AN ACT AMENDING REPUBLIC ACT NO. 9490, OTHERWISE KNOWN AS THE "AURORA SPECIAL ECONOMIC ZONE ACT OF 2007

Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro Manila

Fourteenth Congress
Third Regular Session

 

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand nine.

REPUBLIC ACT NO. 10083

AN ACT AMENDING REPUBLIC ACT NO. 9490, OTHERWISE KNOWN AS THE "AURORA SPECIAL ECONOMIC ZONE ACT OF 2007"

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 1 of Republic Act No. 9490 is hereby amended to read as follows:

"Section 1. Short Title. - This Act shall be known as the "Aurora Pacific Economic Zone and Freeport Act of 2010."

Section 2. Section 3 of Republic Act No. 9490 is hereby amended to read as follows:

"Section 3. Creation of the Aurora Pacific Economic and Freeport Zone. - In pursuit of the foregoing declared policy and subject to the concurrence of the concerned local government units (LGUs) of Aurora affected by the zone, there is hereby established a special economic zone and freeport, hereinafter referred to as the...

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Summary of Republic Act No. 10083 (Aurora Pacific Economic Zone and Freeport Act of 2010):

Establishment and Coverage:
- Renames the "Aurora Special Economic Zone" to the "Aurora Pacific Economic Zone and Freeport" (APECO) (Section 1)
- Defines the metes and bounds of two parcels of land comprising the APECO, with Parcel 1 covering 496 hectares and Parcel 2 covering 12,427 hectares (Section 3)

Governing Principles and Incentives:
- The APECO shall be developed as a self-reliant industrial, commercial, agro-industrial, tourist, banking, financial and investment center with residential areas (Section 4(a))
- Foreign citizens and companies may set up enterprises in the APECO, either by themselves or in joint venture with Filipinos (Section 4(d))
- The APECO shall be managed as a separate customs and taxation territory, with duty-free importation of raw materials and capital equipment (Section 4(e), 4(f), 5(K))
- Registered enterprises shall pay a 5% tax on Gross Income Earned, with 3% going to the national government, 1% each to the local government and APECO (Section 5(C))

Administration and Incentive Monitoring:
- The APECO shall be responsible for administering incentives to registered enterprises, following guidelines from the Board of Investments (BOI) (Section 7)
- The APECO shall submit information on registered enterprises and annual tax expenditures to the Department of Finance (DOF) and BOI (Section 7)

Powers and Functions of APECO:
- Operate, administer, manage and develop the APECO (Section 12(a))
- Register, regulate and supervise enterprises in the APECO (Section 12(b))
- Coordinate with local government units and supervise development plans (Section 12(c))
- License, regulate and undertake utilities, services and infrastructure (Section 12(d), 12(e))
- Operate tourism-related activities like casinos, golf courses, etc. (Section 12(f))
- Raise funds, issue bonds and securities (Section 12(h))
- Protect forests, beaches, coral reefs and maintain ecological balance (Section 12(i))
- Establish training centers, nurseries and ranger services (Section 12(j))
- Exercise powers of eminent domain for public use (Section 12(l))
- Issue certificates of origin, working visas, and alien employment permit exemptions (Section 12(o), 12(p), 12(r))
- Undertake reclamation and provide docking facilities (Section 12(s))
- Create subsidiaries and invite private sector participation up to 60% (Section 12(t))

Governance and Organization:
- The APECO shall be governed by a Board of Directors appointed by the President, including representatives from government, investors, workers and prominent citizens (Section 15)
- The Chairman shall be appointed by the President, while the President and CEO shall be appointed by the Board (Section 15)
- The APECO shall have its own personnel and compensation system separate from civil service laws (Section 17)

Labor and Management Relations:
- Labor relations in the APECO shall be governed by the Labor Code of the Philippines, with the Department of Labor and Employment (DOLE) having visitorial powers (Section 17-A)

Non-Profit Character and Tax Exemptions:
- The APECO shall be non-profit and use its 1% share for operations and development (Section 12-A)
- The APECO shall be exempt from taxes, duties, fees and charges, and donations to APECO shall be exempt from donor's tax (Section 12-A)
- 100% of the national government's 3% share shall be appropriated for 10 years to an infrastructure development trust fund (Section 12-A)

Other Provisions:
- The APECO shall enjoy the same privileges granted to other ecozones and freeports (Section 12-B)
- Repealing and separability clauses for inconsistent laws (Sections 14, 15)
- Effectivity clause 15 days after publication in the Official Gazette or newspapers (Section 16)