Republic of the Philippines
House of Representatives
Constitution Hills, Batasan Complex, Quezon

NINETEENTH CONGRESS
First Regular Session

House Bill No..7617

Introduced by Representative ROMEO S. MOMO, SR.

Explanatory Note

This measure seeks to establish a special economic zone and free port in Surigao Del
Sur and create a Surigao Del Sur Economic Zone and Freeport Authority to manage and operate
the zone and port once it is established.

This initiative supports the goal of the government in persuading investors to spark
economic activity leading to the creation of jobs and increased production in the area.

This new platform is designed to prompt growth by boosting rural development and
increased economic activity not only for the people of Surigao Del Sur but also for the
hardworking residents of neighboring provinces and regions. The establishment of a special
economic zone and freeport in Surigao Del Sur will further support development initiatives in the
Mindanao region.

As a province, Surigao Del Sur has a population of 642,255 based on its 2020 census.
It is located in the northeastern coast of Mindanao facing the Pacific Ocean and has a total land
area of 4,932.70 square kilometers or 1,904.53 square miles. Surigao del Sur is divided into
three hundred nine (309) barangays, seventeen (17) municipalities, two (2) cities, two (2)
congressional districts.

Surigao del Sur is endowed with substantial quantities of metallic and non-metallic
minerals. Among the metallic minerals are copper, gold, chromite, cobalt, nickel and lead zinc.
The non-metallic minerals include limestone, coal and feldspar, clay diatomite/bentonite and
coarse/fine aggregates. To date, almost 15,265.65 hectares is being explored for gold,
17,524.22 hectares for nickel and 2,320.09 hectares for Chromite.

The agricultural products in the province of Surigao del Sur are rice, corn, coconut,
abaca, and fish. According to Fertilizer and Pesticide Authority, Surigao del Sur has a total land
area of 523,050 hectares wherein 214,032 is dedicated to agriculture where in its major crops

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are coconut as well as rice, corn, abaca as their primary crops and high-value commercial crops
like as banana, coffee, and durian as their secondary produce.

The geographical location of the province provides the abundance of aquamarine
fisheries resources. The major marine commodities of the province include milkfish, seaweeds,
mudcrabs, frigate tuna, yellowfin tuna and skipjack tuna. Surigao del Sur, is quickly becoming
an important tourist destination because of its enigmatic and breathtaking tourist attractions and
is considered as one of the Philippines’ top hidden gems. It has spectacular landscapes defined
by its waterfalls, beaches, rivers, and islands.

Surigao del Sur, as one of the most promising areas in the country is expected to become
‘a magnet for foreign investments by offering a competitive advantage due of its strategic
location. It allows the province to act as the hub for trade and commerce for the adjacent
provinces of Surigao del Norte, Davao Oriental, and Agusan del Sur.

Given the province's multidimensional potential, this representation suggest the
establishment of a special economic zone and free port in the Municipality of Cagwait, Surigao
del Sur. The Surigao del Sur coastline provides the optimal capabilities to aid the success of the
proposed special economic zone.

With this legislative action, the province is expected to develop rapidly into a self-
sustaining industrial, commercial, financial, and investment center. The creation of the Special
Economic Zone and Freeport is earnestly recommended to foster economic growth in the
country’s southern region.

In view of the foregoing, the passage of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO.7617

Introduced by: HON. ROMEO S. MOMO, SR.

AN ACT
ESTABLISHING THE SURIGAO DEL SUR SPECIAL ECONOMIC ZONE AND
FREEPORT IN THE MUNICIPALITY OF CAGWAIT, PROVINCE OF SURIGAO DEL
SUR AND
PROVIDING FUNDS THEREFOR,

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

CHAPTER |
GENERAL PROVISIONS

SECTION 1. Short Title. — This Act shall be known as the "Surigao del Sur
Special Economic Zone Act.”

SECTION 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

SECTION 3. Creation of the Surigao del Sur Special Economic Zone. — In
accordance with the foregoing declared policy and subject to the concurrence of the
affected Local Government Unit of Surigao del Sur, there is hereby established a
Special Economic Zone, hereinafter referred to as the Surigao del Sur Ecozone.
The Surigao del Sur Ecozone shall cover the Bituagan West Agro-Industrial Economic
Zone that is located at Brgy. Bituagan West, Cagwait, Surigao del Sur with a total area

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of 104.16 hectares. The specific metes and bounds of the Surigao de! Sur Ecozone shall be more
Particularly defined in a presidential proctamation that shall be issued for this purpose: Provided,
That the lands embraced therein shall be public lands and contiguous to one another.

SECTION 4. Creation of the Surigao del Sur Special Economic Zone and
Freeport Authority, — There is hereby created a body corporate to be known as the "Surigao
del Sur Special Economic Zone Authority" hereinafter referred to as the SDSEZA, which shall
manage and operate the Surigao del Sur Ecozone, in accordance with the provisions of this Act.

It shall be organized within one hundred eighty (180) days after the effectivity of this Act.

SECTION &. Governing Principles. — The Surigao del Sur Special Economic
Zone shall be managed and operated by the Surigao del Sur Special Economic Zone and Authority
hereinafter referred to as SDSEZA, 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 Surigao del Sur Ecozone shall be developed into and operated as
a decentralized, self-reliant and self-sustaining industrial, commercialtrading, agro-
industrial, tourist, banking, financial and investment center with suitable residential areas;

b) The Surigao del Sur Ecozone shall be equipped with transportation, telecommunications and
other facities needed to attract legitimate and productive investments, generate linkage
industries and employment opportunities for the people of the Cagwait and its neighboring
towns and city.

©) The Surigao del Sur Ecozone 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), andior
the Department of Trade and Industry (DT1), with foreign entities or enterprises;

@) Foreign citizens and companies owned by non-Filipinos in whatever proportion may set
up enterprises in the Surigao del Sur Ecozone, either by themselves or in a joint venture with
Fiipinos in any sector of industry, intemational trade and commerce within the Surigao del Sur
Ecozone;

e) The Surigao del Sur Ecozone shall be managed and operated as a separate customs
territory thereby ensuring the free flow or movernent 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 shall be subject to customs duties and taxes under
the Customs and Tariff Code and other relevant tax laws of the Philippines;

The areas comprising the Surigao del Sur Ecozone may be expanded or reduced when
necessary. For this purpose, the SDSEZA, in consultation with the LGUSs, shall have the
Power to acquire either by purchase, negotiation or condemnation proceedings, any
private land within or adjacent to the Surigao del Sur Ecozone for the following purposes: (1)
consolidation of lands for zone development; (2) acquisition of right of way to the Surigao del Sur
Ecozone; and (3) the protection of watershed areas and natural assets valuable to the
prosperity of the Surigao del Sur Ecozone;

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9) Goods manufactured by a Surigao del Sur Ecozone enterprise shall be made available for
immediate retail sale in the domestic market, subject to the payment of corresponding
taxes on raw materials and other regulations that may be formulated by the SDSEZA
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 Surigao del Sur Ecozone and the security of its perimeter fence
shall be the responsibility of the national goverment in coordination with the SDSEZA and
the LGUs.

Section 6. Capitalization. — The SDSEZA shall have an authorized capital stock
of Fifty Billion (50,000,000,000) no par shares at a minimum issue of Ten Pesos (P10.00) each the
majority shares of which shall be subscribed and paid for by the National Government and the
LGUs embracing the Surigao de! Sur Special Economic Zone. The Board of Directors of the SDSEZA,
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 SDSEZA 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 SDSEZA.

The amount necessary to subscribe and pay for the shares of the National Government to the
capital stock of SDSEZA 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.

SECTION 7. Principal Office of SDSEZA. — The SDSEZA shall maintain its principal
office in the Municipality of Cagwait, but it may establish branches within the Philippines as may be
necessary for the proper conduct of its business.

SECTION 8. Powers and Functions of the SDSEZA. — The SDSEZA shall have the
following powers and functions:

a) To operate, administer, manage and develop the Surigao del Sur Ecozone according to the
principles and provisions set forth in this Act;

b) To register, regulate and supervise the enterprises in the Surigao del Sur Ecozone in an
efficient and decentralized manner, subject to existing laws;

¢) To coordinate with LGUs and exercise general supervision over the development
plans, activities and operations of the Surigao del Sur Ecozone;

d) To regulate and undertake the establishment, construction, operation and maintenance of
public utilities, other services, and infrastructure in the Surigao del Sur Ecozone such as
light and power, shipping, barging, 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,

3


terminals, conveyors, water supply and storage, sewerage, drainage, airport operations
in coordination with the Civil Aviation Authority of the Philippines and such other services or
concessions or infrastructure necessary or incidental to the accomplishment of the objectives
of this Act;

) To construct, acquire, own, lease, operate and maintain on its own or through contracts,
franchises, licenses, bulk purchase from the private sector or permits under any of the
schemes allowed in Republic Act No. 6957, otherwise known as the Build-Operate-
Transfer Law, as amended, or joint venture, adequate facilities and infrastructure required
or needed for the operation and development of the Surigao del Sur Ecozone, in
coordination with the appropriate national and local government authorities and in conformity
with applicable laws thereon;

f) To approve plans, programs and projects of the Surigao del Sur Ecozone pursuant to
Chapter Il, Section 3 of this Act, to be submitted to the Regional Development Council
for inclusion and inputs to the overall regional development plan;

9) To operate on its own, either directly or through licenses to others, tourism-related

activities, including games, amusements, recreational and sports facilities;

h) To raise or borrow, within the limitation provided by law, and subject to the approval or opinion
of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as the case may be,
adequate and necessary funds from local or foreign sources, to finance its projects and
programs under this Act and for this purpose, to issue bonds, Promissory notes and other
forms of securities, and to secure the same by a guarantee, pledge, mortgage, deed of trust
or an assignment of all or part of its property or assets;

i) To protect, preserve, maintain and develop the forests, beaches, coral and coral reefs, and
maintain ecological balance within the Surigao del Sur Ecozone. Notwithstanding the
authority of the SDSEZA 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 SDSEZA;

J) To create, operate and/or contract to operate such functional units or offices of the
SDSEZA as it may deem necessary.

kK

To adopt, alter and use a corporate seal; contract, lease, buy, acquire, own or otherwise
dispose of personal and/or real property of whatever nature; sue and be sued; and otherwise
carry out its functions and duties as provided for in this Act;

|) To issue certificates of origin for products manufactured or processed in the Surigao del Sur
Ecozone in accordance with prevailing rules of origin and the pertinent regulations of the
PEZA, the DTI and/or the Department of Finance (DOF);

m) To establish one-stop shops for the issuance of all necessary permits, clearances,
licenses, and other similar certifications to conduct such activities intended to improve
the ease of doing business within the Surigao del Sur Ecozone, in coordination with


government agencies having jurisdiction over activities therein: Provided, That all
government agencies are directed to provide and extend utmost and full cooperation to the
Surigao del Sur Ecozone in the establishment of such one-stop shops;

Nn) To provide internal security to the Surigao del Sur Ecozone in coordination with the National
government and affected LGU. For this purpose, the SDSEZA shall provide and
establish its own internal security and firefighting 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 Surigao del Sur Ecozone and expenditures
for these military forces shall be borne by the National Government;

0)

To exercise such powers as may be essential, necessary or incidental to the powers:
granted to it hereunder, as well as those that shall enable it to carry out, implement and
accomplish the purposes, objectives and policies of this Act; and

P) To issue rules and regulations consistent with the provisions of this Act as may be necessary
to accomplish and implement the purposes, objectives and policies provided herein

SECTION 9. Board of Directors of the SDSEZA. - The powers of the SDSEZA 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 SDSEZA;

b) Four (4) members consisting of.
1) The Govemor or a representative from the provincial Goverment of Surigao del Sur;
2) One of the mayors of the municipalities covered by the ecozone;

3) One (1) representative from the investors’ group;

4) One (1) representative from among the workers stationed in the Surigao del Sur
Ecozone.

The Vice-Chairperson shall be selected from among the members of the Board.

The representative from the Provincial Government and the mayors of the municipalities
covered by the ecozone shall serve as ex-officio members of the Board, whose term in the Board
corresponds to their term as elected officials.

The Chairperson and 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 replacement shall serve only the unexpired portion of the
respective terms.


The Chairperson of the Board 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 relevant 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 determined by the Department of Budget and Management (DBM) in accordance with
existing rules and regulations: Provided, however, That the total per diem collected each month
shall 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 (P10,000.00) for every Board meeting

SECTION 10. Organization and Personnel. — The Board of Directors of the
SDSEZA 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. The Board shall have exclusive and final authority to
promote, transfer, assign, reassign, or remove officers of the SDSEZA, any provision of existing
law to the contrary notwithstanding. The Chairperson-Administrator shall execute the decisions
of the Board.

The officers and employees of the SDSEZA, including all members of the Board, shall not
engage directly or indirectly in partisan activities nor take part in any election.

No officers and employees of the SDSEZA, subject to civil service laws and regulations,
shall be removed or suspended except for cause, as provided by law.

SECTION 11. 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 SDSEZA in accordance with the policies of the
Board;

b) To establish the internal organization of the SDSEZA under such conditions that
the Board may prescribe;

¢)

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 Surigao del Sur 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 Surigao del Sur Ecozone; and

h) To perform such other duties as may be assigned by the Board which are necessary or
incidental to the office.

SECTION 12. Legal Counsel. — The SDSEZA shall have its own internal legal counsel
under the supervision of the government corporate counsel. When the exigencies of its businesses
and operations demand it, the SDSEZA may engage the services of an outside counsel either on a
case to case or on a fixed retainer basis.

CHAPTER Ill
INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS

SECTION 13. Investor's 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 entitied to an investors visa: Provided, That the
foreign national has the following qualifications:

a) Must be at least eighteen (18) years old;

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;

) Must not have been institutionalized for any mental disorder or disability; and

€) Must establish by verifiable and credible evidence one's financial capability and capacity.

As a holder of an investor's visa, an alien shall be entitled to reside in the Philippines while the
investment subsists. For this purpose, the alien should submit an annual report, in the form duly
prescribed for the purpose, to prove that the investment in the country subsists. Should said
alien withdraw the investments from the Philippines, then the investor's visa issued to said alien
shall automatically expire and/or be withdrawn,

The authority to issue visas and work permits shall remain with the Bureau of Immigration (Bl)
and the Department of Labor and Employment (DOLE), respectively; Provided, That the BI
and the DOLE shall implement the measures to expedite the processing of such visas and permits
for workers in the Surigao de! Sur Ecozone and coordinate with the SDSEZA for the purpose of
improving ease of doing business.

SECTION 14. Fiscal Incentives. — Registered enterprises operating within the
‘Surigao del Sur Ecozone 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 government department, agency or office: Provided, That
in the administration, implementation and monitoring of incentives, the SDSEZA may impose
its own conditions not otherwise prohibited by this Act: Provided further, That the SDSEZA shall

7


Not be limited to the conditions provided under Republic Act No. 7916, Republic Act No. 8748 or any
other related issuance, rule, or regulation.

SECTION 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 Surigao del Sur Ecozone, including income, withholding, donor’,
Percentage, and documentary stamp taxes. In lieu thereof, and subject to Section 18 of this Act,
said business establishments shall pay a five percent (5%) final tax on their gross income earned:
Provided, That the proceeds from such final tax shall be shared by instrumentalities 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 cty where the enterprise is located.

The SDSEZA shalll have the authority to grant income tax holiday and net operating loss carry
over subject to Section 17 of this Act and conditions as it may have imposed pursuant to Section
14 of this Act.

SECTION 16. Administration, Implementation and Monitoring of
Incentives. — For the proper administration, implementation and monitoring of tax incentives provided
under this law, the following are herein mandated:

a) The SDSEZA shall be responsible for the administration, management, enforcement and
implementation of the incentives granted to registered enterprises: Provided, That the BOC
shall set up and establish a customs controlled area outside the gate of the Surigao del
Sur Ecozone to facilitate payment of taxes on goods entering the Philippine customs
territory: Provided further, That notwithstanding the limitations in this Act, the SDSEZA and
BOC may coordinate and jointly implement measures on border protection; and

b) In the interest of enhancing transparency in the management and accounting of tax
incentives in the Surigao del Sur Ecozone, the SDSEZA 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.

SECTION 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 SDSEZA, in consultation with other government agencies.

SECTION 18. Sequential Availment of Incentives. — Registered
enterprises may enjoy the income tax holiday (TH) granted by the SDSEZA prior to the availment
of the five percent (5%) final tax on gross income eared incentive, such registered enterprise
shall be barred from availing the 1TH incentive.


Registered enterprises, if eligible, may register for incentives with other investment promotion
agencies: Provided, That registered enterprises electing to avail ofthe incentives of other promotion
agencies shall not be able to avail of the incentives of the Surigao del Sur Ecozone until the
expiration of the incentives with such other investment promotion agencies.

SECTION 19. Extension of Period 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 SDSEZA may extend the period of validity of the incentives
‘extended to such registered enterprise.

SECTION 20. Banking Rules and Regulations. — Banks and financial institutions
to be established in the Surigao del Sur Ecozone shall be under the supervision of the BSP and
subject to existing banking laws, rules and regulations.

SECTION 21. Remittances. — In the case of foreign investments, a duly registered
entity or enterprise within the Surigao de! Sur Ecozone 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 GOVERNMENT AND OTHER ENTITIES

SECTION 22. Supervision and Control. — For purposes of policy direction
and coordination, the SDSEZA shall be under the direct supervision and control of the Office of the
President of the Philippines.

SECTION 23. Development Goals for the Surigao del Sur Ecozone. — The
SDSEZA shall determine the development goals for the Surigao del Sur Ecozone within the
framework of national development plans, policies and goals. The Chairperson-Administrator shall,
upon the approval by the Board submit the Surigao del Sur Ecozone plans, programs and
projects to the Regional Development Council for inclusion and inputs to the overall regional
development plan.

SECTION 24. Relationship with Local Government Units. — Except as herein
provided, the LGUs comprising the Surigao del Sur Ecozone shall retain their basic autonomy and
identity. The Municipality of Cagwait, Province of Surigao de! Sur, shall operate and function in
accordance with the framework of the 1987 Constitution, Local Government Code of 1991, and
this Act.

|n case of any conflict between the SDSEZA and the LGUs and the National
Government on matters affecting the Surigao del Sur Ecozone, other than national defense and
‘security matters, the decision of the SDSEZA shall prevail.

SECTION 25. Interpretation/Construction. — The powers, authorities and functions that
are vested in the SDSEZA 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 promote an efficient and
effective working relationship among the SDSEZA, 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.

SECTION 26. Audit. — The Commission on Audit shall appoint a fulltime auditor in the
SDSEZA or may assign such number of personnel as may be necessary in the performance of
their functions.

CHAPTER V
MISCELLANEOUS

SECTION 27. Applicability. - Insofar as these are consistent with the provisions of
this Act, the provisions of Sections 30 to 41 of Republic Act No. 7916 shall likewise apply to the
Surigao del Sur Ecozone.

SECTION 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. Such rules and regulations shall take
effect fifteen (15) days after its publication in a newspaper of general circulation in the Philippines.

SECTION 29. Separability Clause. — \f any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise effected shall remain in full force and
effect.

SECTION 30. Repealing Clause. — All laws, executive orders or issuances
or any part thereof, which are inconsistent herewith, are hereby repealed or amended accordingly.

SECTION 31. 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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