NINETEENTH CONGRESS 
) 
OF THE REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No. ___ 
___________________________________________________________________________ 
Introduced by REPRESENTATIVES CHRISTIAN TELL A. YAP   
AND NOEL N. RIVERA 
___________________________________________________________________________ 
EXPLANATORY NOTE 
Republic Act No. 7227 or the Bases and Conversion Development Act of 1992 created the 
Bases and Conversion Development Authority (BCDA), a body corporate mandated to manage and 
administer military reservations. The law authorized the President of the Philippines to convert any 
military reservation in the Clark area into a special economic zone.  
In 1993, Proclamation No. 163 created the Clark Special Economic Zone (CSEZ). 
Meanwhile, the coverage of the CSEZ was expanded through Proclamation Nos. 803, Series of 1996 
and Proclamation No. 1035, Series of 2006. In 2007, Republic Act No. 9400 was enacted amending 
the BCDA law and separated the Clark Air Base, located inside the CSEZ, into the Clark Freeport 
Zone (CFZ). 
Presently, the CSEZ is divided into four modern districts– Clark Freeport Zone, Clark Global 
City, Clark International Airport, and New Clark City (NCC). The NCC is a 9,450-hectare master-
planned city located in the Municipalities of Bamban and Capas, Province of Tarlac. It is developed, 
managed and administered entirely by the BCDA. 
Clark has registered more than a thousand export and domestic market enterprises in 
manufacturing, information technology and business process management (IT-BPM), aviation, 
logistics and tourism sectors, among others, with key investors coming from South Korea, the US, 
Australia, and Japan.1 
This bill seeks to create the New Clark City Freeport Area (NCCFA) and the New Clark City 
Development Authority (NCCDA) to be the policy-making body of the New Clark City (NCC), 
separate from the BCDA with the vision of creating more economic opportunities in New Clark City 
for the general welfare of the public.  
For the foregoing reasons, the approval of this bill is earnestly sought. 
REP. CHRISTIAN TELL A. YAP 
REP. NOEL N. RIVERA 
2ND District of Tarlac 
 3rd District of Tarlac 
1 https://www.bworldonline.com/economy/2022/12/11/492269/clark-ready-for-takeoff-as-the-philippines-city-of-the-
future/ 
June 1, 2023
5:17 pm
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NINETEENTH CONGRESS 
) 
OF THE REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
House Bill No. ______ 
Introduced by REPRESENTATIVES CHRISTIAN TELL A. YAP  
AND NOEL N. RIVERA 
AN ACT 
CREATING THE NEW CLARK CITY FREEPORT AREA (NCCFA), CREATING FOR 
THIS PURPOSE THE NEW CLARK CITY DEVELOPMENT AUTHORITY (NCCDA), 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSE 
  Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. - This Act shall be known as the “New Clark City Freeport Area of 
1 
2023.” 
2 
3 
SEC 2. Declaration of Policy. - It is hereby declared the policy of the State to actively 
4 
encourage, promote, induce and accelerate a sound and balanced industrial, economic and social 
5 
development of the country in order to provide jobs to the people especially those in the rural areas, 
6 
increase productivity and individual and family income, and thereby improve the level and quality of 
7 
living condition through the establishment, among others, of special economic zones in suitable and 
8 
strategic locations in the country and through measures that will attract legitimate and productive 
9 
foreign investments 
10 
11 
SEC 3. Creation of the New Clark City Freeport Area (NCCFA). – The New Clark City 
12 
Freeport Area (NCCFA) is hereby created covering the New Clark City (NCC) along with other 
13 
territories indicated in this Act. 
14 
15 
The NCCFA shall cover the (a) land territories in the Municipalities of Capas and Bamban, 
16 
Province of Tarlac comprising an area of approximately 9,450 hectares (the ‘NCCFA main zone’), 
17 
and (b) all other expansion areas within the Province of Tarlac which may be declared as part of the 
18 
NCCFA in compliance with Section 4(g) of this Act, including all municipal waters within the 
19 
NCCFA main zone and of its expansion areas (the ‘other NCCFA zones’). 
20 
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The metes and bounds of the NCCFA main zone, and the other NCCFA zones, which shall 
1 
be fenced and include the establishment of an administrative office for ease of customs 
2 
administration and border control, shall be determined based on the technical description and 
3 
coordinates verified and approved by the Land Management Bureau, the National Mapping and 
4 
Resource Information Authority, and other government agencies as may be provided by pertinent 
5 
law. 
6 
 
7 
Prospective developers and locators may choose to register with the NCCDA, PEZA or such 
8 
other investment promotion agency: Provided, That in no case shall a registered enterprise enjoy 
9 
incentives from two (2) or more investment promotion agencies: Provided, further That in no case 
10 
shall an NCCDA-registered enterprise be located within an ecozone administered or managed by 
11 
another investment promotion agency. 
12 
 
13 
SEC 4. Governing Principles. - The NCCFA shall be managed and operated under the 
14 
following principles: 
15 
 
16 
(a) Within the framework and limitations of the Constitution and applicable provisions of the 
17 
Local Government Code, the NCCFA shall be developed into and operated as a decentralized 
18 
self-reliant and self-sustaining industrial, commercial-trading, research and development, 
19 
engineering, medical, education, information and communications technology including 
20 
emerging and future technologies such as artificial technology, blockchain, business process 
21 
outsourcing, cloud computing, cybersecurity, distributed ledger technology, financial 
22 
technology solutions, internet of things, and virtual reality, retirement, and healthcare 
23 
services, agro-industrial, tourism, banking, financial, multinational trading and investment 
24 
center with provision for suitable residential areas; 
25 
 
26 
(b) Notwithstanding the autonomy provided in Section 4(a) of this Act, the NCCFA shall 
27 
continue to be provided by the National Government and/or local government with 
28 
transportation, telecommunications and other facilities needed to attract legitimate and 
29 
productive investments, generate linkage with industries and employment opportunities for 
30 
the people of the Province of Tarlac and its neighboring towns and cities. The NCCFA shall 
31 
also have priority and preferential access to such National Government and/or local 
32 
government transportation and telecommunications infrastructure and other facilities, and 
33 
access to the NCCFA shall be incorporated in the planning, construction, and operation of 
34 
such infrastructure or expansions: Provided, That the autonomy and self-reliance of the 
35 
NCCDA shall not be a hindrance to assistance and/or partnerships with other units and 
36 
instrumentalities of the government: Provided, further, That no assistance or partnership be 
37 
construed as a waiver of the autonomy of the NCCDA; 
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1 
(c) The NCCFA may establish mutually beneficial economic relations with other entities or 
2 
enterprises within the country or with foreign entities or enterprises; 
3 
 
4 
(d) Foreign citizens and companies owned by non-Filipinos in whatever proportion may set 
5 
up enterprises in the NCCFA, either by themselves or in joint venture with Filipinos in any 
6 
sector of industry, international trade, and commerce within the territorial jurisdiction of the 
7 
NCCFA as provided in Section 3 of this Act: Provided, That the NCCDA may require a 
8 
minimum investment in freely convertible currencies from any enterprise seeking registration 
9 
as a NCCFA enterprise; 
10 
 
11 
(e) The NCCFA shall be managed and operated as a separate customs territory ensuring free 
12 
flow or movement of goods and capital within, into and out of its territory: Provided, That in 
13 
accordance with Sections 301 and 817 of Republic Act No. 10863, the Bureau of Customs 
14 
(BOC) shall continue to exercise border protection and customs control authority over the 
15 
customs territory adjacent to the NCCFA: Provided, further, That the NCCDA shall allow 
16 
patrol or other law enforcement arrangements by the BOC and other government agencies 
17 
within the municipal waters covered by the other NCCFA zones subject to coordination with 
18 
the NCCDA to enhance its protection and control capacity and ensure compliance with 
19 
customs, fisheries and other laws and regulations; 
20 
 
21 
(f) The NCCFA shall provide incentives such as tax and duty - free importations of raw 
22 
materials, capital and equipment to registered enterprises located therein, However, 
23 
exportation or removal of goods from the territory of the NCCFA to the other parts of the 
24 
Philippine territory shall be subject to customs duties and taxes under the Tariff and Customs 
25 
Code of the Philippines, as amended, and the National Internal Revenue Code (NIRC) of 
26 
1997, as amended; 
27 
 
28 
"(g) The areas comprising the NCCFA may be expanded or reduced when necessary. For this 
29 
purpose, the NCCDA, with the concurrence of the appropriate and affected local government 
30 
units (LGUs) and the agreement of appropriate national government agencies, government-
31 
owned and -controlled corporations and instrumentalities, and the approval of the NCCDA 
32 
Board in accordance and in compliance with existing laws and local ordinances shall have 
33 
the power to acquire, procure, and/or expand either by purchase, negotiation, condemnation 
34 
proceedings, or any other arrangement, any private or alienable and disposable public lands 
35 
and/or their respective water territories within the territorial jurisdiction of the Province of 
36 
Tarlac, if any, for the following purposes: (1) consolidation of lands for NCCFA 
37 
development and establishment of new industrial estates and economic zones under the 
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NCCFA; (2) acquisition of right-of-way to the NCCFA; and (3) the protection, and safeguard 
1 
of watershed areas and the maintenance and improvement of its water yield and natural assets 
2 
valuable to the prosperity of the NCCFA, the LGU, and the National Government, the 
3 
effective management of solid and water waste in compliance with existing national laws and 
4 
local ordinances, and its impact to adjacent areas within the local government concerned: 
5 
Provided, That any expansion shall be aligned with the comprehensive land use plan of the 
6 
affected LGUs: Provided, further, That the expansion outside the Province of Tarlac may be 
7 
revoked by the President of the Philippines: Provided, finally, That the NCCDA and the 
8 
relevant LGUs and national government agencies shall provide for immediate and responsive 
9 
mechanisms, best management practices and suitable environmental protection programs for 
10 
land and coastal management to address any abuse and/or exploitation of the natural 
11 
environment within the territorial jurisdiction of the NCCFA as provided in Section 3 of this 
12 
Act; 
13 
 
14 
(h) Goods manufactured by NCCFA enterprises shall be made available for immediate retail 
15 
sale in the domestic market, subject to the payment of corresponding taxes on raw materials 
16 
and other regulations that may be formulated by the NCCDA, together with the Philippine 
17 
Economic Zone Authority (PEZA), the Bangko Sentral ng Pilipinas (BSP), the Department 
18 
of Finance (DOF), the BOC and the Department of Trade and Industry (DTI) in accordance 
19 
with the National Internal Revenue Code (NIRC) of 1997, as amended, and the Tariff and 
20 
Customs Code of the Philippines, as amended: Provided, That the value of the goods at the 
21 
time of the importation shall be the basis in determining the appropriate duties and taxes: 
22 
Provided, further, That in cooperation with the NCCDA, the foregoing agencies shall provide 
23 
and implement measures to support the improvement of ease and cost of doing business 
24 
within the NCCFA and the enhancement of the investment promotion capacity of the 
25 
NCCDA. In order to protect the domestic industries, a negative list of industries shall be 
26 
drawn up and regularly updated by the NCCDA. Enterprises engaged in industries included 
27 
in such negative list shall not be allowed to sell their products locally notwithstanding the 
28 
registration of such enterprises in the NCCFA; and 
29 
 
30 
(i) The defense of the NCCFA and the security of its perimeter fence shall be the 
31 
responsibility of the National Government in coordination with the NCCDA and the LGUs. 
32 
The NCCDA shall provide its own internal security and firefighting forces. 
33 
 
34 
SEC 5. Fiscal Incentives. - The registered enterprises operating within the NCCFA may be 
35 
entitled to the existing pertinent fiscal incentives as provided for under Republic Act No. 7916, as 
36 
amended by Republic Act No. 8748, also known as the Special Economic Zone Act of 1995, or 
37 


5 
 
those provided under Executive Order No. 226, as amended, otherwise known as the Omnibus 
1 
Investment Code of 1987. 
2 
 
3 
SEC 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned. - No 
4 
taxes, local and national, shall be imposed on registered business establishments operating within the 
5 
NCCFA. In lieu thereof, and subject to Section 10 of this Act, said business establishments shall pay 
6 
a five percent (5%) final tax on their gross income earned in the following percentages: 
7 
 
8 
(a) One per centum (1%) to the National Government; 
9 
(b) One per centum (1%) to the Province of Tarlac; 
10 
(c) One per centum (1%) to the host city/municipality; and 
11 
(d) Two per centum (2%) to the New Clark City Development Authority. 
12 
 
13 
SEC 7. Incentives to Investors.  – Any foreign national who invests an amount of Seventy-
14 
five thousand US dollars (US$75,000.00), either in cash and/or equipment, in a registered enterprise 
15 
shall be entitled to an investor’s visa: Provided, That he has the following qualifications: 
16 
 
17 
(a) He is at least eighteen (18) years of age; 
18 
(b) He has not been convicted of a crime involving moral turpitude; 
19 
(c) He is not afflicted with any loathsome, dangerous or contagious disease; and 
20 
(d) He has not been institutionalized for any mental disorder or disability. 
21 
 
22 
As a holder of investor’s visa, an alien shall be entitled to reside in the Philippines while his 
23 
investment subsists. For this purpose, he should submit an annual report, in the form duly prescribed 
24 
for the purpose, to prove that he has maintained his investment in the country, should said alien 
25 
withdraw his investments from the Philippines, then the investor’s visa issued to him shall 
26 
automatically expire. 
27 
 
28 
SEC. 8. Administration, Implementation and Monitoring of Incentives. - For the proper 
29 
administration, implementation and monitoring of tax incentives provided under this law, the 
30 
following are herein mandated: (a) The NCCDA shall be responsible for the administration and 
31 
implementation of the incentives granted to its respective registered enterprises. Among others, it 
32 
shall adopt and implement systems and procedures affecting trade and customs policies. The BOC 
33 
shall set up and establish a custom’s-controlled area outside the gate of the NCCFA to facilitate 
34 
payment of taxes on goods entering the Philippine customs territory; and (b) The NCCDA shall 
35 
likewise submit to the DOF its annual tax expenditures based on the tax incentives granted to its 
36 
registered enterprises. The DOF, for its part, shall create a single database of all incentives provided 
37 


6 
 
by the governing authority. The DOF shall monitor the incentives granted and submit all annual 
1 
report to the President. 
2 
 
3 
SEC. 9. Extension of Period of Availment. - The availment period of the incentives 
4 
provided herein may be extended by NCCDA, in the event that the registered enterprise has suffered 
5 
operational force majeure that has impaired its viability, equivalent thereto. 
6 
 
7 
SEC. 10. Duration of Incentives. - Enterprises registered with NCCDA may enjoy the 
8 
income tax holiday (ITH) or the net operating loss carryover (NOLCO) granted by the authority 
9 
prior to the availment of the five percent (5%) gross income earned (GIE). Fiscal incentives under 
10 
this Act shall be terminated after a cumulative period of twenty (20) years from date of registration 
11 
or start of commercial operation, whichever is applicable, except that it could be extended with 
12 
regard to industries deemed indispensable to national development. The industries exempted from 
13 
this provision shall be determined by the NCCDA.  
14 
 
15 
SEC. 11. Creation of the New Clark City Development Authority (NCCDA). - There is 
16 
hereby created a body corporate to be known as the New Clark City Development Authority 
17 
(NCCDA), hereafter referred to as the NCCDA which shall manage and operate the NCCFA, in 
18 
accordance with the provisions of this Act. 
19 
 
20 
SEC. 12. Principal Office of the NCCDA. - The NCCDA shall maintain its principal office 
21 
in the Province of Tarlac, but it may establish liaison offices within the Philippines as may be 
22 
necessary for the proper conduct of its business. 
23 
 
24 
SEC. 13. Powers and Functions of the NCCDA. — The NCCDA shall have the following 
25 
functions: 
26 
 
27 
(a) To adopt, alter, use a corporate seal, to contract, lease, buy, sell, acquire, own and dispose 
28 
properties of whatever nature; 
29 
 
30 
(b) To sue and be sued in order to carry out its duties, responsibilities, privileges, powers and 
31 
functions as granted and provided for in this Act and to exercise the power of eminent 
32 
domain for public use and public purpose; 
33 
 
34 
(c) To register, regulate and supervise the enterprises in the NCCFA in an efficient and 
35 
decentralized manner, subject to existing laws; 
36 
 
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(d) To coordinate with the LGUs and exercise general supervision over the development 
1 
plans, activities and operations of the NCCFA. The exclusive delegation of certain 
2 
powers to NCCDA under this Act notwithstanding, the NCCDA may partner with the 
3 
LGUs in the implementation of development plans, enforcement of environmental laws, 
4 
maintenance of road network and transport facilities, and performance of such other 
5 
services designed to enhance the attractiveness of the NCCFA as an investment 
6 
destination. The NCCDA may provide assistance to the LGUs to ensure that the 
7 
equipment and other resources necessary to perform the services envisaged under this Act 
8 
are adequately provided; 
9 
 
10 
(e) To authorize or undertake, on its own or through others, and to regulate the 
11 
establishment, construction, operation and maintenance of public utilities, services, and 
12 
infrastructure in the NCCFA such as shipping, barging, stevedoring, cargo handling, 
13 
hauling, warehousing, storage of cargo, port services or concessions, piers, wharves, 
14 
bulkheads, bulk terminals, mooring areas, storage areas, roads, bridges, reclamation 
15 
projects, terminals, conveyors, water supply and storage, sewerage, drainage, airport 
16 
operations in coordination with the Civil Aviation Authority of the Philippines and such 
17 
other services or concessions or infrastructure necessary or incidental to the 
18 
accomplishment of the objectives of this Act: Provided, however, That the private 
19 
investors in the NCCFA shall be given priority in the awarding of contracts, franchises, 
20 
licenses, or permits for the establishment, operation and maintenance of utilities, services 
21 
and infrastructure in the NCCFA; 
22 
 
23 
(f) To license, set fees, regulate and undertake the establishment, operation and maintenance 
24 
of utilities, other services, educational and medical institutions and infrastructure in the 
25 
NCCFA such as, but not limited to, heat, light and power, water supply, 
26 
telecommunications, mobile, internet and other data facilities, transport, toll roads and 
27 
bridges, port services, etc., and to fix just, reasonable and competitive rates, fares, 
28 
charges and prices thereof; 
29 
 
30 
(g) To construct, acquire, own, lease, operate and maintain on its own or through contracts, 
31 
franchises, licenses, bulk purchase from the private sector and build-operate-transfer 
32 
scheme, or under a joint venture with the private sectors, any or all of the public utilities 
33 
and infrastructure required or needed for the operation and development of the NCCFA, 
34 
including transportation, access and connection to, and out of the NCCFA. in 
35 
coordination with appropriate national and local government authorities and in 
36 
conformity with applicable laws thereon. For this purpose, the NCCDA shall exercise the 
37 
power of eminent domain over private lands granted in paragraph (b) of this section 
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insofar as it may be reasonably necessary, without prejudice to the execution of 
1 
agreements with public agencies, and subject to the limitations prescribed therein and the 
2 
observance of the prerequisites of taking of possession and the determination and 
3 
payment of just compensation in accordance with Republic Act No. 10752. otherwise 
4 
known as ‘The Right-of-Way Act’; 
5 
 
6 
(h) To operate on its own, either directly or through a license to other tourism-related 
7 
activities, including games, amusements, recreational and sports facilities, subject to the 
8 
approval and supervision of the Philippine Amusement and Gaming Corporation 
9 
(PAGCOR); 
10 
 
11 
(i) To raise, or borrow, within the limitation provided by law, and subject to the approval or 
12 
opinion of the Monetary Board of the BSP, in accordance with law, adequate and 
13 
necessary funds from local or foreign sources, to finance its projects and programs under 
14 
this Act, and for that purpose, to issue bonds, promissory notes, and other forms of 
15 
securities, and to secure the same by a guarantee, pledge, mortgage, deed of trust, or an 
16 
assignment of all or part of its property or assets; 
17 
 
18 
(j) To exclusively enforce and administer the provisions of the National Building Code of 
19 
the Philippines and the Fire Code of the Philippines, as amended, within the territorial 
20 
jurisdiction of the NCCFA: Provided, That the NCCDA shall be fully responsible and 
21 
accountable for the enforcement and administration of the National Building Code of the 
22 
Philippines and the Fire Code of the Philippines, as amended, within the NCCFA. 
23 
 
24 
The NCCDA administrator, or his official designate, shall function as the NCCDA 
25 
building official, who shall issue all building permits and other related permits subject to 
26 
the collection by NCCDA of the corresponding permit fees: Provided, That the NCCDA 
27 
building official shall also be authorized to require owners of houses, buildings, or other 
28 
structures constructed without the necessary NCCDA permit/s, or those that are 
29 
condemned and/or abated by the NCCDA in accordance with the conditions set forth in 
30 
the National Building Code or Civil Code, as the case may be, whether constructed on 
31 
public or private lands, to remove or demolish such houses, buildings, or structures 
32 
within fifteen (15) days from receipt of notice. Upon failure of such owner to remove or 
33 
demolish such house, building, or structure within such period, the NCCDA may 
34 
summarily cause its removal or demolition at the expense of the owner and the 
35 
occupants. 
36 
 
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The NCCDA may evict any person who refuses to vacate such premises in accordance 
1 
with Republic Act No. 7279, otherwise known as the ‘Urban Development and Housing 
2 
Act of 1992’, and other existing laws. A temporary or permanent relocation site shall be 
3 
made available for qualified individuals or families; 
4 
 
5 
(k) To provide security for the NCCFA in coordination with the national and local 
6 
governments. For this purpose, the NCCDA may establish and maintain its security 
7 
forces and firefighting capability or hire others to provide the same. In the event that an 
8 
assistance of the military force is necessary, it shall not interfere in the internal affairs of 
9 
the NCCFA except to provide the necessary security and defense, and their expenses 
10 
shall be borne by the National Government. To ensure the maintenance of law and order 
11 
within the boundaries of the NCCFA, including conducting police investigations, arrests, 
12 
search and seizure for violation of penal laws inside the NCCFA, the Philippine National 
13 
Police (PNP) shall establish a police substation, if necessary, under the supervision of the 
14 
PNP Provincial Director, to be manned by such number of personnel as will allow them 
15 
to effectively and efficiently pursue its mandate. 
16 
The NCCDA shall also be authorized to install control gates at strategic points of the 
17 
national roads within the NCCFA, through which access into and departure from the 
18 
NCCFA shall be fully controlled by the NCCDA; 
19 
 
20 
(l) To protect, preserve, maintain and develop the forests, beaches, coral and coral reefs, and 
21 
maintain ecological balance within the NCCFA. For this purpose, the rules and 
22 
regulations of the Department of Environment and Natural Resources (DENR) and other 
23 
government agencies involved in the above functions shall be implemented by the 
24 
NCCDA: Provided, That the issuance, enforcement and monitoring of environmental 
25 
compliance certificates (ECCs), tree cutting permits, foreshore leases and all other related 
26 
permits and clearances issued by the DENR and other government agencies shall be 
27 
under the exclusive control and jurisdiction of the NCCDA; 
28 
 
29 
(m) To create, operate and/or contract to operate such functional units or offices of the 
30 
NCCDA as it may deem necessary; 
31 
 
32 
(n) To issue certificates of origin for products manufactured or processed in the NCCFA; 
33 
 
34 
(o) To Issue rules and regulations consistent with the provisions of this Act as may be 
35 
necessary to implement and accomplish the purposes, objectives and policies provided 
36 
herein; 
37 
 
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(p) To recommend the issuance of working-visas renewable every three (3) years to foreign 
1 
executives and foreign technicians with highly specialized skills which no Filipino 
2 
possesses, subject to the issuance of the certification and alien employment permit by the 
3 
Department of Labor and Employment (DOLE); 
4 
 
5 
(q) Subject to Republic Act No. 7653, otherwise known as ‘The New Central Bank Act’, 
6 
other issuances of the BSP, Republic Act No. 8799, otherwise known as ‘The Securities 
7 
Regulations Code’, existing applicable laws, and such other laws as may be required that 
8 
are consistent with the objectives of the NCCDA, to act as an offshore financial center 
9 
that engage in, or allow, any or all international financial and business services, including 
10 
banking, offshore fund management, collective investment schemes, and cryptocurrency 
11 
mining, and provide the necessary and pertinent fiscal incentives as provided for under 
12 
Republic Act No. 7916, as amended by Republic Act No. 8748, also known as ‘The 
13 
Special Economic Zone Act of 1995’, and/or those provided under Executive Order No. 
14 
226, as amended, otherwise known as ‘The Omnibus Investments Code of 1987’. Banks 
15 
and financial institutions engaged in quasi-banking functions to be established in the 
16 
NCCFA shall be under the supervision of the BSP., and shall be subject to existing 
17 
banking laws, rules and regulations. Other financial institutions not engaged in quasi-
18 
banking functions, and those engaged in collective investment schemes and 
19 
cryptocurrency mining within the NCCFA shall be under the supervision of the Securities 
20 
and Exchange Commission; 
21 
 
22 
(r) To issue special regulations for the benefit of particular industries designed to improve 
23 
ease of doing business, decrease cost of doing business, and lower bureaucratic burdens 
24 
of investing and doing business within the NCCFA: Provided, That such special 
25 
regulations shall not be contrary to existing laws; 
26 
 
27 
(s) To endorse Special Resident Retiree’s Visas (SRRVs) for retirees that intend to reside in 
28 
the NCCFA, in collaboration with the Philippine Retirement Authority (PRA): Provided, 
29 
That the PRA and the NCCDA shall issue joint regulations on the processing of SRRVs 
30 
in accordance with existing laws; 
31 
 
32 
(t) To establish one-stop shops for the issuance of all necessary permits, clearances, licenses, 
33 
and other similar certifications to conduct activities, to improve the ease of doing 
34 
business within the NCCFA, in coordination with government agencies having 
35 
jurisdiction over activities in the NCCFA not otherwise solely reserved to the NCCDA in 
36 
this Act: Provided, That all government agencies are directed to provide and extend 
37 
utmost and full cooperation to the NCCDA in the establishment of such one-stop shops; 
38 


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1 
(u) To exercise such powers as may be essential, necessary or incidental to the powers 
2 
granted to it hereunder as well as those that shall enable it to carry out, implement and 
3 
accomplish the purposes, objectives and policies of this Act; and 
4 
 
5 
(v) To be vested with other powers enjoyed or exercised by other freeport zone authorities." 
6 
 
7 
SEC. 14. Board of Directors of the NCCFA. – The powers of the NCCDA shall be vested in 
8 
and exercised by a Board of Directors, hereinafter referred to as the Board, which shall be composed 
9 
of the following: 
10 
 
11 
(a) The chairman and the vice chairman, both of whom shall be elected from among the 
12 
members of the Board; 
13 
(b) The administrator, who shall in no case be, at the same time, the chairman or vice 
14 
chairman; 
15 
(c) Members consisting of: 
16 
(1) Two (2) representatives from the National Government; 
17 
(2) One (1) representative from the Province of Tarlac; 
18 
(3) One (1) representative from the district covering the site of the NCCFA; 
19 
(4) One (1) representative from the host city/municipality, Province of Tarlac; 
20 
(5) One (1) representative from the NCCDA-registered domestic investors; 
21 
(6) One (1) representative from the NCCDA-registered foreign investors; and 
22 
(7) One (1) representative from the workers working in the NCCFA: 
23 
 
24 
Provided, That all members of the Board shall be Filipino citizens. 
25 
 
26 
The administrator and the members of the Board shall be appointed by the President of the 
27 
Philippines to serve for a term of six (6) years, unless sooner separated from service due to death, 
28 
voluntary resignation or removal for cause. In case of death, resignation or removal for cause, the 
29 
replacement shall serve only the unused portion of the term. 
30 
 
31 
No person shall be appointed by the President of the Philippines as a member of the Board 
32 
unless he is a Filipino citizen, of good moral character, of proven probity and integrity, and a degree 
33 
holder in any of the following fields: economics, business, public administration, law, management 
34 
or their equivalent, and with at least ten (10) years relevant working experience preferably from the 
35 
field of management or public administration. 
36 
 
37 


12 
 
The members of the Board shall each receive per diem at rates to be determined by the 
1 
Department of Budget and Management (DBM) in accordance with existing rules and regulations: 
2 
Provided, however, That the total per diem collected each month shall not exceed the equivalent per 
3 
diem for four (4) meetings. 
4 
 
5 
SEC. 15. Powers and Duties of the Administrator. - The administrator shall have the 
6 
following powers and duties: 
7 
 
8 
(a) To direct and manage the affairs of the NCCDA in accordance with the policies of the 
9 
Board; 
10 
(b) To establish the internal organization of the NCCDA under such conditions that the 
11 
Board may prescribe; 
12 
(c) To submit an annual budget and necessary supplemental budget to the Board for its 
13 
approval; 
14 
(d) To submit within thirty (30) days after the close of each fiscal year an annual report to the 
15 
Board and such other reports as may be required; 
16 
(e) To submit to the Board for its approval policies, systems, procedures, rules and 
17 
regulations that are essential to the operation of the NCCDA; 
18 
(f) To create a mechanism in coordination with relevant agencies for the promotion of 
19 
industrial peace, the protection of the environment, and the advancement of the quality of 
20 
life in the NCCFA; and 
21 
(g) To perform such other duties as may be assigned to him by the Board or which are 
22 
necessary or incidental to his office. 
23 
 
24 
SEC. 16. Organization and Personnel. - The NCCDA Board of Directors shall provide for 
25 
an organizational structure and appoint employees, subject to the Civil Service Law. Upon the 
26 
recommendation of the administrator, the Board shall appoint and fix the remuneration and other 
27 
emoluments of its officers and employees in accordance with existing laws on compensation and 
28 
position classification: Provided, That the salary and other compensation of the administrator shall 
29 
be comparable with the president and chief executive officer of Clark Development Corporation: 
30 
Provided, further, That the Board shall exercise administrative supervision on their employees. 
31 
 
32 
The officers and employees of the NCCDA, including all members of the Board, shall not 
33 
engage directly or indirectly in partisan activities nor take part in any election, except to vote. 
34 
 
35 
No officer or employee of the NCCDA, subject to civil service laws and regulations, shall be 
36 
removed or suspended except for cause, as provided by law. 
37 
 
38 


13 
 
SEC. 17. Labor Center and Housing Facilities. - (a) A labor center shall be established 
1 
within the NCCFA. This center shall be responsible for studying and amicably settling professional 
2 
and labor relations and disputes, interpretation of employment contracts, and monitoring work, 
3 
hygiene 'and safety standards within the NCCFA. The labor center shall comprise a labor office, an 
4 
industrial health and safety office, and an inspection and disputes office. 
5 
 
6 
Except as otherwise provided in this Act, labor and management relations in the NCCFA 
7 
shall be governed by applicable rules and regulations under the Labor Code of the Philippines, as 
8 
amended. Employees and personnel in the registered enterprises shall receive salaries and benefits 
9 
and shall enjoy working conditions provided under the Labor Code and other relevant laws and 
10 
issuances of the Philippine Government and the DOLE. The NCCDA shall allow the visitorial power 
11 
of the Secretary of the DOLE or his duly authorized representative, and/ or may assign its personnel 
12 
to join the DOLE Regional Office III in the conduct of labor inspection. 
13 
 
14 
(b) The Department of Health shall establish, fund, operate and maintain a tertiary hospital in 
15 
the NCCFA. 
16 
 
17 
(c) The National Housing Authority, pursuant to its mandate, shall undertake vertical and 
18 
horizontal housing development for the marginalized informal settlers and low-income earners 
19 
within the NCCFA, and shall source the necessary funds thereof through National Government 
20 
subsidy. 
21 
 
22 
SEC. 18. Banking Rules and Regulations. - Existing banking laws and rules/regulations of 
23 
the BSP shall apply to banks and financial institutions to be established in the NCCFA. 
24 
 
25 
SEC. 19. Remittances. - In the case of foreign investments, a registered enterprise in the 
26 
NCCFA shall have the right to remit earnings from the investment in favor of the investor and/or 
27 
intended beneficiary, subject to the provisions of Republic Act No. 7653, otherwise known as the 
28 
‘New Central Bank Act’, the manual of regulations on foreign exchange transactions, as well as 
29 
other relevant rules and regulations. 
30 
 
31 
SEC. 20. Applicability Clause. - The provisions of Sections 30-41 of Republic Act No. 7916, 
32 
otherwise known as "The Special Economic Zone Act of 1995", as amended, shall likewise apply to 
33 
the NCCFA. 
34 
 
35 
SEC. 21. Capitalization. - The capital stock to be contributed by the government, shall be (a) 
36 
Two billion five hundred million pesos (₱2,500,000,000.00) with option to increase capitalization 
37 
upon the discretion of the NCCDA, (b) all lands embraced and covered by the NCCFA, including 
38 


14 
 
those properties conveyed to the Government Service Insurance System (GSIS) and/or the Social 
1 
Security System (SSS) under Proclamation No. 740, as amended by Proclamation No. 900, as well 
2 
as permanent improvements and fixtures upon proper inventory not otherwise alienated, conveyed or 
3 
transferred to another government agency, and (c) all other assets which the President may transfer 
4 
to the NCCDA as part of the equity contribution of the government. 
5 
 
6 
SEC. 22. Supervision and Control. - For purposes of policy direction and coordination, the 
7 
NCCDA shall be under the direct control and supervision of the Office of the President of the 
8 
Philippines. 
9 
 
10 
SEC. 23. Regional Development Authority. - The NCCDA shall determine the development 
11 
goals for the NCCFA within the framework of national development plans, policies and goals. The 
12 
administrator shall, upon approval by the Board, submit the NCCFA plans, programs and projects to 
13 
the Regional Development Authority for inclusion and inputs to the overall regional development 
14 
plan. 
15 
 
16 
SEC. 24. Relationship with Local Government Units. - Except as herein provided, the 
17 
Province of Tarlac shall operate and function in accordance with the Local Government Code of 
18 
1991. In case of any conflict between the NCCDA and the local government units and the National 
19 
Government on matters affecting the NCCFA other than defense and security matters, the decision 
20 
of the NCCDA shall prevail. 
21 
 
22 
SEC. 25. Legal Counsel. - The NCCDA shall have its own internal legal counsel under the 
23 
supervision of the Government Corporate Counsel. When the exigencies of its businesses and 
24 
operations demand, the NCCDA may engage the services of an outside counsel either on a case-to-
25 
case or on a fixed retainer basis. 
26 
 
27 
SEC. 26. Interpretation/ Construction. - The powers, authorities and functions that are 
28 
vested m the NCCDA are intended to establish decentralization of governmental functions and 
29 
authority and promote an efficient and effective working relationship between the NCCDA, the 
30 
National Government and the LGU. 
31 
 
32 
SEC. 27. Audit. - The Commission on Audit shall appoint a full - time auditor in the 
33 
NCCDA or may assign such number of personnel as may be necessary in the performance of their 
34 
functions. 
35 
 
36 
SEC. 28. Transitory Provisions. - All properties, assets, funds, rights, obligations, and 
37 
liabilities are hereby transferred to the NCCDA except for the liabilities that are not properly 
38 


15 
 
accounted for as per the reports coming from the Commission on Audit, which shall be retained by 
1 
the PEZA. 
2 
 
3 
The NCCDA shall be responsible for the operations, administration, management and 
4 
development of the NCCFA. The NCCDA shall effect the transfer herein provided manner that will 
5 
ensure the least disruption of ongoing programs of the NCC. The qualified and necessary personnel 
6 
of the NCC shall be transferred to and absorbed by the NCCDA: Provided, That the tenure, rank, 
7 
salaries and privileges of such personnel are not reduced or adversely affected. The personnel whose 
8 
services are not retained by the NCCDA shall be granted separation pay and retirement and other 
9 
benefits they are entitled to under existing laws but in no case shall the separation pay be less than 
10 
one (1) month for every year of service. 
11 
 
12 
SEC. 29. Implementing Rules and Regulations. - The DTI, the DOF, the LGU and the 
13 
Department of the Interior and Local Government shall formulate the implementing rules and 
14 
regulations of this Act within ninety (90) days after its approval. Such rules and regulations shall 
15 
take effect fifteen (15) days after their publication in a newspaper of general circulation in the 
16 
Philippines. 
17 
 
18 
SEC. 30. Non-Impairment of Contracts/Permits/Licenses.— All existing contracts, permits 
19 
and licenses duly granted by the NCCDA before the date of effectivity of this Act shall remain valid, 
20 
and unimpaired, and shall be recognized by the government. 
21 
 
22 
SEC. 31. Separability Clause. - If any provision of this Act shall be held unconstitutional or 
23 
invalid, the other provisions not otherwise affected shall remain m full force and effect. 
24 
 
25 
SEC. 32. Repealing Clause. - Republic Act No. 5490 and Presidential Decree No. 66 are 
26 
hereby amended. All laws, executive orders or issuances or any part thereof which are inconsistent 
27 
herewith are hereby repealed or amended accordingly. 
28 
 
29 
SEC. 33. Effectivity Clause. - This Act shall take effect upon its publication in at least one 
30 
(1) newspaper of general circulation. 
31 
 
Approved,