1.     The Clark Development Corporation (CDC), together with the Department of Labor & Employment (DOLE) and the Bureau of Immigration (BI), in balancing its efforts in generating jobs for Filipinos with its initiative to simplify documentation  of foreign nationals, hereby clarifies the important provisions in the standard written undertakings individually executed by the applicant foreign  nationals  together  with  their  respective  employer/locator  as guarantor:

A.   Exclusive Use of AEPs and VISAs

*  The applicant foreign national shall have no gainful employment other than that for which  he/she  was issued  an Alien Employment  Permit (AEP) and Subic Clark Working Visa (SCWV).

*  The applicant foreign national must not have worked, engaged in the business operations, nor rendered any form of services in any capacity for the locator company prior to the issuance of or without a valid AEP and SCWV.

B.   Inspection of Locator ™s Premises

*  All concerned locators shall permit duly authorized representatives  of the CDC, the DOLE and/or the BI to conduct random  inspections  at their company premises during reasonable hours to verify compliances with the Labor Code, Philippine  Immigration  Act, and other pertinent laws, policies, rules and regulations governing alien employment.

C.   Additional Requirements

*  As    appropriate    and    necessary,    CDC    may    require    additional information   on  the  job  descriptions   for  non-elective   positions   to determine  whether  the  engagement  of  a  foreign  national  for  such position is justified and to verify the non-availability  of Filipino experts for the said position, in coordination with DOLE. Evaluation for the employment   of  foreign   nationals   in  a  non-elective   positions   will include, among others, size of operation and floor to manpower ration.

*  Elective  positions  in the locator  corporation  shall be exempted  from this  requirement  provided  that  the  position  classified  as  elective  in nature  is  included  in  the  latest  By-Laws  or  GIS  submitted  to  the Securities and Exchange Commission.

D.   Separation  of  the  Foreign  National  or  Permanent  Closure  of  the
Company

All concerned  locators shall notify CDC, DOLE and BI Clark One Stop Shop (BI-OSS) in writing at least thirty (30) days prior to the intended separation/termination    from   employment   of   the   foreign   national   or closure of the locator company. The foreign national shall surrender the (1) original  AEP to DOLE;  and (2) the Alien Certificate  of Registration (ACR-ICARD) to BI-OSS and have his/her SCWV downgraded by the BI.

*  As part of our service enhancement to locators, the Freeport Zone BI- OSS has been authorized to receive documents for processing of visa downgrading#  without the need of applicants going to BI Manila.

E.   Period of Validity of the AEP and the SCWV

*  CDC ™s endorsement of an AEP to the DOLE as a pre-condition for the issuance of an SCWV is based on the existence and registration of a valid Lease/Sub-Lease Agreement between CDC and the Freeport Enterprise,  the  latter  availing  of  the  non-fiscal  incentive  of  hiring foreign nationals with the freeport zone.

*  Since the issuance of the SCWV is dependent on the issuance of the AEP which is co-terminus with the validity of the Freeport Enterprise ™s Lease/Sub-Lease  Agreement  and registration  with the CDC, it necessarily follows that the validity of the SCWV shall also be co- terminus with the Lease/Sub-Lease Agreement.

For information and guidance.

(SGD) ARTHUR P. TUGADE
President and CEO