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Republic Act No. 7918

AN ACT AMENDING ARTICLE 39, TITLE III OF EXECUTIVE ORDER NO. 226, OTHERWISE KNOWN AS

THE OMNIBUS INVESTMENTS CODE OF 1987, AS AMENDED, AND FOR OTHER UROSES.

R!"# $%&& '!(' )$*

O+-%/ I0!/'+!'/ C)#! )$ 1987

REUBLIC ACT NO. 7918

AN ACT AMENDING ARTICLE 39, TITLE III OF EXECUTIVE ORDER NO. 226, OTHERWISE KNOWN AS

THE OMNIBUS INVESTMENTS CODE OF 1987, AS AMENDED, AND FOR OTHER UROSES.

SECTION 1. A'-&! 39, T-'&! III )$ E(!%'-0! O#! N). 226, )'!4-/! 5)4 "/ '! O+-%/

I0!/'+!'/ C)#! )$ 1987, "/ "+!#!#, -/ !! $%'! "+!#!# ') !"# "/

$)&&)4/*")&!/0-'%"&"4&-"

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-)!! =+/, !4 !-/'!!# =+/ /"&& ! $%&& !(!+' $)+ -)+! '"(!/ &!0-!# '!

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'"( !(!+'-) 4-&& ! !('!#!# $) ")'! !" - !" )$ '! $)&&)4- "/!/*

;-< T! )@!' +!!'/ '! !/-!# "'-) )$ "-'"& !%-+!' ') %+! )$ 4)5!/ /!' '!

B)"#

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#%- '! =/' '!! ;3< !"/ )$ )!"'-).

T! !!#- """ )'4-'/'"#-, ) !-/'!!# -)!! =+ +" "0"-& )$ '-/ -!'-0!

$) " !-)# !(!!#- !-' ;8< !"/.

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! !'-'&!# ') " !(!+'-) $)+ -)+! '"(!/ &!0-!# '! "'-)"& )0!+!' ))'-)"'!

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/"&& )' ! !'-'&!# ') "##-'-)"& #!#%'-) $) -!+!'"& &") !(!/!.

;3< T! )0-/-) )$ A'-&! 7;1>< )'4-'/'"#-, !-/'!!# =+/ /"&& )' ! !'-'&!# ') "

!('!/-) )$ '-/ -!'-0!.

;< A##-'-)"& D!#%'-) $) L") E(!/!. : F) '! =/' =0! ;< !"/ $)+ !-/'"'-) "

!-/'!!# !'!-/! /"&& ! "&&)4!# " "##-'-)"& #!#%'-) $)+ '! '"("&! -)+! )$ =$'

!!' ;< )$ '! 4"!/ )!/)#- ') '! -!+!' - '! %+! )$ #-!' &") $)

/5-&&!# "# %/5-&&!# 4)5!/ -$ '! )@!' +!!'/ '! !/-!# "'-) )$ "-'"& !%-+!' ')

%+! )$ 4)5!/ /!' '! B)"#* )0-#!#, T"' '-/ "##-'-)"& #!#%'-) /"&& ! #)%&!# -$

'! "'-0-' -/ &)"'!# - &!// #!0!&)!# "!"/ "/ #!=!# - A'-&! >.

;< T"( "# D%' E(!+'-) ) I+)'!# C"-'"& E%-+!' "# -'/ A)+"- S"! "'/.

: N!4, !("#-+)#!-- !'!-/! 4- "0! !! !-/'!!# 4-' '! B)"# )$

I0!/'+!'/ ) ) !$)! D!!+! 31, 199> /"&& ! !(!+' ') '! !('!' )$ )! %#!#

!!' ;1< )$ "'-)"& -'!"& !0!%! '"(!/ "# %/')+/ #%'-!/ ) -+)'"'-)/ )$

+"-!, !%-+!' "# ")+"- /"! "'/ 4-'- '! !/-!# !-)# %#! -'/ &"4

)$ !-/'"'-) ) %'-& D!!+! 31, 1997 4-!0! )+!/ =/'* )0-#!#, )4!0!, T"' '!

!'!-/! 4- /"&& !-/'! "$'! D!!+! 31, 199> /"&& ! /%@!' ') '! )0-/-)/ )$

R!%&- A' N). 7716, "# '!! !!' ;3< %/')+/ #%'-!/ % ') D!!+! 31, 1997*

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)0-#!#, ="&&, T"' '! -+)'"'-) )$ +"-!, !%-+!' "# ")+"- /"! "'/

/"&& )+& 4-' '! $)&&)4- )#-'-)/*

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!"/)"&! -!/

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!-/'!!# "'-0-', %&!// -) ")0"& )$ '! B)"# -/ /!%!# $) '! "'?'-+! %'-&-"'-) )$

/"-# !%-+!' - " )?!-/'!!# "'-0-' ') +"(-+-! %/"! '!!)$ ) '! ))'-)"'! '"(!/"# #%'-!/ "! "-# ) /!-= !%-+!' "# +"-! !- !+"!'& %/!# $) )?

!-/'!!# "'-0-'-!/ "#

J;3< T! ")0"& )$ '! B)"# 4"/ )'"-!# '! !-/'!!# !'!-/! $) '! -+)'"'-) )$

/% +"-!, !%-+!' "# ")+"- /"! "'/.

I "'- '! ")0"& )$ '! -+)'"'-)/ %#! '-/ """, '! B)"# +" !%-!

-'!"'-)"& "0"//- %' -$ '! ')'"& )/' )$ '! "-'"& !%-+!' ) -#%/'-"& &"' !(!!#/

US,,, '! B)"# /"&& "& ) "#)' '! )0-/-)/ )$ !/-#!'-"& D!!! N). 176> )

-'!"'-)"& )+!'-'-0! -##-.

I$ '! !-/'!!# !'!-/! /!&&/, '"/$!/ ) #-/)/!/ )$ '!/! +"-!, !%-+!' "# /"!

"'/ 4-')%' -) ")0"& )$ '! B)"# 4-'- =0! ;< !"/ $)+ #"'! )$ "%-/-'-), '!

!-/'!!# !'!-/! "# '! 0!#!!, '"/$!!!, ) "//-!! /"&& ! /)&-#"-& &-"&! ') "

'4-! '! "+)%' )$ '! '"( !(!+'-)/ -0! -'. T! B)"# /"&& "&&)4 "# ")0! '! /"&!,

'"/$! ) #-/)/-'-) )$ '! /"-# -'!+/ %'-& D!!+! 31, 1997 ) D!!+! 31, 1999 "/ '!

"/! +" ! -$ +"#!*

;""< T) ")'! !-/'!!# !'!-/! ) !-/'!!# #)+!/'- )#%! !@)- /-+-&" "'-0-'-!/

;< F) !"/)/ )$ )0! '!-"& )/)&!/!! )

;< F) %)/! )$ !&"!+!' ') -+)0! "#) !("# '! )!"'-)/ )$ '! !-/'!!#!'!-/!.

;#< T"( C!#-' ) D)+!/'- C"-'"& E%-+!'. : A '"( !#-' !%-0"&!' ') )! %#!# !!'

;1< )$ '! 0"&%! )$ '! "'-)"& -'!"& !0!%! '"(!/ "# %/')+/ #%'-!/ '"' 4)% "0!

!! 4"-0!# ) '! +"-!, !%-+!' "# /"! "'/, "# '!/! -'!+/ !! -+)'!# /"&&

! -0! ') '! !4 "# !("#- !'!-/! !-/'!!# 4-' '! B)"# )$ I0!/'+!'/ "/ )$

D!!+! 31, 199> 4- %"/!/ +"-!, !%-+!' "# /"! "'/ $)+ " #)+!/'-

+"%$"'%!* )0-#!#, ;1< T"' '! /"-# !%-+!', +"-! "# /"! "'/ "! !"/)"&

!!#!# "# 4-&& ! %/!# !(&%/-0!& '! !-/'!!# !'!-/! - -'/ !-/'!!# "'-0-', %&!//

-) ")0"& )$ '! B)"# -/ /!%!# $) '! "'?'-+! %'-&-"'-) )$ /"-# !%-+!' - " )?

!-/'!!# "'-0-' ') +"(-+-! %/"! '!!)$ ;2< T"' '! !%-+!' 4)% "0! %"&-=!# $)

'"( "# #%' !(!+'-) %#! """ ;< !!)$ ;3< T"' '! ")0"& )$ '! B)"# 4"/

)'"-!# '! !-/'!!# !'!-/! "# ;>< T"' '! %"/! -/ +"#! ) ) !$)! D!!+!

31, 1997 ) D!!+! 31, 1999 "/ '! "/! +" !. I$ '! !-/'!!# !'!-/! /!&&/, '"/$!/,

) #-/)/!/ )$ '!/! +"-!, !%-+!' "# /"! "'/, '! )0-/-) - '! !!#-

""" $) /% #-/)/-'-) /"&& "&.

;!< S-+&-="'-) )$ C%/')+/ )!#%!/. : C%/')+/ )!#%!/ $) '! -+)'"'-) )$

!%-+!', /"! "'/, "4 +"'!-"&/ "# /%&-!/, !()'/ )$ )!//!# )#%'/ !-/'!!#

!'!-/!/ /"&& ! /-+&-=!# '! B%!"% )$ C%/')+/.

;$< U!/'-'!# U/! )$ C)/-!# E%-+!'. : )0-/-)/ )$ !(-/'- &"4/ )'4-'/'"#-,

+"-!, !%-+!' "# /"! "'/ )/-!# ') " !'!-/! /"&& )' ! /%@!' ')

!/'-'-)/ "/ ') !-)# )$ %/! )$ /% +"-!, !%-+!' "# /"! "'/* )0-#!#, T"' '!

")-"'! !?!()' )# -/ )/'!# %&!// -+)'"'-) -/ )'!4-/! )0!!# %#! /%/!'-)/

;< "# ;1< )$ '-/ A'-&!* )0-#!#, $%'!, T"' /% )/-!# !%-+!' /"&& ! $) '!

!(&%/-0! %/! )$ '! !-/'!!# !'!-/!.

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I$ /% !%-+!' -/ /), '"/$!!# ) )'!4-/!, A'-&! 39;

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'! )#!# +"%$"'%- 4"!)%/! )$ '! !-/'!!# !'!-/! %#! /% !%-!+!'/ "/

'! B%!"% )$ C%/')+/ +" -+)/!.

;+< E(!+'-) $)+ W"$"! D%!/ "# E()' T"(, D%', I+)/'/ "# F!!. : T! )0-/-) )$

&"4 ') '! )'" )'4-'/'"#-, !()'/ " !-/'!!# !'!-/! )$ -'/ )?'"#-'-)"&

!()' )#%'/ /"&& ! !(!+'!# $)+ " 4"$"! #%!/, "# " !()' '"(, #%' -+)/' "#

$!!.

S!. 2. A&& )'! )0-/-)/ )$ E(!%'-0! O#! N). 226 "# R!%&- A' N). 7369, "&/) 5)4 "/A A' G"'- T"( "# D%' E(!+'-) "# T"( C!#-' ) C"-'"& E%-+!', )' )'!4-/!

"!'!# '! )0-/-)/ )$ '-/ A' /"&& !+"- - $%&& $)! "# !!'.

S!. 3. A&& )'! &"4/, #!!!/, )#!/, -//%"!/ "# %&!/ "# !%&"'-)/ ) "'/ '!!)$

-)/-/'!' 4-' '-/ A', "! !! !!"&!# ) +)#-=!# ")#-&.

S!. >. E!'-0-' C&"%/!. : T-/ A' /"&& "0! !')"'-0! !!' ') M" , 199> =$'!! ;1 days after the perfection of the appeal, unless reversed(

Ar!"l# %7.&ertificate of Registration( A registered enterprise under this &ode shall be issued a certificate ofregistration under the seal of the ?oard of %nvestments and the signature of its &hairman and:or such other officer oremployee of the ?oard as it may empower and designate for the purpose( #he certificate shall be in such form andstyle as the ?oard may determine and shall state, among other matters

@a #he name of the registered enterprise;

@b #he preferred area of investment in which the registered enterprise is proposing to engage;

@c #he nature of the activity it is underta-ing or proposing to underta-e, whether pioneer or non8pioneer,and the registered capacity of the enterprise; and

@d #he other terms and conditions to be observed by the registered enterprise by virtue of the registration(

TIT*E IIBASIC RIHTS AND UARANTEES

Ar!"l# %8.+rotection of %nvestments( All investors and registered enterprises are entitled to the basic rights andguarantees provided in the &onstitution( Among other rights recognied by the Government of the +hilippines arethe following

@a Repatriation of %nvestments( %n the case of foreign investments, the right to repatriate the entire proceedsof the li5uidation of the investment in the currency in which the investment was originally made and at thee6change rate prevailing at the time of repatriation, sub4ect to the provisions of Section 2 of Republic Act!o( 7=< as amended;

$or investments made pursuant to E6ecutive "rder !o( 97 and its implementing rules and regulations,remittability shall be as provided therein(

@b Remittance of Earnings( %n the case of foreign investments, the right to remit earnings from the

investment in the currency in which the investment was originally made and at the e6change rate prevailingat the time of remittance, sub4ect to the provisions of Section 2 of Republic Act !o( 7=< as amended;

@c $oreign Boans and &ontracts( #he right to remit at the e6change rate prevailing at the time of remittancesuch sums as may be necessary to meet the payments of interest and principal on foreign loans and foreignobligations arising from technological assistance contracts, sub4ect to the provisions of Section 2 ofRepublic Act !o( 7=< as amended;

@d $reedom from E6ploriation( #here shall be no e6propriation by the government of the propertyrepresented by investments or of the property of the enterprise e6cept for public use or in the interest ofnational welfare or defense and upon payment of 4ust compensation( %n such cases, foreign investors orenterprises shall have the right to remit sums received as compensation for the e6propriated property in the

currency in which the investment was originally made and at the e6change rate at the time of remittance,sub4ect to the provisions of Section 2 of Republic Act !o( 7=< as amended;

@e Re5uisition of %nvestment( #here shall be no re5uisition of the property represented by the investment orof the property of enterprises, e6cept in the event of war or national emergency and only for the durationthereof( ust compensation shall be determined and paid either at the time of re5uisition or immediately aftercessation of the state of war or national emergency( +ayments received as compensation for there5uisitioned property may be remitted in the currency in which the investment was originally made and atthe e6change rate prevailing at the time of remittance, sub4ect to the provisions of Section 2 of Republic Act!o( 7=< as amended(

TIT*E III

INCENTIVES TO REISTERED ENTER$RISES

Ar!"l# %9.%ncentives to Registered Enterprises( All registered enterprises shall be granted the following incentivesto the e6tent engaged in a preferred area of investment;

@a %ncome #a6 Holiday(

@/ $or si6 @= years from commercial operation for pioneer firms and four @ years for non8pioneerfirms, new registered firms shall be fully e6empt from income ta6es levied by the !ationalGovernment( Sub4ect to such guidelines as may be prescribed by the ?oard, the income ta6e6emption will be e6tended for another year in each of the following cases

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i( the pro4ect meets the prescribed ratio of capital e5uipment to number of wor-ersset by the ?oard;

ii( utiliation of indigenous raw materials at rates set by the ?oard;

iii( the net foreign e6change savings or earnings amount to at least *S>,>>>(>>annually during the first three @9 years of operation(

#he preceding paragraph notwithstanding, no registered pioneer firm may avail of thisincentive for a period e6ceeding eight @1 years(

@7 $or a period of three @9 years from commercial operation, registered e6panding firmsshall be entitled to an e6emption from income ta6es levied by the !ational Governmentproportionate to their e6pansion under such terms and conditions as the ?oard maydetermine; +rovided, however, #hat during the period within which this incentive is availed ofby the e6panding firm it shall not be entitled to additional deduction for incremental labore6pense(

@9 #he provision of Article 2 @/ notwithstanding, registered firms shall not be entitled to anye6tension of this incentive(

@b Additional 3eduction for Babor E6pense( $or the first five @(

@c #a6 and 3uty E6emption on %mported &apital E5uipment( Within five @>F of thecustoms duties and national internal revenue ta6 payable thereon +rovided, #hat the importation ofmachinery and e5uipment and accompanying spare parts shall comply with the following conditions

@/ #hey are not manufactured domestically in sufficient 5uantity, of comparable5uality and at reasonable prices;

@7 #hey are reasonably needed and will be used e6clusively by the registeredenterprise in the manufacture of its products, unless prior approval of the ?oard issecured for the part8time utiliation of said e5uipment in a non8registered activity toma6imie usage thereof or the proportionate ta6es and duties are paid on thespecific e5uipment and machinery being permanently used for non8registeredactivities; and

@9 #he approval of the ?oard was obtained by the registered enterprise for the

importation of such machinery, e5uipment and spare parts(

%n granting the approval of the importations under this paragraph, the ?oard may re5uireinternational canvassing but if the total cost of the capital e5uipment or industrial plante6ceeds *S>>,>>>, the ?oard shall apply or adopt the provisions of +residential 3ecree!umbered /2= on %nternational &ompetitive ?idding(

%f the registered enterprise sells, transfers or disposes of these machinery, e5uipment andspare parts without prior approval of the ?oard within five @

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@d #a6 &redit on 3omestic &apital E5uipment( A ta6 credit e5uivalent to one hundred percent@/>>F of the value of the national internal revenue ta6es and customs duties that would have beenwaived on the machinery, e5uipment and spare parts, had these items been imported shall be givento the new and e6panding registered enterprise which purchases machinery, e5uipment and spareparts from a domestic manufacturer +rovided, #hat @/ #hat the said e5uipment, machinery andspare parts are reasonably needed and will be used e6clusively by the registered enterprise in themanufacture of its products, unless prior approval of the ?oard is secured for the part8time utiliationof said e5uipment in a non8registered activity to ma6imie usage thereof; @7 that the e5uipmentwould have 5ualified for ta6 and duty8free importation under paragraph @c hereof; @9 that the

approval of the ?oard was obtained by the registered enterprise; and @ that the purchase is madewithin five @

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its e6port products and forming part thereof, e6ported directly or indirectly by the registeredenterprise +rovided, however, that the ta6es on the supplies, raw materials and semi8 manufacturedproducts domestically purchased are indicated as a separate item in the sales invoice(

!othing herein shall be construed as to preclude the ?oard from setting a fi6ed percentage of e6portsales as the appro6imate ta6 credit for ta6es and duties of raw materials based on an average orstandard usage for such materials in the industry(

@l Access to ?onded Danufacturing:#rading Warehouse System( Registered e6port oriented

enterprises shall have access to the utiliation of the bonded warehousing system in all areasre5uired by the pro4ect sub4ect to such guidelines as may be issued by the ?oard upon priorconsultation with the ?ureau of &ustoms(

@m E6emption from #a6es and 3uties on %mported Spare +arts( %mportation of re5uired supplies andspare parts for consigned e5uipment or those imported ta6 and duty free by a registered enterprisewith a bonded manufacturing warehouse shall be e6empt from customs duties and national internalrevenue ta6es payable thereon, +rovided, However, #hat at least seventy percent @2>F ofproduction is e6ported; +rovided, further, that such spare parts and supplies are not locally availableat reasonable prices, sufficient 5uantity and comparable 5uality; +rovided, finally, #hat all such spareparts and supplies shall be used only in the bonded manufacturing warehouse of the registeredenterprise under such re5uirements as the ?ureau of &ustoms may impose(

@n E6emption from Wharfage 3ues and any E6port #a6, 3uty, %mpost and $ee( #he provisions of lawto the contrary notwithstanding, e6ports by a registered enterprise of its non8 traditional e6portproducts shall be e6empted of its non8traditional e6port products shall be e6empted from anywharfage dues, and any e6port ta6, duty, impost and fee(

TIT*E IVINCENTIVES TO *ESS-DEVE*O$ED-AREA REISTERED ENTER$RISE

Ar!"l# &+.A registered enterprise regardless of nationality located in a less8developed8area included in the listprepared by the ?oard of %nvestments after consultation with the !ational Economic I 3evelopment Authority andother appropriate government agencies, ta-ing into consideration the following criteria low per capita gross

domestic product; low level of investments; high rate of unemployment and:or underemployment; and low level ofinfrastructure development including its accessibility to develop urban centers, shall be entitled to the followingincentives in addition to those provided in the preceding article

@a +ioneer incentives( An enterprise in a less8developed8area registered with the ?oard under ?oo- % of this&ode, whether proposed, or an e6pansion of an e6isting venture, shall be entitled to the incentives providedfor a pioneer registered enterprise under its law of registration(

@b %ncentives for necessary and Da4or %nfrastructure and +ublic *tilities( Registered enterprise establishingtheir production, processing or manufacturing plants in an area that the ?oard designates as necessary forthe proper dispersal of industry or in area which the ?oard finds deficient in infrastructure, public utilities, andother facilities, such as irrigation, drainage or other similar waterwor-s infrastructure may deduct fromta6able income an amount e5uivalent to one hundred percent @/>>F of necessary and ma4or infrastructure

wor-s it may have underta-en with the prior approval of the ?oard in consultation with other governmentagencies concerned; +rovided, #hat the title to all such infrastructure wor-s shall upon completion, betransferred to the +hilippine Government +rovided, further, #hat any amount not deducted for a particularyear may be carried over for deduction for subse5uent years not e6ceeding ten @/> years from commercialoperation(

TIT*E VENERA* $ROVISIONS

Ar!"l# &1.+ower of the +resident to Rationalie %ncentives( #he +resident may, upon recommendation of the ?oardand in the interest of national development, rationalie the incentives scheme herein provided; e6tend the period ofavailment of incentives or increase rates of ta6 e6emption of any pro4ect whose viability or profitability re5uire such

modification(

Ar!"l# &2.Refund and +enalties( %n case of cancellation of the certificate granted under this &ode, the ?oard may,in appropriate cases, re5uire the refund of incentives availed of and impose corresponding fines and penalties(

Ar!"l# &%.?enefits of Dultiple Area Enterprises( When a registered enterprise engages in activities or endeavorsthat have not been declared preferred areas of investments, the benefits and incentives accruing under this &ode toregistered enterprises and investors therein shall be limited to the portion of the activities of such registeredenterprise as is a preferred area of investment(

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BOO( IIFOREIN INVESTMENTS )ITHOUT INCENTIVES

TIT*E I

CHA$TER IDEFINITIONS AND SCO$E OF THIS BOO(

Ar!"l# &&.3efinition of terms( As used in this ?oo-, the term .investment. shall mean e5uity participation in anyenterprise formed, organied or e6isting under the laws of the +hilippines; and the phrase .doing business. shallinclude soliciting orders, purchases, service contracts, opening offices, whether called .liaison. offices or branches;appointing representatives or distributors who are domiciled in the +hilippines for a period or periods totalling onehundred eighty @/1> days or more; participating in the management, supervision or control of any domesticbusiness firm, entity or corporation in the +hilippines, and any other act or acts that imply a continuity of commercialdealings or arrangements and contemplate to that e6tent the performance of acts or wor-s, or the e6ercise of someof the functions normally incident to, and in progressive prosecution of, commercial gain or of the purpose andob4ect of the business organiation(

Ar!"l# &'.!on8Applicability to ?an-ing %nstitutions( #his ?oo- shall not apply to ban-ing institutions which aregoverned and regulated by the General ?an-ing Act and other laws which are under the supervision of the &entral?an-(

CHA$TER IIINVESTMENTS

Ar!"l# &6.+ermitted %nvestments(

@/ Without need of prior authority, anyone not a +hilippine national as that term is defined in Article /< ofthis &ode, and not otherwise dis5ualified by law, may invest

@a %n any enterprise registered under ?oo- "ne hereof, to the e6tent that the total investment ofnon8+hilippine nationals therein would not affect its status as a registered enterprise under the law;

@b %n an enterprise not registered under ?oo- "ne hereof, to the e6tent that the total investment ofnon8+hilippine nationals herein shall not e6ceed forty percent @>F of the outstanding capital of thatenterprise, unless e6isting law forbids any non8 +hilippine ownership in the enterprise or limitsownership by non8+hilippine national to a percentage smaller than forty percent @>F(

@7 Within thirty @9> days after notice of the investment is received by it, the enterprise in which anyinvestment is made by a non8+hilippine national shall register the same with the ?oard of %nvestments forpurposes of record( %nvestments made in the form of foreign e6change or other assets actually transferred tothe +hilippines shall also be registered with the &entral ?an-( #he ?oard shall assess and appraise thevalue of such assets other than foreign e6change(

Ar!"l# &7.+ermissible %nvestments( %f an investment by a non8+hilippine national in an enterprise not registered

under ?oo- "ne hereof is such that the total participation by non8+hilippine nationals in the outstanding capitalthereof shall e6ceed forty percent @>F, the enterprise must obtain prior authority from the ?oard of %nvestments,which authority shall be granted unless the proposed investment

@a Would conflict with e6isting constitutional provisions and laws regulating the degree of re5uiredownership by +hilippine nationals in the enterprise; or

@b Would pose a clear and present danger of promoting monopolies or combinations in restraint of trade; or

@c Would be made in enterprise engaged in an area ade5uately being e6ploited by +hilippine nationals; or

@d Would conflict or be inconsistent with the %nvestment +riorities +lan in force at the time the investment is

sought to be made; or

@e Would not contribute to the sound and balanced development of the national economy on a self8sustaining basis(

%nvestments made in the form of foreign e6change or other assets actually transferred to the +hilippines shall alsobe registered with the &entral ?an-( #he ?oard shall assess and appraise the value of such assets other thanforeign e6change(

CHA$TER II*ICENSE TO DO BUSINESS

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Ar!"l# &8.Authority to 3o ?usiness( !o alien, and no firm association, partnership, corporation or any other form ofbusiness organiation formed, organied, chartered or e6isting under any laws other than those of the +hilippines,or which is not a +hilippine national, or more than forty per cent @>F of the outstanding capital of which is ownedor controlled by aliens shall do business or engage in any economic activity in the +hilippines or be registered,licensed, or permitted by the Securities and E6change &ommission or by any other bureau, office, agency, politicalsubdivision or instrumentality of the government, to do business, or engage in any economic activity in the+hilippines without first securing a written certificate from the ?oard of %nvestments to the effect

@/ #hat the operation or activity of such alien, firm, association, partnership, corporation or other form of

business organiation, is not inconsistent with the %nvestment +riorities +lan;

@7 #hat such business or economic activity will contribute to the sound and balanced development of thenational economy on a self8sustaining basis;

@9 #hat such business or economic activity by the applicant would not conflict with the &onstitution or lawsof the +hilippines;

@ #hat the field of business or economic activity is not one that is being ade5uately e6ploited by +hilippinenationals; and

@

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the applicant, e6cept for violation thereof or other 4ust cause and upon payment of compensation andreimbursement of investment and other e6penses incurred by the licensee in developing a mar-et for thesaid products +rovided, however, #hat in case of disagreement, the amount of compensation orreimbursement shall be determined by the country where the licensee is domiciled or has its principal officewho shall re5uire the applicant to file a bond in such amount as, in its opinion, is sufficient for this purpose(

#he above re5uirements shall be in addition to those set forth in the &orporation &ode of the +hilippines forauthoriing foreign corporations to transact business in the +hilippines(

Ar!"l# '+.&ause for &ancellation of &ertificate of Authority or +ayment of $ine( A violation of any of there5uirements set forth in Article 0 or of the terms and conditions which the ?oard may impose shall be sufficientcause to cancel the certificate of authority issued pursuant to this ?oo- and:or sub4ect firms to the payment of finesin accordance with the rules and regulations issued by the ?oard +rovided, however, #hat aliens or foreign firms,associations, partnerships, corporations or other forms of business organiation not organied or e6isting under thelaws of the +hilippines which may have been lawfully licensed to do business in the +hilippines prior to the effectivityof R(A( wor-ing days from official acceptance thereof(

Ar!"l# '&.+ublication and +osting of !otices( %mmediately after the application has been given due course by the?oard, the Secretary of the ?oard or any official designated by the ?oard shall re5uire the applicant to publish thenotice of the action of the ?oard thereon at his e6pense once in a newspaper of general circulation in the provinceor city where the applicant has its principal office, and post copies of said notice in conspicuous places, in the officeof the ?oard or in the building where said office is located; setting forth in such copies the name of the applicant, thebusiness in which it is engaged or proposes to engage or invest, and such other data and information as may bere5uired by the ?oard( !o approval or certificate shall be valid without the publication and posting of notices as

herein provided(

Ar!"l# ''.Bimited Authority to do ?usiness( When appropriate, the ?oard may grant permissible investments orauthority to do business under ?oo- #wo of this &ode for a limited period where the need to prove economic viabilityof such activity warrants the issuance of a temporary authoriation(

Ar!"l# '6.+eriodic Reports( #he ?oard shall periodically chec- and verify compliance with these provisions, eitherby inspection of the boo-s or by re5uiring regular reports from aliens or foreign firms, domestic enterprises withforeign investments and new entities licensed to do business under Article 1 of this &ode(

A summary of said reports shall be periodically submitted by the ?oard to the +resident( $or this purpose, the ?oardmay re5uire other government agencies licensing and:or regulating foreign enterprises or domestic firms with

foreign e5uity, to furnish the ?oard with reports on such foreign investments(

Ar!"l# '7.+enal &lause(

@/ Without pre4udice to the provisions of Articles 7 and hereof a violation of any provision of ?oo-s % and%% of this &ode, or of the terms and conditions of registration, or of the rules and regulations promulgatedpursuant thereto, or the act of abetting or aiding in any manner any such violation, shall be punished by afine not to e6ceed one hundred thousand pesos @+/>>,>>>(>> or imprisonment for not more than ten @/>years, at the discretion of the &ourt(

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@7 !o official or employee of the government, its subdivisions or instrumentalities shall appear as counselfor or act as agent or representative of, or in any manner intervene or intercede, directly or indirectly, inbehalf of any party in any transaction with the ?oard regarding any application under ?oo-s % and %% of this&ode( #he penalty for violation of this prohibition is the same as that provided for in the precedingparagraph( %f the offender is an appointive official or employee, the ma6imum of the penalty hereinprescribed shall be imposed, and the offender shall suffer the additional penalty of perpetual dis5ualificationfrom public office, without pre4udice to any administrative action against him(

@9 %f the offense is committed by a 4uridical entity, its president and:or other officials responsible therefor

shall be sub4ect to the penalty prescribed above( %f the offender or the president:official, in cases where theoffense was committed by a 4uridical entity, is an alien, he shall be deported without further proceedings onthe part of the 3eportation ?oard in addition to the penalty herein prescribed and shall, if naturalied, beautomatically denaturalied from the date his sentence becomes final(

@ +ayment of the ta6 due after apprehension shall not constitute a valid defense in any prosecution forviolation of any provision of this &ode(

BOO( IIIINCENTIVES TO MU*TINATIONA* COM$ANIES ESTAB*ISHES REIONA* OR AREA HEADUARTERS IN

THE $HI*I$$INES

CHA$TER I*ICENSIN OF THE MU*TINATIONA* COM$AN/

Ar!"l# '8.)ualifications of Dultinational &ompany( Any foreign business entity formed, organied and e6istingunder any laws other than those of the +hilippines whose purpose, as e6pressed in its organiational documents orby resolution of its ?oard of 3irectors or its e5uivalent, is to supervise, superintend, inspect or coordinate, its ownaffiliates, subsidiaries, or branches in the Asia8+acific Region may establish a regional or area head5uarters in the+hilippines, after securing a license therefor from the Securities and E6change &ommission, upon the favorablerecommendation of the ?oard of %nvestments(

#he Securities and E6change &ommission shall, within thirty @9> days from the effectivity of this &ode, issue theimplementing rules and regulations( #he following minimum re5uirements shall, however, be complied with by the

said foreign entity(

@a A certification from the +hilippine $oreign #rade Senior "fficer or in the absence of such an official, a+hilippine &onsul in the foreign firmCs home country that said foreign firm is an entity engaged ininternational trade with affiliates, subsidiaries or branch offices in the Asia8+acific Region(

@b A certification from a principal officer of the foreign entity to the effect that the said foreign entity has beenauthoried by its ?oard of 3irectors or governing copy to establish its regional head5uarters in the+hilippines, specifying that

/( #he activities of the regional head5uarters shall be limited to acting as a supervisory,communications and coordinating center for its subsidiaries, affiliates and branches in the region;

7( #he head5uarters will not derive any income from sources within the +hilippines and will notparticipate in any manner in the management of any subsidiary or branch office it might have in the+hilippines;

9( #he head5uarters shall notify the ?oard of %nvestments and the Securities and E6change&ommission of any decision to close down or suspend operations of its head5uarters or terminatethe services of any e6patriate at least fifteen @/ days fromreceipt of &ertificate of Registration from the Securities and E6change &ommission, the multinational

company will submit to the Securities and E6change &ommission a &ertificate of inward remittance from alocal ban- showing that it has remitted to the +hilippines the amount of at least thirty thousand *nited Statesdollars or its e5uivalent in other foreign currencies and converted the same to +hilippine currency( Annually,within thirty @9> days from the anniversary date of the multinational companyCs registration as a regional orarea head5uarters with the Securities and E6change &ommission, it will submit proof to the Securities andE6change &ommission of inward remittance amounting to at least fifty thousand *nited States dollars or itse5uivalent in other foreign currencies during the past year(

@d Any willful violation by the regional or area head5uarters of a multinational company of any of theprovisions of this &ode, or its implementing rules and regulations, or other terms and conditions of its

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registration, or any provision of e6isting laws, shall constitute a sufficient cause for the cancellation of itslicense or registration(

CHA$TER IIINCENTIVES TO EX$ATRIATES

Ar!"l# '9.Dultiple entry visa( $oreign personnel of regional or area head5uarters of multinational companies, theirrespective spouses, and unmarried children under twenty8one years of age, if accompanying them or if following to

4oin them after their admission into the +hilippines as non8 immigrant shall be issued a multiple entry special visa,

valid for a period of one year, to enter the +hilippines +rovided, #hat a responsible officer or the applicant companysubmits a certificate to the effect that the person who see-s entry into the +hilippines is an e6ecutive of the applicantcompany and will wor- e6clusively for applicantCs company and will wor- e6clusively for applicantCs regional or areahead5uarters which is duly licensed to operate in the +hilippines, and that he will receive a salary and will be paidby the head5uarters in the +hilippines an amount e5uivalent to at least twelve thousand *nited States dollars, or thee5uivalent in other foreign currencies per annum(

#he admission and stay shall be co8terminus with the validity of the multiple entry special visa( #he stay, however, ise6tendible yearly upon submission to the &ommission on %mmigration and 3eportation of a sworn certification by aresponsible officer of the regional or area head5uarters; that its license to operate remains valid and subsisting; thathe has been paid in the +hilippines from the date of original admission, the e5uivalent of at least one thousand*nited States dollars per month, or its e5uivalent in other foreign currencies; and that the regional or area

head5uarters has withheld the ta6 due on said compensation and the same has been paid to the ?ureau of %nternalRevenue(

!on8immigrant who have been admitted under the multiple entry special visa, as well as their respective spousesand dependents, shall be e6empt from the payment of all fees due under the immigration and alien registrationlaws; securing alien certificates of registration; and obtaining immigration clearance certificates, and all types ofclearances re5uired by any government department or agency, e6cept that upon final departure from the +hilippinesthe employer of the said non8immigrants shall so advise in writing the &ommission on %mmigration and 3eportationat least five @< @h of the #ariff and &ustoms &ode, as amended, and Section /=0 @b @ of the %nternal Revenue &ode, asamended(

Ar!"l# 62.#ravel #a6 E6emption( +ersonnel of multinational companies performing technical and supervisoryfunctions with regional head5uarters at, but not engaged in business in the +hilippines and the dependents of suchforeign personnel if 4oining them during the period of their assignment in the +hilippines, as certified to by the ?oardof %nvestments, shall be e6empted from the payment of travel ta6 imposed under Section / of +residential 3ecree

!o( //19, by securing a #ravel #a6 &ertificate from the +hilippine #ourism Authority(

CHA$TER IIIINCENTIVES TO THE REIONA* HEADUARTERS

Ar!"l# 6%.E6emption from %ncome #a6( Regional or area head5uarters established in the +hilippines bymultinational corporations and which head5uarters do not earn or derive income from the +hilippines and which actas supervisory, communications and coordinating center for their affiliates, subsidiaries, or branches in the Asia8+acific Regional shall not be sub4ect to income ta6(

Ar!"l# 6&.E6emption from &ontractorCs #a6( #he regional or area head5uarters established in the +hilippines bymultinational corporations, including their alien e6ecutives, are e6empted from the contractorCs ta6(

Ar!"l# 6'.E6emption from all Jinds of Bocal Bicenses $ees, 3ues( #he regional or area head5uarters ofmultinational companies shall be e6empt from all -inds of local licenses, fees, dues, imposts or any other local ta6esor burdens(

Ar!"l# 66.#a6 and 3uty $ree %mportation of #raining Daterials; %mportation of Dotor ehicles( Regional or areahead5uarters shall also en4oy ta6 and duty free importation of e5uipment and materials for training, conferenceswhich are needed for the functions of the regional or area head5uarters and which are not locally available sub4ectto the prior approval of the ?oard of %nvestments(

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Regional or area head5uarters shall be entitled to the importation of motor vehicles sub4ect to the prior approval ofthe ?oard and the payment of the corresponding ta6es and duties +rovided, #hat such motor vehicles shall be forthe e6clusive use of its e6patriate e6ecutives and that the number thereof shall not e6ceed the number of itse6patriate e6ecutives and that such motor vehicles may be replaced every three @9 years from their importation(

Ar!"l# 67.E6emption from Registration Re5uirements( #he regional or area head5uarters of multinationalcompanies shall be e6empt from the provisions of ?oo- %% of this &ode(

BOO( IV

INCENTIVES TO MU*TINATIONA* COM$ANIES ESTAB*ISHIN REIONA* )AREHOUSES TO SU$$*/S$ARE $ARTS OR MANUFACTURED COM$ONENTS AND RA) MATERIA*S TO THE ASIA-$ACIFIC REION

AND OTHER FOREIN MAR(ETS

Ar!"l# 68.)ualifications( A multinational company organied and e6isting under any laws other than those of the+hilippines which is engaged in international trade and supplies spare parts or manufactured components and rawmaterials to its distributors or mar-ets in the Asia8+acific Area and other foreign areas and which has established orwill simultaneously establish a regional or area head5uarters in the +hilippines in accordance with the provisions of?oo- %%% of this &ode and the rules and regulations implementing the same may also establish regional warehouseor warehouses in the +hilippines, after securing a license therefor from the ?oard of %nvestments(

#he following minimum re5uirements shall be submitted or complied with by the said foreign entity in accordance

with the rules and regulations to be issued by the ?oard of %nvestments as provided for in Article 2 @7 of this &ode(

@a A certification from the $oreign #rade "fficer or in the absence of such an official, a +hilippine &onsul inthe foreign firmCs home country that said foreign firm is engaged in international trade and supplies or willsupply spare parts or manufactured components and raw materials to its distributors or mar-ets in the Asia8+acific Region(

@b A certification from a principal officer of the foreign entity to the effect that said foreign entity has beenauthoried by its ?oard of 3irectors or governing body to establish its regional warehouse in the +hilippines,specifying that

/( #he activities of the regional warehouse shall be limited to serving as a supply depot for the

storage, deposit, safe-eeping of its spare parts or manufactured components and raw materialsincluding the pac-ing, covering, putting up, mar-ing, labelling and cutting or altering to customerCsspecification, mounting and:or pac-aging into -its or mar-etable lots thereof, to fill up transactionsand sales made by its head offices or parent companies and to serving as a storage or warehouse ofgoods purchased locally by the home office of the multinational for e6port abroad; +rovided, #hatsaid locally purchased goods for e6port may be stored in the regional warehouse only after theyhave been cleared for e6port in accordance with the laws and regulations, including those of the&entral ?an- and simplified procedures governing e6ports( #he regional warehouse shall not directlyengage in trade nor directly solicit business, promote any sale, nor enter into any contract for thesale or disposition of goods in the +hilippines(

7( #he regional warehouse will not derive any income from the sources within the +hilippines and itspersonnel will not participate in any manner in the management of any subsidiary, affiliate or branch

office it might have in the +hilippines(

9( #he personnel of the regional head5uarters shall be responsible for the operation of the regionalwarehouse sub4ect to the provisions of this &ode(

@c #he multinational company shall pay the ?oard of %nvestments and the appropriate Regional &ollector of&ustoms the corresponding license fees and storage fees to be determined by said offices(

@d An application for the establishment of a regional warehouse shall be made in writing to the ?oard of%nvestments upon recommendation of the ?ureau of &ustoms( #he application shall describe the premises,the location and capacity of the regional warehouse and the purpose for which the building is to be used(

#he 4urisdiction and responsibility of supervising the regional warehouses shall be vested on the ?ureau of&ustoms(

#he ?oard of %nvestments, in consultation with the Regional 3irector of &ustoms of the district where thewarehouse will be situated shall cause an e6amination of the premises to be made with referenceparticularly to the location, construction and means provided for the safe-eeping of its articles and if foundsatisfactory, it may authorie its establishment without complying with the re5uirements of any othergovernment body and aimed at providing speedy procedure for its establishment, sub4ect to the followingconditions

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/ #hat the articles to be stored in the warehouse are spare parts or manufactured componentsand:or raw materials of the multinational company operator for distribution and supply to its Asia8+acific mar-ets including pac-aging, coverings, brands, labels and warehouse e5uipment asprovided in Art( =0 @a hereof;

7 #hat the entry or importation, storage or re8e6port of the goods destined for or to be stored in theregional warehouse will not involve any dollar outlay from +hilippine sources;

9 #hat they are of such character as to be readily identifiable for re8e6port; and in case of local

distribution they shall be sub4ect to Article =0 paragraph @b and the guidelines implementing ?oo- %of this &ode;

#hat they shall be allowed provisional entry e6peditiously by means of a pro forma invoice of theparent company, identified, e6amined and appraised by the Regional &ollector of &ustoms and theyshall be directly delivered to and -ept in the regional warehouses and released therefrom only inaccordance with Article =0 paragraphs @a and @b and the guidelines implementing ?oo- % of this&ode;

%n the absence of a Regional &ollector of &ustoms where the volume of the establishment ofregional warehouses does not yet warrant the creation of said offices, the duties of the Regional&ollector of &ustoms shall be performed by the &ollector of &ustoms of the district where the

regional warehouse will be located(

7, as amended, of the #ariff and &ustoms &ode ofthe +hilippines; +rovided, further, that a sale pursuant to a 4udicial order shall not be sub4ect to the precedingproviso without pre4udice to the payment of duties, ta6es and other charges(

Ar!"l# 7+.E6emption from the Da6imum Storage +eriod under the #ariff and &ustoms &ode; +eriod of Storage inthe Regional Warehouse( #he provision of the law in Section /0>1 of the #ariff and &ustoms &ode of the+hilippines, as amended, to the contrary notwithstanding, articles duly entered for warehousing may remain in theregional warehouses for a period of two @7 years from the time of their transfer to the regional warehouse, whichperiod may be e6tended with the approval of the ?oard of %nvestments for an additional period of one @/ year upon

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payment of the corresponding storage fee on the une6ported articles, as provided for under Article =1 paragraph @cfor each e6tension until they are re8e6ported in accordance with the guideline implementing ?oo- % of this &ode(

Any article, withdrawn, release or removed contrary to the provisions of said guidelines shall be forfeited pursuant tothe provisions of Article =0, paragraph @b hereof(

Ar!"l# 71.Rules and Regulations on the urisdiction, "peration and &ontrol over )ualified Goods Stored in theRegional Warehouse( #he ?oard of %nvestments and the ?ureau of &ustoms shall 4ointly issue special rules andregulations on the receiving, handling, custody, entry, e6aminations, classifications, delivery, storage, warehousing,manipulation and pac-aging, release for re8e6portation and for the safe-eeping, recording, inventory and li5uidation

of said 5ualified goods, any e6isting law notwithstanding( Such rules and regulations shall be formulated inconsultation with the applicants:operators of regional warehouses in order to be responsive to the ob4ective ofproviding a procedure for the speedy inflow and outflow of the 5ualified goods which are destined for the Asia8+acific and other foreign mar-ets and -eeping a proper balance between promoting the +hilippines as a center formultinational regional warehouses and safeguarding the revenue laws of the country( lawphi1.net

#he &ommissioner of customs is directed is directed to e6pedite the immediate re8e6portation or transhipment of theforegoing goods destined for regional warehousing to their Asia8+acific and other foreign mar-ets, including theemergency withdrawal for re8e6portation by air and ship and the partial li5uidation of bonds adopting simplifiede6port procedures therefor(

Ar!"l# 72.+enalties( Any willful violation by the regional or area head5uarters of a multinational company which

has established regional warehouse or warehouses of the provisions of e6isting laws and the implementingguidelines of ?oo- % of this &ode shall constitute a sufficient cause for the cancellation of its license or registrationin addition to the penalties hereinabove provided in Article =0, paragraph @b hereof(

Ar!"l# 7%.#he regional or area head5uarters of multinational companies establishing regional warehouses shall bee6empt from the provisions of ?oo- %% of this &ode(

BOO( VS$ECIA* INVESTORS RESIDENT VISA

Ar!"l# 7&.)ualifications( Any alien who possesses the following 5ualifications may be issued a Special %nvestorsResident isa(

/( He had not been convicted of a crime involving moral turpitude;

7( He is not afflicted with any loathsome, dangerous or contagious disease;

9( He has not been institutionalied for any mental disorder or disability;

( He is willing and able to invest the amount of at least *S2>>(>> in the +hilippines; +rovided, #hat theforegoing invested amount shall be lowered to *S,>>> for aliens availing of E6ecutive "rder !o( =9 andE6ecutive "rder !o( />92 sub4ect to the conditions imposed by said legislations +rovided, further, #hat forpurposes of compliance with this particular condition, the alien8applicant should prove that he has remittedsuch amount in acceptable foreign currency to the +hilippines(

Ar!"l# 7'.Reportorial Re5uirements( As a holder of the Special %nvestors Resident isa, an alien shall be entitledto reside in the +hilippines while his investment subsists( $or this purpose, he should submit an annual report, in theform fully prescribed for the purpose, to prove that he has maintained his investment in the country( Should saidalien withdraw his said investment from the +hilippines, then the Special %nvestors Resident isa issued to him willautomatically e6pire(

BOO( VIINCENTIVES OF EX$ORT $ROCESSIN 0ONE ENTER$RISES

Ar!"l# 76.Employment of $oreign !ationals( #he provisions of law to the contrary notwithstanding, E6port+rocessing 'one Authority, hereinafter referred to as the .Authority. may authorie an alien or an association,partnership, corporation or any other form of business organiation formed, organied, chartered or e6isting underany law other than those of the +hilippines, or which is not a +hilippine national, or the wor-ing capital of which idfully owned or controlled by aliens to do business or engage in an industry inside the e6port processing one(

Sub4ect to the provisions of Section 70 of &ommonwealth Act !o( =/9, as amended, an enterprise, a oneregistered enterprise may employ foreign nationals in supervisory, technical or advisory positions for a period note6ceeding five @

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$oreign nationals employed within the purview of this ?oo-, their spouses, and unmarried children under twenty8oneyears of age who are not e6cluded by Sec( 70 of &(A( !o( =/9, as amended, shall be permitted to enter and residein the +hilippines during the period of employment of such foreign nationals( #hey shall be issued a multiple entryvisa, valid for a period of three years, to enter and leave the +hilippines without further documentary re5uirementsother than valid passports or other travel documents in the nature of passports( #he validity of the multiple entryspecial visa shall be e6tendible yearly( $oreign !ationals who have been issued multiple entry special visas underthis provision, as well as their respective spouses and dependents, shall be e6empt from obtaining alien certificatesand all types of clearances re5uired by any government department or agency( $or this purpose, the &ommission on%mmigration and 3eportation and the authority shall 4ointly issue the necessary implementing rules and regulations(

A registered enterprise shall train $ilipinos as understudies of foreign nationals in administrative, supervisory andtechnical s-ills and shall submit annual reports of such training to the ?oard(

Ar!"l# 77.#a6 #reatment of Derchandise in the 'one(

@/ E6cept as otherwise provided in this &ode, foreign and domestic merchandise, raw materials, supplies,articles, e5uipment, machineries, spare parts and wares of every description, e6cept those prohibited by law,brought into the one to be sold, stored, bro-en up, repac-ed, assembled, installed, sorted, cleaned, graded,or otherwise processed, manipulated, manufactured, mi6ed with foreign or domestic merchandise whetherdirectly or indirectly related in such activity, shall not be sub4ect to customs and internal revenue laws andregulations nor to local ta6 ordinances, the provisions of law to the contrary notwithstanding(

@7 Derchandise purchased by a registered one enterprise from the customs territory and subse5uentlybrought into the one, shall be considered as e6port sales and the e6ported thereof shall be entitled to thebenefits allowed by law for such transaction(

@9 3omestic merchandise sent from the one to the customs territory shall, whether or not combined with ormade part of other articles li-ewise of local origin or manufactured in the +hilippines while in the e6portprocessing one, be sub4ect to internal revenue laws of the +hilippines as domestic goods sold, transferredor disposed of for local consumption(

@ Derchandise sent from the e6port processing one to the customs territory shall, whether or notcombined with or made part of other articles while in the one, be sub4ect to rules and regulations governing

imported merchandise( #he duties and ta6es shall be assessed on the value of imported materials @e6ceptwhen the final product is e6empt and the internal revenue ta6es on the values added(

@

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Authority as herein provided shall be e6panded for such community facilities, utilities and:or services as theAuthority may determine(

@b +roduction e5uipment or machineries, not attached to real estate, used directly or indirectly, in theproduction, assembly or manufacture of the registered product of the one registered enterprise shall bee6empt from real property ta6es(

FINA* $ROVISIONS

Ar!"l# 79.%nterpretation( All doubts concerning the benefits and incentives granted enterprises and investors bythis &ode shall be resolved in favor of investors and registered enterprises(

Ar!"l# 8+.ested Rights( E6isting registered enterprises which are en4oying the incentives under the laws repealedby ?oo-s "ne and Si6 of this &ode shall continue to en4oy such incentives for the period therein stated +rovided,however, #hat firms which made investments in new or e6pansion pro4ects approved or registered by the ?oard ofthe Authority on or after 3ecember /, /01= but before the effectivity of this &ode may opt to be governed by theprovisions of this &ode(

Ar!"l# 81.&onfidentiality of Applications( All applications and their supporting documents filed under this &ode shallbe confidential and shall not be disclosed to any person, e6cept with the consent of the applicant or on orders of acourt of competent 4urisdiction(

Ar!"l# 82.udicial Relief( All orders or decisions of the ?oard in cases involving the provisions of this &ode shallimmediately be e6ecutory( !o appeal from the order or decision of the ?oard by the party adversely affected shallstay such order or decision +rovided, #hat all appeals shall be filed directly with the Supreme &ourt within thirty@9> days from receipt of the order or decision(

Ar!"l# 8%.Effectivity of %mplementing Rules and Regulations( #he ?oard shall promulgate rules and regulations toimplement the intent and provisions of this &ode and shall have the authority to impose such fines in amounts thatare 4ust and reasonable in cases of late submission or non8compliance on the part of registered enterprises, withreporting and other re5uirements under this &ode and its implementing rules and regulations( Such rules andregulations shall ta-e effect fifteen @/