WHEREAS, Republic Act No. 7922, entitled "ESTABLISHING A SPECIAL ECONOMIC ZONE AND FREE PORT IN THE MUNICIPALITY OF SANTA ANA AND THE NEIGHBORING ISLANDS IN THE MUNICIPALITY OF APARRI, PROVINCE OF CAGAYAN, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES" provides that it is the "policy of the government to actively encourage, promote, induce and accelerate a sound and balanced industrial, economic and social development of the country in order to provide jobs to the people especially those in the rural areas, increase their productivity and their individual and family income, and thereby improve the level and quality of their condition through the establishment, among others, of special economic zones and free ports in suitable and strategic locations in the country and through measures that shall effectively attract legitimate and productive foreign investments";

WHEREAS, the opening of the Port of Aparri into a customs principal port of entry will complement efforts to accelerate further not just the economic growth but the total development of the Cagayan Special Economic Zone;

WHEREAS, upgrading the status of the Port of Aparri into a port of entry will enable said port to avail of the manpower complement and other resources from national government agencies such as the Bureau of Customs, thereby hastening infrastructure and systems development which will result in the port and the Cagayan Freeport Zone attracting more investors and other locators;

WHEREAS, the expansion of economic activity within the port requires that the Port of Aparri be accorded the status as a principal port of entry;

NOW, THEREFORE, I, GLORIA IVIACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order

SEC TION 1. Upgrading of the Port of Aparri and opening it as a Principal Port of Entry. -The present Port of Aparri is hereby opened and declared as a principal port of entry to be known as the District Port of Aparri.

SECTION 2. Authority of the Commissioner of Customs to define the jurisdictional limits of the collection district affected. - The Commissioner of Customs, subject to the Code of the Philippines (TCCP), as amended, is hereby authorize to redefine the jurisdictionai boundaries of the Port of San Fernando and to delineate the jurisdictional limits of the new Principal Port of Entry which shall become Customs Collection District No- XV and to be known as the District Port of Aparri.

Collection District XV of the Collection District of Aparri shall have jurisdiction over the entire provinces of Cagayan, Isabela, Batanes, Nueva Viscaya, Quirino and such other areas as shall be added by the Commissioner of Customs, excluding the area covered by the Freeport created under Republic Act No. 7922. It shall have the ports of Curimao, Tuguegarao Airport and the Laoag International Airport as its subports.

SECTION 3. Relationship between the Cagayan Freeport Zone Authority and the Bureau of Customs. -To ensure the smooth operation of Port Irene, asasubportof the District Port of Aparri, and taking into account the peculiar characteristics thereof, the Bureau of Customs and the Cagayan Freeport Zone Authority (CFZA) shall, within thirty (30) days from the effectivity of this order, enter into a Memorandum of Agreement defining their working relationships and the treatment of all cargoes entering or leaving the freeport zone.

SECTION 4. Authority of the Commissioner of Customs to designate the officials' of the Port of Aparri. - The New Collection District No. XV, also known as the District Port of Aparri, shall be headed by a Collector of Customs V, to be assisted by such Deputy Collectors of Customs as may be determined and designated by the Commissioner of Customs. Each subport under the District Port of Aparri shall be like wise headed by Port Collectors, to be assisted by such Deputy Port Collectors of Customs as may be determined and designated by the Commissioner of Customs.

SECTION 5. Implementing Authority - Subject to the approval of the Secretary of Finance, the Commissioner of Customs is hereby authorized to determine the personnel requirements of the District Port of Aparri, taking into account the principles of economy, efficiency and effectiveness. For this purpose, he may, subject to applicable Civil Service, rules and regulations, issue the needed orders to effect the transfer or movement or personnel from any organizational unit of the Bureau to the Port Irene.

SECTION 6. Appropriations. - Funds for the initial operations of the District Port of Aparri shall be drawn from the available funds of the Bureau of Customs and subsequent appropriations shall be incorporated into its budget proposals, subject to existing budgeting, accounting and auditing laws and procedures.

SECTION 7. Effectivity- This Executive Order shall take effect fifteen (15) days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.

Adopted: 18 Feb. 2008

(SGD.) GLORIA MACAPAGAL-ARROYO

By the President:

(SGD.) EDUARDO R. ERMITA
Executive Secretary