unless otherwise extended by Congress. It shall be
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organized within one hundred eighty (180) days after the effectivity of this Act.
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SEC. 4. Capitalization. - The CEZA shall have an authorized capital stock of Two
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Billion (2,000,000,000) no par shares with a minimum issue of Ten Pesos (PIO.OO)


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each. The majority shares of which shall be subscribed and paid for by the National
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Government and the Local Government Units (LGUs) embracing the Cebu 4th District
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Ecozone. The Board of Directions of the CEZA may, with the written concurrence of
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the Secretary of Finance, sell shares, representing not more than forty per centum
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(40%) of the capital stock of the CEZA to the general public under such policy as the
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Board and the Secretary of Finance may determine. The National Government and the
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LGUs shall in no case own less than sixty per centum (60%) of the total issued and
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outstanding capital of the CEZA.
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The amount necessary to subscribe and pay for the shares of the National
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Government to the capital stock of the CEZA shall be Included in the Annual General
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Appropriations Act. For LGUs, the funds shall be taken from their internal revenue
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allotment and other local funds.
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SEC. 5. Principal Office of the CEZA. - The CEZA shall maintain its principal at
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Medellin, Cebu, but it may establish branches within the Philippines as may be
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necessary for the proper conduct of its business.
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SEC. 6. Powers and Functions of the CEZA. -The CEZA shall have the following
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powers and Functions:
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a) To operate, administer, manage and develop the Cebu 4th District
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Ecozone according to the principles and provisions set forth in this Act;
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b) To register, regulate and supervise the enterprises in the Cebu 4th District
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Ecozone in an efficient and decentralized manner, subject to existing laws;
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c) To coordinate with LGUs and exercise general provision over the
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development plans, activities and operations of the Cebu 4th District
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Ecozone;
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d) To regulate and undertake the establishment, construction, operation and
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maintenance of public utilities, other services, and infrastructure in the
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Cebu 4th District Ecozone such as, but not limited to heat, light and power,
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shipping, barging. Stevedoring, cargo handling, hauling, warehousing,
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storage of cargo, port services or concessions, piers, wharves, bulkheads,
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bulk terminals, mooring areas, storage areas, roads, telecommunications
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transport, bridges, terminals, conveyors, water supply and storage,
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sewerage, drainage, airport operations in coordination with the Civil
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Aviation Authority of the Philippines (CAAP), and such other services or
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concessions or infrastructure necessary or incidental to the
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accomplishment of the objectives of this Act;
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e) To construct, acquire, own, lease, operate and maintain on its own or
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through contracts, franchise, license, bulk purchase from the private
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sector or permits under any of the schemes allowed in Republic Act No.
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6957 (the Build-Operate-Transfer Law, as amended), or joint venture.


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adequate facilities and infrastructure required or needed for the operation 
and development of the Cebu 4th District Ecozone, in coordination with 
appropriate national and, local government authorities and in conformity 
with applicable laws thereon;
f) To approve plans, programs and projects of the Cebu 4th District Ecozone 
to be submitted to the Regional Development Council for inclusion and 
Inputs to the overall regional development plan;
g) To operate on its own, either directly or through license to others, tourism- 
related activities, including games, amusements, recreational and sports 
facilities;
h) To raise or borrow, within the limitations provided by law, and subject to 
the approval or opinion of the Monetary Board of the Bangko Sentra! 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 asset;
i) To protect, preserve, maintain and develop the forests, beaches, coral and 
coral reefs, and maintain ecological balance within the Cebu 4th District 
Ecozone. Notwithstanding the Authority of the CEZA 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 CEZA;
j) To create, operate and/or contract to operate such functional units or 
offices of the CEZA as it may deem necessary;
k) 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;
l) To Issue certificate of origin for products manufactured or processed in 
the Cebu 4th District 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 
Department of Finance (DOF);
m) 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 Cebu 
4th District Ecozone, in coordination with government agencies having 
jurisdiction over activities therein. Provided, that all government agencies
3


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are directed to provide and extend utmost.and full cooperation to the Cebu 
4th District Ecozone In the establishment of such one-stop shops;
n) To provide Internal security to the Cebu 4th District Ecozone in 
coordination with the National government and affected LGU. For this 
purpose, the CEZA 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 Cebu 4th District Ecozone and expenditures 
for these military forces shall be borne by the National Government;
o) 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 purpose, objectives and 
policies of this Act; and
p) To issue rules and regulations consistent with the provisions of this Act as 
may be necessary to accomplish and implement the purpose, objectives 
and policies provided herein.
SEC. 7. Board of Directors of the CEZA. -The powers of the CEZA 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) The chairperson, who shall at the same time be the administrator of the 
CEZA
b) A Vice-Chairperson, who shall come from arriong the members of the 
Board
c) Mernbers consisting of:
1) The Governor or his/her representative from the Provincial 
Government of Cebu
2) The Mayors of the Municipalities covered by the ecozone
3) One (1) representative from the domestic investors
4) One (1) representative from the foreign investors
5) One (1) representative from the workers working in the Cebu 4th 
District Ecozone
The representative from the Provincial Government and the mayors of the 
municipalities covered by the ecozone shall serve as ex-officio members of the Board, 
whose term In the Board corresponds to their term as elected officials.
The chairperson and members of the Board, except the ex-officio members, shall 
be appointed by the President of the Philippines to serye 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.


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The chairperson of the Board must be a Filipino citizen, of good moral character, 
of proven probity and integrity, and a degree-holder in ahy 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 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 
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) To direct and manage the affairs of the CEZA in accordance with the 
policies of the Board;
b) To establish the internal organization of the CEZA under such conditions 
that the Board may prescribe;
c) To submit an annual budget and necessary supplemental budget to the 
Board for its approval;
d) To submit within thirty (30) days after the close of each fiscal year an 
annual report to the Board and such other reports as may be required;
e) To submit to the Board for its approval, policies, systems, procedures, 
rules and regulations that are essential to the operation of the Cebu 4th 
District Ecozone;
f) To recommend to the Board the renumeration and other emoluments of 
its officers and employees in accordance with existing laws on 
compensation and position classification;
g) 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 Cebu 4th District Ecozone; and
h) To perform such other duties as may be assigned to him by the Board or 
which are necessary or incidental to his office.
SEC. S. Organization andPersonnei. -The Board of Directors of the CEZA shall 
provide for its organization and staff. The Board shall appoint and fix the renumeration 
and other emoluments of its offices 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 CEZA, any 
provision of existing law to the contrary notwithstanding. The chairperson- 
administrator may carry out removal of such officers and employees.


1 
The officers and employees of the CEZA, including all members of the Board,
2 
shall not engage directly or indirectly in partisan activities nor take part in any election,
3 
except to vote.
4 
No officer or employee of the CEZA, subject to civil service laws and regulations,
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shall be removed or suspended except for cause, as provided by law.
6 
SEC. 10. Legal Counsel. - The CEZA shall have its own internal legal counsel
7 
under the supervision of the government corporate counsel. When the exigencies of
8 
its businesses and operations demand it, the CEZA may engage the services of an
9 
outside counsel either on a case to case or on a fixed retainer basis.
10 
SEC. 11. Legal Office. -The CEZA shall have and maintain its own internal legal
11 
office, appropriate in number under the supervision of the Government Corporate
12 
Counsel. When the exigencies of its businesses and operations demand, the CEZA may
13 
engage the services of an outside counsel either on a case to case or a fixed retainer
14 
basis.
,5 
CHAPTER III
16 
CREATION OF THE ECONOMIC ZONE
17 
SEC. 12. Creation of the Cebu 4th District Special Economic Zone. - In
18 
accordance with the foregoing declared policy and subject to the concurrence of the
19 
concerned local government units of the 4th District of Cebu affected by the Zone,
20 
there is hereby established a Special Economic Zone, hereinafter referred to as the
21 
Cebu 4th District Ecozone. The Cebu 4th District Ecozone shall cover the entire area
22 
of Curva and Tindog in the Municipality of Medellin Province of Cebu. The specific
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metes and bounds of the Cebu 4th District Ecozone shall be more particularly defined
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in a presidential proclamation that shall be issued for this purpose; Provided, that the
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lands embraced therein shall be public lands and contiguous to one another.
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SEC. 13. Governing Principles. -The Cebu 4th District Special Economic Zone
27 
shall be managed and operated by the Cebu 4th District Special Economic Zone
28 
Authority hereinafter referred to as the CEZA, created under Section 3 of this Act,
29 
under the following principles:
30 
a) Within the framework and limitations of the Constitution and applicable
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provisions of the Local Government Code, the Cebu 4th District Ecozone
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shall be developed into and operated as a decentralized, self-reliant and
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self-sustaining industrial, commercial/trading, agro-industrial, tourist,
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banking, financial and investment center with suitable residential areas.
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b) The Cebu 4th District Ecozone shall be provided with transportation,
35 
telecommunications and other facilities needed to attract legitimate and
37 
productive investments, generate linkage industries and employment
38 
opportunities for the people of Cebu and its neighboring towns and cities.


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c) The Cebu 4th District 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 Department of Trade and Industry 
(DTI), with foreign entities or enterprises.
d) Foreign citizens and companies owned by non-Filipinos in whatever 
proportion may set up enterprises In the Cebu 4th District Ecozone, either 
by themselves or in a joint venture with Filipinos In any sector of industry, 
international trade and commerce within the Cebu 4th District Ecozone.
e) The .Cebu 4th District 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 Cebu 4th District 
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.
f) The areas comprising the Cebu 4th District Ecozone may be expanded or 
reduced when necessary. For this purpose, the CEZA, in consultation with 
the LGUs, shall have the power to acquire either by purchase, negotiation 
or condemnation proceedings, any private land within or adjacent to the 
Cebu 4th District Ecozone for the following purpose: (1) consolidation of 
lands for zone development; (2) acquisition of right of way to the Cebu 
4th District Ecozone; and (3) the protection of watershed areas and 
natural assets valuable to the prosperity of the Cebu 4th District Ecozone.
g) Goods manufactured by a Cebu 4th District Ecozone 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 CEZA 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 liable to sell their products locally.
h) The defense of the Cebu 4th District Ecozone and the security of Its 
perimeter fence shall be the responsibility of the national government in 
coordination with the CEZA and the LGUs.


1 
CHAPTER IV
2 
INCENTIVES TO ECOZONE ENTERPRISES/ INVESTORS
3 
SEC. 14. Investors Visa. — Any foreign national who invests an amount of two
4 
hundred thousand US dollars (USD 200,000.00), either in cash and/or equipment, in
5 
a registered enterprise shall be entitled to an investor's visa: Provided, that the foreign
6 
national has the following qualifications:
7 
a) Must be at least 18 years of age;
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b) Must not have been convicted by final judgement of a crime involving
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moral turpitude;
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c) Must not be afflicted with any loathsome, dangerous or contagious
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disease;
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d) Must not have been institutionalized for any mental disorder or disability;
13 
and
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e) Must establish by verifiable and credible evidence his financial capability
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and capacity.
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As a holder of investor's visa, an alien shall be entitled to reside in the Philippines
17 
while his investment subsists. For this purpose, the alien should submit an annual
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report, in the form duly prescribed for the purpose, to prove that he has maintained
19 
his investment in the country. Should said alien withdraw his investments from the
20 
Philippines, then the investor's visa to said alien shall automatically expire and/or be
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withdrawn.
22 
The authority to issue visas and work permits shall remain with the Bureau of
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Immigration (BI) and the Department of Labor and Employment (DOLE), respectively:
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Provided, that the BI and the DOLE shall implement measures to expedite the
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processing of such visas and permits for workers in the Cebu 4th District Ecozone and
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coordinate with the CEZA for the purpose of improving ease of doing business.
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SEC. 15. Fiscai Incentives. - Registered enterprises operating within the Cebu
28 
4th District Ecozone may be entitled to the existing pertinent fiscal incentives as
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provided for under Republic Act No. 7916, as amended by Republic Act No. 8748, also
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known as the Special Economic Zone Act of 1995, or those provided under Executive
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Order No. 226, as amended, otherwise known as the Omnibus Investment Code of
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1987; and/or those that may be further granted as the need and necessity arises by
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the appropriate government department, agency or office: Provided, that in the
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administration, implementation and monitoring of incentives, the CEZA may impose
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its own conditions not otherwise prohibited by this ACT: Provided, further, that the
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CEZA shall not be limited to the conditions provided under Republic Act No. 7916,
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Republic Act No. 8748 or any other related issuance, rule or regulation.
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SEC. 16. Imposition of Tax Rate of Five Percent (5%) on Gross Income Earned.
39 
- No taxes, local and national, shall be imposed on business establishments operating


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within the Cebu 4th District Ecozone, including income, withholding, donor's,
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percentage, and documentary stamp taxes. In iieu thereof, and subject to Section 18
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of this Act, said business establishments shaii pay five percent (5%) finai tax on their
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gross income earned: Provided, that the proceeds from such final tax shall be shared
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by instrumentalities of the government in accordance with the foilowing percentages:
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a) Three per centum (3%) to the National Government
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b) Two per centum (2%) shall be directly remitted by the business
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establishments to the treasurer's office of the municipaiity or city where
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the enterprise is iocated
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The CEZA shaii have the authority to grant income tax holiday and net operating
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ioss carry over subject to Section 18 of this Act and conditions as it may have imposed
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pursuant to Section 15 of this act.
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SEC. 17. Administration, Implementation and Monitoring of Incentives. - For the
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proper administration, impiementation, and monitoring of tax incentives provided
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under this iaw, the foilowing are herein mandated:
16 
a) The CEZA shall be responsible for the administration, management,
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enforcement and implementation of the incentives granted to registered
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enterprises: Provided, that the BOC shaii set up and estabiish a customs
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controlled area outside the gate of the Cebu 4th District Ecozone to
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facilitate payment of taxes on goods entering the Phiiippine customs
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territory: Provided further. That notwithstanding the iimitations of this Act,
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the CEZA and BOC may coordinate and jointiy impiement measures on
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border protection; and
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b) In the interest of enhancing transparency in the management and
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accounting of tax incentives in the Cebu 4th District Ecozone, the CEZA
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shaii comply with the provisions of Repubiic Act No. 10708, otherwise
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known as the "The Tax Incentives Management and Transparency Act
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(TIMTA)" and its impiementing rules and regulations.
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SEC. 18. Duration of Incentives. - Fiscai incentives under this Act shaii be
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terminated after a cumuiative period of twenty (20) years from date of registration or
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start of commercial operation, whichever is appiicabie, except that it could be
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extended with regard to industries deemed indispensable to national development and
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interest.
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SEC. 19. Sequential A vaiiment of Incentives. - Registered enterprises may enjoy
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the income tax hoiiday (ITH) granted by the CEZA prior to the avaiiment of the five
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percent (5%) final tax on gross income earned incentive: Provided, that in the event
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a registered enterprise elects to avail of the final tax incentive, such registered
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enterprise shaii be barred from avaiiing the ITH incentive.


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Registered enterprises, if eligible, may register for incentives with other
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investment promotion agencies: Provided, that registered enterprises eiecting to avaii
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of the incentives of other promotion agencies shall not be able to avail of the incentives
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of the Cebu 4th District Ecozone until the expiration of the incentives with such other
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investment promotion agencies.
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SEC. 20. Extension of Period of Avaiiment. - In the event that a registered
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enterprise has suffered cessation or suspension of operations due to force majeure,
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which has impaired its viabiiity or profitabiiity, the CEZA may extend the period of
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validity of the incentives extended to such registered enterprise.
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SEC. 21. Banking Ruies and Reguiations. - Banks and financial Institutions to be
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established in the Cebu 4th District Ecozone shall be under the supervision of the
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Bangko Sentral ng Pilipinas (BSP) and subject to existing banking laws, rules and
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regulations.
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SEC. 22. Remittances. - In the case of foreign investments, a duly registered
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entity or enterprise within the Cebu 4th District Ecozone shall have the right to remit
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earnings from the investment in the currency in which the investment was originally
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made and at the exchange rate prevailing at the time of remittance, subject to the
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provisions of Republic Act No. 7653, otherwise known as "The New Central Bank Act".
19 
CHAPTER V
20 
NATIONAL GOVERNMENT AND OTHER ENUTIES
21 
SEC. 23. Supervision and Controi. - For the purposes of policy direction and
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coordination, the CEZA shall be under the direct control and supervision of the Office
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of the President of the Philippines.
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SEC. 24. Regional Development Council. - The CEZA shall determine the
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development goals for the Cebu 4th District Ecozone within the framework of national
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development plans, policies and goals. The Chairperson & administrative shall, upon
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approval by the Board, submit the Cebu'4th District Ecozone plans, programs and
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projects to the Regional Development Council for inclusion and inputs to the overall
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regional development plan.
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SEC. 25. Relationship with Local Government Units. - Except as herein provided,
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the LGUs comprising the Cebu 4th District Ecozone shall retain their basic autonomy
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and identity. The Municipality of Medellin, Cebu shall operate and function in
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accordance with the framework of the 1987 Constitution, Local Government Code of
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1991, and Republic Act No. 7898, as amended by Republic Act No. 10349, applicable
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provisions of the Local Government Code, and this Act.
36 
In case of any conflict between the CEZA and the LGUs and the National
37 
Government on matters affecting the Cebu 4th District Ecozone, other than national
38 
defense and security matters, the decision of the CEZA shall prevail.
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1 
SEC. 26. Interpretation/Construction. - The powers, authorities and functions
2 
that are vested in the CEZA are intended to establish national self-sufficiency and self-
3 
reliance in the. advancement of and protection of the national integrity, enhancement
4 
of national security, decentralization of governmental functions and authority, and
5 
promote an efficient and effective working relationship among the CEZA, the National
6 
Government and the LGUs. Any interpretation of this Act shall consider such
7 
intentions. In the event of conflict of interpretation and provided the intentions cannot
8 
be harmonized, the provisions of this Act shall be construed in favor of an
9 
interpretation that would tend to protect national security.
10 
SEC. 27. Audit -The Commission on Audit shall appoint a full-time auditor in
11 
the CEZA or may assign such number of personnel as may be necessary in the
12 
performance of their functions.
13 
CHAPTER Ml
14 
MISCELLANEOUS
15 
SEC. 28. Implementing Rules and Regulations. -The DTI, DOF and the National
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Economic Development Authority (NEDA) shall formulate the implementing rules and
17 
regulations of the Act within ninety (90) days after its approval. Such rules and
18 
regulations shail take effect fifteen (15) days after its publication in a newspaper of
19 
general circulation in the Philippines.
20 
SEC. 29. Applicability Clause. - Insofar as these are consistent with the provisions
21 
of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916, otherwise
22 
known as "The Special Economic Zone Act of 1995", as amended, shall likewise apply
23 
to the Cebu 4TH District Ecozone.
24 
SEC. 30. Separability Clause. - If, for any reason or reasons, any part or provision
25 
of this Act shall be declared as unconstitutional or invalid, the other parts or provisions
26 
hereof which are not affected thereby shall continue to be in full force and effect.
27 
SEC. 31. Repealing Clause. - All provisions of existing laws, orders, rules and
28 
regulations or parts thereof which are in conflict or inconsistent with the provisions of
29 
this Act are hereby repealed, amended or modified accordingly.
30 
SEC. 32. Effectivity. - This act shall take effect fifteen (15) days after its
31 
publication in the Official Gazette or in two (2) newspaper of general circulation.
Approved,
11