Investment Code
Investment Code
AND
INCENTIVES CODE
 OF MUNICIPALITY OF KALIBO
                                             Board...................................................................4-5
           Section 8. Powers and Fu[ctions of the
           Seclion 9. Duties ofthe KIIB Chairperson.................................................................5
           Sectionl0.PowersandFunctionoftheViceChair........................................................5
           Section I l. Visitorial Powers ofthe                    Board........................................................................5
CHAPTER V- KALIBO ECONOMIC AND INVESTMENT PROMOTIONS CENTER
                       (I<ErPC).....................................................................................................................5
           Section l2.Creation ofthe Kalibo Economic and Investment Promotions Center
                  (KETPC)................                                                                                           5
           Section 13. Functions ofthe KEIPC..........                                                                                              5-6
           Section 14. Kalibo Economic and Investment Promotions                                        Officer (KEIPO)................6
CHAPTER VII-RECISTRATION,,,,,,,,,,                                                                                                                        9
           Section 21. Regishation Requirement. . .... . . . ... . .. .                                                                                   9
           Section 22. Types ofProjects for Regisration......                                                                                             9
           Section 23. Documentary Requirements.............                                                                                              9
           Section 24. Registration Procedures..................                                                                                           9- 0
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                                               Republic of the Philippines
                                                   Province of Aklan
                                                 Municipality of Kalibo
'oR0tNANCENO.2014-18
Sponsors
                                                         I, TITLE
                                                                            "The
       SECTION 1 fiarg.-This Ordinance shall be known as the                       Kalibo lnvestments and lncentives
Code (KllC) of 2014'
        SECTION 2. D.cler.tion ot Policies. - lt is the declared policy of this Local Governmenl Unit of
Kalibo, Aklan to actively encourage the parlicipation of the private seclor in lhe promotion of economic
growth, prosperity, and local economic development in the Municipality For the purpose, it shall creale an
environment conducive to business that shall encourage and attracl new investors and promole retention and
expansion of existing busrnesses. li shall enjoin the participation of all stakeholders to support
endeavors to accelerate economic progress, generate employment opportunilies, increase local revenues
and income, reduce poverty, and improve lhe ove.rll quality of life for the people of Municipality.
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Kalibo S angguni ang Bayan
"oRDINANCE Na 2014-18
          6. 'Code"shall refer lo The Municipality of Kalibo lnvestmenls lncentive Code of 2014 promulgated
               pursuanl
                             to this Ordinance
         7.    "Data of Official Acceplarce" refers to lhe date the application for registration was received by the
               receiving personnel ofthe LEIPC and recorded rn a logbook for the purpose
               "Date
          8.          of Registrction" relers to the date when the Certificate of Registration is issued by
               the Board, which information shall be recorded in a Registralion Logbook to be maintahed by lhe
               Board
         9. "Dive\ificalion" rclers to the rntroduclron and production of a drslinct line of products or servrces
               by an Existing Business, whether or not a Registered Enterp se; Provided, That, to be
               considered dislinct, it should require new investment in lerms of machinery or equipmenl or
               would involve the use of new skills sel not currenlly used in the existing producl or serMces,
               Provided further, Thal a new service or product may constitule a diversification even if such
               service or product is already within lhe scope of its original or existing business purposes.
               "ECOZONE"
         10.                   shall be as detined under lhe Speoal Economrc Zone Act ot 1995 (PEZA Law, Republic Act
               ilo 7916), i.e., selected areas with highly developed orwhich have the polentialto
               be developed into agro-indust.ial, industrial, tounsurecreational, commercial,                banking,
               investment and financial centers
               'Existing
         11.              Eusiresses" are businesses engaged in aclivities included in the IPA Lisl but are
               already engaged in operating in the [Province/CityiMunicipality] and are intending to expand and/or
               diversify to other business ventures falling wilhin the lPAs as defined herein.
         12. "Expansion" shall mean installation of edditional facililies/equipment that will result in the
             increase in the production capacity ol an Exrsting Business. lt may include modernization and
             rehabililation No expansion for additional capacity shall be a lowed unless applicanl has
             attained, in general 85o/o utilization of its eristing capacily
         13'lncentiveLaw"shallreferloalaw,suchastheOmnibuslnvestmenlsCode,granlingincentives
             to specific businesses at bolh the national and local levels, by virtue of the nature of their
             business activaty pursued or the location where such busrness is going to be pursued or
             underlaken, as administered by a designaled government agency or office (Registering
               Agency), such as the 8Ol.
         14. 'lnveslment Piotilies Plan"/'lPPrhall refer to the annual lrsting ol specific aclivities thal have
             been identified as priority investmenl areas and thus encouraged by granting those engaging in the
             activities in the lisl the incentives under the Omnibus lnvestmenls Code, approved by the
               President of the Philippines, subject to the recommendation of the BOl.
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Kahbo S angguniang Bayan
'oRD|NANCE NO 2014-18
         15 "lnveslnenl Priority A.eas'shallrefer to the business activities which are entitled to incentives
                                                                                                                   in
                granted by the Municipality, which investment area or business aclivity is specilically included the Mandatory
                                                                                               (LlPAs),
                lnvestment Priority Areas (MlPAs) or Local lnveslment Priority Areas                      and summarized an an
                lnvestmenl Piority Areas List (lPA Lisl) which shall be amended, as
                necessary, once every two (2) years
          16.'KEIPC"refers lo the Kalrbo Economic and lnvestments Promotion Center with the
                responsibilities and functions provided underTitle lV ofthis Code
          18 "Local Applicanls" tefer to applicants for incentives under this Code which have no outstandang
             registralion wilh a Registering Agency under an lncentive Law, provided that its'proposed
                business is under the IPA List.
          1v.   tocal Stal?'referto a worker or personnel who is a boraride resident of the Mlnacipality for at
                least six (6) monlhs where proof of residency consists of the presentation of votefs
                lD/Registration and a Barangay Clearance from the barangay where he resides Vvhere the
                eligibility of an applicant to avail of incenlives is anchored on its abilily to generate employment, it
                should meel the minimum ratio of Local Staff to non-Local Staff, as lhe Board may prescribe
                "Mandalory
         20.                 lnvestmenl Pnoily Areas /'MIPA'areinvestmenl areas/business aclivities identitied by
                the National Government as paorily areas of investmenl and thus encouraged through the
                extensron ol incenlives not only al the national but also al the local level purs!ant to applicable
                lncentive Law. such as those included in the annual lnvestmenl Prloritres Plan
                     'Mlcro,
                21          Small, and Medium Enlerpises I'MSME, for purposes of this Code shall refer lo the
                    classification ot enlerprises rn lhe Magna Carta for MSMES Republic Act No 6977 of 1991 as
                amended by RA No. 82Eg of 1997 and further amended by RA 9501 in 2008 businesses that
                meet lhe crileria beloe/ and which are to engage in a business activity included rn the IPA List
                By Asset Size:
                     Micro Enlerprise:                      Up to Php 3,000,m0.00
                     Small Enterprise                       Php 3,000,001 - Php 15,000,000
                                                                               -
                     Medium Enterprise:                     Php15,000,001 Php100,000 000
                        Provided, that, in lhe case of Micro Enterprises, including BMBES, land which is not
                oflicially contdbuted inlo the business as capital or purchased by the business shall not lorm
                part
                       otthe assets ofthe business for purposes of delermining the asset size above.
                       Provaded ,urther, thal, for purposes of secudng incentives, in lieu of meeling the foregoing
                criteda, an enterpflse may qualify as an MSME using the following criteria:
                 By Number of Employees:
                       l\ricro   Enterprise:                1-9 employees
                       Small     Enterprise:                10 - 50 employees
                         ln the evenl that an enlerprise falls under different classificalions foregoing categories, the
                classifcation that will entille it to more incentives shall be controlling.
                      The foregoing categories may be amended, from time to time, to rendgr the definitions
                consistent with nalional laws and other issuances pertaining to MSMEs.
                 i. at least twenty percent (20016) reduction in production c!st. which if sold in the Philippines
                     should result in the reduction of the selling pdce ofthe product.
                ii. signifcant incre.se in productive efllciency including de-bottlenecking.
                iia. meaningful upgrading o. product quality.
                iv. upgrade in the lechnology used in production to bring it at pa. with the technology used by
                     leading manufacturers ofthe producl manufactured by the Registered Enterprise.
                                                                                                                                 !r
Xahbo Sangguniang Bay an
"oRDINANCE NO.2014-1!
                        The modernization or rehabilitatron conlemplated may or may nol result in rncrease in the
              operating capacity/aclual production output to be eligible for registration.
          23]New Projecls" rcfe, to projects or activities in the IPA List that have not slarted commercial
             operation, undertaken by (1) a newly organized/formed enterprise; or 2) an Existing Business
                                                                                                  qualify
              that proposes to engage in an entirely distinct activity from its exisling business as would
              as a Diversification.
          24.'PEU"shall rclet lo lhe Philippine Economic Zone Aulhority, as created under the PEZA Law.
          25. 'ProjeclStudy" refers  to a project protile which presents, among olhers, highlights of the
                                                                                               proposed
              projected financial viability and environmental and socio-economic impact of the
              business.
        SECTION 5 Crcation of the KlB. - The Kallbo lnvestments and lncenlives Board (KllB) is hereby
created to implement the provisions of lhis Code and to provide policy and operational directions of the
KEIPC
          SECTiON 6 Composi on of the K B. - The Eoard shall be composed of nine (9) members as
follows
        The seleclion of the Representative of Busrness Sector Organization shall be appointed by the
chairperson upon the concurrence of the majority ol the members of KllB.
        SECTION 7 lleeting and Quorun of rh! Borrd. - The Board shall meet at least once a month or as
necessary, on such day and lime as it may fix The presence of at least a majority of all members of the Board
shall constitute a quorum All decisions and polioes must be approved by at least a majority of the members
present during lhe meeting
         SECTION 8 Pow.rs .nd Functioos ol lh6 Bo.rd - The pnmary lunctions of the Eoard are to
establish a favorable and stable policy fo. business, encourage and support private seclor investment, and
encourage business retenlion and expansion. Pursuant to lhrs lhe Board shall be vested with the following
powers:
          1. Promulgate the rules and regulations of to implement the intent and provisions of the
              Local lnvestment and lncenlives Code.
                                                                                                                    \
Xahbo SangguDqng Bayan
                                                                                                afler        ng
              Periodically review the lnvestment Priority Areas (lPAs) eligible for incentives     conside
         2.                                                                                resources and
                                                                                                                  the
              Municiial development needs, economic and technical conditions, available
              prospects of an industry
         3    Adopt an investment promotion programs
         SECTION 9. Duti.s ol the KIB Ch.,i,person - The Chairperson of the Board shall have the
following powe6 and duties:
         SECTION 10. Pow.B end Functions ol the Vice Ch.i. - shall have lhe following powe6 and
duties
         't.To preside over the regular and special meetings of thc Board in lhe absence of the
              Chairperson.
         2. To perform such other duties and functlons as may be delegaled by lhe Chairperson or by the
              Board.
          SECTION 11. Visitoti.l Poe.ts of th.8o.rd- The Board, or any duly aulhorized representatives
thereof, shall be empowered to conduct ocular rnspection of the premises or examinaton of the business
activity of any enterprises, registered and applying for registration at any reasonable time ol the day dunng
offce hours, for verification or ascertaining lhe enterprise'scompliance with the provisions of the Code or
when the Board deems           t necessary or incidental to the effective exercise and perrormance of their
respective powers and functions
          8. Establish cooperative undertakings with other LGus, privale sector, NGOS, NGAS and other
               institutions    as maybe necessary, useful, and incidental to lhe efiective and effrcienl
               implementation of the KllC.
          11. Perform such other functions as may be necessary to implement the intent ofthe Code.
                              (alibo
         SECTION 14.            Economic and lnvestment Prcnotions Ofiicet (KE\PO).- The KEIPC shall be
headed by a Kalibo Economic and lnvestment Officer (KEIPO) who shall be appointed by the LCE. The KEIPO
must at least be a holder of a degree in any of the followingi law, accountancy, busrness, economics
and other relevant disciplines. Experience in marketing, business development, and management of
business is desirable.
          SECTION       15 Policies in the ldantilicaton of lnvestment Pdotity Ateas (lPAs). - The Board
through the KEIPC shall formulate the lPAs, consistent with lhe lPP, the CDP, and CLtJP, Zoning
Regulations and such other criteria ihat will ensure sustainable and equitable economic and social
development. The following criteria may be considered an determining the lPAs of the Municipality:
          1. lnvestmenl activities that are aligned to lhe national development th.usts and the development
             vision of the Municipality.
          2. Significant potential contribulion to the growth of a sizable number of existrng businesses or to a vital
             industry in the irunicipality.
             Capacily to generate employment, whelher direct or indirect padicularly for those within the
             Municipalily.
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    Page 8
    K.alibo S angguni ang Bayan
    '0RDINANCENO. 2014-18
                                                                                                   po
                                     a       Commercial production of agricullural crops,             ultry, livestock, and
                                                                                                      plantation,
                                             fishery products - crop production should involve new                  and fish
                                             pens/fish cages areas to qualify for registration, intercropping of high value
                                                                                                  (DA).
                                             crops as idenlified by the Department of Agriculture
                                                                                                 products,
                                      b      Commercid processing ol agricultural and llshery
                                                                                          processing
                                                                                                            their by-products
                                                             lo
                                             and wastes, a form ready for lurther                     or finalconsumption.
                                      c.     Extraction of higher value subsiances from agricultural and forest-
                                             based     raw     malenals through bioprocessing       as    endorsed   by thc
                                             concemed government agency
                                                                                                                  game
                                      d.     Production of animal and aqua feeds excluding those for
                                             animals, fowls and other species for peuleisure purposes.
                                      e.     Processing      ofagricultural products should involve domestically
                                             produced raw  or seni-processed agicullural products, unless the raw or
                                                                                                    (NLP)
                                             semi-pr@essd raw materials are not locally produced            or not in
                                             suflicient quantity (NISO). lf using imported raw or semi-processed
                                             agicultural products that are locally produced (LP) or in sufficient
                                           quantity (lSO), the project may quality for registration, provaded that the
                                           finished/ linal product is tor export, or lhe project qualifies for pioneer
                                           status
     Support facilities such as      1. lrrioation
     irrigation, post-harvest,             lnigation syBtem primarily intended to render seNice lo agricultural
     cold storage, blasl
     freezing, and the
                                           farms to include waler source. dislributaon lines and control
     production of f erlilizers            mechanism. The syBtem may also include prime mover, pump,
     and pesticides                        generator and lransfomer. Syslem capacity is .xpressed in terms of
                                           cubjc meleE of irrigation waler per year.
2. Harvestina Services
     Manufacturing/Processing
                                    1. This covers manufacturing activilies of environmentally fnendly or non -
                                       polluting products such as but not limited lo garments, footwear,
                                           handicrafrs, souvenirc and loys.
     lnformation and               1 lT Business Process Outsourcing (e g. call centers), and educational and
     Communicalion                         kaining institutions that provide support services to lCT.
     Technology
     Tounsm                         I Tourist lransport services whether for land, sea and air Land transpod
                                           covers the operation of brand new, world clags buses and or mini
                                           busedcoasteG, vans and taxis. The number of units of vehicles thal shall
                                           be allowed shall be based on the number of tourist arrivals in the area or
                                           the ratio of hotel/re8od facilities/rooms. Tourist transport operators must
                                           have garage, hangar, or berthing/docking facilities
             The KllB may add new LIPA list as need arises. The KEIPC shall determine the specific
    requkements for each area for its entatlement lo the incentives benefits
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,€libo
         Sangg0tang Eayan
"ORDINANCE NO 201+18
VII. REGISTRATION
                                                                  '
              SECTION 21 Ragitt,/elion Roquit m.nt For the purpose ol effective management'all
enterpnses listed an the lPAs and wanting lo avail of local incentives shall be registered Prior to regisiralion the
following requrrements shall be comp|ed
              1 Those mandated under existing laws, rules and regulations for doing business in the
                   Philippines.
              2. The activity engaged in by the enlerprise must be listed in the lPAs of the LGU
              3. The principal or primary place of business of operalion or production must be located within lhe
                  territorial jurisdiction of lhe LGu.
              4. Specified percentage of its workforce musl be bonafide residents of the LGU, giving equal '   opporlunities
             for men, women, lhe pooullalllLEqlous people and the physically handicap
              5. The activity engaged in must have safeguards against pollulion and other environmental and
                   health hazards.
              SECTION 22. fy?'asof Prc)eclt for Ragist,Etion.- The tollowing are the types of investment
proiects eligible for registration, provided they involve business aclivities included in lhe IPA List:
              1 New Projects
              2 Expansion Projects
              3. Modernization Projects
              4. DiversillcationProlects
              The projects shalllikewise comply with the following addilional roquir€m€nts:
                a. Capitalization of at least Three Mallion Pesos Php 3,000,000.00 but nol more than Fifreen
                     Million Pesos Php 15,000,000.00 in case of a small'scale cnterprisc, over Filleen Million Pesos
                     (Php 15,000,000.00) but not more than One Hundred Million PBos (Php 100,000,000.00) in
                     cese of a medium-scale enterprise, and more than One Hundred Million Pesos (Php
                     100,000,000.00) in case of a large enterprise; Provided, that the amounl of Capjtalization shall be
                     based on the total project cost as stated in the investor'sproject study submitted to and
                     approved by the Board: Provided further that the total project cost shall exclude the cost of the lot
                     on which the projecl will be located.
                b.   Employ at least 30% of non-technical and 20016 of lechnical personnel who are residents of the
                     LGU,
                c. Comply w(h exrsting labor laws
                d. 30o/o ofthe producl component are indigenous materials are available in the provrnce.
        SECTION 24. Registation Procedutes - The procedure for the processing of registration under thrs
Code is as follows:
                                                                                                                               t:
I   Page 10
    rdibo Sanggunang Bayan
    "ORDINANCE   NO 2011.1E
            1.   Filing of Application - All apphcations shall be liled with the Kalibo Economic and lnvestments
                                                                                                                     the
                 Promotion Center (KEIPC) together with all documenls required above The form for
                 purpose shall be issued by the same Office.
            2.   check LiBting/Assessment of Documents       - The KEIPC shall evaluate completeness and
                 consistency of information and other document. The applicant must be immediately advised fcr any
                 eror, inconsistencies and massing documenls in lhe submission.
            3. Date of Ofllcial Acceptance - Only complete applicllion shall be ofiicially accepted and
                 regislered in the Registration Book. The date stamped on the application shall be considered as the
                 date of official acceptance of lhe applic.tion.
            4.   Notice of filing of application in the provincial, city, municipal, or barangay hall shall suffice as
                 publication requirement.
            5.   The KEIPC shall issue a non-refundable filing fee in the amount of Php 2,000.00. An Order of
                                                                                                     paid
                 Paymenl of the necessary fees shall then be rssued by the KEIPC which shall be           to the Local
                                                                                        prescribed.
                 Treasurer'sOflice. Micro enterpnses shall pay one halfofthe rate
                                                              -                                                project
            6.   Evalualion/Approval of Application   Once an application is officially accepted the will be
                 evaluated by the KEIPC Vvtenever necessary, the KEIPC may conduct an ocular inspection at
                 lhe premises of the business. The inspection shall be conducted during Office
                 hou6 al a time convenient for both lhe applicant and the KEIPC which should nol be late.
                 than lwo weeks (10 working days) after the official acceptance of the application. The
                 evaluation of the application shall be submitted to the Board for action. lf the application is
                 approved, the KEIPC shall notify the applicant and inform the Treasurer and the Assessor of
                 such approval for their gudance and appropnate action lf the application is denied, lhe
                 KEIPC shall inforn the applicant in wriling. ln both cases, a Board Resolution shall be
                 entered in the minutes ofthe meeling ofthe Board.
                    Failure ot the Board lo approve or disapprove an application within thirty (30) calendar days
            shall be conslrued as an approval ot lhe application
            2. lncentives to be established shall be fair, clear, time-bounded and ensure the level playing field
                 for inveslors in the locality.
                                                                                                                            t'
Kahho Sangg ntang Iayan
"oRDINANCE NO 2014-13
                                                                                     police power
          3.   The incentives shall not extend to regulatory fees levied under the                 of the LGU and on fees
                                                                                           ga.bage
               and charges imposed for      se ices rcndered by   the Municipality, such as           fees, sanitary inspection
                                                                                      rental for
               fees, €lectrical anspection fees and olher similar fees, as well as                 use of public utilaties owned
               and operated by the local government such as charges for actual consumplion of water, electnc pofler and
               toll fees for use of public roads and bndges and the like, and lhose levied for the use of govemment facilities
                     properties
               and
                                                                                               pertinenl provisions
          4. The grant shall apply to all businesses similady situated sublect to the                                    of
               this Code.
          5    The exemption granted shall take effect only during the nexl calendar year or a specilled
               number of years.
          6.   No double availment of incentives/benefts under different laws and/or
                                                                                              programs.
          7    Amendments of lPAs resulting to changes in the incentives granled lo registered enlerpnse
               shall be take etlect prospectively and shall not impair the incentives being enjoyed by registered
               enterprises purcuant to the Certifcate of Registration.
          8.   The withdrawal of incentives for violation of the condilions for the grant of the same under the
               relevanl lncentive Law or the pertinenl Certificale of Registration shall automatically result in the
               withdrawal of local incentives granted pursuant to such lncenlive Law or by viriue of lhe
               issuance of the Cerlificate of Registralion by a KllB.
         SECTION 26. Loc.l lrcantiv.s gnntod to investments undot lllPA List - Enterprisgs regislered
under the MIPA list shall enjoy incentives under the lncentive Law pursuant to its subsisting Certilicate ot
Registration with a Regislering Agency. They shall only enloy the fiscal and non-fiscal incenlives at the local
level that are expressly granled under lhe lncehtive Law under which it is regislered and specifically included
among the incenlives rn its Certificate of Registration with the Registering Agency.
               (a) The date of registration until the lapse of the tem of such incentive, unless another
                   reckoning date is approved by the Board on lustifiable grounds, but in no case beyond sir
                        (6) months from the date of registration.
               (b) Such oth$ reckoning dale as may b€ prescribed under an applicable lncenlive Law.
                   Providcd that in the case of Bo|-registered enterprises, their local incentNes shall be
                   reckoned from the date of their registration with lhe BOl, as provided under Section 133(9) of
                        the LGC
        ln case of change ol ownership of lhe enterprise, the local incentives which it is enjoyrng shall
continue to be enjoyed by the enlerprise provided that the terms and condilions of the registration of lhe
project
        are assumed by the new owner/s, Provided further, That if a Registered Enterprise is enJoying local
          pursuant
incentives           lo an lncenlive Law, the Cedilicate of Registration issued by the Registeing Agency like BOl, etc
remains valid despile the change of ownership. Any change in lhe controlling shareholders ofa Regislered
Enterpnse shall be reporled to the Board.
         A Registered Enlerpflse which ceases to be registered with a Registering Agency or wtshes to avail of
local incentives oiher than those provided under the lncenlive Law under which it is registered may appty for
incentives under lhrs Code, subjecl to the registration procedure applicable to local applicants.
         SECTION 27. Rrgurl Updat. ol Cattilicale of Rrgistrrrion. - Those enjoying incentives by virtue of
their registration wilh a Regaslering Agency and pursuit of a business activity in the MIPA Lisl shall submit
annually to lhe LEIPC an original copy of a certification from the Registering Agency that it continues to be
registered
               wilh said Regislering Agency and that it remains in good standing as such and thus fully enti ed lo
                        granted
all lhe incentives         under ils Cedilicale of Registration. Failure to submit such cerliticate to LEIpC on or
before every anniversary date of the Registered Enlerprise's registration wilh lhe Registenng Agency shall
authorize lhe Eoard to exercise its aulhority under this Code
          SECTION 28 Loc.l          Fisc.l locanlivas. - The following liscal incentives may be given lo enterprises c-
onsistent with:
               The Local Rev6nue Code and Book lllhe Local Governmenl Code (RA 7160):
               a Exemption from local business taxes pursuant to Section 133(9) of the LGC.
               b. Tax Exemption Privileges through ordinances duly approved puEuant to Section '192o, lhe LGC
                     as defined in Article 282 of the LGC lmplementing Rules and Regulations.
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     Kahbo Sanggunahg Bayan
     "oRDINANCE NO 2014-18
         SECTION 31. Plriodic and other Complianca Raquitrmentt. - Nothing under this Code exempts a Registered
                                                                                   generally
Enterprise from applicable requirements of the lrunicipality on businesses, as                applac;ble to all
                                                                                          the
businesses or specifically applicable to the business activity or circumstances of              Registered Enterprise.
                                                                     under
Accordingly, Registered Businesses, etcept those specifically exempt
                                                                                                      renew the
applicable law, shall secure and comply with all the requirements to secure a Business Pemit and
same annuallY.
         Except as expressly provided under this Code or the lncentive Law under which they are likewbe
                                                                                                   in
registered, registered enterprises shall comply with all applicable laws as other enlerprises engaged                 lhe
same business as they are engaged in, are required to comply with.
        Other than as provided herein Registered Enlerpnses shall not be required to comply with any other
requirements that businesses not registered under this Code are not required to comply with.
        SECTION 32. CSR RlquireDcrt - Bo|-registered enterprises with projects under pioneer status
must undertake CSR activities which shall be monilored slarling on the fourth year of operation of the
business enterprise. Those on non-pioneer status are encouraged, in the course of their operations, to
undertake CSR activities in accordance with the development plan of lhe community where the registered
project is located.
         Registered Local App|cants, on the other hand, are encouraged to pursue CSR projects as soon as
they can afiord to allocate resources for the purposes however, it shall be mandatory for Registered Local
Applicants to pursue CSR projects starting on their fourth year of operation ifthey enjoy local incentives for a
term of more than lhree (3) years
         SECTION 33 Eligibl. CSR P,ojects - CSR projects which a Registered Enlerprise may undertake
include but shall not be limited to lhe following:
              b.   Reforeslation, rehabilitation, and urban greening or landscaplng of malor road sides; areas
                   with historical or tourism value; areas in bio-geographic zones, especially key biodiveEily
                   areas; eroded slopes as lechnically appropriate based on assessmenl by competent
                                public
                   authorities,         open spaces espedally in residential and commercial areas including
                   streel islands, parks, promenades, parking area penpheries, and the like, provided that the
                   enterprise hkes care of the maintenance of the trees and plants othelwise,
                   reimbursement of lhe incentive granled shall be due and demanded should the trees and
                   planls die due to poor maintenance.
         2. Social Proiects
             a Housing for ehployees
              b. Educalionalprorccts
             c. Cultural revivals
             d. Programs for women, children, eldedy disabled, out of school youth and indigenous people. e.
             Community infrastructure projects aligned wilh lhe developmenl plan oflhe Municipality
             f. Such other projects or activilies based on the development needs ot lhe community where the
                   projecl is located or as adentifed by the National Anti-Poverty Commission (NAPC).
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x attbo S angg u n ang B ay a n
"oRDINANCE NO 2011-18
           b. HazardousSubstances
                       ln addition to the above, projecls involving the handling, transport, processing and
                storage of toxic, hazardous substances and/or nuclear waste shall be subjecl to slrict
                regulations as provided under applicable local issuances and national laws. The Sanggunian of
                the Municipality shall have the option to erclude such projects from being entitled lo local
                incentives except to the e(ent thal they fall under the MIPA List.
           c. SpeciticProhibitions
                 1.   No induslrial or manufacturing facility shall be operated without proper air pollution devices,
                      wastewater treatmenl facilities, and solid waste management facilities
                2     No industrial or manufecturing plant shall be operated at level beyond the
                      operating capacity of their respective v/aste treatment tacilities in order to maintain the efilusnt
                      quality within the standards required by law.
                3.    All industrial and manufacluring estsblishments shall sublect their operations and premises,
                      facilities and systems to periodic envircnmenlal compliance monitoring, which shall be
                      conducted by the LGU in coordination with the Departmenl of Environment and Natural
                      Resources. Refusal to be subject to such inspe€tion shall be sufficient ground for the
                      forleiture of any rncentive and the revocation of its Cerlificate of Registration .nd/or
                      Business Permit
           d. Regulation
                            The Board shall ensure that the green and socaally responsibl€ projects undertaken by
                entcerisor on public propcrty shall be in harmony with the overall environmental management
                program of the LGU, as determined by the appropriate LGtJ oflice.
                                              XI. BUDGETAPPROPRIATION
                                              -
           SECTION 34 Apptopdations               The expenditures to operalionalize the Eoard and the KEIPC shall be
provided
          through regular or supplemental budgel. The Municipality shall appropriate the tunds necessary for the
implementation of the provisions of this Code based on a budget that may be presented by the Board
to include Personal Services Marntenance and Other Operating Expenses ([,OOE), Capital Outlay, and
Contingency.
       SECTION 35. R.yenu.s ttom th. Op.,rtion                 ol th. Cod.- - lncome derived from the operation of this
Code shall go to lhe General Fund of lhe Munjcipality
                                                   xL FtNAL PROVTSTONS
           SECTION       36 Penal Clause. - Any
                                             violation of the provisions of this Code shall be ground for lhe
cancellation or revocttion of the Cerlilicate of Registration of the project or business. The cancellation or
revocation of the Certafcate of Registration shall mean the withdrawal ot all incentives granted and all fees and
           prevrously
charges                    exempted ahall become due and demandable
          SECTION 37. crounds lor lhe Canc.llation ol C.ttlticat of Registratlon.
                                  provision
           1. Violation of the            of this Code and such other violations of laws, rules and regulation or
               ordinance
          2.   Molalion of the terms and condations specified in the Certifcate ol Registration.
          3. Malerialmisrepresentation.
         SECTION 38. Appaal trcm tho Docision of tho XllB - Registered enterprises adversely affected by
any decision of the Board relalive to the cancellation/revocalion of registration or the imposilion of
tlnes/penalties in accordance with this Code may file a motion for reconsideration within 15 days from the
receipt ofthe decision, otheftvise the decision shall become tinal and erecutory
        SECTION 39 Retund and P.nalti.s. - ln case of the cancellation of the Certiticate of Registralion, lhe
KllB shall require the refund of incentives availed of and impose corresponding fines and penallies.
                                                                                                                         \j
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x ahbo S angg untaog Bayan
"0RaINANCE
                  NO 2014-18
            SECTION    41. lrnplameoling Rul.s and Ragulations. - To appropriately manage the orderly
administrataon     of the provisions of this Code, the Kalibo Economic and lnvestments Promotion Office
(KEIPO),
           Municipal Oevelopment Plannang and Coordinator, Municipal Treasurer, Municipal Budget Officer
and Municipal Legal Officer of the Municipality shall prepare the lmplementing Rules and Regulations for
approval ofthe Board within three (3) months rrom the issuance of this Code
            SECTION 43. R.p.rlirg Crgu!€. - All ordinances, rules and regulations or parts thereof which are
in conflict or inconsistent with the provisions of this Code are hereby considered repealed, anended or
modified, accordingly.
          I hereby
                       certify to the correctness of lhe above slated ordinance as to form
                                                                                                    DIANA T. FEGARIOO
                                                                                                        SB Secretary
Attested:
               MADELI          A. REGALAOO
                        Vrce Mayor
Approved
                                                                                                                    LACHICA
Mayo