May 17, 1995

RULES AND REGULATIONS TO IMPLEMENT REPUBLIC ACT NO. 7916,

OTHERWISE KNOWN AS "THE SPECIAL ECONOMIC ZONE ACT OF 1995"
Pursuant to Paragraph (e) of Section 12 and Section 55 of Republic Act No.
7916, the following rules are hereby promulgated:
PART I
General Provisions
RULE I
Definitions and Basic Guidelines
SECTION 1.Title. These rules shall be referred to as the "Rules and
Regulations to Implement Republic Act No. 7916." DEHaTC
SECTION 2.Denition of Terms. For purposes of these Rules and
Regulations, the following definitions shall apply:
a."Act" shall refer to Republic Act No. 7916, otherwise known as "The
Special Economic Zone Act of 1995."
b."Decree" shall refer to Presidential Decree No. 66, as amended.
c."Code" shall refer to Executive Order No. 226, otherwise known as the
Omnibus Investments Code of 1987, as amended.
d."PEZA" shall mean the Philippine Economic Zone Authority created under
Section 11 of the Act.
e."Board" shall refer to the PEZA Board of Directors.
f."ECOZONES" or "Special Economic Zones" (SEZ) shall refer to selected
areas with highly developed or which have the potential to be developed into
agro-industrial, industrial, tourist, recreational, commercial, banking, investment
and nancial centers whose metes and bounds are xed or delimited by
Presidential Proclamations. An ECOZONE may contain any or all of the following
industrial estates (IEs), export processing zones (EPZs), free trade zones and
tourist/recreational centers.
f.1"Industrial Estate (IE)" refers to a tract of land subdivided and
developed according to a comprehensive plan under a unied
continuous management and with provisions for basic
infrastructure and utilities, with or without pre-built standard
factory buildings and community facilities for the use of a
community of industries. cSITDa
f.2"Export Processing Zone (EPZ)" refers to a specialized industrial
estate located physically and/or administratively outside the
customs territory and predominantly oriented to export
production. Enterprises located in export processing zones are
allowed to import capital equipment and raw materials free from
duties, taxes and other import restrictions.
f.3"Free Trade Zone" refers to an isolated policed area adjacent to a
port of entry (such as a seaport) and/or airport where imported
goods may be unloaded for immediate transshipment or stored,
repacked, sorted, mixed, or otherwise manipulated. However,
movement of these imported goods from the free-trade area to a
non-free-trade area in the country shall be subject to customs
and internal revenue rules and regulations.
f.4"Tourist/Recreational Center" refers to an area within the ECOZONE
where tourist accommodation facilities such as hotels, apartelles,
tourist inns, pension houses, resorts, sports and/or recreational
facilities are provided to render tourism services for both local
and foreign tourists, travellers and investors in accordance with
the guidelines issued by the PEZA.
g."Customs Territory" shall mean the national territory of the Philippines
outside of the proclaimed boundaries of the ECOZONES except those areas
specically declared by other laws and/or presidential proclamations to have the
status of special economic zones and/or free ports.
h."Restricted Area" shall mean a specic area within the ECOZONE which
has been classied and/or fenced-in as export processing zone, free trade zone or
such other areas as may be declared by the Board.
i."ECOZONE Export Enterprise" refers to an individual, association,
partnership, corporation or other form of business organization which has been
registered with the PEZA to engage in manufacturing, assembling or processing
activity falling within the purview of the Act and resulting in the exportation of
100% of its production, unless a lower percentage of its production for
exportation is prescribed by the Board subject to such terms and conditions as the
latter may determine. ISHCcT
j."ECOZONE Domestic Market Enterprise" refers to an individual,
association, partnership, corporation or other form of business organization which
has been registered with the PEZA to engage in manufacturing, assembling or
processing activity falling within the purview of the Act resulting in the sale of its
nished products in the customs territory or in the non-restricted or authorized
areas within the ECOZONE in its entirety or if exporting a portion of its
production output, it continually fails to export at least fty percent (50%)
thereof for a period of three (3) years without any justiable reason in case at
least 60% of its working capital is owned by Philippine nationals or in case more
than 40% of its working capital is owned by foreign nationals, it continually fails
to export at least seventy percent (70%) of its production output for a period of
three (3) years without any justifiable reason.
k."ECOZONE Pioneer Enterprise" shall mean an ECOZONE enterprise (1)
engaged in the manufacture, processing or production and not merely in the
assembly or packaging of goods, products, commodities or raw materials that
have not been or are not being produced in the Philippines on a commercial scale
or (2) which uses a design, formula, scheme, method, process or system of
production or transformation of any element, substance or raw materials into
another raw material or nished goods which is new and untried in the
Philippines or (3) which produces non-conventional fuels or manufactures
equipment which utilizes non-conventional sources of energy or uses or converts
to coal or other non-conventional fuels or sources of energy in its production,
manufacturing or processing operations: or (4) engaged in the pursuit of agri-
export processing zone development or (5) given such status under the
Investment Priorities Plan: Provided, That the nal product in any of the
foregoing instances involves or will involve substantial use and processing of
domestic raw materials, whenever available, taking into account the risk and
magnitude of investment.
l."ECOZONE Free Trade Enterprise" refers to an individual, association,
partnership, corporation or other form of business organization which has been
registered with the PEZA to engage in the importation of goods or merchandise
within the restricted or free trade area in the ECOZONE tax and duty-free for
immediate transshipment or for storage, repacking, sorting, mixing or
manipulation and subsequent exportation unless the Board allows the sale
thereof in the customs territory subject to the payment of customs duties and
internal revenue taxes and to such other terms and conditions as it may
determine.
m."ECOZONE Utilities Enterprise" shall refer to a business entity or concern
within the ECOZONE duly registered with and/or franchised/licensed by the PEZA
with or without the incentives provided under Republic Act No. 6957, as
amended (the Build-Operate-Transfer Law) and/or with or without nancial
exposure on the part of the PEZA, such as contractors/operators of light and
power systems, water supply and distribution systems, communications and
transportation systems within the ECOZONE and other similar or ancillary
activities as may be determined by the Board.
n."ECOZONE Facilities Enterprise" shall refer to a business entity or
concern within the ECOZONE duly registered with and/or franchised/licensed by
the PEZA with or without incentives provided under Republic Act No. 6957, as
amended, (the Build-Operate-Transfer Law) and/or with or without nancial
exposure on the part of the PEZA such as contractors/operators of buildings,
structures, warehouses, site development and road network, ports, sewerage and
drainage system and other facilities for the development, operation and
maintenance of the ECOZONE and other similar or ancillary activities as may be
determined by the Board.
o."ECOZONE Developer/Operator" refers to a business entity or concern
duly registered with and/or licensed by the PEZA to develop, operate and
maintain an ECOZONE or any or all of the component IE, EPZ, Free Trade Zone
or Tourist/Recreational Center and the required infrastructure facilities and
utilities such as light and power system, water supply and distribution system,
sewerage and drainage system, pollution control devices, communication
facilities, paved road network, administration building and other facilities as may
be required by the PEZA. The term shall include the PEZA and/or the Local
Government Unit when by themselves or in joint venture with a qualied private
entity, shall act as the Developer/Operator of the ECOZONES. As such, they shall
be entitled to the same incentives under Rule XIV of these Rules in accordance
with the pertinent provisions of the Act and the Code. CHTAIc
p."ECOZONE Service Enterprise" shall refer to a business entity or concern
within the ECOZONE such as but not limited to those engaged in customs
brokerage, trucking/forwarding services, parcel services, janitorial services,
security services, insurance, and/or banking services, consultancy services,
restaurants or such other services within the ECOZONE as may be determined by
the Board, duly registered and/or licensed by the PEZA whose income derived
within the ECOZONE shall be subject to taxes under the National Internal
Revenue Code pursuant to Section 25 of the Act.
q."ECOZONE Tourism Enterprise" shall refer to an individual, association,
partnership, corporation or other business organization duly registered with the
PEZA proposing to engage in the establishment and operation of tourist-oriented
accommodations, restaurants operated as an integral part of a tourism facility
(e.g. hotels, resorts, recreational centers), sports and recreational facilities within
the ECOZONE.
r."Negative List" shall refer to the list of industries drawn up and regularly
updated by the PEZA under which ECOZONE Enterprises engaged in any industry
listed therein shall not be allowed to sell their products or any portion thereof in
the customs territory.

s."Certicate of Registration" shall mean the certicate issued by the PEZA
to an ECOZONE Enterprise upon its registration.
t."Date of Registration" shall refer to the date appearing in the certicate of
registration.
u."Registration Agreement" shall refer to the nal agreement executed by
the PEZA and the ECOZONE Enterprise setting forth the terms and conditions for
the latter's operation of business or engagement of economic activity within the
ECOZONE.
v."Start of Commercial Operations" for purposes of the income tax holiday
shall be the date specied in the Registration Agreement or the date when the
particular ECOZONE Export Enterprise actually begins production of the
registered product for commercial purposes, whichever comes first, irrespective of
phases or modules or schedule of development.
w."Expansion" shall mean installation of additional facilities and/or
equipment that will result in the increase of production capacity. It may include
modernization and rehabilitation. SEAHcT
Modernization or rehabilitation to be registrable may or may not result in
increase in capacity but the following conditions should be met:
1.the area must be listed in the Investment Priorities Plan specically
for modernization or rehabilitation;
2.phases/stages of production sought to be modernized/rehabilitated
must be identified; and
3.must result in any of the following:
a.substantial reduction of production cost; or
b.signicant increase in productive eciency including
debottlenecking; or
c.meaningful upgrading of product quality; or
d.keeping abreast with the state of the art in the production of
registered product.
x."Prohibited Merchandise" shall refer to goods, wares, merchandise,
equipment or machineries the importation of which are prohibited by law as
enumerated in Section 102, Book 1 of Republic Act No. 1937, otherwise known
as the Tari and Customs Code of the Philippines, as amended by Presidential
Decree No. 34, and such other goods or merchandise which may be prohibited by
special laws or by the PEZA.
y."Domestic Merchandise" shall mean those articles which are the growth,
origin or manufacture of the Philippines.
z."Foreign Merchandise" shall mean those articles imported into the
Philippines, except those previously exported therefrom and returned having
been advanced in value or improved in condition by any process of manufacture
or other similarly articial means or processes and upon which no drawback or
bounty has been allowed. HICcSA
aa."Export Product" shall mean the manufactured, processed and/or
assembled products, whether physical or non-physical, belonging to the class of
products approved by the Board to be undertaken by the enterprise, including
such packaging materials and containers as may be necessary to put the product
into exportable form.
bb."Rejects/Seconds" shall mean nished or semi-nished products or raw
materials which are defective or inferior in quality, such that any further
processing or manipulation thereof is not technically or economically feasible for
the purpose for which they are originally intended.
cc."Semi-nished Product" shall mean an article, which is unnished or
incomplete but possesses the essential character of a nished product in relation
to another and intended to be used as a direct input to the latter.
dd."Raw Materials" refers to non-fabricated materials directly used in
processing or manufacturing, during the course of which its nature or form is
changed.
ee."Spare Parts" shall mean usual components of machinery and/or
equipment which are subject to wear and tear arising from normal use,
utilization and operation.
ff."Machinery and Equipment" shall refer to capital equipment, major
components thereof, non-perishable tools, machines and other mechanical,
chemical and or electrical apparatus, whether xed or movable, needed in the
registered operations of the ECOZONE Enterprise.
gg."Packaging Materials" shall refer to wrapping materials, receptacles and
containers, tags, labels, and such other materials as are necessary to put the
product in exportable form.
hh."Construction Materials" shall refer to articles or materials that shall
form part of the factory buildings whether built by the ECOZONE enterprise or
leased from the PEZA, including xtures thereof, enclosures, driveways and other
auxiliary structures. cAaETS
ii."Merchandise or Goods" shall collectively refer to raw materials, supplies,
equipment, machineries, spare parts, packaging materials, or wares of every
description to be used in connection with the registered activity of an ECOZONE
enterprise.
jj."Assembly" shall mean the process by which semi-nished parts or
materials are put together or combined to form a distinct product without
substantially changing its physical or mechanical characteristics or electro-
magnetic and/or chemical properties.
kk."Manufacturing/Processing/Manipulation" shall mean the process by
which raw or semi-nished materials are converted into a new product through a
change in their physical, mechanical or electro-magnetic characteristics and/or
chemical properties.
ll."Packaging" shall mean the process by which raw materials, semi-finished
products or nished products whether locally produced or not are placed without
substantial alteration in a container or receptacle or wrapped in preparation for
the market. It may include weighing and/or reduction of products to standard
measurements and specifications and other similar packaging processes.
mm."Export Sales" shall mean the Philippine port F.O.B. value, determined
from invoices, bills of lading, inward letters of credit, landing certicates and
other commercial documents of export products exported directly by an
ECOZONE Export or Free Trade Enterprise or the net selling price of the export
products sold by an ECOZONE Export or Free Trade Enterprise to another export
producer or to an export trader that subsequently exports the same; Provided,
That sales of export products to another producer or to an export trader shall only
be deemed export sales when actually exported by the latter, as evidenced by
the landing certicate or similar commercial documents; Provided, further, That
without actual exportation, the following shall be considered constructively
exported:
1)sales to the bonded manufacturing warehouses of export-oriented
manufacturers;
2)sales to registered ECOZONE Export or Free Trade Enterprises;
3)sales to registered export traders operating bonded trading
warehouses supplying raw materials used in the manufacture of
export products; and
4)sales to diplomatic missions and other agencies and/or
instrumentalities granted tax immunities of locally
manufactured, assembled or repacked products, whether paid for
in foreign currency or not. EIAHcC
nn."Gross Income" for purposes of computing the special tax due under
Section 24 of the Act refers to gross sales or gross revenues derived from
business activity within the ECOZONE, net of sales discounts, sales returns and
allowances and minus costs of sales or direct costs but before any deduction is
made for administrative expenses or incidental losses during a given taxable
period. The allowable deductions from "gross income" are specically
enumerated under Section 2, Rule XX of these Rules.
oo."Value Added" is the dierence between the selling price of merchandise
and the value of the raw materials and manufacturing supplies used in the
manufacture, processing or manipulation thereof, which were either imported
directly by an ECOZONE Export or Free Trade Enterprise or imported through the
customs territory.
pp."Net Foreign Exchange Earnings" shall mean the total foreign exchange
proceeds from the export of the registered product minus the total foreign
exchange expenses incurred in the production of the registered product and the
depreciation of imported capital equipment.
qq."Net Foreign Exchange Savings" shall mean the foreign exchange that
would have been expended had the registered product been imported less the
total foreign exchange expenses incurred in the production of the registered
product and the depreciation of imported capital equipment.
rr."Fixed Assets" shall mean those assets subject to depreciation under the
National Internal Revenue Code.
ss."Training Program" shall refer to an organized activity primarily designed
for the systematic development of the attitude, knowledge, skill and behavior
pattern of managerial or non-managerial employees required for the adequate
performance of a given job or task conducted by a juridical or natural person or
persons. AHCcET
tt."Training Expense" refers to the direct, ordinary and necessary expenses
incurred by an ECOZONE Enterprise (except by an ECOZONE Service Enterprise
as dened under paragraph (p), Section 2, Rule I of these Rules) in a training
program or activity designed to develop skilled or unskilled labor or for
managerial or other management development program within the purview of
Section 42 of the Act. These shall include, among others, the following expenses
or any combination of them:
a)Training materials, books and supplies;
b)Cost of raw materials and non-depreciable tools actually consumed
and used during the training;
c)Honoraria for resource speakers and training coordinators and other
fees;
d)Travelling expenses of resource speakers and training coordinators
while away from home on account of the training program;
e)Salaries of trainees and training staff for the duration of training;
f)Travelling expenses of trainees and training sta while away from
home on account of the training program;
g)Tuition, registration or similar fees paid for sponsored trainees;
h)Cost of repairs of training equipment facilities and other xed assets
used in the training program, if breakdown occurs as a result of
training; TaCSAD
i)Others (not to exceed 5% of the total training cost)
i.foods
ii.rental of venue (if held outside of the ECOZONE enterprise's
factory/office building)

iii.rental of equipment
iv.work clothes for trainees and instructors
v.certificates of training
vi.group insurance of trainees
uu."Unskilled Labor" shall refer to any person, employed or unemployed by
the ECOZONE enterprise lacking the skill, training or experience required by or
necessary for a particular production process in any industrial or manufacturing
activity. SIDEaA
vv."Direct Labor Wage" shall refer to compensation for labor directly used
in the production or manufacturing process up to and including the services of
the production foreman, but shall exclude labor for maintenance of production,
machinery and equipment. Compensation shall cover salaries and wages,
including other payments such as bonuses and cost of living allowances which
form part of the laborer's or employee's taxable earnings.
ww."Basic Skills Training" shall refer to the rst stage of the learning
process of a vocation or occupation aimed at developing the aptitude, technical
character for a given job, task, knowledge, skill and behavior pattern to specic
standards.
xx."Skills Upgrading" shall refer to training for supplementary skills and
knowledge in order to increase the versatility and occupational mobility of a
worker or to improve his standard of performance.
yy."Retraining" shall refer to the acquisition of skills and knowledge
required in an occupation other than the skills or knowledge for which the person
was originally trained.
RULE II
Basic Rights and Guarantees
SECTION 1.Protection of Investment. Consistent with Section 7 of the
Act, all investors and registered enterprises are entitled to the basic rights and
guarantees provided in the Constitution. Among other rights recognized by the
Government of the Philippines are the following:
(a)Repatriation of Investment. In the case of foreign investments,
the right to repatriate the entire proceeds of the liquidation of
the investment in the currency in which the investment was
originally made and at the exchange rate prevailing at the time
of repatriation, subject to the applicable provisions of Republic Act
No. 265 and Republic Act No. 7653 and the pertinent regulations
issued pursuant thereto.
(b)Remittance of Earnings. In accordance with Section 28 of the Act
and Rule XIX of these Rules, after-tax prots and other earnings
of foreign investments in the ECOZONE may be remitted
outward without need of prior Bangko Sentral ng Pilipinas
approval. The remittance shall be in the equivalent foreign
exchange through any of the banks licensed by the Bangko
Sentral ng Pilipinas in the ECOZONE: Provided, That such foreign
investments in the registered enterprise have been previously
registered with the Bangko Sentral ng Pilipinas. SEDICa
(c)Foreign Loans and Contracts. The right to remit at the exchange
rate prevailing at the time of remittance such sums as may be
necessary to meet the payments of interest and principal on
foreign loans and foreign obligations arising from technological
assistance contracts, subject to the applicable provisions of
Republic Act No. 265 and Republic Act No. 7653 and the pertinent
regulations issued pursuant thereto.
(d)Freedom from Expropriation. There shall be no expropriation by
the government of the property represented by investments or of
the property of the enterprise except for public use or in the
interest of national welfare or defense and upon payment of just
compensation. In such cases, foreign investors or enterprises shall
have the right to remit sums received as compensation for the
expropriated property in the currency in which the investment
was originally made and at the exchange rate at the time of
remittance, subject to the applicable provisions of Republic Act
No. 265 and Republic Act No. 7653 and the pertinent regulations
issued pursuant thereto.
(e)Requisition of Investment. There shall be no requisition of the
property represented by the investment or of the property of the
enterprise, except in the event of war or national emergency and
only for the duration thereof. Just compensation shall be
determined and paid either at the time of requisition or
immediately after cessation of the state of war or national
emergency. Payments received as compensation for the
requisitioned property may be remitted in the currency in which
the investment was originally made and at the exchange rate
prevailing at the time of remittance, subject to the applicable
provisions of Republic Act No. 265 and Republic Act No. 7653 and
the pertinent regulations issued pursuant thereto.
SECTION 2.Protection of Labor. Consistent with Section 2 of the Act, all
workers within the ECOZONES shall be assured of their basic rights under the
Constitution, including the right to security of tenure and humane conditions of
work and right to self-organization. SIcEHC
PART II
Registration of ECOZONE Enterprises
RULE III
Application and Registration
SECTION 1.Qualication of Applicants. Any person, rm, association,
partnership, corporation, or any other form of business organization, regardless of
nationality, control and/or ownership of the working capital thereof may apply
for registration as an Export or Free Trade Enterprise within the ECOZONE in any
sector of industry, international trade and commerce, except duty-free retailing
and wholesale trading of imported nished products for purposes of serving the
domestic market. Furthermore, if the area of investments of the said Enterprises
falls within Lists A and B of the Foreign Investments Act of 1991, then the
applicable nationality, ownership or control requirements of the said law shall be
observed.
Applications for ECOZONE Developer/Operator, Domestic Market, Utilities,
Facilities, Tourism or Service Enterprises shall comply with the applicable
nationality, control and/or ownership requirements of the working capital thereof
in accordance with the pertinent provisions of the Philippine Constitution,
Foreign Investments Act of 1991 and other existing laws and regulations.
However, applicants for Domestic Market Enterprise shall be limited to new
or expanding business entitles subject to the guidelines that shall be
promulgated by the Board in addition to the nationality requirements under
existing laws and regulations. HSTCcD
SECTION 2.Forms. All applications shall be made upon forms prescribed
by the PEZA duly accomplished in three (3) copies.
SECTION 3.Supporting Documents. The applicant for an ECOZONE
Enterprise shall submit the following documents:
a)Project feasibility study, unless dispensed with and in lieu thereof,
the applicant shall submit basic data/information on its technical,
nancial, marketing and management capability/competence to
undertake the proposed project or business within the ECOZONE.
b)Copies of articles of incorporation and by-laws;
c)Resolution of the applicant's board of directors authorizing the ling
of the application; list of its directors, principal ocers, and major
stockholders, including their bio-data;
d)List of machinery and equipment to be used by the applicant with a
statement of their capacity, ownership and/or mode of
procurement; DaAIHC
e)Company brochures and/or photographs of products(s); and
f)Other supporting documents/papers/clearances as may be required by
the PEZA depending upon the nature of the business and the
type of business organization of the applicant.
SECTION 4.Filing of Application. The application shall be led with the
PEZA upon payment of the corresponding filing fee.
SECTION 5.Board Action. Approval of the application shall be by
resolution of the Board unless otherwise required by appropriate circulars and/or
memoranda taking into consideration the decentralization policy in the
management, operation and maintenance of each ECOZONE. The action taken
thereon shall be communicated in writing to the applicant.
SECTION 6.Certicate of Registration. The Certicate of Registration
shall be issued only upon the execution of the Registration Agreement by the
PEZA and the applicant and whenever it can be shown that the applicant has:
a)Complied with all the pre-registration requirements;
b)Submitted within twenty (20) calendar days from receipt of the
notice of approval of the application, a formal acceptance of the
proposed terms and conditions of registration. For good cause
shown, said period may be extended if the request therefor is
led before the expiration of the period sought to be extended;
and
c)Paid the registration fee.
However, in appropriate cases as may be determined by the Board, the
ECOZONE management or the duly authorized oces of the PEZA shall be
empowered to issue business permits and/or licenses to ECOZONE Enterprises in
lieu of the Certicate of Registration after the proper evaluation of their
application in accordance with the set of criteria duly approved by the Board and
upon payment of the corresponding fees. HcTIDC
SECTION 7.One Stop Shop Center. There shall be established in the
ECOZONE a one stop-shop center to facilitate the registration, licensing and
issuance of permits to ECOZONE Enterprises. All government agencies involved
shall assign their respective representatives in the ECOZONE for this purpose.
PART III
Establishment of the ECOZONES
RULE IV
Criteria for the Establishment of an ECOZONE
SECTION 1.General Criteria. All areas initially identied under Section 5
of the Act as the sites of the ECOZONES and other areas where ECOZONES may
be established shall conform to the following general criteria to ensure their
viability and geographic dispersal:
(a)Identication of the proposed area as a regional growth center in
the Medium-Term Philippine Development Plan or by the
Regional Development Council;
(b)The existence of required infrastructure in the proposed ECOZONE,
such as roads, railways, telephones, ports, airports, etc., and the
suitability and capacity of the proposed site to absorb such
improvements;
(c)The availability of water source and electric power supply for use of
the ECOZONE; aHTDAc

(d)The extent of vacant lands available for industrial and commercial
development and future expansion of the ECOZONE as well as of
lands adjacent to the ECOZONE available for development of
residential areas for the ECOZONE workers;
(e)The availability of skilled, semi-skilled and non-skilled trainable
labor force in and around the ECOZONE;
(f)The area must have a signicant incremental advantage over the
existing ECOZONES and its potential protability can be
established;
(g)The area must be strategically located; and
(h)The area must be situated where controls can easily be established
to curtail smuggling activities.
SECTION 2.Specic Criteria. The Board shall formulate specic criteria,
priorities and guidelines to implement the general criteria set forth in Section 1
hereof, including the application of the various schemes under Republic Act No.
6957 (the Build-Operate-Transfer Law), as amended, for the guidance of the
PEZA or of the applicant for registration as an ECOZONE Developer/Operator in
the establishment of the ECOZONES.
SECTION 3.Development of the Areas/Documentary Requirements. The
areas initially identied in Section 5 of the Act and all other areas where the
ECOZONES may be established shall be developed through any of the following
schemes:
(a)Private initiative;
(b)Local government initiative with the assistance of the national
government thru the PEZA; and
(c)National government or PEZA initiative. EAISDH
The proposed ECOZONE shall not be considered for Presidential
Proclamation unless the following sets of documents have been submitted
directly to PEZA:
(1)Set A Pertinent land use clearances/certicates to be secured
from the concerned Regional Land Use Committee (RLUC)
member-agencies, as follows:
-Land Use Conversion Clearance Certicate from the Department
of Agrarian Reform (DAR);
-Certication from the Department of Agriculture (DA) that the
proposed area is not covered by Administrative Order No.
20 and that such land has ceased to be economically
feasible for agricultural purposes;
-Certication from the Housing Land Use and Regulatory Board
(HLURB) specifying that the proposed land use is in
accordance with the land use plan duly approved by the
legislative council/(Sanggunian) of the host
municipality/city;
-Environmental Clearance Certicate issued by the Department
of Environment and Natural Resources/Environmental
Management Bureau (DENR/EMB) (until such time as the
PEZA can issue the said certificate); and