SIXTEENTH CONGRESS: OF THE 
REPUBLIC OF THE I'HlLIPI'INES 
Third Regular Session 
) 
) 
) 
SENATE 
S.No. 
2926 
, 
Introd"ced by Senator SONNY M. ANGARA 
AN ACT 
'15 . SEP -2 Ala ;18 
ESTABLISHING THE SPECIAL ECONOMIC ZONE AND FRE.EPORT IN THE 
PROVINCE OF ILOCOS SUR, CREATING FOR TUlS rURPOSE TIlE 
ILOCOS SUR SPECIAL ECONOMIC ZONE AND FREEPORT AUTHORITY, 
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSE 
EXPLANATORY NOTE 
I 
This bill is a counterpart verrion of House Bill No. 15 med by I1ocos Sur Rep. Ronald Singson 
which seeks to establish the Special Economic Zone and Freeport in the Mnnicipalities of San 
Juan and Cabugao in thc provincc ofIlocos Sur. 
The proposed arca for thc special ecozone and freeport in !locos Sur will cover the entire 
Salomague Cove and area cmbraced by the barangays of Dardarat, Solotsolol, Surgit and Refaro 
in the municipality of San Juan as well as Dardarat, PUa, Sagadaycn, Salomague, Sabang, 
Naml'uangan, Salapasap, Daclapan, Pug-os, Turod and Baclig in the municipality of Cabugao, all 
in the province of Ilocos Sur. With its ideal physical geographic and natural attributes, the 
Salomague Cove is a natural harbor and haven for international ships, and is deemed to be the 
only port closest to Hongkong, Japan and Taiwan large enough to accommodate a number of 
vessels. It is also near an international airport in Laoag City, I1ocos Norte, and a local airport in 
Vigan, Ilocos Sur. 
The proposed creation of the I1ocos Sur ecozonc is in response to the need to take advantage of 
the potential to open a new industrial, commercial and investment hub in North-Western Luzon. 
Despite 1Iocos region's decelerated growth as measured by its gross regional domestie produet 
from 6.8 percent in 2013 to 5.7 perccnt in 2014, the National Economic and Development 
Authority (NEDA) maintains positive prospects for the economic growth in Region I. NEDA 
said the region is very optimistic in tcrms of its tourism industry as there arc more frequent 
flights going to the north along with the opening of the Tarlao-Pangasinan-La Union 
Expressway. Furthermore, while Ilocos rcgion's economy is highly agricultural, it also would 
like to bank on manufacturing industry and service sector in light of the upcoming ASEAN 
integration. 
Thus, in line with the government's thrust to make the Philippincs more competitive in the global 
economy, the Ilocos Sur Ecozone and Freeport aims to attract productive local and foreign 
investments, generate linkage industries and employment opportunities for the people of the 
Province of Ilocos Sur and its neighboring towns and cities. Under the bill, the !locos Sur 
Ecozone would be managed and opcrated as a separate customs territory to cnsurc the free flow 
or movemcnt of goods and capital within, into and out of the ecozone. It would likewise grant 
inccntives such as tax- and duty-frec importations of raw materials and capital equipmcnt to 
registered enterprises located in the ceo zone. 


, . 
\ 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE I)HILIPPINES 
11/ird Regular Sessioll 
) 
) 
) 
SENATE 
S.No. 
2926 
Introduced by Senator SONNY M. ANGARA 
AN ACT 
S£'mitl' 
"II,; •• 1 til' .~r«.t.f" 
'15 SEP -2 Al0:18 
ESTABLISHING THE SPECIAL I<:CONOMIC ZONE AND FREEPORT IN THE 
PROVINCE OF ILOCOS SUR, CREATING FOR TmS rURPOSETHE 
ILOCOS SUR SPECIAL ECONOMIC ZONE AND FREEPORT AUTHORITY, 
APPROl)RIATING FUNDS TIlEREl?OR AND FOR OTHER PURPOSE 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
I 
CHAPTER I 
2 
GENERAL I)ROVISIONS 
3 
SECTION 1. Silort Title. - This Act shall be known as the "!locos Sur Special 
4 
Economic Zone and Freeport Act of2013". 
5 
SEC. 2. Declaratioll of Policy. - It is hereby declared the policy of the State to 
6 
actively encourage, promote, induce and accelerate the sound and balanced industrial, 
7 
economic and social development of the country in order to provide jobs to tbe people 
8 
especially those in the rural areas, increase productivity and individual and family income, 
9 
and thereby improve the level and quality of living conditions through the establishment, 
10 
among others, of special economic zones and freeports in suitable and stratelie locations in 
11 
the country and through measures that will attract legitimate and productive foreign 
12 
investments. 
13 
CHAPTER II 
14 
CREATION OF TIlE I<:COZONE 
15 
SEC. 3. Creation of the Ilocos Sur Special Ecollomic Zone alld Freeport. - In 
16 
pursuit of the foregoing declared policy and subject to the concurrence of the concerned 
17 
local government units (LOUs) of I1ocos Sur affected by the zone, there is hereby 
18 
established a special economic zone and freeport in the Provincc of I1ocos Sur to be known 
19 
as the I1ocos Sur Special Economic Zonc and Freeport, hereinafter referred to as the I1ocos 
20 
Sur Ecozone. The I1ocos Sur Ecozone shall cover the entire Salomague Cove and the area 
21 
embraced by the barangays of Dardarat, Solo(solot, Surngi! and Refaro in the Municipality 


1 
of San Juan as well as Dardarat, Pila, Sagayaden, Salomague, Sabang, Namruangan, 
2 
Salapasap, Daelapan, Pug-os, Turod and Baelig ill the Municipality of Cabugao. The 
3 
specific metes and bounds of the Ilocos Sur Ecozone shall be more particularly defined in a 
4 
presidential proclamation that shall be issucd for this purposc. 
5 
SEC. 4. Goverllillg Principles. - The /locos Sur Ecozonc shall be managed and 
6 
operatcd by the !locos Sur Special Economic Zone and Freeport Authority, hereinafler 
7 
referred to as the lSSEZFA, created under Section 5 of this Act, under the following 
8 
principles: 
9 
(a) Within the framework and limitations of the Constitution and applicable 
10 
provisions of the Local Government Code, the lIocos Sur Ecozone shall be 
II 
developed into and opemted as a dccentralized, self-reliant and selt~sustaining 
12 
industrial, commercial/trading, agro-industrial, tourist, banking, financial and 
13 
investment center with suitable residential areas; 
14 
(b) The 
Uocos 
Sur 
Ecozone 
shall 
be 
provided 
with 
transportation, 
15 
telecommunications and other facilities· needed to attract legitimate and 
16 
17 
18 
productive investments, genemte linkage industries and employment 
opportunities for the people of the Province of Ilocos Sur and its neighboring 
towns and cities; 
19 
(c) The Ilocos Sur Ecozone may establish mutually beneficial economic relations 
20 
with other entities or enterprises within the country or, subject to the 
21 
administrative guidance of thc Department of Foreign Affairs (DFA), the 
22 
Philippine Economic Zonc Authority (PEZA) and/or the Department of Trade 
23 
and Industry (DTI), with forcign cntitics or entcrprises; 
24 
(d) Foreign citizens and companics owncd by non-Filipinos in whatever proportion 
25 
may set up enterprises in the !locos Sur Ecozone, either by themsclves or in 
. 26 
joint venture with Filipinos in any sector of industry, international trade and 
27 
commcrcc within thc Ilocos Sur Ecozone; 
28 
( e) The 1I0cos Sur Ecozonc shall be managed and operatcd as a separate customs 
29 
territory, thereby cnsuring the li'ce flow or movement of goods and capital 
30 
within, into and out of thc 1I0cos Sur Ecozone, and shall likewise provide 
31 
incentivcs such as tax- and duty-free importations of raw materials and capital 
32 
equipment to registered cntcrprises located thcrein. However, exportation or 
33 
removal of goods from the tcrritory of the Ilocos Sur Ecozone to the other parts 
34 
of the Philippine territory shall bc subject to customs duties and taxes under the 
35 
Tarif!' and Customs Code of the Philippines, as amcnded, and thc National 
2 


'\. 
Internal Revenue Code (NIRC) of 1997, as amended; 
2 
(f) (f) The areas comprising the 1I0cos Sur Ecozone may be expanded or reduced 
3 
when necessary. For this purpose, the ISSEZFA, in consultation with the LGUs, 
4 
shall have the power to acquire either by purchase, negotiation or condemnation 
5 
proceedings, any private land within or adjacent to the I1ocos Sur Ecozone for 
6 
the following purposes: (I) consolidation of lands for I1ocos Snr Ecozonc 
7 
development; 
(2) acquisition of right-of-way to the I1ocos Sur Ecozone; and 
8 
(3) the protection of watershed areas and natural assets valuable to the 
9 
prosperity of the 1I0cos Sur Eeozonej 
10 
(g) Goods manufactured by an I1ocos Sur Ecozone enterprise shall be made 
II 
available for immediate retail sale in the domestic market, subjcct to the 
12 
payment of corrcsponding taxcs on raw materials and other regulations that 
13 
may be fonllulated by the lSSEZflA, together with thc PEZA, the Bureau of 
14 
Customs (BoC) and the DTI in accordance with the NIRC of J 997, as amended, 
15 
and the TarifT and Customs Code of the Philippines, as amended. However, in 
16 
order to protect domestic industries, a Negative List of industries shall be drawn 
17 
up and regularly updated by the PEZA. Enterprises engaged in industries 
18 
19 
included in such Negative List shall not be allowed to sell their products 
locally; and 
20 
(h) The defense of the 1I0cos Sur Ecozone and the security of its perimeter fence 
21 
shall be the responsibility of thc national government in coordination with the 
22 
1I0eos Sur Ecozone and the LGUs. For this purpose, a special defense team 
23 
shall be organized to define its power, duties and responsibilities. 
24 
CIlAI'TER III 
25 
GOVERNING STRUCTUIU:S 
26 
SEC. 5. Creation of the llocos SUI' Special Economic Z(}IIe and Freeport 
27 
Authority. - There is hereby created a body corporate to be known as the Ilocos Sur 
28 
Special Economic Zone and Freeport Authority, hcreinafter referrcd to as the ISSEZFA, 
29 
which shall manage and operate the I1ocos Sur Ecozone in accordance with the provisions 
30 
of this Act. This corporate franchise shall expire in fifty (50) years counted from the first 
31 
year after the effectivity of this Act, unless otherwise extended by Congress. It shall be 
32 
organized within one hundred eighty (180) days after the effectivity ofthis Act. 
33 
SEC. 6. Capitalization. - The ISSEZflA shall have an authorizcd capital stock of 
. 34 
two billion (2,000,000,000) no-par shares with a minimum issue of Ten pesos (Pl0.00) 
3 


1 
each, thc majority sharcs of which shall be subscribed and paid for by the national 
2 
govenllncnt and the LGUs embracing the Jlocos Sur Ecozone. Thc Board of Directors of 
3 
the ISSEZFA may, with the written concurrcncc of thc Secretary of Finance, scll sharcs, 
4 
representing not morc thun forty per ccntum (40%) of the capital stock of the rSSEZFA to 
5 
the gcneral public under such policy as the Board and the Secretary of Finance may 
6 
determine. The national government and the LGUs shall, ill no case, own less than sixty 
7 
per centum (60%) ofthe total issued and outstanding capital of the ISSEZFA. 
8 
The amount necessary to subscribe and pay for the shares of the national 
9 
government to the capital stock of the ISSEZFA shall be included in the annual General 
10 
Appropriations Aet. For LGUs, the funds shall be taken from their internal revenue 
11 
allotment and other local funds. 
12 
SEC. 7. Principal Office of tile ISSEZFA. - The ISSEZFA shall maintain its 
13 
principal office in the Municipality of Cabugao, Province of llocos Sur, but it may 
14 
establish branches within the Philippincs as may be neccssary for the proper conduct of its 
15 
business. 
16 
SEC. 8. Powers and FUI/ctiol/s of tile ISSEZFA. - The ISSEZFA shall have the 
17 
following functions: 
18 
(a) Operate, administer, manage and develop the !locos Sur Ecozone according to 
19 
the principles and provisions set forth in this Act; 
20 
(b) Recommend to the President of the Philippines the issuance of a proclamation 
21 
to fix and delimit the sitc of the !locos SUI' Ecozone; 
22 
(c) Register, regulate and supervise the cnterprises in the I1ocos Sur Ecozone in an 
23 
efficient and decentralized manncr, subject to existing laws; 
24 
(d) Coordinate with LGUs and exercise general supervision over the development 
25 
plans, activitics and operations of the 1I0cos Sur Ecozonej 
26 
( e) Authorize or undertake, on its own or through others, and regulate the 
27 
establishment, operation and maintenance of public utilities, services and 
28 
infrastructure in the 1I0cos Sur Ecozone such as shipping, barging, stevedoring, 
29 
cargo handling, hauling, warehousing, storage of cargo, port services or 
30 
concessions, piers, wharves, bulkheads, bulk tenninals, mooring areas, storage 
31 
areas, roads, bridges, tcrminals, conveyors, water supply and storage, sewerage, 
32 
drainage, airport operations in coordination with the Civil Aeronautics Board, 
33 
and such other scrvices or concessions or infrastructure necessary or incideutal 
4 


1 . 
to the accomplishment of the objeetives of this Act: Provided, however, That 
2 
the private investors in the 1IOC08 Sur Ecozone shall be given priority in the 
3 
awarding of contracts, franchises, licenses, permits fbr the establishment, 
4 
operation and maintenunce of utilities, services and infrastructure in the I1oeos 
5 
Sur Ecozone; 
6 
(f) Regulate and undertake the establishment, operation and maintenance of 
7 
utilities, other serviccs and infrastructurc in thc I1ocos Sur Ecozone such as, but 
8 
not limited to, heat, light and power, water supply, telecommunications, 
9 
transport, toll roads and bridges, port services, etc. and to fix just, reasonable 
10 
and eompetitive rates, fares, charges and prices thereof; 
11 
(g) Construet, acquire, own, lease, operate and maintain, on its own or through 
12 
contracts, franchises, licenses, bulk purchases from the private seetor or pennits 
13 
under any of the schemes allowed in Republic Act No. 6957 (the Build-
14 
Operate-Transfer Law, as amended), or joint ventures, adequate facilities and 
15 
infrastructure required or needed fbr the operation and development of the 
16 
Ilocos Sur Ecozone, in coordination with appropriate national and local 
17 
government authorities and in coufonnity with applieable laws thereon; 
18 
(h) Operate on its own, either directly or accredit/license other entitics, recreational 
19 
and sports faeilities, other tourism-related activities and, subject to a grant of 
20 
franehise by Congress, gaming aetivities such as horse racing, dog racing, 
21 
gambling casinos, internet and inter-active gaming and other games of ehanee: 
22 
Provided, That registered loeator enterprises shall not operate gaming aetivities 
23 
unless granted a franchise by Congress; 
24 
(i) Subjeet to the approval of the President of the Philippines and the Monetary 
2S 
Board of the Bangko Scnlral ng Pilipinas (DSP), upon the recommendation of 
26 
the DOF, to raise or borrow adequate and neecssary funds from local or foreign 
27 
sources to finance its projects and programs under this Act and, for that 
28 
purpose, to issue bonds, promissory notes and other fonns of seeurities, and to 
29 
secure the same by a guarantee, pledge, mortgage, deed of tmst or an 
30 
assignment of all or part of its property or assets; 
31 
(j) Providc security for the !locos Sur Ecozone in coordination with the national 
32 
and local governments. Military forces sent by the national government for the 
33 
purpose of defense shall not interfere in the internal affairs of the !locos Sur 
34 
35 
Ecozone and expenditures for these military forces shall be borne by the 
national govemment. For this purpose, thc ISSEZFA may establish and 
5 


maintain its seeurity forees and firetighting capability or hire others to provide 
2 
the same; 
3 
(k) Protect, preserve, maintain and develop the virgin forests, beaches, coral and 
4 
coral reefs, and maintain ecologicul bulauce within the nocos Sur Ecozone; 
5 
(I) Create, operate and/or contract to operate such functional units or offices of the 
6 
ISSEZF A as it muy dccm necessary; 
7 
(m)Adopt, alter and usc a corporate seal; contract, leuse, buy, acquire, own or 
8 
otherwise dispose of personal and/or real property of whatever nature; sue and 
9 
be sued; and otherwise carry out its functions and duties as provided for in this 
10 
Act; 
II 
(n) Issue certificates of origin for products manufactured or processed in the IJoeos 
12 
Sur Ecozone in accordance with prevailing rules of origin, and the pertinent 
13 
regulations of the PEZA, the DTI and/or the DOF; 
14 
(0) Issue working visas renewable every three (3) years to forei!,'11 executives and 
15 
foreign technicians with highly specialized skills which no Filipino possesses, 
16 
us certified by the Department of Labor and Employment (DOLE); 
17 
(P) Rcport to thc Bureau of Immigration (BI) thc namcs of the foreigners who have 
18 
been grallted permanent resident status and working visas within thirty (30) 
19 
days after the issuance of such grant; 
20 
(q) Exercise such powers as may be essential, necessary or incidental to the powers 
21 
granted to it hereunder, as well as those that shall cnable it to carry out, 
. 22 
implement and accomplish the purposes, objectives and policies of this Act; 
23 
and 
24 
(r) Issue rules and regulatiolls consistent with the provision of this Act as may be 
25 
necessary to accomplish and implemcnt the purposes, objectives and policies 
26 
provided herein. 
27 
SEC. 9. Applicability Clause. - The provisions of Sections 30 to 41 of Republic 
28 
Act No. 7916, (The Speeial Economic Zone Act of 1995) as amended, on leases ofial1ds 
29 
and buildings, land conversion, shipping and shipping register, protection of environment, 
30 
termination of business, registration of business enterprises, one-slop shop center and on 
31 
industrial halmony in the ecozones shall apply to thc ISSEZF A. 
32 
6 


1 
SEC. 10. Tax Exemptiolls. - The ISSEZFA is hereby declared exempt from the 
2 
payment of all taxes, duties, fees, imports, charges, costs and service fees in any court or 
3 
administrative proceedings in which it may be a party. 
4 
The foregoing exemptions may, however, be entirely or partially IiUed by the 
5 
President of the Philippines upon the recommendation of the Secretary of Finance, not 
6 
earlier than five (5) years from the effectivity of this Act, if the President shall find the 
'1 
ISSEZFA to be selt:sustaining and financially capablc by then to pay such taxes, customs 
8 
duties, fees and other charges after providing for dcbt service requirements of the 
9 
ISSEZFA and of its projected capital and operating expenditures. 
10 
Furthermore, all donations made by any person or entity in favor of the lSSEZF A 
11 
shall be exempt from the payment of the donor's tax and the same shall be considered as 
12 
deductible from the gross income of the donor, pursuant to theNIRC of 1997, as amended. 
13 
SEC. 11. Administratillll, Implemelltatioll alld MOllitorillg of lllcemives. - The 
14 
ISSEZF A shall be responsible for the administration and implementation of the incentives 
15 
granted to its respective rcgistered enterprises: Provided, That any incentive administration 
16 
policy adopted by the BOI for inccntivcs common to all registered enterprises shall be 
17 
uniformly applied by the ISSEZF A. 
18 
The following are the duties and responsibilities of the ISSEZF A in the 
19 
administration ofincentives: 
20 
(a) Adopt consistent procedurcs of administering incentives in accordance with the 
21 
guidclines established by the BOl and to amend the same whcnnecessary; 
22 
(b) Adopt and implement systems and procedures affeeting trade and eustoms 
23 
policies in accordance with the requirements established by the DOF and the 
24 
1301 and to amend the same when necessary; 
25 
(c) Submit data and information to the DOF and the 1301 as required by any of 
26 
these agencies to ascertain consistcncy of investment policics and incentives, 
27 
including their implementation as provided in (a) and to ensure proper 
28 
implementation of systems and procedures affecting trade and customs policies 
29 
as provided in (b); and 
. 30 
(d) Perform nil other dutics and responsibilities as maybe required by the President 
31 
ofthe Philippines. 
32 
For proper monitoring, thc 1301 sl1all create a single database of all incentives 
33 
provided by all incentives-granting agcncies, including the ISSEZFA and all information 
7 


thereto. Double-entry accounting shall be done by the BOlin recording all incentives 
2 
granted by the government for transparency purposes. 
3 
SEC. 12. BoaI'd of Dil'ectol's of the IS(!''EZFA. - The powers of the ISSEZFA shall 
4 
be vested in and exercised by a board of directors, hereinafter referred to as the Board, 
S 
whieh shall be composed of the following: 
6 
(a) The chairperson who shall, at the same time, be the administrator of the 
7 
ISSEZFA; 
8 
(b) A viee ehairperson who shall come from among the members of the Board; 
9 
(e) The Members consisting of: 
10 
1) The governor of the Province ofIlocos Sur; 
11 
2) The congressional representative of the district covering the site of the 
12 
Uocos Sur Ecozone; 
13 
3) The mayors ofthe ll1unieip!llities ofCabugao and San Juan; 
14 
4) One (1) representative from tbe domestic investors; 
15 
5) One (I) representative from the fOlfign investors; and 
16 
6) Two (2) representatives from labor from among the workers in the 
17 
I1ocos Sur Ecozone. 
18 
The governor, the congressional representative and the mayors of the 
19 
municipalities of Cabugao and San Juan shall serve as ex officio members of the Board, 
20 
whose terms in the Board correspond to their tenn as elected officials. The chairperson and 
21 
the members of the Board, except the ex officio members, shall be appointed by the 
22 
President of the Philippines to serve for a term of six (6) years unless sooner removed for 
23 
cause or dies or resigns voluntarily. In case of death, resignation or removal for cause, the 
24 
replacement shall serve only the unexpired portion of the tenll. 
25 
Except for the representatives of the business and labor sectors, no person shaH be 
26 
appointed by the President of the Philippines as a member of the Board unless he is a 
27 
Filipino citizen, of good moral character, of proven probity and integrity, and a degree 
28 
holder in any of the following fields: economics,· busincss, public administration, law, 
29 
management or their equivalent, and with at lellst ten (10) years relevant working 
30 
experience preferably in the field of management or public administration. 
3 J 
The members of the Board shall each receive pel' diem at rates to be detennincd by 
8 


I 
the Department of Budget and Management (DBM) in accordance with existing rules and 
2 
rcgulations: Provided, however, That the total per diem collected each month shall not 
3 
exceed the equivalcnt per diem for four (4) meetings. Unless and until the President of the 
4 
Philippincs has fixed a higher per diem for the members of the Board, such per diem shall 
5 
not be more than Ten thousand pesos (1'10,000.00) for every Board meeting. 
6 
SEC. 13. Powers and DlIties of the Chairpersoll-Administrator. -
The 
7 
chairperson-administrator shall have the following powers and dutics: 
8 
(a) Direct and manage the affairs of the ISSEZFA in accordance with the policies 
9 
of the Board; 
10 
(b) Establish the intemal organization of the ISSEZFA under such conditions that 
11 
the Board may prescribe; 
12 
(e) Submit an annual budget and necessary supplemental budget to the Board for 
13 
its approval; 
14 
(d) Submit within thirty (30) days after the close of each fiscal year an annual 
15 
report to the Board and such othcr rcports as rhay be required; 
16 
(e) S,ubmit to the Board for its approval policies, systems, procedures, rules and 
17 
regulations that are essential to the operation of the nocos Sur Ecozone; 
18 
(1) Create a mechanism in coordination with rclevant agcncies for the promotion of 
19 
industrial peace, the protcction of the cnvironment and the advancement of the 
20 
quality oflife; and 
21 
(g) Perform such other duties as may be assigned to hilnlhcr by the Board or which 
. 22 
arc necessary or incidcntal to his/her ofiicc. 
23 
SEC. 14. Orgallizatioll alld l'ers(JIlllei. - The Board of Directors of the ISSEZFA 
24 
shall provide for an organization and staff of its ofiicers and employees. Upon 
25 
recommcndation of the chairperson-administrator, thc Board shall appoint and fix the 
26 
remuneration and other emoluments of its officers and employees in accordance with 
27 
existing laws on compensation and position classification: Provided, That the Board shall 
28 
have exclusive and final authority to promote, transter, assign or reassign officers of the 
29 
ISSEZFA, any provision of existing law to thc contrary notwithstanding: Provided, 
30 
further, That the chairperson-administrator may carry out removal of such officers and 
31 
employees. 
32 
The officers and employees of the ISSEZFA, including all membcrs of the Board, 
9 


I 
shall not engage, direetly or indirectly, in partisan activities nor take part in any election, 
2 
except to vote. 
3 
No officer or employee of the ISSEZFA, subject to civil service laws and 
4 
regulations, shall be removed or suspended except for cause, as provided by law. 
5 
SEC. 15. Gelleral Mallager. - The Board of Directors of the ISSEZFA shall 
6 
appoint a full-timc professional and competent administrator and chief executive officer 
7 
for the ISSEZF A whose compensation shall be determined by its Board of Directors and 
8 
shall be in accordance with the revised compensation and position classification system. 
9 
The administrator as chief executive oflicer of the ISSEZFA shall be responsible to the 
10 
Board and to the President of the Philippines for the efficient management and operation of 
11 
the ISSEZFA. 
12 
SEC. 16. Legal CoulIseL - The ISS EZFA shall have its own illtemallegal counsel 
13 
under the supervision of thc Office of the Govcrnment Corporate COUJlsel (OGCC). When 
14 
the exigencies of its businesses and operations demand it, the ISSEZFA may engage the 
15 
services of an outside counsel, either on a case to case or on a fixed retainer basis. 
16 
CHAPTER IV 
17 
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS 
18 
SEC. 17. Illcentives to Registered Ellterprises. - The ISSEZFA shall provide the 
19 
following incentives to the registered enterprises located therein to the extent of the 
20 
activity/project: 
21 
(8) Income Tax Holiday (ITH) - Registered enterprises shall be entitled to an ITH 
22 
from the stmi of their commercial operations to the extent oftheir activity under 
23 
the following categories: 
24 
1) Category A - Registered domestic enterprises produeing/rcndering new 
25 
products/services or having strong backward or forward linkages shall 
26 
be entitled to a six (6)-year !TH. 
27 
2) Category B - Registered export enterprises shall be entitled to a six (6)-
28 
year ITH: Provided, That the export enterprise shall be entitled to an 
29 
eight (8)-year ITH if it complies with the following: 
, 30 
i. Large capital investments or sizeable employment generation; or 
31 
ii. Use of high level of technology. 
10 


Registered enterprises embarking on new investments that are listed in the current 
2 
Investment Priorities Plan (11'1') shall be entitled to incentivcs provided herein pertaining to 
3 
the new investments and subject to such terms and conditions as the Board of Investments 
4 
(BOl) may determine. 
5 
Additional investments in the projeet shall be entitled to tllC ITH corresponding to 
6 
such investments as may be determined by the BOL 
7 
Additional ITH may be granted for as long as the investment is made on the same 
8 
project: Provided, That the project is listed in the I1'P at the same time the additional 
9 
investment in the project is made: Provided, further, TIlat the entitlement period for 
10 
additional investments shall not exceed three (3) times the period provided under this 
II 
subsection: Provided, however, That the total ITH period for an export enterprise availing 
12 
of an cight (8)-year ITH shaIlnot exceed twcnty (20) years. Any unused incentives shall 
13 
therefore be deemed forfeited if not used during the incentive period. 
14 
Enterprises registered with the ISSEZFA are required to share in the special 
15 
development fund of the BOI for investment promotion projects. of tIlc government 
16 
equivalent to one percent (1 %) of the ITH granted for every application. 
17 
The Bureau of Internal Revenue (BlR) shall require a registered enterprise availing 
18 
of the ITH or the net operating loss Call'yover (NOLCO) to secure a certificate of eligibility 
19 
from the ISSEZFA before submitting its income tax return (ITR) with the ISSEZFA for 
20 
validation. 
21 
Failure to secure certification and/or to lite the ITH or the NOLCO availment for 
22 
validation by the ISSEZFA within forty-five (45) d!IYs from the last day of statutory filing 
23 
date for ITR shall cause the forfeiture of the availment for the taxable period. 
24 
(b) Net Operating Loss Carryover (NOLCO) - The net operating loss of the 
25 
business or enterprise during the first three (3) years from tile start of 
26 
commercial operations which have not been previously offset as a deduction 
27 
from thc gross income shall bc carried. over as a deduction from tile gross 
. 28 
income for the next five (5) consecutive years immediately following the year 
29 
of such loss: PrOVided, however, That operating loss resulting from flvailment 
30 
. of incentives provided in this Code shall not be entitled to the NOLCO. 
31 
Registered enterprises availing of the ITH as herein provided shall not be 
32 
entitled to avail of the NOLCO. 
33 
11 


I 
(c) Imposition of a Tax Ratc of Five Pcrcent (5%) on Gross Income Earned (GIE) 
2 
- Except for real property tax on land, no local and national taxes, as prescribed 
3 
under Republic Act No. 8424, also known as "the National Internal Revenue 
4 
Code of 1997, As Amended", such as the income tax, the excise tax and the 
5 
franchise taxes shall be imposed on business establishments operating within 
6 
the Ilocos Sur Ecozonc. In lieu thereof, there shall be imposed a tax of five 
7 
percent (5%) of the gross income earned by all the business enterprises within 
8 
the ISSEZFA and remitted as follows: 
9 
I) Two per centum (2%) to the l1ational govelllment; 
10 
2) Two per centum (2%) to the Province of Ilocos Sur; 
11 
3) Onc-half per centum (112%) to be shan.oJ by the municipalities 
12 
affected by the declaratioll of the ISSEZFA in proportion to their 
13 
income from business activities of the zOlle; and 
14 
4) One-JuMpcr centum (1/2%) to the ISSEZFA. 
15 
All pcrsons and service establishments in the Hocos Sur Ecozone that are Ilot 
16 
covered by Section 17 hereof shall be subject to national and local taxes under the NIRC of 
17 
1997, as amended, and the Local Governmcnt Code. 
18 
(d) Accelerated Depreciation - Accclerated depreciation of plant, machinery and 
19 
equipment that are rcasonably needed and actually used for the production and 
20 
tfllnsport of goods and scrvices may be allowed using a rate not exceeding 
21 
twice the ratc which would have been used had the annual allowance been 
22 
computed in accordance with the rules and regulations proscribed by the 
23 
Secretary of Finllnce and the provisions of the NIRC of 1997, as amended. 
24 
(e) Capital Equipment Incentives - Importations of capital equipment, spare parts, 
25 
tools and dyc, or those requircd for pollution abatcment and control, cleancr 
26 
production and waste reduction including consignment thereof by registered 
27 
enterprises upon the effcctivity of this Act shall be exempted to the extent of 
28 
one hundred percent (100%) of the taxes and customs duties: Provided, That 
29 
the importation thereof shall be uscd exclusively by the registered enterprise in 
30 
its rcgistered activity within the I1ocos Sur Ecozone: Provided, further, That thc 
31 
importation of machinery and equipment and accompanying parts shall comply 
32 
with the following conditions: 
33 
I) These are not manufactured domestically in suflicient quantity, of 
12 


2 
3 
4 
5 
6 
7 
3 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
. 32 
33 . 
comparable quality and at rcasonable priccs; 
2) These are reasonably nccdcd and will be used exclusively by the 
registcred enterprisc in the manufacture of its products, unless prior 
approval of the ISSEZF A is secured for the part·timc utilization of said 
equipmcnt in a non-rcgistered activity to maximize usage ther(.'Of or thc 
proportionate taxes and dutics arc paid on a specific equipmcnt and 
machinery being permanently used for non-registered aoti vities; and 
3) Approval of thc lSSEZFA was obtained by the registered enterprise for 
the importation of such machinery, equipment and spare parts. 
Approval of the ISSEZr A must be secured before any sale, transier or disposition 
of the imported capital equipment, machinery or spare parts is made: Provided, That if 
such sale, transfer or disposition is made within the first five (5) years from the date of 
importation, any ofthe following conditions must be present: 
1. If made to anothcr enterprise enjoying tax and duty exemption on 
imported capital equipment; 
ii. If made to another enterprise not cover~d by part (i) hereof, upon 
I 
payment of the taxes and duties on the l1~t book value of the capital 
equipment to be sold; 
i 
iii. Exportation of the capital equipment, machinery, spare parts or source 
documents or those required for pollution abatement and control; and 
I 
i 
iv. For reasons of proven teehnieal obsolescence. 
I 
Whc~ the aforementioned sale, transier ,or disposition is made under any of the 
I 
conditions provided for in the foregoing paragraphs other than paragraph (ii), the registered 
firm shall not pay the taxes and duties waived 011 Such items: Provided, jiJrther, That if the 
registered enterprise sells, transfers or disposes the aforementioned imported items without 
prior approval within five (5) years from the date of impoliation, the registered enterprise 
and the vendee, transferee or assignee shall be solidarily liable to pay twice the amount of 
the tax and duty exemption given it: Provided, finally, That even if the sale, transfer or 
disposition of the capital equipment, machinery or spare palts is approved after five (5) 
years from the date of importation, the registered enterprise is still liable to pay the taxes 
and duties based on the net book value of the capital equipment, machinery or spare parts 
, 
if it has violatcd any of its registration terms and conditions. Otherwise, it shal1no longer 
be subject to the payment ofthe taxes and duties wnived thereon. 
13 


The purchase of machinery, capital equipment, raw materials, supplies, parts and 
2. 
semi-finished products used in the fabrication of machinery and capital equipment by a 
3 
registered export-oriented enterprise from a domestic manufacturer shall be subject to zero 
4 
percent (0%) value-added tax. 
5 
The registered export-oriented enterprise shall be granted a tax credit equivalent to 
6 
the amount of duties that would have been waived on the machinery, capital equipment, 
7 
raw materials, supplies, parts and semi-finished products used in the fabrication of 
8 
machinery and capital equipment, had these items been imported, upon its submission to 
9 
the Department of Finance (DOF) of the bill of 1naterials evidencing the transaction value 
I (} 
of such and other pertinent documents, for verification and proper endorsement. 
I J 
The registered export enterprise aVlliling of the incentive provided under the 
12 
immediately preceding two (2) pllragraphs shall be subject to the following: (i) that said 
13 
capital equipment, machinery and spare parts will be used exclusively by the registered 
14 
enterprise in its registered activity; (ii) that (hc capital cqnipment or machincry where the 
15 
raw materials, supplies, parts and semi-finished products were used would have qualified 
16 
for tax- and duty-free importation; and (iii) that the approval oftlle ISSEZFA is obtained 
17 
by the registered enterprise. If the registered enterprise sells, transfers 01' disposes of these 
18 
machineries, capital equipment and spare parts, the,provision in the preceding paragraphs 
19 
for such disposition shall apply. 
20 
This incentive shall be decmed waived if application for tax credit under this 
21 
subsection was not filed within one (I) year from the date of delivery. 
22 
(f) Tax-and-Duty Free Importation-The importation of source documents by 
23 
information technology registered enterprises shall be eligible for tax- and 
24 
duty-free importation. 
25 
(g) Raw Materials Incentives - Evcry registered export-oriented enterprise shall 
26 
enjoy a tax credit equivalent to the internal revenue tuxes and eus(oms duties 
27 
paid on the supplies, raw materials and semi-manufactured products: PrOVided, 
28 
That the same are not sufficient in quantity, quality or arc not competitively 
29 
priced which arc used in the manufacture, processing Of prodUction of its 
30 
export products forming part thereof, exported directly and indirectly by the 
31 
registered export-oriented enterprise bascd on the actual taxes and duties paid 
32 
for such materials!supplies!semi-munufactured products by the registered 
33 
enterprise. 
34 
This incentive shall be decmed waivcd if application for tax credit under this 
35 
subsection was not filed within one (1) year from the date of exportation of the 
14 


final product. 
2 
(h) Inccntivcs on Breeding Stocks and Genetic Materials -
Importation of 
3 
breeding stocks and genetic materials within ten (10) years from the date of 
4 
registration of commercial operations of the enterplise shall be exel1lpt from 
5 
all taxes and duties: Provided, That such breeding stocks and genetic l1laterials 
6 
are reasonably needed in the registered activity and approved by the ISSEZFA. 
7 
The availment of the inccntivcs by a registercd enterprise shall be subject to 
8 
the following: (1) that said breeding stocks and gcnetic materials would have 
9 
been qualified for tax- and duty-free importation under the preceding 
10 
paragraph; (2) that the brecding stocks and genetic l1laterials are reasonably 
II 
needed in thc rcgistered activity; (3) that approval of the ISSEZPA has been 
12 
obtained by the registered enterplise; and (4) that the purchase is made within 
13 
ten (10) years from the date of registration of commercial operations of the 
14 
registered enterprise. 
15 
This incentive shall be deemed waived if application for tax credit under this 
16 
subsection is not filed within one (1) year ii'om the dale of delivery. 
17 
(i) Exemption from Wharfage Dues- the provision of law to the contrary 
18 
notwithstanding, exports by a registered enterprise shall be exempted from 
19 
wharfage dues. 
20 
(j) Deferred Imposition of the Minimul1l Corporate Income Tax - Thc minimum 
21 
corporate income tax (MCIT) of two percent (2%) of the gross incomc as of 
22 
the end ofthc taxable year shall be imposed when the MCIT is greater than the 
23 
income tax computed under (he NIRC of 1997, as amended, for the taxable 
24 
year: Provided. however, That said MCIT shall be imposed 11 only after the 
25 
enterprise's entitlement period to the income tax-based inccntives. 
26 
(k) Tax Treatment of Goods and Services in the !locos Sur Eeozone 
27 
1) Tax Treatment of Merchandise ip the I1oeos Sur Eeozone - The free 
28 
trade/freeport zone shall be operatcd and managed as a separate customs 
29 
territory ensuring fi'ee flow or movement of goods withiu, into and 
30 
exported out of the free trllde/fl'ccport zone. lmpoltations of raw 
31 
l1laterials and capital equipment are tax- and duty-free. However, 
32 
expoltations or removal of goods from the free trade/freeport zones to 
33 
the other parts of the Philippine territory shall be subject to customs and 
34 
internal revenue regulations. 
15 


I 
2 
3 
4 
5 
6 
7 
8 
9 
10 
II 
12 
13 
14 
IS 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
i. Except as otherwise provided in this Act, fbreign and domestic 
merchandise, 
raw materials, supplies, articles, equipment, 
machineries, spare parts and wares of every, description, except 
those prohibited by law, brought into the zone to be sold, stored, 
broken up, repacked, assembled, installed, sorted, cleaned, graded 
or otherwise processed, manufactured, mixed with foreign or 
domestic merchandise, . whether directly or indirectly related in 
such activity, shall not be subjeet to eustoms and internal revenue 
laws and regulations nor to local tax ordinances, any provision of 
law to the contrary notwithstanding. 
ii. Merchandise purchased by a registered 1I0eos SUI' Ecozone 
entelJJrise, from the customs territory llnd subsequcntly brought 
into the CXPOlt processing zone, shall be considered as export sales 
and exportation thereof shall be entitled to the benefits allowed by 
law for such transactioll. 
iii. Domestic merchandise sent from the Ilocos Sur Ecozolle to the 
customs tcrritory shall, whether or not combined with or made part 
of other artieies likewise of loeal origin or manufactnred in the 
Philippines while in the cxport processing zone, be subject to 
intcrnal revenue laws of the Philippines as domestic goods sold, 
transferrcd or disposed of for local consumption. 
iv. Merchandisc sent from tho lIocos Sur Ecozono to the customs 
telTitory shall, whether or not combincd with or made part of other 
articlcs whilc in the ZOllC, be subject to rules and regulations 
governing impOlted merchandise. Thc duties and taxcs shall be 
based on the valuc of said imported matcrials (cxcept when the 
final product is exempt). 
v. Domestic merchandise on which all internal revenue taxcs have 
been paid, if subjeet theroto, and foreign mcrchandise proviously 
imported on which taxes have been paid, or which have been 
admitted free of'duty and tax, may be taken into the I1ocos Sur 
Ecozone from the ctlstoms territory of the Philippines and be 
brought back thereto free of quotas, duty or tax. 
vi. Subject to such regulations respeeting identity and safeguarding of 
revenue as the ISSEZF A may decm nccessary, when the identity 
16 


I 
of an article entered into the export processing zone under the 
2 
immediately preceding paragraph has been lost, such article when 
3 
removed from the zone and taken to the eustoms territory shall be 
4 
treated as foreign merchandise entering the country fbI' the first 
5 
time, under the provisions of the Tariff and Customs Code of the 
6 
Philippines, as amended. 
7 
vii. Articles produced or manufactured in the Ilocos Sur Ecozone and 
8 
exported therefrom shall, on subsequcnt importation into thc 
9 
customs territory, be subjcet to the import laws applicable to like 
10 
articles manufactured in.a forcign country. 
11 
viii. Unlcss the contrary is shown, merchandise taken out of the export 
12 
processing 7Allle shall be considered for tax purposes to have been 
13 
sent to customs ten·itory. 
14 
2) Tax Treatment of Services -
(i) Sale of service by an entity from the 
15 
customs territory to a registered eeozone or free trade enterprise, or by a 
16 
registered eeozone or freeport enterprise to another eeuzone or freeport 
17 
enterprise shall be treated as indirect export and henee, entitled to the 
18 
benefits allowed by law for such transaction; and (ii)Sale or service by a 
19 
registered eeozone or freeport ellt~rprisc to the customs territory shall be 
20 
subject to applicable internail'cVellUe laws and regulations. 
21 
(1) Bonded Warehousing System- Registrfcd export-oriented enterprise shall have 
22 
access to the utilization of the bonded warehousing system in aceordance 'With 
23 
the rules and regulations of the BoC. 
24 
(m) Employment of Foreign Nationals - Subject to the provisions of Section 29 of 
25 
Commonwealth Act No. 613, otherwise knowll as "The Philippine 
26 
Immigration Act of 1940", as amended, a registered enterprise may employ 
27 
foreign nationals in supervisory or teehnical positiolls for a' period not 
28 
exeeeding ten (10) years liOin its registration: Provided, That when the 
29 
majority of the capital stock of a registered enterprise is owned by fOfrign 
30 
investors, the positions of the president, treasurer and general manager or their 
31 
equivalents may be retained by foreign nationals beyond the period set forth 
32 
herein and such officer is the owner or a stockholder owning at least. ten 
33 
percent (10%) of the outstanding eapital stock of the registered enterprise and 
34 
he/she remains the owner or maintains his/her stoekholdings therein. 
35 
Foreign nationals under employment contract within the purview of this 
17 


I 
inccntive, their spouscs and unmarried children under twenty-one (21) years of 
2 
age, who are not excluded by Section 29 of Commonwealth Act No. 613, as 
3 
amended, shall be pennitted to enter and reside ill the Philippines during the 
4 
period of employment of such foreign nationals. They shall be issued multiple-
S 
entry visas, renewable every two (2) years, and shall be allowed to enter and 
6 
leave the Philippines without further documentary requirements other than 
7 
valid passports or other travel doeuments in tbe nature of passports. 
8 
The foreign nationals admitted herein, as well as their respective spouses and 
9 
dependents, shall be exempt from: (1) obtaining alien certificates of 
10 
registration and emigration clearance certificates; and (2) securing alien 
I I 
employment permits (AEP) and all types of elearanees, pennits, licenses or 
12 
their equivalents required by any government department or agcncy. 
13 
SEC. 18. Extension of Period of Avuillllent. - The availment period of the 
14 
incentives provided herein may be extended by the ISSEZF A in the even! that the 
IS 
registered enterprise suffers operational force mqjeure or any event equivalent thereto, 
16 
impairing its viability. 
17 
SEC. 19. Duration of Illce/ltive~~ - Enterprises registered with the ISSEZ}/A may 
18 
enjoy ITH or NOLCOgranted by the latter prior to the avaihnent of the five percent (5%) 
19 
Gross Income Earned (GlE). 
20 
Fiscal incentives under this Act shall be terminated after a cumulative period of 
21 
twenty (20) years from the date of registration or the start of commercial operations, 
22 
whichever is applicable, except that it could be extended with regard to industries deemed 
23 
indispensable to natiollal development as determined by the ISSEZF A. 
24 
The industries exempted from this provision shall be recommended by the BOl, 
2S 
with the cOlleurrence of the secretaries of the DOF and tbe DTI. 
. 26 
SEC. 20. Illcelltive to Investor~~ - Any foreign national covered under subseetion 
27 
(m) of Section 17 of this Act, who invests an amount of One hundred fifty thousand US 
28 
Dollars (US$150,OOO.OO), either in cash and/or equipment, in a registered enterprise shall 
29 
be entitled to an investor's visa: Provided, That, 
30 
(a) He is at least eighteen (18) years of age; 
31 
(b) He has not been convicted of a erilne involving moral turpitude; 
32 
(c) He is not afflicted with any loathsome, dangerous or contagious disease; and 
18 


1 
(d) He has not been institutionalized for any mental disorder or disability: 
2 
Provided, further" That in securing the investor's visa, the alien applicant shall be entitled 
3 
to the same privileges provided for under Section 17, last paragraph. 
4 
As a holder of an investor's visa, an alien shall be entitled to reside in the 
5 
Philippines while his investment subsists. For this purpose, he shall submit an annual 
6 
report, in the form duly prescribed for the purpose, to prove that he has maintained his 
7 
investment in the country. Should said alien withdraw his investments from the 
8 
Philippines, then the investor's visa issued to him shall automatically expire. 
9 
SEC. 21. Banking Rules and Regulations. -
Existing banking laws and 
J 0 
rules/regulations of the BSP shall apply to banks and financial institutions to be established 
J 1 
in the Ilocos Sur Ecozone, such as those governing foreign exchange and other cnn·en!. 
12 
account transactions (trade and nontrade), local and foreign borrowings, foreign 
13 
investments, establishment and operation of local and foreign banks, foreign currency 
14 
deposit units, offshore banking units and other financial institutions under the supcrvision 
15 
of the BSP. 
16 
SEC. 22. Remittance of Earllings. -
In the case of foreign investments, a 
17 
registered enterprise in the ISSEZF A shall have the right to remit earnings from the 
18 
investment in the currency in which the investment was originally made and at the 
19 
exchange rate prevailing at the time of rcmittanee, subject to the provisions of Section 74 
20 
of Republic Act No. 265, (The New Central Bank Act), as amended. 
21 
CHAPTER V 
. 22 
NATIONAL GOVERNMENT AN» OTHER ENTITIES 
23 
SEC. 23. IlIferpretatiolllConstructitm. - The powers, authorities and fimctions thut 
24 
are vested in the ISSEZFA arc intended to decentralize governmental timetions and 
25 
authority and promote an cflicient and effcctive working rclationship among the Ilocos Sur 
26 
Ecozone, the national govemment and the LGUs. 
27 
SEC. 24. SUjJervi~'ioll and Coordillatioll /if'Development Plam~ - For purposes of 
28 
policy direction and coordination, the Ilocos Sur Ecozone shall be under the direct control 
29 
and supervision of the Office of the President. 
30 
SEC. 25. Aut/torily of lite Bureau of CusffJms (BoC) to Examine tI,e Elliry and 
31 
Exit of Imported Articles in the ISSEZFA.- The BoC, in coordination with the 
32 
appropriate government agencies such as, but not lill1ited to, the Departments of Trade and 
, 33 
Industry, Agriculture, Transportation and Communications, and Health shall have the 
19 


, 
c 
authority to examine the entry and exit of imported articles ill the lSSEZFA for the purpose 
2 
of determining: (a) the quantity and description of subject imported articles; and (b) 
3 
compliance with the sanitary and agricultural requirements. 
4 
SEC. 26. Relatiollsltip witlt the Regional Development C(JIlllciL - The ISSEZFA 
5 
shall determine the development goals for the Iloeos Sur Eeozone within the framework of 
6 
national development plans, policies and goals. The administrator shall, upon approval by 
7 
the Board, submit the Ilocos Sur Ecozone plans, programs and projects to the Regional 
8 
Development Council for inclusion and inputs to the overall regional development plan. 
9 
SEC. 27. Relationship wltlt LGU.\~ -
Except as herein provided, the LGUs 
10 
comprising the I1ocos Sur Ecozone shall retain their basic autonomy and identity. The 
11 
municipalities of Cabugao and San Juan, Province of 110cos Sur shall operate and function 
12 
in accordance with the Local Government Code of 1991. In case of any conflict among the 
13 
ISSEZFA and the municipalities of Cahugao and San Juan, Province of IIocos Sur on 
14 
mattcrs affecting the I1ocos Sur Eeozonc other than defense and security mattcrs, the 
15 
decision of the ISSEZFA shall prevail. 
16 
SEC. 28. Auditillg. - The Commission on Audit shall appoint a representative who 
17 
shall be a full-time auditor of the ISSEZFA and assign Slleh number of personnel as may 
IS 
be neeessary to assist said representative in the performance ofllis/her duties. The salaries 
19 
and emoluments of the assigned auditor and personnel shall be in aeeordanee with 
20 
pertinent laws, rules and regulations. 
21 
CHAPTER VI 
22 
MISCELLAN}:OUS 
23 
SEC. 29. Separability Clause. - If any provision of this Aet shall be held 
. 24 
unconstitutional or invalid, the other provisions not otherwise affected shall remain ill full 
25 
force and effect. 
26 
SEC. 30. Repealillg Clause. - All laws, ex.ecutive orders or issuances or any part 
27 
thereof which are inconsistent herewith arc hereby repealed or amended accordingly. 
28 
SEC. 31. Effectivity Clause. - This Aet shall take effeet fifteen (15) days after its 
29 
publication in at least two (2) national newspapers of general circulation. 
30 
Approved, 
i 
20