Republic of the Philippines
HOUSH OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HouseBi||No.8830
Introduced by Representative Midy N. Cua
Lone District, Quirino
AN ACT ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREEPORT IN TIIE
AREA ENCOMPASSING THE BARANGAYS 0F DUMABEL, SAN LEONARDO,
PINARIPAD NORTE, PALACIAN, LIGAYA, VILLA VENTURA, DIODOL AND
PINARIPAD SUR, ALL LOCATED IN THH MUNICIPALITY OF AGLIPAY, PROVINCE
0F QUIRINO, CREATING FOR THIS PURPOSE THE AUTHORITY 0F TIIE FREHPORT
AREA 0F QUIRINO (AFAQ), AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTH
Quirino is a third-class province with six municipalities and 132 barangays located at the heart of the
Sierra Madre.  It is a land-locked province bounded by the provinces of Aurora, Isabela,  and Nueva
Vizcaya.  While  its  geographic  location  has  blessed  the  province  with  an  abundance  of natural
resources  and tourist attractions,  the province has  struggled to  maximize these  assets  and  generate
employment  opportunities  in  other  sectors  for  this  same  reason.  Its  physical  location  has  made  it
difficult to integrate the province with existing transportation networks. It has no direct access to the
sea and the nearest airport is in the neighboring province of Isabela. These limitations have reduced
the attractiveness of Quirino as an investment destination.
This measure seeks to make up for some of the disadvantages faced by Quirino province through the
establishment of a special economic zone and freaport area in the municipality of Aglipay, province
of Quirino, and the creation of the Authority of the Freeport Area of Quirino. The proposed measure
is envisioned to contribute to the province's development by creating employment opportunities from
direct investment and linkages with the domestic economy.
This  measure  previously passed  the  third reading  in  the  17th  Congress  was principally  authored by
Representatives  Dakila  Carlo  E.  Cua,  Gwendolyn  F.  Garcia,  Ferienel  G.  Biron,  Maria  Carmen  S.
Zamora, and Estrellita 8. Suansing.
In view of the foregoing, approval of this measure is earnestly sought.
Lone District, Quirino


Republic of the Philippines
HOusE OF RHPRESENTATrvEs
Quezon City, Metro Manila
NINETEHNTH CONGRESS
Second Regular Session
HouseBiuNo.8830
Introduced by Representative Midy N. Cua
Lone I)istrict, Quirino
AN ACT ESTABLISHING A SPECIAL ECONOMIC ZONE AND FRHEPORT IN THE
AREA ENCOMPASSING THE BARANGAYS 0F DUMABEL, SAN LEONARDO,
PINARIPAD NORTE, PALACIAN, LIGAYA, VILLA VENTURA, I)I0DOL AND
PINARIPAD SUR, ALL LOCATED IN THE MUNICIPALITY 0F AGLIPAY, PROVINCE
0F QUIRINO, CREATING FOR THIS PURPOSE THE AUTHORITY OF THE FREEPORT
AREA OF QUIRINO (AFAQ), AND APPROPRIATING FUNDS THEIREFOR
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 "Freeport Area of Quirino (FAQ) 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 11
CREATION OF THE ECONOMIC ZONE AND FREEPORT
SEC. 3.  Creation  of the Freeport Area of Quirino.  - In accordance with the  foregoing declared
policy and subject to the concurrence of the concerned local government units of Quirino affected by
the zone, there is hereby established a special economic zone and freeport, hereinafter referred to as
the  Freeport  Area  of Quirino  (FAQ).  The  FAQ  shall  cover,  so  much  as  necessary,  areas  in  the
Barangays of Dumabel, Sam Leonardo, Pinaripad Norte, Palacian, Ligaya, Villa Ventura, Diodol, and
Pinaripad Sur, all located in the Municipality of Aglipay, Province of Quirino. The specific metes and
bounds  of the  FAQ  shall  be  more  particularly  defined  in  a presidential  proclamation  that  shall  be
issued  for  this  purpose:  Prow.ded,  That  the  lands  embraced  therein  shall  be  public  lands  and
contiguous to one another.
SEC. 4. Creation of the Authority of the Freeport Area of Quirino (AFAQ). - There is hereby
created a body corporate to be known as the "Authority of the Freeport Area of Quirino," hereinafter
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referred to as the AFAQ, which shall manage and operate the FAQ, in accordance with the provisions
of this Act. This corporate franchise shall expire in fifty (50) years counted from the first year after the
effectivity  of this  Act,  unless  otherwise  extended  by  Congress.  It  shall  be  organized  within  one
hundred eighty (180) days after the effectivity of this Act.
SEC.  5.  Governing  Principles.  - The FAQ  shall be managed and operated by the AFAQ,  created
under Section 4 of this Act, under the following principles:
a)    Within the  framework and  limitations  of the  Constitution  and  applicable provisions  of the
Local Government Code, the FAQ shall be developed into and operated as  a decentralized,
self-reliant and self-sustaining industrial, commercial/trading, agroindustrial, tourist, banking,
financial and investment center with suitable residential areas;
b)   The  FAQ  shall  be  equipped  with  transportation,  telecommunications,  and  other  facilities
needed  to  attract  legitimate  and  productive  investments,  generate  linkage  industries  and
employment opportunities for the people of Quirino and its neighboring towns and cities;
c)    The  FAQ  may   establish  mutually   beneficial   economic   relations  with   other   entities  or
enterprises within the country or, subject to the administrative guidance of the Department of
Foreign  Affairs   (DFA),   the   Philippine   Economic   Zone   Authority   (PEZA),   and/or   the
Department of Trade and Industry (DTI), with foreign entities or enterprises;
d)    Foreign citizens and companies owned by non-Filipinos  in whatever proportion may set up
enterprises in the FAQ, either by themselves or in a joint venture with Filipinos in any sector
of industry, intemational trade and commerce within the FAQ;
e)    The FAQ shall be managed and operated as a separate customs territory thereby ensuring the
free  flow  or movement of goods  and  capital  within,  into  and out of its  territory,  and shall
likewise provide incentives  such as tax and duty-free importations of raw materials,  capital
and equipment to registered enterprises located therein. However, exportation or removal of
goods  from the  territory  of the  FAQ  to  the  other parts  of the  Philippine  territory  shall be
subject to customs duties and taxes under the Customs and Tariff Code and other relevant tax
laws of the Philippines;
I)    The  areas  comprising  the  FAQ  may  be  expanded  or  reduced  when  necessary.  For  this
purpose, the FAQ, in consultation with the LGUs, shall have the power to acquire either by
purchase, negotiation or condemnation proceedings, any private land within or adjacent to the
FAQ  for  the  following  purposes:   (I)  consolidation  of  lands  for  zone  development;   (2)
acquisition of right of way to the FAQ; and (3) the protection of watershed areas and natural
assets valuable to the prosperity of the FAQ;
g)   Goods manufactured by a FAQ enterprise shall be made available for immediate retail sale in
the  domestic  market,  subject  to  the  payment  of corresponding  taxes  on  raw  materials  and
other regulations that may be formulated by the AFAQ together with the PEZA, the Bureau of
Customs  (BOC) and the DTI.  However,  in order to protect domestic  industries,  a Negative
List of industries shall be drawn up and regularly updated by PEZA. Enterprises engaged in
industries included in such Negative List shall not be allowed to sell their products locally;
h)     The defense of the FAQ and the security of its perimeter fence shall be the responsibility of
the national government in coordination with the AFAQ and the LGUs.
3


SEC.   6.   Capitalization.  -   The  AFAQ   shall  have  an  authorized  capital   stock  of  Two  billion
(2,000,000,000) no par shares with a mininum issue of Ten pesos (Plo.00) each, the majority shares
of which shall be subscribed and paid for by the National Government and the local government units
(LGUs) embracing the FAQ. The Board of Directors of the AFAQ may, with the written concurrence
of the  Secretary  of Finance,  sell shares,  representing not more than  forty per ce#fwm  (40%)  of the
capital stock of the AFAQ 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 ce#/win (60%) of the total issued and outstanding capital of the AFAQ.
The amount necessary to subscribe and pay for the shares of the National Government to the capital
stock of the AFAQ shall be included in the annual General Appropriations Act. For LGUs, the funds
shall be taken from their internal revenue allotment and other local funds.
SEC.  7.  Principal  Office  of the  AFAQ.  -  The  AFAQ  shall  maintain  its  principal  office  in  the
Municipality of Aglipay, Province of Quirino, but it may establish branches within the Philippines as
may be necessary for the proper conduct of its business.
SEC. 8.  Powers  and Functions of the AFAQ. - The AFAQ shall have the following powers and
functions:
a)    To  operate,  administer,  manage  and  develop  the  FAQ  according  to  the  principles  and
provisions set forth in this Act;
b)   To register, regulate and supervise the enterprises in the FAQ 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 FAQ;
d)   To  regulate  and  undertake  the  establishment,  construction,  operation  and  maintenance  of
public  utilities,  other  services,  and  infrastructure  in  the  FAQ  such  as  light  and  power,
shipping, banging,  stevedoring, cargo handling, hauling, warehousing, storage of cargo, port
services  or  concessions,  piers,  wharves,  bulkheads,  bulk  terminals,  mooring  areas,  storage
areas, roads, telecommunications, transport, bridges, terminals, conveyors, water supply and
storage,   sewerage,   drainage,   airport  operations  in  coordination  with  the  Civil  Aviation
Authority of the Philippines (CAAP), and such other services or concessions or infrastmcture
necessary or incidental to the accomplishment of the objectives of this Act;
e)    To  construct,  acquire,  own,  lease,  operate  and  maintain  on  its  own  or  through  contracts,
franchise, licenses, joint venture, bulk purchase from the private sector or permits under any
of the  schemes  allowed  in  Republic  Act  No.  6957  (the  Build  Operate-Transfer  Law,  as
ainended),  adequate  facilities  and  infrastructure  required  or  needed  for  the  operation  and
development  of the  FAQ,  in  coordination  with  appropriate  national  and  local  government
authorities and in conformity with applicable laws thereon;
I)    To  approve  plans,  programs,  and  projects  of the  FAQ  to  be  submitted  to  the  Regional
Development Council for inclusion and inputs to the overall regional development plan;
g)   To operate on its own, either directly or through licenses to others, tourism-related activities,
including games,  amusements, recreational and sports facilities,  subject to the approval and
supervision of the Philippine Amusement and Gaming Corporation (PAGCOR);
4


h)    To  issue  a  license  for,  set  fees,  regulate  and  undertake  the  establishment,  operation  and
maintenance   of  foreign   and   virtual   currency   exchanges,   subject   to   the   approval   and
supervision  of  the  Bangko  Sentral  ng  Pilipinas  (BSP)..  Provided,  That  a  "Letter  o£ NIo
Objection" shall be required on similar or related activities that are not within the jurisdiction
of the ESP or the Department of Finance (DOF);
i)     To  issue a license  for,  set fees,  and regulate  fund~raising activities through the issuance of
initial  coin  offerings  or  similar  activities,  subject  to  the  direction  and  supervision  of the
Securities and Exchange Commission (SEC): P7iow.c7ed, That a "Letter of No Objection" shall
be required on similar or related activities that are not within the jurisdiction of the ESP or the
DOF;
j)    To  raise  or borrow,  within  the  limitation  provided by  law,  and  subject to  the  approval  or
opinion of the Monetary Board of the BSP, as the case may be, adequate and necessary funds
from local or foreign sources, to finance its projects and programs under this Act and for this
purpose,  to  issue  bonds,  promissory  notes  and other forms  of securities,  and to  secure  the
same by a guarantee,  pledge, mortgage,  deed of trust or an assignment of all or part of its
property or assets;
k)   To  protect, preserve,  maintain  and  develop  the  forests,  beaches,  coral  and  coral  reefs,  and
maintain  ecological  balance  within  the  FAQ.  Notwithstanding  the  power  of the  AFAQ  to
create rules for such purpose, the rules and regulations of the Department of Environment and
Natural Resources  (DENR) and other government agencies involved in the above functions
shall be implemented by the AFAQ;
1)    To create, operate and/or contract to operate such functional units or offlces of the AFAQ as it
may deem necessary;
in)  To  adopt,  alter  and  use  a  corporate  seal;  contract,  lease,  buy,  acquire,  own,  or  otherwise
dispose of personal and/or real property of whatever nature; sue and be sued; and otherwise
cany out its functions and duties as provided for in this Act:
n)   To  issue  certificates  of  origin  for  products  manufactured  or  processed  in  the  FAQ  in
accordance with prevailing rules of origin and the pertinent regulations of the PEZA, t,he DTI
and/or the DOF;
o)   To establish one-stop shops for the issuance of all necessary permits, clearances, licenses, and
other similar certifications to  conduct such activities  intended to  improve the ease of doing
business within the FAQ, in coordination with government agencies having jurisdiction over
activities therein: Prov!.dad, That all government agencies are directed to provide and extend
utmost and full cooperation to the AFAQ in the establishment of such one-stop shops;
p)   To provide internal  security to the FAQ  in coordination with the National Government and
affected  LGU.  For  this  purpose,  the  AFAQ  shall  provide  and  establish  its  own  internal
security  and  fire fighting  forces  or  hire  others  to  provide  the  same.  Military  forces  to  be
assigned by the National Government for national defense purposes shall not interfere in the
internal affairs of the FAQ and expenditures for these military forces shall be bone by the
National Goverrment;
q)   To exercise such powers as may be essential, necessary, or incidental to the powers granted to
it hereunder, as well as those that shall enable it to carry out, inplement and accomplish the
purposes, objectives, and policies of this Act; and
5


r)    To issue rules and regulations consistent with the provisions of this Act as may be necessary
to accomplish and implement the purposes, objectives, and policies provided herein.
SHC.  9.  Board  of Directors  of the  AFAQ.  -  The  powers  of the  AFAQ  shall  be  vested  in  and
exercised by a Board of Directors, hereinafter referred to as the Board, which shall be composed of
the following:
a)    The Chairperson, who shall at the same time be the administrator of the AFAQ;
b)   Four (4) members consisting of:
1)   The Governor or a representative from the Provincial Goverrment of Quirino;
2)   One of the mayors of the municipalities covered by the freeport area;
3)   One (I) representative from the investor's group; and
4)   One (I) representative from among the workers in the FAQ.
The Vice-Chairperson shall be selected from among the members of the Board.
The Governor or the representative from the Provincial Government of Quirino and the mayor of the
municipality covered by the freeport area shall serve as ex-offlcio members of the Board, whose terms
in the Board correspond to their terms as elected officials.
The Chairperson-Administrator and the members of the Board, except the ex officio members, shall
be appointed by the President of the Philippines to serve  for a term of six (6) years, unless  sooner
separated  from service  due to  death,  voluntary resignation,  or removal  for cause.  In  case  of death,
resignation  or removal  for cause,  their replacements  shall  serve  only the  unexpired  portion  of the
respective terms.
The Chairperson-Administrator must be a Filipino citizen, of good moral character, of proven probity
and  integrity,  and  a  degree  holder  in  any  of  the  following  fields:  economics,  business,  public
administration, law, management, or their equivalent, and with at least ten ( 10) years relevzmt working
experience, preferably in the field of management or public administration.
The members of the Board, except the ex-officio members, shall each receive per diem at, rates to be
detemined by the Department of Budget and Management (DBM) in accordance with existing rules
and regulations: Prov!.ded, feowever, That the total per diem collected each month shall not exceed the
equivalent per diem for four (4) meetings. Unless and until the President of the Philippines has fixed a
higher per diem for the members of the Board,  such per diem shall not be more than Ten thousand
Pesos
(P  10,000.00) for every Board meeting.
SEC. 10. Organization and Personnel. - The Board of Directors of the AFAQ shall provide for its
organization and staff. The Board shall appoint and fix the remuneration and other emoluments of its
officers and employees in accordance with existing laws on compensation and position classification.
It shall have exclusive and final authority to promote, transfer, assign, reassign, or remove officers of
the   AFAQ,   any  provision   of  existing   law   to   the   contrary  notwithstanding.   The   Chairperson-
Administrator shall carry out the decisions of the Board.
The  officers  and  employees  of the  AFAQ,  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 AFAQ, subject to civil service laws and regulations, shall be removed
or suspended except for cause, as provided by law.
6


SHC.11. Powers and Duties of the Chairperson-Administrator. -The Chairperson-Administrator
shall have the following powers and duties:
a)    To submit to the Board for its approval, policies, systems, procedures, rules, and regulations
that are essential to the operation of the FAQ;
b)   To direct and manage the affairs of the AFAQ in accordance with the policies of the Board;
c)    To establish the internal organization of the AFAQ under such conditions that the Board may
prescribe;
d)   To submit an annual budget and necessary supplemental budget to the Board for its approval;
e)    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;
D    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
FAQ; and
h)   To perform such other duties as may be assigned to him by the Board or which are necessary
or incidental to his office.
SEC. 12. Legal Counsel. -The AFAQ shall have its own internal legal counsel under the supervision
of the Government Corporate Counsel. When the exigencies of businesses and operations demand it,
the AFAQ may engage the services of an outside counsel either on a case to case or on a flxed retainer
basis.
CHAPTER Ill
INCENTlvEs TO EcOzONE ENTERPRISEsnNVESTORs
SEC.13. Investors Visa. -Any foreign national who invests an amount of Two hundred thousand US
dollars (US$200,000.00), either in cash and/or equipment, in a registered enterprise shall be entitled to
an investor's visa: ProtJz.did, That the foreign national has the following qualifications:
a)    Must be at least eighteen (18) years of age;
b)   Must not have been convicted by final judgment of a crime involving moral turpitude;
c)    Must not be afflicted with any loathsome, dangerous, or contagious disease;
d)   Must not have been institutionalized for any mental disorder or disability; and
e)    Must establish by verifiable and credible evidence his financial capability and capacity.
As a holder of an inveLstor's visa, a foreign national may reside in the Philippines while the investment
subsists.  For  this  purpose,  the  foreign  national  should  submit  an  annual  report,  in  the  form  duly
prescribed for the purpose,  to prove the  maintenance  of the  investment in the  country.  Should the
investment be withdrawn from the Philippines, then the investor's visa issued to the foreign national
shall automatically expire and /or be withdrawn.
7


The authority to issue visas and work permits shall remain with the Bureau of Immigration (81) and
the  Department  of Labor  and  Employment  (DOLE),  respectively:  Provz.c7ed,  That  the  81  and  the
DOLE shall implement measures to expedite the processing of such visas and pemits for workers in
the FAQ and coordinate with the AFAQ for the purpose of improving ease of doing business.
SEC.14. Fiscal Incentives. - Registered enterprises operating within the FAQ may be entitled to the
existing pertinent  fiscal  incentives  as  provided  for under  Republic  Act  No.  7916,  as  amended  by
Republic Act No.  8748,  also known as the  Special Economic Zone Act of 1995,  or those provided
under Executive Order No.  226, as amended, otherwise known as the Omnibus Investment Code of
1987;  and/or those that may be further granted as the need and necessity arises by the  appropriate
goverrment
department, agency, or office: Provz.ded, That in the administration, implementation and monitoring of
incentives, the AFAQ may impose its own conditions not otherwise prohibited by this Act: P7iovf.c7ed,
/wr/fecr, That the AFAQ shall not be limited to the conditions provided under Republic Act No. 7916,
Republic Act No. 8748 or any other related issuance, nile or regulation.
SEC. 15. Imposition of a Tax Rate of Five Percent (5%) on Gross Income Earned. -No taxes,
local and national, shall be imposed on business establishments operating within the FAQ, including
income taxes, withholding taxes,  donor's taxes, percentage taxes,  and documentary  stamp taxes.  In
lieu thereof, and subject to Section 17 of this Act, the business establishments shall pay a five percent
(5°/o) final tax on their gross income earned: Provz.ded, That the proceeds from such final tax shall be
shared by instrunentalities of the government in accordance with the following percentages:
a)    Three per centum (3%) to the National Government;
b)    Two  per  centum  (2%)  shall  be  directly  remitted  by  the  business  establishments  to  the
treasurer's office of the municipality or city where the enterprise is located.
The AFAQ shall have the authority to grant an income tax holiday and net operating loss carry over in
accordance with Section 17 of this Act and conditions as it may have imposed pursuant to Section 14
of this Act.
SEC.  16.  Administration,  Implementation  and  Monitoring  of Incentives.  -  In  the  interest  of
enhancing transparency in the management and accounting of tax incentives in the FAQ, the AFAQ
shall comply with the provisions of Republic Act No.10708, otherwise known as "The Tax Incentives
Management  and  Transparency  Act  (TIMTA)"  and  its  implementing  rules  and  regulations  for  the
proper administration,  management,  enforcement,  implementation  and monitoring of tax  incentives
provided under this law.
The BOC shall set up and establish a customs-controlled area outside the gate of the FAQ to facilitate
payment of taxes on goods entering the Philippine customs territory: Provj.dad, That notwithstanding
the limitations in this Act, the AFAQ and BOC may coordinate and jointly implement measures on
border protection.
SEC.17.  Duration  of Incentives.  -  Fiscal  incentives  under  this  Act  shall  be  terminated  after  a
cumulative  period of twenty  (20) years  from  date  of registration  or  start of commercial  operation,
whichever   is   applicable,   except   that   it   could   be   extended  with   regard  to   industries   deemed
indispensable to national development and interest. The industries exempted from this provision shall
be determined by the AFAQ, in consultation with other government agencies.
SEC.  18.  Sequential Availment of Incentives.  -  Registered  enterprises  may enjoy the  income tax
holiday (ITH) granted by the AFAQ prior to the availment of the five percent (5%) final tax on gross
8


income earned incentive: Prow.dad, That in the event a registered enterprise elects to avail of the final
tax incentive, such registered enterprise shall be barred from availing the ITH incentive.
Registered  entexprises,  if  eligible,  may  register  for  incentives  with  other  investment  promotion
agencies:  Provided, That registered enterprises electing to avail of the incentives of other promotion
agencies shall not be able to avail of the incentives of the FAQ until the expiration of the incentives
with such other investment promotions agencies.
SHC. 19. Extension of Period of Availment. - In the event that a registered enterprise has suffered
cessation  or  suspension  of  operations  due  to  force  majeure,  which  has  impaired  its  viability  or
profitability, the AFAQ may extend the period of validity of the incentives extended to such registered
enterprise.
SEC. 20. Banking Rules and Regulations. - Banks and financial institutions to be established in the
FAQ  shall  be  under  the  supervision  of the  BSP  and  subject  to  existing  banking  laws,  rules,  and
regulations.
SEC.  21.  Remittances.  -  In  the  case  of foreign  investments,  a  duly registered  entity or entexprise
within the FAQ shall have the right to remit earnings from the investment 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'.
CHAPTER IV
NATIONAL GOVERNMHNT AND OTHER ENTITIES
SEC. 22. Supervision and Control. - For purposes of policy direction and coordination, the AFAQ
shall be under the direct supervision and control of the Offlce of the President of the Philippines.
SHC. 23. Development Goals for the FAQ. - The AFAQ shall detemine the development goals of
the FAQ within the framework of national development plans, policies, and goals. The Chairperson-
Administrator shall, upon approval by the Board, submit the FAQ plans, programs, and projects to the
Regional Development Council for inclusion and inputs to the overall regional development plan.
SEC.  24.  Relationship  with  Local  Government  Units.  -  Except  as  herein  provided,  the  LGUs
comprising  the  FAQ  shall  retain  their basic  autonomy  and  identity.  The  Municipality  of Aglipay,
Province of Quirino, shall operate and function in accordance with the framework of the Constitution,
Local Government Code of 1991, and this Act.
In case of any conflict between the AFAQ and the LGUs and the National Government on matters
affecting the FAQ, other than national defense and security matters, the decision of the AFAQ shall
prevail.
SEC. 25. Interpretation/Construction. - The powers, authorities and functions that are vested in the
AFAQ are intended to establish national self-sufflciency and self-reliance in the advancement of and
protection   of   the   national   integrity,    enhancement   of   national   security,   decentralization   of
govemmental   functions   and   authority,   and   promotion   of  an   efficient   and   effective   working
relationship among the AFAQ, 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
would tend to protect national security.
SEC. 26. Audit. - The Commission on Audit shall appoint a full-time auditor in the AFAQ or may
assign such a number of personnel as may be necessary in the performance of their functions.
9


CHAPTER V
NISCELLANEOUS
SEC. 27. Applicability clause. - Insofar as these 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 FAQ.
SEC.  28.  Implementing  Rules  and  Regulations.  -  The  DTI,  DOF  and  the  National  Economic
Development Authority (NEDA) shall formulate the implementing rules and regulations  of this Act
within ninety (90) days after its approval.
SHC. 29. 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.
SHC. 30. Repealing Clause. - All laws, executive orders or issuances or any part thereof, which are
inconsistent herewith, are hereby repealed or amended accordingly.
SEC. 31. Effectivity Clause. -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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