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This page features the full text of
Republic Act No. 5490
AN
ACT MAKING MARIVELES, PROVINCE OF BATAAN, A PORT OF ENTRY BY AMENDING
SECTION
SEVEN HUNDRED ONE OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS
AMENDED, PROVIDING FOR THE ESTABLISHMENT, OPERATION AND MAINTENANCE OF
A FOREIGN TRADE ZONE THEREIN; CREATING A FOREIGN TRADE ZONE AUTHORITY;
AND AUTHORIZING THE APPROPRIATION OF THE NECESSARY FUNDS THEREFOR.
REPUBLIC
ACT NO. 5490 AN
ACT MAKING MARIVELES, PROVINCE OF BATAAN, A PORT OF ENTRY BY AMENDING
SECTION
SEVEN HUNDRED ONE OF THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AS
AMENDED, PROVIDING FOR THE ESTABLISHMENT, OPERATION AND MAINTENANCE OF
A FOREIGN TRADE ZONE THEREIN; CREATING A FOREIGN TRADE ZONE AUTHORITY;
AND AUTHORIZING THE APPROPRIATION OF THE NECESSARY FUNDS THEREFOR.
Section
1. Declaration of Policy. — It
is hereby declared to be the policy of the government to stimulate,
expedite,
encourage and promote foreign commerce as a means of making the
Philippines
a vital center of international trade, of strengthening our foreign
exchange
position, of hastening industrialization, of overcoming domestic
unemployment,
of accelerating the development of the country and of insuring the
economic
security of all the people as provided in the Constitution.cralaw:red
Sec.
2. Mariveles Port: establishment
of foreign trade zone therein: admission of foreign and domestic
merchandise.
— To attain the above policy, Mariveles, Province of Bataan, is hereby
made a principal port of entry by further amending section seven
hundred
one of Republic Act Numbered Nineteen hundred thirty-seven, otherwise
known
as the Tariff and Customs Code of the Philippines, as amended, to read
as follows:
"701. Collection
Districts and Ports of Entry therefor. — For administrative purposes,
the
Philippines shall be divided into as many collection districts as there
are at present existing, the respective limits of which may be changed
from time to time by the Commissioner of the Bureau of Customs, upon
approval
of the department head. The principal ports of entry for the respective
collection districts shall be Manila, Sual, Tabaco, Cebu, Pulupandan,
Sia-in,
Iloilo, Davao, Legaspi, Zamboanga, Jolo, Aparri, Jose Panganiban,
Cagayan,
Tacloban, San Fernando, Hinigaran, Dumaguete City, San Jose, Maasin,
Maao,
Iligan City, Batangas, Bulatay, Supang, Virac, Cabugao, Gaang, Dagupan
City, Bislig, Catbalogan, Surigao and Mariveles."
There
is hereby established in the Mariveles Port a foreign trade zone herein
referred to as the Zone. Foreign and domestic merchandise of every
description,
except such as is prohibited by law, may, without being subject to the
customs and internal revenue laws and regulations of the Philippines,
except
as otherwise provided in this Act, be brought into and Zone and may be
stored, sold, exhibited, broken up, repacked, assembled, distributed,
sorted,
graded, cleaned, mixed with foreign or domestic merchandise, or
otherwise
manipulated, or be manufactured except as otherwise provided in this
Act,
and be exported, destroyed or sent into customs territory of the
Philippines
therefrom, in the original package or otherwise, under the following
terms
and conditions:
(1) When
foreign merchandise is sent from the Zone into the customs territory of
the Philippines, it shall be subject to the laws and regulations of the
Philippines affecting imported merchandise; (2) Whenever
the privilege shall be requested and there has been no manipulation or
manufacture effecting a change in tariff classification, the
Commissioner
of Customs, shall take under supervision any lot or part of a lot of
foreign
merchandise in the Zone, cause it to be appraised and taxes determined
and duties liquidated thereon. Merchandise so taken under supervision
may
be stored, manipulated, or manufactured under the supervision and
regulation
prescribed by the Secretary of Finance, and whether mixed or
manufactured
with domestic merchandise or not may, under regulation prescribed by
the
Secretary of Finance, be exported or destroyed, or may be sent in
customs
territory upon the payment of such liquidated duties and determined
taxes
thereon. If merchandise so taken under supervision has been manipulated
or manufactured, such duties and taxes shall be payable on the quantity
of such foreign merchandise used in the manipulation, or manufacture of
the entered article. Allowance shall be made for recoverable and
irrevocable
waste; and if recoverable waste is sent into customs territory, it
shall
be dutiable and taxable in its condition and quantity and at its weight
at the time of entry. Where two or more products result from the
manipulation
or manufacture of merchandise in the Zone; the liquidated duties and
determined
taxes shall be distributed to several products in accordance with their
relative value at the time of separation with the due allowances for
waste
as provided for above;
(3) Subject
to such regulations respecting identity and the safeguarding of the
revenue
as the Secretary of Finance may deem necessary, articles, the growth,
product,
or manufacture of the Philippines, on which all internal revenue taxes
have been paid, if subject thereto, and articles previously imported on
which duty and/or tax has been paid, or which have been admitted free
of
duty and tax, may be taken into the Zone from the customs territory of
the Philippines, placed under the supervision of the Commissioner, and
whether or not they have been combined with or made part, while in said
Zone, of other articles, may be brought back thereto free of quotas,
duty,
or tax;
(4) If
in the opinion of the Secretary of Finance their identity has been
lost,
such articles not be entitled to free entry by reason of non-compliance
with the requirements made hereunder by the Secretary of Finance shall
be treated when they re-enter customs territory of the Philippines as
foreign
merchandise under the provisions of the customs, tariff and internal
revenue
laws in force at the time;
(5) Under
the rules and regulations of the Secretary of Finance, articles which
have
been taken into the Zone from customs territory for the sole purpose of
exportation, destruction (except destruction of distilled spirits,
wines
and fermented liquors), or storage shall be construed to be exported
for
the purpose of —
"(a) the
draw-back warehousing and bonding, or any other provisions of the
Customs
and Tariff Code of the Philippines, as amended, and the regulations
thereunder;
and"(b) the
statutes and bonds exacted for the payment of drawback, refund, or
exception
from liability for internal revenue taxes and for purpose of the
internal
revenue laws generally and the regulations thereunder. Such a transfer
may also be considered an exportation for the purpose of other laws and
regulations in so far as offices or agencies charged with the
enforcement
of those laws deem it advisable. Such articles may not be returned to
customs
territory for domestic consumption except where such return is in the
public
interest. (6) Articles
produced or manufactured in the Zone and exported therefrom shall on
subsequent
importation into the customs territory of the Philippines be subject to
the import laws applicable to like articles manufactured in a foreign
country
except that articles produced or manufactured in the Zone exclusively
with
the use of domestic merchandise, the identity of which has been
maintained
in accordance with the second condition of this section, may, on such
importation,
be entered as Filipino goods returned.chanrobles virtual law library
Sec.
3. Creation of a Foreign Trade
Zone Authority. — A Foreign Trade Zone Authority, hereafter referred to
as Authority is hereby created to be composed of a Chairman and four
members
who shall be appointed for a term of six years by the President, with
the
consent of the Commission on Appointments: Provided, That the terms of
office of the first appointees shall be fixed as follows: the Chairman
shall be for six years, two members shall be for four years, and the
last
two members shall be for two years: Provided, further, That upon the
expiration
of his term, a member shall serve as such until his successor shall
have
been appointed and qualified: Provided, finally, That no vacancy shall
be filled except for the unexpired portion of any term. The Authority
shall
hold its office in Mariveles.chanrobles virtual law library
No
person shall be appointed as Chairman or member of the Foreign Trade
Zone
Authority unless he is a citizen of the Philippines, of good moral
character
and of unquestionable integrity and responsibility, and of recognized
competence
in customs administration, taxation, economics, commerce, and
industry.chanrobles virtual law library
The
Chairman shall receive a salary of twenty-four thousand pesos per
annum,
and each member shall receive a salary of twenty thousand pesos per
annum.cralaw:red
Sec.
4. Powers and Duties. — The Foreign
Trade Zone Authority shall have the following powers and duties:
(a) To
fix and delimit the site of the Zone which shall at all times remain to
be owned by the Government, and which shall have a contiguous and
adequate
area with well defined and policed boundaries, with adequate enclosures
to segregate the Zone from the customs territory for protection of
revenues,
together with suitable provisions for ingress and egress of persons,
conveyance,
vessels and merchandise sufficient for the purpose of this Act; (b) To
determine and regulate the enterprises to be established within the
port
in order not to adversely affect the operations of existing domestic
industries
outside the Zone, and to operate the Zone as a public utility wherein
all
the rates and charges for all services or privileges within the Zone
shall
be fair and reasonable, and the Authority shall afford all who may
apply
for the use of the Zone and its facilities and appurtenances uniform
treatment
under like conditions subject to such treaties or commercial
conventions
as are not enforced or may hereafter be made by the Philippines with
any
foreign government from time to time;
(c) To
direct the management, operation and maintenance of the Zone and to
provide
necessary facilities and appurtenances thereof;
(d) Upon
application to grant, under uniform and reasonable rates and
regulations
made thereunder, permit to persons, firms, corporations or associations
the use of the Zone and its facilities, the privilege to erect such
buildings
and other structures within the Zone as will meet their particular
requirements:
Provided, That such permission shall not constitute a vested right as
against
the government, nor interfere with the regulation of the Authority, nor
interfere with the complicate the revocation of the grant: Provided,
further,
That such permits shall not be granted on terms that conflict with the
public use of the Zone as set forth in this Act;
(e) To
authorize expenditures out of its net operating income but not in
excess
of two hundred fifty thousand pesos, in addition to its annual
appropriations;
(f) To
issue such rules and regulations not inconsistent with the provisions
of
this Act or the rules and regulations of the Secretary of Finance made
hereunder and as may be necessary to carry out the provisions of this
Act;
(g) To
appoint, fix remunerations, and remove for cause all officers and
employees;
and
(h) To
exercise all the powers necessary to attain the purpose for which it is
organized and for which this Act is enacted.
Sec.
5. Assignment of customs officers
and guards. — The Secretary of Finance shall assign to the Zone the
necessary
customs officers and guards to protect the revenue and provide for the
admission of foreign merchandise into customs territory.chanrobles virtual law library
Sec.
6. Vessels subject to Philippine
laws. — Vessels entering or leaving the Zone shall be subject to the
operation
of all laws of the Philippines, except as otherwise provided in this
Act,
and vessels leaving the Zone and arriving in customs territory of the
Philippines
shall be subject to such regulations to protect the revenue as may be
prescribed
by the Secretary of Finance.chanrobles virtual law library
Sec.
7. Annual Report. — The Authority
shall submit, within ten days from the opening of the regular session
of
Congress, an annual report to the Presiding Officers of both Houses,
containing
the details of the operation and fiscal condition of the Zone and
transmit
copies of said report to all members of Congress.cralaw:red
Sec.
8. Promulgation of rules and
regulations by the Secretary of Finance. — The Secretary of Finance
shall
prescribe within six months from the effectivity of this Act such rules
and regulations as may be necessary to carry out this Act.
Sec.
9. Penalties. — Any person violating
any provision of this Act or any of the rules and regulations
promulgated
under Section four hereof, shall suffer the penalty of imprisonment of
not less than five years nor more than ten years and fine of not less
than
five thousand pesos nor more than ten thousand pesos and, in addition,
such violation shall ipso facto constitute a valid ground for the
revocation
of all privileges, permits and authorization granted to such person
under
this Act: Provided, however, That if the offender is a
corporation,
firm, partnership or association, the penalty shall be imposed upon the
guilty officer or officers as the case may be of the corporation, firm
or association, and if such guilty officer or officers be alien or
aliens,
in addition to the penalties herein prescribed, he or they shall be
deported
without further proceedings on the part of the Deportation Board.cralaw:red
Any
officer or employee of the Government who by himself or through his
agent,
acting under his discretion and authority, shall connive, abet, or
tolerate
the violation of the provisions of this Act or any rules and
regulations
promulgated under Section four hereof or who fails to report within
thirty
days any violation thereof to the fiscal or chief of police in the
place
where the Zone is located shall suffer the penalties prescribed in the
preceding paragraph including perpetual disqualification to hold public
office.
The
foregoing penalties shall be without prejudice to the assessment and
collection
of such taxes and duties as may be due on the foreign-made articles or
merchandise which have been landed in the Zone and have not been
re-shipped
to a foreign port at the time of the revocation of the authority of the
offender to operate within the Zone. In the event such taxes and duties
shall not for any reason be paid upon demand by the Collector of
Customs
of the port within whose collection district the Zone is located, the
foreign-made
articles or merchandise of the offender remaining within such Zone at
the
time of revocation of its authority to operate therein, including its
physical
plants, machinery and equipment therein, shall, after due notice and
hearing,
be forfeited in favor of the Government and may be disposed of by the
Government
in the manner and for such purpose as it may so desire.
Sec.
10. Appropriations. — To carry
out the purposes of this Act, there is hereby authorized to be
appropriated,
out of any funds in the National Treasury not otherwise appropriated,
the
sum of two hundred fifty thousand pesos for the fiscal year nineteen
hundred
sixty-nine.cralaw:red
Sec.
11. Effectivity. — This Act shall
take effect upon its approval.
Approved:
June 21, 1969
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