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PRESIDENTIAL DECREE NO. 1716
PRESIDENTIAL DECREE NO. 1716 -
FURTHER AMENDING PRESIDENTIAL DECREE NO. 66 DATED NOVEMBER 20, 1972,
CREATING THE EXPORT PROCESSING ZONE AUTHORITY
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WHEREAS,
for the purpose of accelerating industrial dispersal, employment
generation and export promotion, LOI 1033 has amended the development
of twelve (12) more export processing zones in strategic locations in
the Philippines; chanroblesvirtualawlibrary
WHEREAS, in order to make export processing zones more competitive and
attractive to potential investors, and to increase the capability and
effectiveness of the Export Processing Zone Authority (EPZA) in the
attainment of its objectives, it has become necessary to update and
amend the incentive schemes for enterprises within the zone.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree the further amendment of Presidential Decree No. 66
dated November 20, 1972, as amended, as follows:cralaw:red
Section 1. Gross receipts of or from registered zone
enterprises shall be exempt from the contractor's tax under Section 205
of the Tax Code of 1977, as amended.
Section 2. A net operating loss incurred in any of
the first ten years of operation as a registered zone enterprise may be
carried over as a deduction from taxable income for the six years
immediately following the year of such loss. The entire amount of the
loss shall be carried over to the first of six taxable years following
the loss, and any portion of such loss which exceeds the taxable income
of such first year shall be deducted in like manner from the taxable
income of the next remaining five years. The net operating loss shall
be computed in accordance with the provisions of the National Internal
Revenue Code, any provision of this Decree to the contrary
notwithstanding, except that income not taxable either in whole or in
part under this Decree or other laws shall be included in gross
income. chanroblesvirtualawlibrary
Section 3. All merchandise, raw materials, supplies,
articles, equipment, machineries, spare parts and wares of every
description brought into the zones by the zone enterprises in
connection with their registered operation shall be exempted from all
dues, fees, charges and rates, including wharfage and storage dues,
collectible under Title VII on the Tariff and Customs Code.
Section 4. Production equipment used directly or
indirectly in production, assembly or manufacture of the registered
export products or registered zone enterprises shall be exempted from
real property tax.
Section 5. Utility companies, including the National
Power Corporation, Philippine Long Distance Company, water supply and
telex companies shall extend priority service to export processing
zones, and shall extend to EPZA and/or the registered zone enterprises
the most preferred terms and rates possible. EPZA shall have the
option, within any zone or area administered by it, to install, manage
and operate facilities, utilities and systems necessary for its
operation.
Section 6. The administration and enforcement of the
provisions of Presidential Decree No. 1096, otherwise known as the
National Building Code of the Philippines in all zones and areas owned
or administered by the Authority shall be vested in the Administrator
or his duly authorized representative. He shall appoint such EPZA
qualified personnel as may be necessary to act as Building Officials
who shall be charged with the duty of issuing Building Permits in the
different zones. All fees and dues collected by the Building Officials
under the National Building Code shall accrue to the Authority.
Section 7. Foreign nationals employed under the
provisions of Presidential Decree No. 66, their respective spouses, and
unmarried children under twenty-one years of age shall be issued a
multiple entry special visa, valid for a period of one-year, to enter
and leave the Philippines without further documentary requirements
other than valid passports or other travel documents in the nature of
passports. The validity of the multiple entry special visa shall be
extendible yearly. Foreign nationals who have been issued multiple
entry special visas under this provision, as well as their respective
spouses and dependents, shall be exempt from obtaining alien
certificates of registration and emigration clearance certificates and
all types of clearances required by any government department or
agency. For this purpose, the Commission on Immigration and Deportation
and the EPZA shall jointly issue the necessary implementing rules and
regulations.
Section 8. Any provision of law to the contrary
notwithstanding, the EPZA, in consultation with the Bureau of Customs,
shall adopt procedures which would facilitate the rapid movement of raw
materials, components, goods, commodities and finished products to and
from export processing zones, taking into account the need to attain
the objectives of customs and internal revenue regulations and the need
to facilitate export activities within the zone.
Section 9. The EPZA, in the exercise of its sole
police authority over export processing zones and areas owned or
administered by the Authority, shall have the power to receive and
investigate complaints relative to violations of penal laws committed
inside the zones and areas owned or administered by the Authority, and
when the evidence warrants, to file and be deputized herein to
prosecute the corresponding criminal cases before the appropriate court
or body.
Section 10. The Authority, through its Board of
Commissioners may segregate not more than twenty per cent (20%) of the
land area of each zone to be sold, leased or otherwise disposed of
primarily for housing and community purposes. The disposition and
development of the area segregated shall be subject to such terms and
conditions as may be prescribed by the Authority. chanroblesvirtualawlibrary
Section 11. With respect to, and for expeditious
implementation of EPZA infrastructure projects, the power to approve
detailed engineering documents, awards and contracts executed as a
result of competitive public biddings, negotiated contracts, assignment
of contracts, adjustment of contract prices and change orders, extend
work orders now vested in the Minister of Public Works, Transportation
and Communication, the Minister of Public Highways or the Ministry of
Energy by Presidential Decree No. 1594 and its implementing rules and
regulations, are hereby vested in the Minister of Industry.
Section 12. All laws, executive orders, rules and
regulations or part thereof inconsistent with this Decree are hereby
repealed and/or modified accordingly.
Section 13. This Decree shall take effect immediately.
Done in the City of Manila,
this 21st day of August, in the year of Our Lord, nineteen hundred and
eighty.
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