NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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i©ffi£(> o( tl)f f ffnr^
‘22 DEC-6 PI2 '10
RECEiVEDBV
SENATE
S.B. No. 1598
Introduced by SENATOR IMEE R. MARCOS
AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE IN THE MUNICIPALITIES OF 
SAN JOSE AND MAGSAYSAY, PROVINCE OF OCCIDENTAL MINDORO, 
CREATING FOR THE PURPOSE THE OCCIDENTAL MINDORO SPECIAL 
ECONOMIC ZONE AUTHORITY, AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
Article II, Section 20 of the 1987 Philippine Constitution provides that, "The State 
recognizes the indispensable role 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.
This bill seeks to establish a special economic zone which shall cover a particular
area located in the Municipality of San Jose and Magsaysay, Province of Occidental
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Mindoro to be known as Occidental Mindoro Special Economic Zone, which shall be 
managed and operated by the Occidental Mindoro Special Economic Zone Authority 
(OCCIMINSEZA). The creation of the Occidental Mindoro Special Economic Zone will 
alleviate and improve the economic condition of Occidental Mindoro and nearby 
provinces. The residents will be assured of local employment opportunities which will 
accelerate the economic growth not only in the area but in the nearby provinces as 
well.
For the foregoing reasons, the passage of this bill is earnestly sought.
^We h
E R. MARCOS


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
S.B. No. 1598
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(©fi'icp of tijc ^vtvel«rj>
*22 DEC-6 PI2 :l 1
received Bv:
Introduced by SENATOR IMEE R. MARCOS
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AN ACT
ESTABLISHING A SPECIAL ECONOMIC ZONE IN THE MUNICIPALITIES OF 
SAN JOSE AND MAGSAYSAY, PROVINCE OF OCCIDENTAL MINDORO, 
CREATING FOR THE PURPOSE THE OCCIDENTAL MINDORO SPECIAL 
ECONOMIC ZONE AUTHORITY, AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "Occidental Mindoro 
Special Economic Zone Act."
SEC. 2. Declaration of Policy. - It is declared the policy of the State to 
encourage, promote, and accelerate the sound and balanced industrial, economic and 
social development of the country. The establishment of special economic zones shall 
attract legitimate and productive foreign investments in strategic locations in the 
country. It shall generate employment and increase productivity and individual, as well 
as family incomes, thereby enhancing the quality of life of the Filipino people.
CHAPTER II
CREATION OF THE ECONOMIC ZONE AND FREEPORT
SEC. 3. Creation of the Occidental Mindoro Special Economic Zone. -
In accordance with the foregoing declared policy and subject to the concurrence of the 
concerned local government units (LGUs) of the Province of Occidental Mindoro, there


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is hereby established a special economic zone, hereinafter referred to as the Occidental
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Mindoro Special Economic Zone or Occidental Mindoro Ecozone. The Occidental
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Mindoro Ecozone shall cover a particular area located in the Municipalities of San Jose
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and Magsaysay, Province of Occidental Mindoro. The specific metes and bounds of the
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Occidental Mindoro Ecozone shall be more particularly defined in a presidential
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proclamation that shall be issued for this purpose: Provided, That the lands embraced
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therein shall be contiguous to one another.
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SEC. 4. Creation of the Occidental Mindoro Special Economic Zone
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Authority. - There is created a body corporate to be known as the Occidental Mindoro
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Special Economic Zone Authority, hereinafter referred to as the OCCIMINSEZA, which
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shall manage and operate the Occidental Mindoro Ecozone in accordance with the
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provisions of this Act. The corporate life of the OCCIMINSEZA shall expire in fifty (50)
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years, counted from the first year after the effectivity of this Act, unless otherwise
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extended by Congress. It shall be organized within one hundred eighty (180) days after
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the effectivity of this Act.
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SEC. 5. Governing Principles. - The OCCIMINSEZA shall manage and operate
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the Occidental Mindoro Ecozone, under the following principles:
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a) Within the framework and limitations of the Constitution and applicable
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provisions of Republic Act No. 7160, or the Local Government Code, as amended, the
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Occidental Mindoro Ecozone shall be developed into and operated as a decentralized,
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self-reliant and 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 Occidental Mindoro Ecozone shall be equipped with transportation,
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telecommunications, and other facilities needed to attract legitimate and productive
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investments, generate linkage industries and employment opportunities for the people
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of the Municipalities of San Jose and Magsaysay, Province of Occidental Mindoro and
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those in neighboring towns and cities;
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c) c) The Occidental Mindoro Ecozone may establish mutually beneficial
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economic relations with other entities or enterprises within the country or, subject to
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the administrative guidance of the Department of Foreign Affairs, the Philippine
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Economic Zone Authority (PEZA), and the Department of Trade and Industry (DTI),
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with foreign entities or enterprises;


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d) Foreign citizens and companies owned by non-Filipinos in whatever
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proportion may set up enterprises in the Occidental Mindoro Ecozone, either by
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themselves or in a joint venture with Filipinos in any sector of industry, international
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trade and commerce within the Occidental Mindoro Ecozone;
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e) The Occidental Mindoro Ecozone shall be managed and operated as a
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separate customs territory thereby ensuring the free flow or movement of goods and
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capital within, into, and out of its territory, and shall likewise provide incentives such
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as tax and duty-free importations of raw materials, capital and equipment to registered
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enterprises located therein, as provided under Republic Act No. 11534, otherwise
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known as the "Corporate Recovery and Tax Incentives for Enterprises Act'-,
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f) The areas comprising the Occidental Mindoro Ecozone may be expanded or
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reduced when necessary through a presidential proclamation issued for the said
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purpose. For this purpose, the OCCIMINSEZA, in consultation with the LGUs, shall have
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the power to acquire either by purchase, negotiation or condemnation proceedings,
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any private land within or adjacent to the Occidental Mindoro Ecozone for the following
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purposes; (1) consolidation of lands for zone development; (2) acquisition of right of
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way to the Occidental Mindoro Ecozone; and (3) the protection of watershed areas and
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natural assets valuable to the prosperity of the Occidental Mindoro Ecozone;
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g) Goods manufactured by Occidental Mindoro Ecozone enterprise shall be made
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available for immediate retail sale in the domestic market, subject to the payment of
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corresponding taxes on raw materials and other regulations that may be formulated by
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the OCCIMINSEZA together with the PEZA, the Bureau of Customs, the Bureau of
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Internal Revenue, and the DTI. However, in order to protect domestic industries, a
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Negative List of industries shall be drawn up and regularly updated by the PEZA.
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Enterprises engaged in industries included in such Negative List shall not be allowed to
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sell their products locally; and
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h) The defense of the Occidental Mindoro Ecozone and the security of its
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perimeter fence shall be the responsibility of the national government in coordination
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with the OCCIMINSEZA and the concerned LGUs.
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SEC. 6. Development Goals of the Occidental Mindoro Ecozone. - The
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OCCIMINSEZA shall determine the development goals of the Occidental Mindoro
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Ecozone within the framework of national development plans, policies, and goals. The
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Chairperson-Administrator shall, upon approval by the Board of the OCCIMINSEZA,


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submit the Occidental Mindoro Ecozone plans, programs, and projects to the Regional
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Development Council for inclusion in the regional development plan.
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SEC. 7. Capitalization. - The OCCIMINSEZA shall have an authorized capital 
stock of two billion pesos (Php2,000,000,000) no par shares with a minimum issue of 
Ten pesos (PhplO.OO) each, the majority shares of which shall be subscribed and paid 
for by the national government and the LGUs embracing the Occidental Mindoro 
Ecozone. The Board of Directors of the OCCIMINSEZA may, with the written 
concurrence of the Secretary of Finance, sell shares representing not more than forty 
per centum (40%) of the capital stock of the OCCIMINSEZA to the general public under 
such policy as the Board and the Secretary of Finance may determine. The national 
government and the LGUs shall in no case own less than sixty per centum (60%) of 
the total issued and outstanding capital of the OCCIMINSEZA.
The amount necessary to subscribe and pay for the shares of the National 
Government to the capital stock of the OCCIMINSEZA shall be included in the annual 
General Appropriations Act. For the LGUs concerned, the funds shall be taken from their 
internal revenue allotment and other local funds.
SEC. 8. Principal Office of the OCCIMINSEZA. - The OCCIMINSEZA shall 
maintain its principal office in the Municipality of San Jose, Province of Occidental 
Mindoro, but it may establish liaison offices within the Philippines as may be necessary 
for the proper conduct of its business.
SEC. 9. Powers and Functions of the OCCIMINSEZA. - The OCCIMINSEZA
shall have the following powers and functions:
a) To operate, administer, manage and develop the Occidental Mindoro 
Ecozone according to the principles and provisions set forth in this Act,
b) To register, regulate and supervise the enterprises in the Occidental Mindoro 
Ecozone in an efficient and decentralized manner, subject to existing laws;
c) To coordinate with LGUs and exercise general supervision over the 
development plans, activities and operations of the Occidental Mindoro Ecozone;
d) To regulate and undertake the establishment, construction, operation, and 
maintenance of public utilities, other services, and infrastructure in the Occidental 
Mindoro Ecozone such as light and power, shipping, barging, stevedoring, cargo 
handling, hauling, warehousing, storage of cargo, port services or concessions, piers.


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wharves, bulkheads, bulk terminals, mooring areas, storage areas, roads,
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telecommunications, transport, bridges, terminals, conveyors, water supply and
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storage, sewerage, drainage, airport operations in coordination with the Civil Aviation
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Authority of the Philippines, and such other services or concessions or infrastructure
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necessary or incidental to the 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, licenses, bulk purchase from the private sector or permits
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under any of the schemes allowed in Republic Act No. 6957, otherwise known as the
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"Build-Operate-Transfer Law", as amended, or joint venture, adequate facilities and
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infrastructure required or needed for the operation and development of the Occidental
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Mindoro Ecozone, in coordination with appropriate national and local government
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authorities and in conformity with applicable laws thereon;
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f) 7o approve plans, programs and projects of the Occidental Mindoro Ecozone,
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to be submitted to the Regional Development Council for inclusion and inputs to the
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overall Regional Development Plan;
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g) To operate on its own, either directly or through licenses to others, tourism-
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related activities, including games, amusements, recreational and sports facilities,
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subject to the approval and supervision of the Philippine Amusement and Gaming
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Corporation;
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h) To raise or borrow, within the limitation provided by law, and subject to the
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approval of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as the case
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may be, adequate and necessary funds from local or foreign sources, to finance its
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projects and programs under this Act and for this purpose, to issue bonds, promissory
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notes, and other forms of securities, and to secure the same by a guarantee, pledge,
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mortgage, deed of trust or an assignment of all or part of its property or assets;
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i) To protect, preserve, maintain, and develop the forests, beaches, corals and
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coral reefs, and maintain ecological balance within the Occidental Mindoro Ecozone.
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Notwithstanding the power of the OCCIMINSEZA to create rules for such purpose, the
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rules and regulations of the Department of Environment and Natural Resources and
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other government agencies involved in the above functions shall be implemented by
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the OCCIMINSEZA;
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j) To create, operate or contract to operate such functional units or offices of
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the OCCIMINSEZA as it may deem necessary;


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k) To adopt, alter, and use a corporate seal; contract, lease, buy, acquire, own
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or otherwise dispose of personal or real property of whatever nature; sue and be sued;
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and otherwise carry out its functions and duties as provided for in this Act;
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I) To issue certificates of origin for products manufactured or processed in the
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Occidental Mindoro Ecozone in accordance with prevailing rules of origin and the
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pertinent regulations of the PEZA, the DTI, and the Department of Finance (DOF);
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m) To establish one-stop shops for the issuance of all necessary permits,
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clearances, licenses, and other similar certifications to conduct such activities intended
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to improve the ease of doing business within the Occidental Mindoro Ecozone, in
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coordination with government agencies having jurisdiction over activities therein.
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Provided, That all government agencies are directed to provide and extend utmost and
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full cooperation to the OCCIMINSEZA in the establishment of such one-stop shops;
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n) To ensure that the area covered by the Occidental Mindoro Ecozone is secure
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at all times: Provided, That the Armed Forces of the Philippines (AFP) or the Philippine
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National Police (PNP) shall not interfere in the internal affairs of the OCCIMINSEZA
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except to provide the necessary security and defense, or law enforcement assistance,
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as the case may be: Provided, fineHy, That expenses of the AFP or the PNP in the
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Occidental Mindoro Ecozone shall be borne by the national government;
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o) To exercise such powers as may be essential, necessary or incidental to the
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powers granted to it by this Act, as well as those that shall enable it to carry out,
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implement and accomplish the purposes, objectives, and policies set forth in this Act,
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and
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p) To issue rules and regulations consistent with the provisions of this Act as
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may be necessary to accomplish and implement the purposes, objectives, and policies
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provided herein.
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SEC. 10. Board of Directors of the OCCIMINSEZA. - The powers of the
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OCCIMINSEZA shall be vested in and exercised by a Board of Directors, hereinafter
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referred to as the Board, which shall be composed of the following:
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a) A Chairperson, who shall at the same time be the administrator of the
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OCCIMINSEZA;
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b) A Vice-Chairperson who shall be elected from among the members of the
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Board of Directors;
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c) Members consisting of:


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1) The Governor of the Province of Occidental Mindoro or a duly-
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authorized representative from the Provincial Government of Occidental
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Mindoro;
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2) One (1) of the mayors of the municipalities covered by the ecozone;
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3) One (1) representative from the investors' group; and
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4) One (1) representative from among the workers in the Occidental
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Mindoro Ecozone.
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The Governor or the Governor's duly authorized representative and the mayors
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of the municipalities within the ecozone shall serve as ex officio members of the Board,
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whose terms in the Board shall correspond to their terms as elected officials.
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The Chairperson-Administrator and the members of the Board, except for the
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representatives of the investors and workers groups and the ex officio members, shall
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be appointed by the President of the Philippines to serve for a term of six (6) years,
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unless sooner separated from service due to death, voluntary resignation or removal
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for cause. In case of death, resignation or removal for cause, their replacements shall
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serve only the unexpired portion of the respective terms. No person shall be appointed
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as a member of the Board unless the person is a Filipino citizen, of good moral
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character, of proven probity and integrity, and a degree holder in any of the following
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fields: economics, business, public administration, law, management or their
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equivalent, and with at least ten (10) years relevant working experience, preferably in
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the field of management or public administration.
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The members of the Board, except the ex officio members, shall each receive
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per diem allowance at rates to be determined by the Department of Budget and
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Management in accordance with existing rules and regulations: Provided, however,
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That the total per diem allowance collected each month shall not exceed the equivalent
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of four (4) meetings unless and until the President of the Philippines has fixed a higher
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rate for the per diem allowance for the members of the Board, such allowance shall
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not be more than Ten thousand pesos (Phpl0,000.00) for every Board meeting.
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SEC. 11. Organization and Personnel. - The Board of Directors of the
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OCCIMINSEZA shall provide for its organization and staff. The Board shall appoint and
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fix the remuneration and other emoluments of its officers and employees in accordance
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with existing laws on compensation and position classification. The Board shall have
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exclusive and final authority to promote, transfer, assign, reassign, or remove officers
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of the OCCIMINSEZA, any provision of existing law to the contrary notwithstanding.
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The Chairperson- Administrator shall execute the decisions of the Board.


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The officers and employees of the OCCIMINSEZA, including all members of the 
Board, shall not engage directly or indirectly in partisan activities nor take part in any 
election, except to vote.
No officer or employee of the OCCIMINSEZA, shall be removed or suspended 
except for cause, as provided by civil service rules and regulations.
SEC. 12. 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 OCCIMINSEZA in accordance with the
policies of the Board;
b) To establish the internal organization of the OCCIMINSEZA 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 Occidental Mindoro Ecozone;
f) To recommend to the Board the remuneration and other emoluments of its 
officers and employees in accordance with existing laws on compensation and position 
classification;
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 Occidental Mindoro Ecozone; and
h) To perform such other duties as may be assigned by the Board or which are 
necessary or incidental to the office.
SEC. 13. Legal Counsei. -The OCCIMINSEZA shall have its own internal legal 
counsel who shall be under the supervision of the Government Corporate Counsel. 
When the exigencies of business and operations demand it, the OCCIMINSEZA may 
engage the services of an outside counsel either on a case to case or on a fixed retainer
basis.
CHAPTER III
INCENTIVES TO ECOZONE ENTERPRISES AND INVESTORS


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SEC. 14. Investors Visa. - Any foreign national who invests an amount of
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Two hundred thousand US dollars (US$200,000.00) in a registered enterprise, either
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in cash or equipment, shall be entitled to an investor's visa: Provided, That the foreign
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national has the following qualifications:
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a) Must be at least eighteen (18) years of age;
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b) Must not have been convicted by final judgment of a crime involving moral
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turpitude;
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c) Must not be afflicted with any dangerous or contagious disease;
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d) Must not have been confined in an institution for any mental disorder or
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disability; and
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e) Must be financially capable as borne out by credible and verifiable evidence.
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With an investor's visa, an alien shall be entitled to reside in the Philippines while
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the investment subsists. The alien investor shall submit an annual report, in the form
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duly prescribed for the purpose, to prove that the investment in the country subsists.
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Should said alien investor withdraw the investments from the Philippines, then the
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investor's visa issued to said alien shall automatically expire and be withdrawn.
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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 Occidental Mindoro Ecozone
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and coordinate closely with the OCCIMINSEZA to facilitate the conduct of business
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operations.
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SEC. 15. Fiscal Incentives. - Registered enterprises operating within the
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Occidental Mindoro Economic Zone may be entitled to the existing fiscal incentives
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provided and granted under Title XIII (Tax Incentives) of the National Internal Revenue
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Code of 1997, as amended by Republic Act No. 11534, otherwise known as the
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"Corporate Recovery and Tax Incentives for Enterprises Act".
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SEC. 16. Administration, Implementation and Monitoring of
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Incentives. - In the interest of enhancing transparency in the management and
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accounting of tax incentives in the Occidental Mindoro Ecozone, and ensuring the
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proper administration, management, enforcement, implementation and monitoring of
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tax incentives, the OCCIMINSEZA shall comply with the provisions of Republic Act No.
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11534, otherwise known as the'' Corporate Recovery and Tax Incentives for Enterprises
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Act".


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The BOC shall set up and establish a customs-controlled area outside the 
premises of the Occidental Mindoro Ecozone to facilitate payment of duties and taxes 
on goods entering the Philippine customs territory: Provided, That notwithstanding the 
limitations on this Act, the OCCIMINSEZA and BOC may coordinate and jointly 
implement measures on border protection.
SEC. 17. Banking Rules and Regulations. - Banks and financial institutions 
to be established in the Occidental Mindoro Ecozone shall be under the supervision of 
the BSP and subject to existing banking laws, rules and regulations.
SEC. 18. Remittances. - In the case of foreign investments, a duly registered 
entity or enterprise within the Occidental Mindoro Ecozone shall have the right to remit 
earnings to its investors in the currency in which the investment was originally made 
and at the exchange rate prevailing at the time of remittance, subject to the provisions 
of Republic Act No. 7653, otherwise known as the "New Central Bank Act" as amended.
CHAPTER IV
NATIONAL GOVERNMENT AND OTHER ENTITIES
SEC. 19. Supervision and Control. - For purposes of policy direction and 
coordination, the OCCIMINSEZA shall be under the direct control and supervision of 
the Office of the President of the Philippines.
SEC. 20. Relationship with Local Government Units. - Except as herein 
provided, the LGUs comprising the Occidental Mindoro Ecozone shall retain their basic 
autonomy and identity. The Municipalities of San Jose and Magsaysay, Province of 
Occidental Mindoro, shall operate and function in accordance with the framework of 
the Constitution, the Local Government Code of 1991, as amended, and this Act.
In case of any conflict among the OCCIMINSEZA, the LGUs and the national 
government on matters affecting the Occidental Mindoro Ecozone, other than national 
defense and security matters, the decision of the OCCIMINSEZA shall prevail.
SEC. 21. Audit. -The Commission on Audit shall appoint a full-time auditor for 
the OCCIMINSEZA and may assign such number of personnel as may be necessary to 
assist the auditor in the performance of the auditor's functions.
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CHAPTER V 
MISCELLANEOUS
SEC. 22. Interpretation and Construction. - The powers, authorities and 
functions that are vested in the OCCIMINSEZA are intended to establish national self- 
sufficiency and self-reliance in the advancement of and protection of the national 
integrity, enhancement of national security, decentralization of governmental functions 
and authority, and promotion of an efficient and effective working relationship among 
the OCCIMINSEZA, the national government and the LGUs. Any interpretation of this 
Act shall consider such intentions. In the event of conflict of interpretation and provided 
the intentions cannot be harmonized, the provisions of this Act shall be construed in 
favor of an interpretation that shall protect national security.
SEC. 23. Applicability Clause. - Insofar as they are consistent with the 
provisions of this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916, 
otherwise known as "The Special Economic Zone Act of 1995", as amended, shall 
likewise apply to the Occidental Mindoro Ecozone.
SEC. 24. Implementing Rules and Regulations. - Within sixty (60) days 
from effectivity of this Act, the DTI shall, in coordination with the DOF and the National 
Economic and Development Authority, formulate rules and regulations for the effective 
implementation of the provisions of this Act.
SEC. 25. Separability Clause. - If any provision of this Act shall be held 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in 
full force and effect force and effect.
SEC. 26. Repealing Clause. - All laws, executive orders or issuances or any 
part thereof, which are inconsistent herewith, are hereby repealed or amended 
accordingly.
SEC. 27. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
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