FURTHER AMENDING PRESIDENTIAL DECREE NO. 66 DATED NOVEMBER 20, 1972 CREATING THE EXPORT PROCESSING ZONE AUTHORITY

• Number: Presidential Decree No. 1716-A
• Sections: 12

Preamble

WHEREAS, in order to make export processing zones more

competitive and attractive to potential investors, and to increase the

capability and effectiveness of the Export Processing Zone Authority (EPZA) in

the attainment of its objectives, it has become necessary to update and amend

the incentive schemes for enterprises within the zone:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution, do hereby

order and decree the further amendment of Presidential Decree No 66 dated

November 20, 1972, as amended, as follows:

Section 1

SECTION 1. Gross receipts of registered zone enterprises

shall be exempt from the contractor's tax under Section 205 of the Tax Code of

1977, as amended.

Section 2

SECTION 2. A net operating loss incurred in any of the first

ten years of operation as a registered zone enterprise may be carried over as a

deduction from taxable income for the six years immediately following the year

of such loss. The entire amount of the loss shall be carried over to the first

of six taxable years following the loss, and any portion of such loss which

exceeds the taxable income of such first year shall be deducted in like manner

from the taxable income of the next remaining five years. The net operating loss

shall be computed in accordance with the provisions of the National Internal

Revenue Code, any provision of this Decree to the contrary notwithstanding,

except that income not taxable either in whole or in part under this Decree or

other laws shall be included in gross income.

Section 3

SECTION 3. Utility companies, including the National Power

Corporation, Philippine Long Distance Telephone Company, water supply and telex

companies shall extend priority service to export processing zone, and shall

extend to EPZA, and/or the registered zone enterprises the most preferred terms

and rates possible. EPZA shall have the option, within any zone or area

administered by it, to install, manage and operate facilities, utilities and

systems necessary for its operation.

Section 4

SECTION 4. The administration and enforcement of the

provisions of Presidential Decree No. 1096, otherwise known as the National

Building Code of the Philippines in all zones and areas owned or administered by

the authority shall be vested in the Administrator or his duly authorized

representative. He shall appoint EPZA qualified personnel as may be necessary to

act as Building Officials who shall be charged with the duty of issuing Building

Permits in the different zones. All fees and dues collected by the National

Building Code shall accrue to the Authority.

Section 5

SECTION 5. Foreign nationals employed under the provisions

of Presidential Decree No. 66, their respective spouses, and unmarried children

under twenty-one years of age shall be issued a multiple entry special visa,

valid for a period of one year, to enter and leave the Philippines without

further documentary requirements other than valid passports or other travel

documents in the nature of passports. The validity of the multiple entry special

visa shall be extendible yearly. Foreign nationals who have been issued multiple

entry special visas under this provision, as well as their respective spouses

and dependents, shall be exempt from obtaining alien certificates of

registration and emigration clearance certificates and all types of clearances

required, by any government department or agency. For this purpose, the

Commission on Immigration and Deportation and the EPZA shall jointly issue the

necessary implementing rules and regulations.

Section 6

SECTION 6. Any provision of law to the contrary,

notwithstanding, the EPZA, in consultation with the Bureau of Customs shall

adopt procedures which would facilitate the rapid movement of raw materials,

components, goods, commodities and finished products to and from export

processing zones, taking into account the need to attain the objectives of

customs and internal revenue regulations and the need to facilitate export

activities within the zone.

Section 7

SECTION 7. The EPZA, in the exercise of its sole police

authority over export processing zones and areas owned or administered by the

Authority, shall have the power to receive and investigate complaints relative

to violation of penal laws committed inside the zones and areas owned or

administered by the Authority, and when the evidence warrants, to file and be

deputized herein to prosecute the corresponding criminal cases before the

appropriate court or body.

Section 8

SECTION 8. The authority, through its Board of Commissioners

may segregate not more than twenty per cent (20%) of the land area of each zone

to be sold, leased or otherwise disposed of primarily for housing and community

purposes. The disposition and development of the area segregated shall be

subject to such terms and conditions as may be prescribed by the authority.

Section 9

SECTION 9. With respect to, and for expeditious

implementation of EPZA infrastructure projects, the power to approved detailed

engineering documents, awards and contracts executed as a result of competitive

public biddings, negotiated contracts, assignment of contracts, adjustment of

contract prices and change orders extend work orders now vested in the Ministry

of Public Works, Transportation and Communication, the Minister of Public

Highways or the Minister of Energy by Presidential Decree No. 1594 and its

implementing rules and regulations, are hereby vested in the Minister of

Industry.

Section 10

SECTION 10. All laws, executive orders, rules and

regulations or part thereof inconsistent with this Decree are hereby repealed

and/or modified accordingly.

Section 11

SECTION 11. This Decree shall take effect immediately

Done in the City of Manila, this 21st day of August, in the year of Our Lord,

nineteen hundred and eighty.

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JOAQUIN T. VENUS JR.

Presidential

Assistant