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This page features the full text of
Republic Act No. 7903
Zamboanga
City Special Economic Zone Act of 1995
AN
ACT CREATING A SPECIAL ECONOMIC ZONE AND FREE PORT IN THE CITY OF
ZAMBOANGA
CREATING FOR THIS PURPOSE THE ZAMBOANGA CITY SPECIAL ECONOMIC ZONE
AUTHORITY,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7903
AN
ACT CREATING A SPECIAL ECONOMIC ZONE AND FREE PORT IN THE CITY OF
ZAMBOANGA
CREATING FOR THIS PURPOSE THE ZAMBOANGA CITY SPECIAL ECONOMIC ZONE
AUTHORITY,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.
Section
1. Short Title. — This Act shall
be known as the "Zamboanga City Special Economic Zone Act of 1995."
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Sec.
2. Declaration of Policy. — It
is hereby declared the policy of the State to encourage and promote the
attainment of a sound and balanced industrial, economic and social
development
in the country through the promotion of private enterprises. Towards
this end, the State shall endeavor to establish special economic zones
in suitable and selected areas in the country where enterprises will be
given incentives to create an environment conducive to business. This
shall be the means to attract local and foreign investors, general
employment
opportunities, and encourage the regional dispersal of industries.
Sec.
3. Creation of the Zamboanga
City Special Economic Zone. — In accordance with the foregoing policy
and
subject to the concurrence of the city government of Zamboanga affected
by the zone, there is hereby established a special economic zone in the
City of Zamboanga to be known as the Zamboanga City Special Economic
Zone,
hereinafter referred to as the ZAMBOECOZONE. The
specific metes and bounds of the ZAMBOECOZONE shall be more
particularly
defined in a presidential proclamation that shall be issued for this
purpose.
Sec.
4. Governing Principles. — The
Zamboanga City Special Economic Zone shall be managed and operated
under
the following principles:
(a) Within
the framework and limitations of the Constitution and the applicable
provisions
of the Local Government Code, the ZAMBOECOZONE shall be developed into
a decentralized, self-reliant and self-sustaining agro-industrial,
commercial,
financial, investment and tourist center and free port with suitable
retirement
and residential areas. The ZAMBOECOZONE shall be provided with
transportation,
telecommunications, and other facilities needed to attract legitimate
and
productive foreign investments, generate linkage industries and
employment
opportunities for the people of Zamboanga City and its neighboring
towns
and cities.chanrobles virtuallaw libraryred(b) The
ZAMBOECOZONE may establish mutually beneficial economic relations with
other entities within the country, subject to the administrative
guidance
of the Department of Foreign Affairs and/or Department of Trade and
Industry
with foreign entities or enterprises.chan
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(c) Foreign
citizens and companies owned by non-Filipinos in whatever proportion
may
set up enterprises in the ZAMBOECOZONE, either by themselves or in
joint
venture with Filipinos in any sector of industry, international trade
and
commerce within the ZAMBOECOZONE.
(d) The
ZAMBOECOZONE shall be managed and operated as a separate customs
territory
to ensure and facilitate the free flow, entry and movement of machinery
and other goods.It shall be vested
with the authority to issue certificates of origin for products
manufactured
or processed in the ZAMBOECOZONE in accordance with prevailing rules of
origin, and the pertinent regulations of the duly recognized national
bodies
tasked to oversee all other ECOZONES in the country.
(e) Business
establishments within the ZAMBOECOZONE shall be entitled to the
existing
fiscal incentives as provided for under Presidential Decree No. 66, the
law creating the Export Processing Zone Authority, or those provided
under
Book VI of Executive
Order No. 226, otherwise known as the Omnibus Investment Code of 1987,
and such incentives, benefits or privileges presently enjoyed by
business
establishments operating within the Subic Special Economic Zone
pursuant
to Republic Act No. 7227.
(f) Any
provisions of existing laws, rules or regulations to the contrary
notwithstanding,
no taxes, local and national, shall be imposed on business
establishments
operating within the ZAMBOECOZONE.In
lieu of paying taxes, said business establishments shall pay and remit
to the national government two percent (2%) of their gross income.In
addition, they shall remit to the city government of Zamboanga three
percent
(3%) of their gross income, to be allocated as follows:
(1) Two
percent (2%) to the City of Zamboanga; andchanrobles virtuallaw libraryred(2) One
percent (1%) to the barangay special development fund, which is hereby
created, for the development and improvement of the barangays within
the
City of Zamboanga. (g) Except
as otherwise provided herein, the local government unit/s embraced
within
the ZAMBOECOZONE shall retain and maintain their basic autonomy and
identity. Zamboanga
City shall operate and function in accordance with Republic Act No.
7160,
otherwise known as the Local Government Code of 1991.chanrobles virtuallaw libraryred(h) Any
foreign investor who establishes a business enterprise within the
ZAMBOECOZONE
and who maintains capital investment of not less than One hundred fifty
thousand United States dollars (US$150,000) shall be granted, along
with
his or her spouse, dependents, and unmarried children below twenty-one
(21) years of age, a permanent resident status within the ZAMBOECOZONE.
Such
foreign investor and his or her spouse, dependents and unmarried
children
below the age of twenty-one (21) years, shall have freedom of ingress
and
egress to and from the ZAMBOECOZONE without any need of any special
authorization
from the Bureau of Immigration and Deportation.
Likewise,
the Zamboanga City Special Economic Zone Authority shall issue working
visas renewable every two (2) years to foreign executives and foreign
technicians
with highly specialized skills which no Filipino possesses, as
certified
by the Department of Labor and Employment.
The
names of the foreigners granted permanent resident status and working
visas
by the Zamboanga City Special Economic Zone Authority shall be reported
to the Bureau of Immigration and Deportation within thirty (30) days
from
such grant.
The
foregoing is without prejudice to a foreigner acquiring permanent
resident
status in the Philippines in accordance with applicable immigration,
retirement,
and other related laws.
(i) The
provisions of any law to the contrary notwithstanding, any foreigner,
partnership,
corporation, or any other business association not created and existing
under the laws of the Republic of the Philippines, engaged in the
business
of retailing goods and merchandise, shall be permitted to engage in the
business in such retail trade within the ZAMBOECOZONE after securing
license
for that purpose from the Zamboanga City Special Economic Zone
Authority: Provided, That only foreign nationals engaged in
medium- and large-scale
retail
trade may be permitted to engage in such business within the
ZAMBOECOZONE. The
determination of the medium- and large-scale retail trade operation
shall
be the responsibility of the ZAMBOECOZONE Authority.chan
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(j) Existing
banking laws and Bangko Sentral ng Pilipinas (BSP) rules and
regulations
shall apply on foreign exchange and other current account transactions
(trade and non-trade), local and foreign borrowings, foreign
investments,
establishment and operation of local and foreign banks, foreign
currency
deposit units, offshore banking units and other financial institutions
under the supervision of the BSP.
Sec.
5. Creation of the Zamboanga
City Special Economic Zone Authority. — Subject to the concurrence of
the
local government units that will be affected by the creation of the
ZAMBOECOZONE,
there is hereby created a body corporate to be known as the Zamboanga
City
Special Economic Zone Authority, hereinafter referred to as the
ZAMBOECOZONE
Authority, which shall manage and operate the ZAMBOECOZONE, in
accordance
with this Act. It shall be
organized within one hundred eighty (180) days after the effectivity of
this Act.
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Sec.
6. Principal Office. — The ZAMBOECOZONE
Authority shall maintain its principal office in the City of Zamboanga,
but it may establish branches and agencies within the Philippines and
abroad
as may be necessary for the proper conduct of its business.
Sec.
7. Powers and Functions of the
ZAMBOECOZONE Authority. — The ZAMBOECOZONE Authority shall have the
following
functions:
(a) To
operate, administer, and manage the ZAMBOECOZONE according to the
principles
and provisions set forth in this Act;chanrobles virtuallaw libraryred(b) To
recommend to the President the issuance of a proclamation to fix and
delimit
the site of the ZAMBOECOZONE;
(c) To
register, regulate and supervise the enterprises in the ZAMBOECOZONE in
an efficient and decentralized manner;
(d) To
regulate and undertake the establishment, operation and maintenance of
utilities, other services and infrastructure in the ZAMBOECOZONE such
as
heat, light and power, water supply, telecommunications, transport,
toll
roads and bridges, port services, etc., and to fix reasonable and
competitive
rates, fares, charges and prices therefor;
(e) To
construct, acquire, own, lease, operate and maintain on its own or
through
others by virtue of contracts, franchises, licenses, or permits under
any
of the schemes allowed in Republic Act No. 6957 (the
build-operate-transfer
law), or in joint venture with the private sector, any or all of the
public
utilities and infrastructure required or needed in the ZAMBOECOZONE in
coordination with appropriate national and local government authorities
and in conformity with applicable laws thereon;
(f) To
operate on its own, either directly or through a subsidy entity, or
license
to other tourism related activities, including games, amusements and
recreational
and sports facilities;chan
robles virtual law library
(g) Within
the limitation provided by law, to raise or borrow adequate and
necessary
funds from local or foreign sources to finance its projects and
programs
under this Act, and for that 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 part of its property
or
assets;
(h) To
provide security for the ZAMBOECOZONE in coordination with national and
local governments.For this purpose,
the ZAMBOECOZONE Authority may establish and maintain its own security
force and firefighting capability or hire others to provide the same;
(i) To
protect, preserve, maintain and develop the virgin forests, beaches,
coral
and functional units or offices within the ZAMBOECOZONE.
(j) To
create, operate and/or contract to operate such agencies and functional
units or offices of the ZAMBOECOZONE Authority as it may deem necessary;
(k) To
adopt, alter and use a corporate seal; make contracts, leases, own or
otherwise
dispose of personal or real property; sue and be sued; and otherwise
carry
out its functions and duties as provided for in this Act; and
(l) To
issue rules and regulations consistent with the provisions of this Act
as may be necessary to implement and accomplish the purposes,
objectives,
and policies provided therein.
Sec.
8. Non-profit Character of the
ZAMBOECOZONE Authority. — The ZAMBOECOZONE Authority shall be
non-profit
and shall devote the use of its returns from capital investments, as
well
as excess revenues from its operations, for the development,
improvement,
and maintenance and other related expenditures of the ZAMBOECOZONE
Authority
to pay its indebtedness and obligations and in furtherance and
effective
implementation of the policy provided in this Act. In
consonance with this, the ZAMBOECOZONE Authority is hereby declared
exempt
from the payment of all taxes, duties, fees, imposts, charges, costs
and
service fees in any court or administrative proceedings in which it may
be a party.
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The
foregoing exemptions may however be entirely or partially lifted by the
President of the Philippines upon the recommendation of the Secretary
of
Finance, not earlier than five (5) years from the effectivity of this
Act,
if the President shall find the Authority to be self-sustaining and
financially
capable by then to pay such taxes, customs duties, fees and other
charges
after providing for debt service requirements of the ZAMBOECOZONE
Authority
and of its projected capital and operating expenditures.
Sec.
9. Board of Directors of the
ZAMBOECOZONE Authority. — The powers of the ZAMBOECOZONE Authority
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) A
chairman who shall, at the same time, be the administrator of the
ZAMBOECOZONE
Authority;chanrobles virtuallaw libraryred(b) A
vice-chairman who shall come from the national agency tasked to
coordinate
and monitor special economic zones and the like in the country;
(c) Six
(6) members consisting of:
(1) The
city's congressional representative;chanrobles virtuallaw libraryred(2) The
mayor of the City of Zamboanga;
(3) One
(1) representative of the city council;
(4) One
(1) representative from domestic investors in the ZAMBOECOZONE;
(5) One
(1) representative from foreign investors in the ZAMBOECOZONE; and
(6) One
(1) representative from the labor sector chosen from the workers in the
ZAMBOECOZONE.
The
city's congressional representative, the mayor of the City of Zamboanga
and the representative of the city council shall serve as ex officio
voting
members of the Board.chan
robles virtual law library
chanrobles virtuallaw libraryred
The
chairman 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 removed for cause or dies or resigns
voluntarily. In
case of death, resignation or removal for cause, the replacement shall
serve only the unexpired portion of the term.
Except
for the representatives of the business and investment sectors no
person
shall be appointed by the President of the Philippines as member of the
Board unless he is a Filipino citizen, of good moral character and of
recognized
competence in some relevant fields of business, banking, shipping,
business
or labor management, port operations, engineering or law.
Members
of the Board shall receive a reasonable per diem which shall be fixed
by
the President of the Philippines once every six (6) years for every
Board
meeting: Provided, however, That the total per diem collected each
month
shall not exceed the equivalent per diems 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.
Sec.
10. Powers and Duties of the
Chairman-Administrator. — The chairman-administrator shall have the
following
powers and duties:
(a) To
direct and manage the affairs of the Authority in accordance with the
policies
of the Board;chanrobles virtuallaw libraryred(b) To
establish the internal organization of the Authority under such
conditions
that the Board may prescribe;
(c) 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; and
(e) To
perform such other duties as may be assigned to him by the Board.
Sec.
11. Promotion of Industrial Peace.
— One representative each from the Department of Labor and Employment
(DOLE),
labor sector, cultural minorities, business and industry sectors shall
formulate a mechanism under a social pact for the enhancement and
preservation
of industrial peace in the City of Zamboanga within thirty (30) days
after
the effectivity of this Act.
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Sec.
12. Capitalization. — The Zamboanga
City Special Economic Zone Authority shall have an authorized capital
stock
of two billion (2,000,000,000) no par shares with a minimum issue value
of Ten pesos (P10.00) each. The
national government shall initially subscribe and fully pay three
hundred
million (300,000,000) shares of such capital stock. The
initial amount necessary to subscribe and pay for the shares of stock
shall
be included in the General Appropriations Act of the year following its
enactment into law and thereafter. The
Board of Directors of the ZAMBOECOZONE Authority may, from time to time
and with the written concurrence of the Secretary of Finance, increase
the issue value of the shares representing the capital stock of the
ZAMBOECOZONE
Authority. The Board of Directors of the ZAMBOECOZONE Authority, with
the
written concurrence of the Secretary of Finance, may sell shares
representing
not more than forty per centum (40%) of the capital stock of the
ZAMBOECOZONE
Authority to the general public with such annual dividend policy as the
Board and the Secretary of Finance may determine. The
national government shall in no case own less than sixty per centum
(60%)
of the total issued and outstanding capital stock of the ZAMBOECOZONE
Authority.
Sec.
13. Supervision and Coordination
of Development Plans. — For purposes of policy direction and
coordination,
the ZAMBOECOZONE Authority shall be under the direct control and
supervision
of the Office of the President, in the meantime that the agency tasked
with the coordination of special economic zones is not yet in place.
Sec.
14. Relationship with the Local
Government Units. — In case of any conflict between the ZAMBOECOZONE
Authority
and the City of Zamboanga on matters affecting the ZAMBOECOZONE other
than
defense and security matters, the decision of the ZAMBOECOZONE
Authority
shall prevail.
Sec.
15. Auditing. — The Commission
on Audit shall appoint a representative who shall be a full time
auditor
of the ZAMBOECOZONE Authority and assign such number of personnel as
may
be necessary to assist said representative in the performance of
his/her
duties. The salaries and emoluments
of the assigned auditor and personnel shall be in accordance with
pertinent
laws, rules and regulations.
Sec.
16. Separability Clause. — If
any provision of this Act shall be held unconstitutional or invalid,
the
other provisions not otherwise affected shall remain in full force and
effect.
Sec.
17. Repealing Clause. — All laws,
executive orders or issuance, or any parts thereof which are
inconsistent
herewith, are hereby repealed or amended accordingly.chan
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Sec.
18. Effectivity Clause. — This
Act shall take effect upon its publication in at least one (1)
newspaper
of general circulation.
Approved:
February
23, 1995
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