GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Bulacan Special Economic Zone and Freeport Act".

SEC. 2. Declaration of Policy. - It is declared the policy of the State to encourage, promote, and accelerate the sound and balanced industrial, economic and social development of the country. The establishment of a strategically-located, master-planned, and value-creation-oriented special economic zone, within the framework and limitations of the Constitution, shall attract legitimate and productive foreign investments that generate employment and increase productivity and individual, as well as family incomes, thereby enhancing the quality of life of the Filipino people. It is also the declared policy of the State to promote an effective and sustainable economic growth model that benefits all stakeholders.

CREATION OF THE ECONOMIC ZONE AND FREEPORT

SEC. 3. Creation of the Bulacan Special Economic Zone and Freeport. - In accordance with the foregoing declared State policy, there is hereby established a Special Economic Zone and Freeport, hereinafter referred to as the Bulacan EcoZone (BuZ).

The BuZ cover:

(a) the Airport Project and the Airport City Project, as defined under, and to be developed pursuant to, Sections 1 and 6 of Republic Act No. 11506, otherwise known as "An Act Granting San Miguel Aerocity, Inc., a Franchise to Construct, Develop, Establish, Operate, and Maintain a Domestic and International Airport in the Municipality of Bulakan, Province of Bulacan, and to Construct, Develop, Establish, Operate, and Maintain an Adjacent Airport City," respectivel;

(b) the remaining land territories of the cities of Malolos and Meycauayan, and of the municipalities of Bulakan, Paombong, Guiguinto, Balagtas, Bocaue, Marilao, Obando, and Sta. Maria, in the Province of Bulacan, that are not yet included as component parts of the Airport Project and the Airport City Project; and

(c) all other expansion areas or municipalities, whose metes and bounds shall be clearly defined through a Presidential Proclamation, within the Province of Bulacan and surrounding areas which may be declared as part of the BuZ in compliance with Section 7(e) of this Act.

SEC. 4. Creation of the Bulacan Special Economic Zone and Freeport Authority. - There is hereby created a body corporate to be known as the "Bulacan Special Economic Zone and Freeport Authority," hereinafter referred to as the BEZA, which shall manage and operate the BuZ, in accordance with the provisions of this Act: Provided, That the management and operations of any existing Philippine Economic Zone Authority (PEZA)-supervised economic zones in the BuZ shall remain with PEZA: Provided, further, That existing PEZA-registered locators within the BuZ shall have the option to register with PEZA or the BEZA: Provided, finally, That the management and operations of the Airport Project and the Airport City Project shall be in accordance with Republic Act No. 11506.

It shall be organized within one hundred eighty (180) days upon the effectivity of this Act.

SEC. 5. Land Use, Planning, and Development. - Any provision of existing laws, ordinances, executive orders, rules or regulations to the contrary notwithstanding, forest lands located in Barangay San Nicolas in the Municipality of Bulakan; in Barangay Ubihan and Barangay Liputan, in the City of Meycauyan; in Barangay Abangan Norte, Barangay Abangan Sur, and Barangay Nagbalon, in the Municipality of Marilao; and in Barangay Salambao, Barangay Binuangan, Barangay Tawiran, Barangay Paco, Barangay Lawa, Barangay San Pascual, Barangay Paliwas, Barangay Pag-Asa (Poblacion), Barangay Catanghalan, Barangay Panghulo, in the Municipality of Obando, are hereby converted to agricultural lands and, as such, are declared as alienable and disposable, and may be used for industrial, commercial, or other lawful uses, as the case may be, in accordance with the Constitution to ensure that other inalienable lands shall not be included.

To ensure the efficient and sustainable development of areas covered, and proper inter-local development and coordination, the BEZA, in consultation with the National Economic and Development Authority (NEDA), shall establish the general framework for land use, planning and development for the area covered by the BuZ, which shall be consistent with the goals of the Philippine Development Plan (PDP). The framework shall abide by the following principles:

(a) The general framework shall maintain an optional balance between economic maximization and ecological protection;

(b) The framework shall provide for the development of necessary transport, sanitation, waste management, flood control, and support infrastructure; and

(c) The framework shall include criteria for the designation or subdivision of the area covered into various zones for commercial, industrial, residential, or other uses.

The BEZA shall establish under it a land use, planning, and development office or unit to craft, revise, and implement the framework.

Local, regional, and national plans for the use and development of the areas covered by the BuZ shall be consistent with the framework established by the BEZA. The BEZA shall also be involved in the crafting of local, regional, and national land use, zoning, and development plans which partially or fully cover the area of the BuZ, or which cover means of access to the BuZ.

SEC. 6. Registration with the BEZA. - Prospective locators within the BuZ may register with the BEZA and qualify for business incentives in accordance with Republic Act No. 11534, otherwise known as the "Corporate Recovery and Tax Incentives for Enterprises Act" or "CREATE": Provided, That the Airport Project and the Airport City Project shall remain covered by Republic Act No. 11506, including the incentives and regulatory regime provided therefor.

SEC. 7. Governing Principles. - The BEZA, created under Section 4 of this Act, shall manage and operate the BuZ under the following principles:

(a) Within the framework and limitations of the Constitution and applicable provisions of Republic Act No. 7160, otherwise known as the "Local Government Code of 1991", as amended, the BuZ shall be developed into and operated as a decentralized, self-reliant and self-sustaining aviation hub, industrial, commercial, trading, agro-industrial, tourism, retirement, banking, financial and investment center, emerging and future technologies, with suitable residential areas;

(b) Notwithstanding the autonomy provided in Section 7(a) of this Act, the BuZ may continue to be provided by the National Government (NG) and local government and shall be equipped with transportation, telecommunications, and other facilities need to attract legitimate and productive investments, and generate linkage industries and employment opportunities for the people of the Province of Bulacan, ad its neighboring towns and cities: Provided, That development of the BuZ shall be integrated and consistent with the plans of the National Government Agencies (NGAs), Regional Development Council (RDC), and Local Government Units (LGUs) with respect to transportation, telecommunications infrastructure and other facilities: Provided, further, That access to the BuZ shall be incorporated in the planning, construction, and operation of such infrastructure or expansions.

(c) The BuZ may establish mutually beneficial economic relations with other entities or enterprises within the country or, subject to the administrative guidance of the Department of Foreign Affairs (DFA), the PEZA, and the Department of Trade and Industry (DTI), with foreign entities or enterprises;

(d) Subject to existing laws, rules and regulations, foreign citizens and companies owned by non-Filipinos may set up enterprises in the BuZ, either by themselves or in a joint venture with Filipinos, in any sector of industry, international trade and commerce within the BuZ;

(e) The areas comprising the BuZ may be expanded or reduced when necessary through a Presidential Proclamation with the concurrence through local legislation by the concerned LGU: Provided, That the acquisition by the BEZA of lands distributed under the Comprehensive Agrarian Reform Program shall be subject to existing laws, rules, and regulations: Provided, further, That the acquisition of land by BEZA in areas outside the BuZ' territorial coverage shall not automatically expand the same;

(f) Good manufactured by a BuZ enterprise shall be made available for immediate retail sale in the domestic market, subject to the payment of corresponding taxes on raw materials and other regulations that may be formulated by the BEZA, the Department of Finance (DOF), the Bureau of Customs (BOC), and the DTI. However, in order to protect domestic industries, a Negative List of industries shall be drawn up and regularly updated by the Interagency Investment Promotion Coordination Committee (IIPCC), pursuant to Republic Act No. 7042, otherwise known as the "Foreign Investments Act of 1991", as amended, and other relevant laws, rules, and regulations. Enterprises engaged in industries included in such Negative List shall not be allowed to sell their products locally; and

(g) The security of its perimeter, maintenance of peace and order, firefighting, and disaster response within the BuZ shall be the responsibility of the NG in cooperation with the BuZ and LGUs: Provided, That, for the costs of securing the BuZ, the Office of the President (OP) shall, upon the recommendation of the DOF, establish a cost-sharing scheme between the BEZA and the relevant NGAs.

SEC. 8. Separate Customs Territory. - The BEZA shall operate and manage the BuZ as a separate customs territory, thereby ensuring the free flow or movement of goods and capital within, into, and out of its territory: Provided, That the BEZA shall establish a permanent customs control or customs office at its perimeter to enhance revenue collection and prevent importation of prohibited goods into the customs territory. The exportation or removal of goods from the territory of the BuZ to the other parts of the Philippine territory shall be subject to customs duties and taxes under Republic Act No. 10863, otherwise known as the "Customs Modernization and Tariff Act (CMAT)", and other relevant tax laws of the Philippines: Provided, finally, That this provision shall be effective upon the formal organization of the BEZA and submission of the Master Plan for the BuZ.

The BOC shall continue to exercise border protection and customs control authority over the customs territory outside the BuZ: Provided, That the BEZA shall allow patrol or other law enforcement arrangements by the BOC and other government agencies within the municipal waters covered by the BuZ, subject to coordination with the BEZA, to enhance its protection and control capacity and ensure compliance with customs, fisheries, and other laws and regulations.

SEC. 9. Development Goals of the BuZ. - The BEZA shall include in its development goals for the BuZ the construction and operation of a domestic and international airport and allied businesses within the framework of the Constitution, and national development plans, policies and goals. The Administrator shall, upon approval by the Board of Directors of the BEZA, submit the BuZ plans, programs and projects to the RDC for inclusion and inputs to the overall regional development plan. The RDC endorsement or comments to the BuZ plan, as well as subsequent amendments to the plan, shall be submitted to the OP, the Province, and concerned LGUs, in order to ensure that the plans are finally vetted, prioritized, and translated into budgets.

SEC. 10. Capitalization. - The BEZA shall have an authorized capital stock of two billion (2,000,000.00) no-par shares at a minimum issue of Ten pesos (P10.00) each, the majority shares of which shall be subscribed and paid for by the NG and the LGUs embracing the BuZ.

The capital of the BEZA shall consist of:

(a) its assets and such other properties as may be contributed to the BEZA by the Government to form part of capita;;

(b) all capitalized surplus;

(c) any cash contribution by the Government; and

(d) any budgetary outlay allocated and released in favor of the BEZA.

Thereafter, any sum as may be necessary to augment its capital outlay shall be included in the General Appropriations Act to be treated as an equity of the NG.

The Board of Directors of the BEZA may, with the authorization of the President, and subject to the concurrence and prescribed manner of disposition by the Secretary of Finance, sell shares representing not more than forty percent (40%) of the capital stock of the BEZA to the general public, under such policy as the Board and the Secretary of Finance may determine. The NG and LGUs shall in no case own less than sixty percent (60%) of the total issued and outstanding capital of the BEZA: Provided, That the sale of shares to the public shall, in no manner, alter the composition of the BEZA Board.

SEC. 11. Revenue Sharing. - To ensure sufficient funds, the BEZA and the affected LGUs shall be entitled to a share in the special corporate income tax (SCIT) under Title XIII of Republic Act No. 8424, otherwise known as the "National Internal Revenue Code (NIRC) of 1997", as amended, from all registered business enterprises in the BEZA. For this purpose, the said corporate income tax collected shall be divided as follows:

(a) Forty percent (40%) to the NG, which shall be directly remitted to the NG: Provided, that the revenue sharing under this section shall be considered compliance with Section 284 of Republic Act No. 7160, as amended, and shall no longer be further divided for purposes of the National Tax Allotment;

(b) Twenty percent (20%) to the BEZA, earmarked for infrastructure development projects of the BEZA as determined by its Board of Directors, consistent with the principles and purposes of this Act; and

(c) Forty percent (40%) to the concerned LGUs: Provided, That the local government share from revenues derived from BEZA-registered locators who availed of incentives under Republic Act No. 11534, in component cities or municipalities shall be allocated among the LGUs of the BuZ using the formula prescribed under Section 285 of Republic Act No. 7160, as amended.

The share of the NG shall be paid by the locator directly to the Bureau of Internal Revenue (BIR). The share of the LGUs and the BEZA shall be collected by the latter. The BEZA shall remit the local government share on a quarterly basis.

SEC. 12. Principal Office of the BEZA. - The BEZA shall maintain its principal office at the Airport City, but it may establish liaison offices within the Philippines as may be necessary for the proper conduct of its business.

SEC. 13. Powers and Functions of the BEZA. - The BEZA shall have the following powers and functions:

(a) Operate, administer, manage and develop the BuZ according to the principles and provisions set forth in this Act: Provided, That the management and operations of the Airport Project and the Airport City Project shall be in accordance with Republic Act No. 11506;

(b) Register, regulate and supervise the enterprises in the BuZ in an efficient and decentralized manner, subject to existing laws;

(c) Coordinate with LGUs and exercise general supervision over the development plans, activities and operations of the BuZ; and adopt, prepare, and implement a comprehensive and detailed development plan with timeline and milestones that shall be consistent with the goals under Section 9 of this Act. The development plan shall include a list of projects for the sound and balanced operation of the BuZ consistent with ecological and environmental standards, proper waste management practices, effective flood control and management, mandatory water impoundment, and other productive uses to promote the economic and social development of the LGUs comprising the BuZ in particular and the country in general;

(d) Construct, acquire, own, lease, operate, and maintain, on its own through contracts, franchise, licenses, bulk purchase from the private sector or permits under any of the schemes allowed in Republic Act No. 11966, otherwise known as the "Public-Private Partnership (PPP) Code of the Philippines", adequate facilities and infrastructure required or needed for the operation and development of the BuZ, in coordination with appropriate national and local govenrment authorities and in conformity with applicable laws thereon;

(e) Approve plans, programs and projects of the BuZ, to be submitted to the RDC for inclusion and inputs to the overall regional development plan;

(f) Operate on its own, either directly or through licenses to others, tourism-related activities, including games, amusements, recreational and sports facilities: Provided, That the BEZA shall not allow the registration of any business that is engaged, hosts, or accommodates any form of gambling, gaming-related activity, or any form of game of chance within the BuZ;

(g) Raise or borrow, within the limitation provided by law, ans subject to the approval of the Monetary Board of the Bangko Sentral ng Pilipinas (BSP), as the case may be, adequate and necessary funds from local or foreign sources, to finance its projects and programs under this Act; and for this 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 or part of its property or assets. In no instance shall the Philippine Government guarantee any bonds issued by the BEZA;

(h) Protect, preserve, maintain, and sustainably develop the forests, beaches, coral and coral reefs, terrestrial and marine ecosystems, and maintain ecological balance within the BuZ. The rules and regulations of the Department of Environment and Natural Resources (DENR) and other government agencies involved in the above functions shall be implemented by the BEZA: Provided, That the DENR shall continue to have primary authority and responsibility on environment protection: Provided, further, That the monitoring and issuance of leases, permits, certificates, clearances, and all others environment-related issuances by the DENR under its mandate shall remain under the jurisdiction of the Department: Provided, further, That upon a finding of any part of the area as needed for critical habitat establishment under Republic Act No. 9147, otherwise known as the "Wildlife Resources Conservation and Protection Act", the BEZA will accommodate and integrate the requirements for range, habitat, feeding and roosting of the relevant species identified: Provided, further, That the BEZA shall take into consideration any new scientific information that comes to light on requirements for endangered species and honor local and national legislation for conservation that would support conservation goals: Provided, further, That protected areas declared by local legislation, and those registered with the DENR pending enactment by national legislation, shall be observed and respected: Provided, finally, That frameworks, tools, methods and skills including, but not limited to, the Extractive Industries Transparency Initiative (EITI), shall be utilized in order to improve governance and management of natural resources within the BuZ;

(i) Create, operate or contract to operate such functional units or offices of the BEZA as it may deem necessary;

(j) Adopt, alter and use a corporate seal; contract, lease, buy, acquire, own or otherwise dispose of personal and/or real property of whatever nature; sue and be sued; and otherwise carry out its functions and duties as provided for in this Act;

(k) Issue certificate of origin for products manufactured or processed in the BuZ, in accordance with prevailing rules of origin and the pertinent regulations of the PEZA, the DTI, and the DOF;

(l) Establish one-stop shops for the issuance of all necessary permits, clearances, licenses, and other similar certifications to conduct such activities intended to improve the ease of doing business within the BuZ, in coordination with government agencies having jurisdiction over activities therein: Provided, That all government agencies are directed to provide and extend utmost and full cooperation to the BuZ in the establishment of such one-stop shops;

(m) To provide internal security to the BuZ, in coordination with the NG and affected LGU. For this purpose, the BEZA shall provide and establish its own internal security and firefighting forces, in accordance with Republic Act No. 9514 otherwise known as the "Fire Code of the Philippines of 2008", or hire others to provide the same;

(n) Exercise such powers, subject to existing laws, rules, and regulations, as may be essential, necessary or incidental to the powers granted to it hereunder, including imposition of reasonable fees and penalties, that shall enable it to carry out, implement and accomplish the purposes, objectives and policies of this Act; and

(o) Issue rules and regulations within the exercise of its powers under this section, subject to existing laws, rules, and regulations.

SEC.14. Board of Directors of the BEZA. -The powers of the BEZA shall be vested in and exercised by a Board of Directors, composed of fifteen (15) members, hereinafter referred to as the Board, which shall be composed of the following:

(a) The Chairperson of the BEZA, who shall be appointed by the President of the Philippines and who shall automatically be a member of the Board;

(b) The Administrator of the BEZA, who shall be appointed by t he President of the Philippines and shall serve as the Vice-President;

(c) Members consisting of:

(1) The Secretary or a designated representative of the DOF;

(2) The Secretary or a designated representative of the DTI;

(3) The Secretary or a designated representative of the NEDA;

(4) The Secretary or a designated representative of the DENR;

(5) The Secretary or a designated representative of the Department of Transportation (DOTr);

(6) The Governor or a designated representatives of the Province of Bulacan;

(7) the Mayor of the Municipality of Bulakan and two (2) designated representatives of the mayors of the remaining cities and municipalities covering the BuZ, to be elected among themselves;

(8) The Chairperson or a designated representative of the RDC of Central Luzon;

(9) One (1) independent director representing the private sector who has at least ten (10) years experience in any of the following areas: business, trade, port and logistics operations, and freeport or economic zone operations;

(10) One (1) representative from the workers in the BuZ; and

(11) One (1) independent director representing the Airport Project and the Airport City Project.

The Administrator and the members of the Board, except the ex officio members, shall be appointed by the President of the Philippines to serve for a serve for a term of six (6) years, unless sooner separated from service due to death, voluntary resignation or removal for cause. In case of death, resignation or removal for cause, their replacements shall serve only the unexpired portion of the respective terms.

No person shall be appointed by the President of the Philippines as a member of the Board unless one is a Filipino citizen, of good moral character, and of proven probity and integrity. The Administrator and the independent director representing the Airport Project and the Airport City Project shall be a degree holder in any of the following fields: economics, business, public administration, law, management, or their equivalent, and with at least ten (10) years relevant working experience, preferably in the field of management or public administration.

All benefits and emoluments of the members of the Board shall be subject to existing laws, rules, and regulations, including those prescribed by the Governance Commission for Government-Owned or -Controlled Corporations.

SEC. 15. Organization and Personnel. -The Board shall provide for its organization and staff. The Board shall appoint and fix the remuneration and other emoluments of its officers and employees in accordance with existing laws on compensation and position classification. The Board shall have exclusive and final authority to promote, transfer, assign, reassign, or remove officers of the BEZA, any provision of existing law to the contrary notwithstanding. The Administrator shall execute the decisions of the Board.

The officers and employees of the BEZA, including all members of the Board except those holding elective offices, shall not engage directly or indirectly in partisan political activities nor take part in any election, except to vote.

No officer or employee of the BEZA shall be removed or suspended, except for cause, as provided by civil service law and regulations.

SEC. 16. Powers and Duties of the Chairperson. - The Chairperson shall have the following powers and duties:

(a) Preside at all meetings of the Board;

(b) Ensure that all policies, directives, plans and programs formulated by the Board are faithfully carried out by the Administrator as Chief Executive Officer of the BEZA; and

(c) Exercise such powers and perform such functions and duties as the President may direct, or as may be assigned to him by the BEZA.

SEC. 17. Powers and Duties of the Administrator. - The Administrator shall have the following powers and duties:

(a) As Chief Executive Officer of the BEZA, direct and manage the affairs of the BEZA in accordance with the policies of the Board;

(b) Establish the internal organization of the BEZA under such conditions that the Board may prescribe;

(c) Submit an annual budget and necessary supplemental budget to the Board for its approval;

(d) 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;

(e) Submit to the Board for its approval, policies, systems, procedures, rules and regulations that are essential to the operation of the BuZ;

(f) Execute, administer, and implement policies and measures approved and adopted by the Board;

(g) Directly administer and supervise the operations and day-to-day business activities of the BEZA;

(h) Represent the BEZA in all dealings with offices, agencies, and instrumentalities of the Government and with all persons and entities, public or private, domestic or foreign, unless otherwise directed by the President or the Board;

(i) Execute, on behalf of the BEZA, all contracts, agreements and other instruments affecting the interests of the BEZA duly approved by the Board;

(k) Preside at the meetings of the Board in the absence of the Chairperson;

(l) Recommend to the Board the remuneration and other emoluments of its officers and employees in accordance with existing laws on compensation and position classification;

(m) Create a mechanism in coordination with relevant agencies for the promotion of industrial peace, the protection of the environment, and the advancement of the quality of life in the BuZ; and

(n) Perform such other duties as may be assigned by the Board, or which are necessary or incidental to the office.

SEC. 18. Legal Counsel. - The BEZA shall have its own internal legal counsel under the supervision of the Government Corporate Counsel. When the exigencies of its businesses and operations demand, the BEZA may engage the services of an outside counsel, either on a case-to-case or on a fixed retainer basis, subject to compliance with existing laws, rules, and regulations.

INCENTIVES TO ECOZONE ENTERPRISES/INVESTORS

SEC. 19. Investors and Other Special Visas. - Foreign nationals, who either intend to invest in the BuZ or possess highly specialized skills, can apply for a special resident visa in the BuZ, subject to relevant labor and immigration laws, rules and regulations. The special resident visa shall be of two (2) types: (a) the special skills visa; and (b) the investor's visa.

(a) Special Skills Visa. - The BEZA shall recommend the issuance of special skills visas, renewable every three (3) years, to foreign executives and foreign technicians with highly specialized skills which no Filipino possesses, subject to the issuance of the certification and alien employment permit by the Department of Labor and Employment (DOLE). Applications for the special skills visa shall be sponsored by the registered enterprises that requires the expertise of the applicants: Provided, That such enterprises shall formulate and undertake an understudy or skills development program to ensure the transfer of technology or skills to Filipino workers.

Foreign nationals who may serve as faculty members of Bulacan State University campuses and other govenrment and private higher educational institutions within the BuZ shall also be eligible for the special resident visa, subject to the provisions of Republic Act No. 11448, otherwise known as the "Transnational Higher Education Act", and the rule on reciprocity. The educational institution, with concurrence from the Commission on Higher Education (CHED), shall sponsor the application of the applicant. The CHED shall promulgate the guidelines and eligibility requirements for applicants of the special skills visa who shall be faculty members of educational institutions in the BuZ.

The BEZA, the DOLE, and the Bureau of Immigration (BI) shall formulate the necessary guidelines for the submission and approval of applications, as well as the monitoring of visa grantees under this subsection.

(b) Investors Visa. - Any foreign national who invests an amount of Two hundred fifty thousand US dollars (US$ 250,000.00), either in cash and/or equipment, in a BEZA-registered enterprise shall be entitled to an investor's visa to be issued by the BI subject to the recommendation of the BEZA and the endorsement of the Board of Investments: Provided, That the foreign national:

(1) Must be at least eighteen (18) years of age;

(2) Must not have been convicted by final judgment of a crime involving moral turpitude;

(3) Must not be afflicted with any loathsome, dangerous or contagious disease;

(4) Must not have been confined in an institution for any mental disorder or disability; and

(5) Must be financially capable with legitimate sources of income, as borne out by credible and verifiable evidence.

A foreign national shall be granted permanent resident status within the territorial coverage of the BuZ while the investment subsists. To prove this, the foreign national shall submit an annual report in the form duly prescribed for the purpose. In the event that the investments are withdrawn from the Philippines, the investor's visa issued to the foreign national shall automatically expire or be withdrawn. The authority to issue visas and work permits shall remain with the BI and the DOLE, respectively: Provided, That the BI and the DOLE shall implement measures to expedite the processing of such visas and permits for workers in the BuZ and coordinate with the BEZA for the purpose of improving ease of doing business.

SEC. 20. Fiscal Incentives. - Registered enterprises operating within the BuZ may apply for pertinent fiscal incentives granted under Title XIII of Republic Act No. 8424, as amended, and for such other fiscal incentives as may be provided by law: Provided, That the grant of fiscal incentives shall be subject to Section 292 of Republic Act No. 8424, as amended.

SEC. 21. Administration, Implementation and Monitoring of Incentives. - In the interest of enhancing transparency in the management and accounting of tax incentives in the BuZ, and ensuring the proper administration, enforcement, implementation and monitoring of tax incentives, the BEZA shall comply with the provisions of Republic Act No. 10708, otherwise known as "The Tax Incentives Management and Transparency Act (TIMTA)" and its implementing rules and regulations; Republic Act No. 11534 and its implementing rules and regulations; and other rules, regulations, and issuances made by the Fiscal Incentives Review Board, pursuant to Chapter III, Title XIII of Republic Act No. 8424, as amended.

The BOC shall set up and establish a customs-controlled area outside the premises of the BuZ to facilitate payment of duties and taxes on good entering the Philippine customs territory: Provided, That notwithstanding the limitations on this Act, the BEZA and the BOC may coordinate and jointly implement measures on border protection.

SEC. 22. Banking Rules and Regulations. - Banks and financial institutions to be established in the BuZ shall be under the supervision of the BSP and subject to existing baking laws, rules and regulations.

SEC. 23. Remittances. - In the case of foreign investments, a duly registered entity or enterprises within the BuZ shall have the right to remit earnings from the investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance, subject to the provisions of Republic Act No. 7653, otherwise known as "The New Central Bank Act" as amended, the Manual of Regulations on Foreign Exchange Transactions of the BSP, and other relevant laws, rules, and regulations.

NATIONAL GOVERNMENT AND OTHER ENTITIES

SEC. 24. Supervision and Control. - For purposes of policy direction and coordination, the BuZ Plan shall be approved by the President upon vetting of its overall economic viability and prioritization of subprojects by the NEDA, the DOF, and the DBM; the BEZA shall be under the direct supervision and control of the OP: Provided, That the grant of fiscal incentives shall be subject to the provisions of Title XIII of Republic Act No. 8424, as amended.

SEC. 25. Relationship with LGUs and the NG. - Inter-local and -national relationship between the BEZA and the NG vis-a-vis LGUs shall be governed by existing laws, rules, and regulations.

SEC. 26. Audit. - The Commission on Audit (COA) shall appoint a full-time auditor in the BEZA or may assign such number of personnel as may be necessary in the performance of their functions. The BEZA shall be subject to the audit mechanisms under Sections 24, 25, and 26 of Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011". All transactions of the BEZA shall be subject to relevant accounting and auditing rules and regulations of the COA.

MISCELLANEOUS PROVISIONS

SEC. 27. Interpretation and Construction. - The powers, authorities and functions that are vested in the BEZA are intended to establish national self-sufficiency and self-reliance in the advancement and protection of national integrity, enhancement of national security, decentralization of governmental functions and authority, and promote an efficient and effective working relationship among the BEZA, the NG, and the LGUs. Any interpretation of this Act shall consider such intentions. In the event of conflict of interpretation, the provisions of this Act shall be construed in favor of an interpretation that would tend to protect national interest and security.

SEC. 28. Applicability Clause. - Insofar as these are consistent with the provisions of this Act,  the provisions of Sections 30 to 41 of Republic Act No. 7916, otherwise known as "The Special Economic Zone Act of 1995", shall likewise apply to the BuZ.

SEC. 29. Implementing Rules and Regulations. - Within ninety (90) days from the effectivity of this Act, the DTI, in consultation with the DOF, the NEDA, the Province of Bulacan, and a representatives from the Airport Project and the Airport City Project, shall formulate the implementing rules and regulations of this Act. Such rules and regulations shall take effect fifteen (15) days following the completion of its publication in a newspaper of general circulation in the Philippines.

SEC. 30. Separability Clause. - If any provision of this Act is declared unconstitutional, the remainder hereof not otherwise affected shall remain in full force and effect.

SEC. 31. Repealing Clause. - All laws, presidential decrees, executive orders, letters of instruction, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC. 32. Effectivity. - This Act shall take effect fifteen (15) days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.

Approved,

 

(SGD.) FERDINAND MARTIN G. ROMUALDEZ	(SGD.) JUAN MIGUEL F. ZUBIRI
Speaker of the House of Representatives	President of the Senate

   
   
 

(SGD.) REGINALD S. VELASCO	(SGD.) RENATO N. BANTUG, JR.
Secretary General House of Representatives	Secretary of the Senate

Approved: Lapsed into law on JUN 13 2024 without the signature of the President, in accordance with Article VI, Section 27 (1) of the Constitution

    

 

FERDINAND ROMUALDEZ MARCOS JR.

President of the Philippines