Investment Incentives Code of the Municipality of Marilao of 2017

April 24, 2017 Excerpts from the Minutes of the Regular Session of the Sangguniang Bayan of Marilao, Province of Bulacan, Held at the Session Hall of the Municipal Building on April 24, 2017. MARILAO MUNICIPAL ORDINANCE NO. 821-17 Introduced by Councilor Wilfredo D. Diaz and seconded by all members of the Sangguniang Bayan Present ORDINANCE PROMULGATING THE INVESTMENT INCENTIVES CODE OF THE MUNICIPALITY OF MARILAO, BULACAN AND PROVIDING FUNDS FOR THE PURPOSE Be it enacted by the Sangguniang Bayan that: CHAPTER I General Provisions ARTICLE A Short Title and Scope SECTION 1A.01. Title . This Ordinance shall be known as the " Investment Incentives Code of the Municipality of Marilao of 2017 ." SECTION 1A.02. Scope . This Code covers all policies, rules and regulations related to investment incentives being granted to all kinds of business enterprises that are now existing or to be located in this municipality. ARTICLE B Policies SECTION 1B.01. Declaration of Investment Incentives Policy . It is hereby declared as the policy of this municipality to encourage private domestic and foreign investments in industry, agriculture, mining and other sectors of the economy which shall provide significant employment opportunities relative to the amount of the capital being invested; increase productivity of the land, minerals, forestry, aquatic and other resources of the country, and improve utilization of the products thereof; improve technical skills of the people employed in the enterprise; provide a foundation for the future development of the economy; meet the tests of international competitiveness; accelerate development of this municipality that would result in increased volume and value of exports for the national economy. It is the policy of this municipality to extend projects which will significantly contribute to the attainment of these objectives, fiscal incentives without which said projects may not be established in this locality, number and/or place required for optimum local and national economic development. Fiscal incentive systems shall be devised to compensate for market imperfections, reward performance of making contributions to economic development, cost-efficient and simple to administer. Specifically, it shall be the policy of this municipality: a) to encourage Filipino and foreign investments, as hereinafter set out, in projects to develop agricultural, mining and manufacturing industries which increase national income most at the least cost, bring about greater economic stability, provide more opportunities for employment, raise the standards of living of the people, and provide for an equitable distribution of wealth; b) to welcome and encourage foreign capital to establish pioneer enterprises that are capital intensive and would utilize a substantial amount of domestic raw materials, in joint venture with substantial Filipino capital, whenever available; c) to actively encourage, promote and diversify exports of services and manufacturer utilizing domestic raw materials to the fullest extent possible, and to develop new markets for Philippine products, in order to attain a rising level of production and employment, increase foreign exchange earnings, hasten the economic development of the nation, and assure that the benefits of development accrue to the Filipino people; d) to achieve promptly self-reliance in the basic requirements of food and raw materials and in the implementations thereof, to accelerate the development of the agricultural sector by diffusing productive employment and income opportunities to all the people concerned and thus attain self-sufficiency in basic food and raw materials, as well as increased production of export crops and other products; e) to make investments and the doing of business within this municipality by foreigners and business organizations owned in part by foreigners contribute to the sound and balanced development of the locality and national economy on a self-sustaining basis; f) to accelerate the sound development of the locality and national economy in consonance with the principles and objectives of economic nationalism, and in pursuance of a planned, economically feasible and practicable dispersal of industries, under certain conditions which will encourage competition and discourage monopolies; g) to encourage both Filipino and foreign investments, as hereinafter set out, in projects to develop agricultural, mining and manufacturing industries which increase local and national income most at the least cost, increase exports, bring about greater economic stability, provide more opportunities for employment, raise the standards of living of the people, and provide for an equitable distribution of wealth; h) to welcome and encourage foreign capital to establish pioneer enterprises that are capital intensive and would utilize a substantial amount of domestic raw materials, in joint venture with substantial Filipino capital, whenever available; i) to actively encourage, promote, and diversify exports of services and products utilizing domestic raw materials to the fullest extend possible, and to develop new markets for Philippine products, in order to attain a rising level of production and employment, increase foreign exchange earnings, hasten the economic development of the nation, and assure that the benefits of development accrue to the Filipino people; j) to encourage foreign investments consistent with the constitutional mandate to conserve and develop our own patrimony. Towards this end, this municipality hereby adopts a flexible and dynamic policy on the granting of long-term lease on private lands to foreign investors for the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial, or commercial use, tourism, and other similar priority productive endeavors. ARTICLE C Rules of Construction SECTION 1C.01. Words and Phrases . Words and phrases embodied in this Code but not herein specifically defined shall have the same meaning as found in legal dictionaries as well as in existing laws. SECTION 1C.02. Construction of Codal Provisions . In construing the provisions of this Code, the following rules of construction shall be observed unless otherwise inconsistent with the manifest intent of the provisions or when applied they would lead to absurd or highly improbable results. a) General Rule .All words and phrases shall be construed and understood according to the common and approved usage of the language; but technical words and phrases and such other words in this Code which may have acquired a peculiar or appropriate meaning shall be construed and understood according to such technical, peculiar or appropriate meaning. CAIHTE b) Gender and Number .Every word in this Code importing the masculine gender shall extend to both male and female. Every word importing the singular number shall extend and apply to several persons or things as well; and every word importing the plural number shall extend and apply also to one person or thing. c) Computation of Time .The time within which an act is to be done as provided in this Code, or in any rule or regulation issued pursuant to the provisions thereof, when expressed in days shall be computed by excluding the first day and including the last day, except when the last day falls on a Sunday or holiday, in which case, the same shall be excluded from the computations and the next business day shall be considered the last day. d) Tenses .The use of any verb in the present tense shall include the future whenever applicable. The words "shall have been" shall include past and future cases. The use of the word "shall" in this Code means the act being required to be done is mandatory, whereas when the word "may" is used, it means permissive. e) References .All references to the "Chapters","Articles",or "Sections" are to chapters, articles or sections in this Code unless otherwise specified. f) Conflicting Provisions of Chapters .If the provisions of different Chapters conflict with or contravene each other, the provisions of each chapter shall prevail as to all specific matter and questions involved therein. g) Conflicting Provisions of Sections .If the provisions of different sections in the same chapter conflict with each other, the provisions of the Section which is last in point of sequence shall prevail. SECTION 1C.03. Amendment and Integration of Additional Provisions . Any amendment on this Code may be introduced to the "Chapter", "Article" or "Section" concerned. All ordinances or provisions thereof enacted subsequent to the date of effectivity of this Code shall be compiled in such a way as to bear the corresponding chapter, article or section to which such ordinance or provision pertains. Such new provisions shall be integrated into the corresponding chapter, article or section whenever a new printing or reproduction of this Code is undertaken upon authorization of the Sangguniang Bayan. SECTION 1C.04. Existing Rights . No right accrued, action or proceeding commenced before the effectivity of this Code shall be adversely affected by any provisions hereof. Thereafter, all procedures or actions to be taken shall conform to the provisions of this Code whenever possible. SECTION 1C.05. Reference to Code . Whenever reference is made to any portion of this Code, such reference shall apply to all amendments and additions now or may hereafter be introduced. SECTION 1C.06. Effect of Heading . The "Chapter, Article and Section" headings do not in any manner affect the scope, meaning or intent of the provisions contained in this Code. SECTION 1C.07. Relation to Prior Ordinance . The provisions of this Code which are substantially the same as that of previous or existing ordinances particularly when dealing with the same subject-matter shall be construed as "restatement" and not as a new enactment. ARTICLE D Legal Basis SECTION 1D.01. Pertinent Laws . This Code is enacted pursuant to the provisions of the following: Presidential Decree No. 535 Providing for a Comprehensive Investment Incentives Program for the Tourism Industry. Presidential Decree No. 1159 Prescribing Incentives for Investments in Agricultural Enterprise. Presidential Decree No. 1353 Exploration and Development Expenditures. Presidential Decree No. 1789 A Decree to Revise, Amend and Codify the Investment, Agricultural and Export Incentives Acts to be Known as the Omnibus Investments Code (Repealed by BP 391). Batas Pambansa Blg. 44 Investments Promotion Act for Less Developed Areas. Batas Pambansa Blg. 391 Investment Incentive Policy Act of 1983. Republic Act No. 5186 "Investment Incentives Act." Republic Act No. 6135 "Export Incentives Act of 1970." Republic Act No. 6810 "Magna Carta for Countryside and Barangay Business Enterprises (Kalakalan 20)." Republic Act No. 6938 the "Cooperative Code of the Philippines." Republic Act No. 6971 "Productivity Incentives Act of 1990." Republic Act No. 6977 "Magna Carta for Small and Medium Enterprises." Republic Act No. 7652 "Investors' Lease Act." Republic Act No. 7279 Socialized Housing Act. Republic Act No. 7160 Local Government Code of 1991 particularly the following Sections: 1] Section 458. Powers, Duties, and Functions of the Sangguniang Bayan : (a) The sangguniang bayan, as the legislative body of the municipality, shall enact ordinances, approve resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to Section 16 of this Code (LGC of 1991) and in the proper exercise of the corporate powers of the municipality as provided for under Sec. 22 of this Code and shall: (b) (xii) With the concurrence of at least two-thirds (2/3) of all the members of the sangguniang bayan, grant tax exemptions, incentives or reliefs to entities engaged in community growth-inducing industries, subject to the provisions of Chapter 5, Title I, Book II of the Code. (Reiterated under Art. 99, IRR) 2] Section 133, RA 7160. Common Limitations on the Taxing Power of Local Government Units . Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities and barangays shall not extend to the levy of the following: (g) Taxes on business enterprises certified to by the Board of Investments as pioneer or non-pioneer for a period of six (6) and four (4) years, respectively from the date of registration. (m) Taxes, fees or charges on Philippine products actually exported, except as otherwise provided herein (LGC of 1991). (n) Taxes, fees or charges, on Countryside and Barangay Business Enterprises and cooperatives duly registered under RA No. 6810 and RA 6938 otherwise known as the "Cooperative Code of the Philippines" respectively. (Reiterated under Art. 221, IRR) 3] Section 192, RA 7160. Authority to Grant Tax Exemption Privileges . Local government units may, through ordinances duly approved, grant tax exemptions, incentives or relief under such terms and conditions as they may deem necessary. 4] Art. 282, IRR of RA 7160. Authority to Grant Tax Exemption Privileges or Incentives : (a) While Sanggunian may grant tax exemption, tax incentive, or tax relief, such grant shall not apply to regulatory fees which are levied under the police power of LGUs. Tax exemptions shall be conferred through the issuance of a tax exemption certificate, which shall be non-transferable. (b) The Sanggunian granting tax exemptions, tax incentives and tax reliefs may be guided by the following: (1) On the grant of tax exemptions or tax reliefs: (i) Tax exemption or tax relief may be granted in cases of natural calamities, civil disturbance, general failure of crops, or adverse economic conditions such as substantial decrease in the prices of agricultural or agri-based products; (ii) The grant of exemption or relief shall be through an ordinance; (iii) Any exemption or relief granted to a type or kind of business shall apply to all business similarly situated; and (iv) Any exemption or relief granted shall take effect only during the next calendar year for a period not exceeding twelve (12) months as may be provided in the ordinance. In the case of shared revenues, the exemption or relief shall only extend to the LGU granting such exemption or relief. (2) On the grant of tax incentives: (i) The tax incentive shall be granted only to new investments in the locality and the ordinance shall prescribe the terms and conditions therefore; (ii) The grant of the tax incentive shall be for a definite period not exceeding one (1) calendar year; (iii) The grant of tax incentives shall be by ordinance passed prior to the first (1st) day of January of any year; and (iv) Any tax incentive granted to a type or kind of business shall apply to all businesses similarly situated. CHAPTER II Countryside and Barangay Business Enterprises ARTICLE A Policy and Definitions SECTION 2A.01. Policy . It is hereby declared to be the policy of this municipality that growth of countryside business enterprises shall be achieved through the absence of bureaucratic restrictions and granting of incentives and other benefits. SECTION 2A.02. Definitions . As used in this Article, the term: "Countryside and Barangay Business Enterprises" (CBBE) also known as "Kalakalan 20" shall mean any business entity, association or cooperative registered under the provisions of RA 6810 whose: DETACa (a) number of employees does not exceed twenty (20) at any time for the purpose of undertaking a productive business enterprise recommended by the Department of Trade and Industry (DTI) provincial office that will help develop the economy in its area; (b) assets, at the time of registration as CBBE, do not exceed Five hundred thousand pesos (P500,000.00) before financing; and (c) principal office and location of business operations are located in the countryside as defined in the implementing rules and regulations issued by the Secretary of Trade and Industry. For this purpose, the term "productive business enterprise" shall not apply to business enterprises engaged principally in any of the following activities, namely: professional services, retailing, wholesaling or trading of commodities, products or merchandise . ARTICLE B Investment Incentives SECTION 2B.01. Exemption from All Local Taxes, Fees and Charges . All duly registered CBBEs shall be exempted from all local business taxes, local license, building permit fees and other taxes or regulatory fees or charges. It shall be exempted from any and all government rules and regulations in respect of assets, income, and other activities indispensably and directly utilized in, proceeding from or connected with, the business of the enterprise. (Sec. 3, RA 6810) SECTION 2B.02. Rules and Regulations . 1. Only CBBEs duly registered with the Permits and Licensing (Division/Section),Office of the Mayor shall be entitled to the privileges granted in the preceding Section. 2. All CBBEs shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, duly registered CBBEs are exempted from the payment of the corresponding regulatory fees required under existing tax ordinances of this municipality. 3. In the event the CBBE uses a brand name on its products, such brand name shall first be registered with the Bureau of Domestic Trade, through the Department of Trade and Industry (DTI) provincial office. 4. CBBEs registered under the provisions of RA 6810 shall acquire a separate and distinct juridical personality from the owners/members thereof and as such can own, dispose and encumber its properties and enter into contracts on its own account, with the municipality to sue and be sued, and transact business anywhere in this municipality. 5. The CBBE shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 6. All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Code by the CBBE or by any of its officers and authorized representatives. 7. The CBBE authority shall, after due notice and hearing, be revoked and cancelled upon the failure of the CBBE, without valid reasons, to commence its operations within forty-five (45) days from receipt of the authority to operate. SECTION 2B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided however, that should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for a heavier penalty it shall be prosecuted only under either but not in both, otherwise the offender will be twice put in jeopardy of punishment for the same offense which is prohibited under Section 21, Article III of the Philippine Constitution. If the violation is committed by any juridical entity, the President, General Manager, or any person entrusted with the administration thereof at the time of the commission of the offense shall be held responsible or liable thereof. Provided, further, that should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER III Duly Registered Cooperatives ARTICLE A Policy, Concepts and Principles SECTION 3A.01. Policy . It is hereby declared as the policy of this municipality to foster the creation and growth of cooperatives as a practical vehicle for prompting self-reliance and harnessing people power towards the attainment of economic development and social justice. The municipality government shall encourage the private sector to undertake the actual formation and organization of cooperatives and shall create an atmosphere that is conducive to the growth and development of these cooperatives. SECTION 3A.02. General Concept . A cooperative is a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. (Art. 3, RA 3968) SECTION 3A.03. Cooperative Principles . Even cooperative shall conduct its affairs in accordance with Filipino culture and experience and the universally accepted principles of cooperation which include the following: 1) Open and Voluntary Membership Membership in a cooperative shall be voluntary and available to all individuals regardless of their social, political, racial or religious background or beliefs. 2) Democratic Control Cooperatives are democratic organizations. Their affairs shall be administered by persons elected or appointed in a manner agreed upon by the members. Members of primary cooperatives shall have equal voting rights on a one-member-one-vote principle: Provided, however, that in the case of secondary and tertiary cooperatives, the provisions of Article 37 of RA 6938 (Cooperative Code of the Philippines). 3) Limited Interest in Capital Share capital shall receive a strictly limited rate of interest. 4) Division of Net Surplus Net surplus arising out of the operations of a cooperative belongs to its members and shall be equitably distributed for cooperative development, common services, indivisible reserve fund, and for limited interest on capital and/or patronage refund in the manner provided in this Code and in the articles of cooperation and bylaws. 5) Cooperative Education All cooperatives shall make provision for the education of their members, officers and employees and of the general public based on the principles of cooperation. 6) Cooperation among Cooperatives All cooperatives, in order to serve best the interest of their members and communities, shall actively cooperate with other cooperatives at local, national, and international levels. (Art. 4, Ibid .) SECTION 3A.04. Definitions of Terms . As used in this Article the term: Member includes a person either natural or juridical who, adhering to the principles set forth in this Code and in the articles of cooperation, has been admitted by the cooperative as a member. General Assembly shall mean the full membership of the cooperative duly assembled for the purpose of exercising all the rights and performing all the obligations pertaining to cooperatives, as provided by this Code, its articles of cooperation and bylaws. Board of Directors shall mean that body entrusted with the management of the affairs of the cooperative under its articles of cooperation and bylaws. Committee shall refer to any body entrusted with specific functions and responsibilities under the bylaws or resolution of the general assembly or the board of directors. Articles of Cooperation means the articles of cooperation registered under the Cooperative Code of the Philippines and includes a registered amendment thereof. aDSIHc By-laws means the by laws registered under the Cooperative Code of the Philippines and includes any registered amendment thereof. Registration means the operative act granting judicial personality to a proposed cooperative and is evidenced by a certificate of registration. Cooperative Development Authority means the government agency in charge of the registration and regulation of cooperatives as such, hereinafter referred to as the Authority. Universally Accepted Principles means that body of cooperative principles adhered to worldwide by cooperatives in other jurisdictions. (Art. 5, RA 6938) Duly Registered Cooperatives A certificate of registration issued by the Cooperative Development Authority under its official seal shall be conclusive evidence that the cooperative therein mentioned is duly registered unless it is proved that the registration thereof has been cancelled. (Art. 17, RA 6938) ARTICLE B Investment Incentives for Cooperatives SECTION 3B.01. Exemption from Local Taxes, Fees and Charges . All duly registered "cooperatives" with accumulated reserves and undivided net savings of not more than ten million pesos (P10,000,000.00) shall be exempt from all municipality taxes of whatever name and nature. (Art. 62, RA 6938) It shall be exempted from any and all government rules and regulations in respect of assets, income, and other activities indispensably and directly utilized in, proceeding from or connected with, the business of the cooperatives. SECTION 3B.02. Rules and Regulations . 1. Only "cooperatives" duly registered with the Cooperatives Development Authority (CDA) shall be entitled to the privileges granted in the preceding Section. 2. All duly registered cooperatives shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, duly registered cooperatives are exempted from the payment of the corresponding regulatory fees required thereof. 3. In the event the cooperative uses a brand name on its products, such brand name shall first be registered with the Bureau of Domestic Trade, through the Department of Trade and Industry (DTI) provincial office. 4. Cooperatives duly registered under the provisions of RA 6938 shall acquire a separate and distinct juridical personality from the owners/members thereof and as such can own, dispose and encumber its properties and enter into contracts on its own account, with the capability to sue and be sued, and transact business anywhere in this municipality. 5. The cooperatives shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 6. All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by the cooperative or by any of its officers and authorized representatives. SECTION 3B.03. Types and Categories of Cooperatives . A cooperative may fall under any of the following types: a) Credit Cooperative is one which promotes thrift among its members and creates funds in order to grant loans for productive and provident purposes; b) Consumers Cooperative is one the primary purpose of which is to procure and distribute commodities to members and nonmembers; c) Producers cooperative is one that undertakes joint production whether agricultural or industrial; d) Marketing Cooperative is one which engages in the supply of production inputs to members and markets their products; e) Service Cooperative is one which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services; and f) Multipurpose Cooperative is one which combines two (2) or more of the business activities of these different types of cooperatives. (Art. 23, RA 6938) SECTION 3B.04. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER IV Investments in Agricultural Enterprises ARTICLE A Policies and Objectives SECTION 4A.01. Declaration of Policies . It is hereby declared as the policy of this municipality to attain a mutually reinforcing balance in the development of the agricultural and industrial sectors of our economy. The accelerated development of the agricultural sector strengthens and stabilizes the economic, political, and social structure of the country by diffusing productive employment and income opportunities to the countryside while attaining self-sufficiency in basic food and raw materials, and increasing production of export crops and other products; and because agricultural endeavors are generally of a higher risk nature than industrial or commercial undertakings due to its exposure to natural calamities and the vagaries of weather, it thus require more incentives. SECTION 4A.02. Objective . It is the primordial objective of this municipality to be self-reliant in its basic requirements for food and raw materials and in the implementation thereof also hasten the rural development and thus bring about a more equitable distribution of wealth and livelihood opportunities for its people. SECTION 4A.03. Definitions . As used in this Article, the term: a) Board of Investments or "Board" shall mean the Board of Investments created by Republic Act No. 5186, otherwise known as the Investment Incentives Act. b) Department of Agriculture or "Department" shall mean the Department of Agriculture. c) Registered Agricultural Enterprise shall mean any individual, corporation, partnership, cooperative or other entity organized and existing under the Philippine laws which is registered with the Board of Investments. d) Pioneer Agricultural Enterprise shall mean an enterprise registered with the Board and engaged in the pursuit of agricultural activities and/or service, including the industrial aspects of food processing whenever appropriate, predetermined jointly by the board and the Department to be feasible and highly essential to the attainment of the national goal taking into account the risk, magnitude of investment, relation to a declared specific national food and agriculture program for self-sufficiency and other social benefits of the project: Provided, that the final product in the case of processed food involves or will involve substantial use and processing of domestic raw materials from agricultural production. e) Agricultural Investments Priorities Plan shall mean the plan prepared jointly by the Board of Investments and the Department and approved by the President upon recommendation of the National Economic and Development Authority. f) Preferred Areas of Investment shall mean the economic activities which may be pioneer or non-pioneer in nature, declared as such in the agricultural Investments Priorities Plan. ETHIDa g) Philippine national shall mean a citizen of the Philippines; or a partnership, a cooperative, or association wholly owned by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least sixty per cent of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines; or a trustee of funds for pension or other employee retirement or separation benefits, where the trustee is a Philippine national and at least sixty per cent of the fund will accrue to the benefit of Philippine nationals: Provided, That where a corporation and its non-Filipino stockholders own stock in a registered enterprise, at least sixty per cent of the capital stock outstanding and entitled to vote to both corporations must be owned and held by the citizens of the Philippines and at least sixty per cent of the members of the board of directors of both corporations must be citizens of the Philippines in order that the corporation shall be considered a Philippine national. h) Foreign loan shall mean any credit facility or financial assistance other than equity investment obtained by a registered enterprise from a source outside the Philippines and brought into the Philippines either in foreign exchange or in other assets, and registered with the Central Bank and the Board, which shall assess and appraise the assets other than foreign exchange representing the proceeds of the loan. i) Foreign investments shall mean equity investment, owned by a non-Philippine national in a registered enterprise, made in the form of foreign exchange or other assets actually transferred to the Philippines and registered with the Bangko Sentral ng Pilipinas and the Board, which shall assess and appraise the value of such assets other than foreign exchange. j) Measured capacity shall mean the estimated additional volume of agricultural production, service or food product, which the Board and the Department shall have jointly determined to be desirable in each preferred area of investment in order to supply the needs of the economy at reasonable prices taking into account the export potential of the area. k) Tax credit shall mean any of the credits against taxes and/or duties extended to a registered enterprise by the Secretary of Finance pursuant to applicable decree. l) Capital stock shall be construed to include the stock certificates issued by corporations, membership certificates issued by cooperatives, and such other legal evidences of ownership issued by other entities. ARTICLE B Investment Incentives SECTION 4B.01. Incentive Privileges . In addition to the incentives already granted under PD 1159 and other existing laws, all agricultural enterprises including pioneer or non-pioneer agricultural enterprise duly registered with the Board of Investments are hereby granted the following incentive privileges: 1. Exemption from local business taxes, except real property tax, for a period of one (1) year to be reckoned from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 4B.02. Rules and Regulations . 1. Only pioneer and non-pioneer agricultural enterprises duly registered with the Board of Investments (BOI) shall be entitled to the privileges granted in the preceding Section. 2. All duly registered pioneer and non-pioneer agricultural enterprises shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof. 3. In the event the pioneer or non-pioneer agricultural enterprises uses a brand name on its products, such brand name shall first be registered with the Bureau of Domestic Trade, through the Department of Trade and Industry (DTI). 4. Pioneer and non-pioneer agricultural enterprises duly registered under the provisions of RA 1159, as emended, shall acquire a separate and distinct juridical personality from the owners or members thereof and as such can own, dispose and encumber its properties and enter into contracts on its own account, with the capacity to sue and be sued, and transact business anywhere in this municipality. 5. The pioneer or non-pioneer agricultural enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 6. All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by the duly registered pioneer or non-pioneer agricultural enterprises or by any of its officers and authorized representatives. SECTION 4B.03. Qualification for Incentives . To be entitled to the investment incentives under Sec. 4B.01 hereof, an applicant must satisfy the following requirements: a) It is engaged or proposing to engage in agricultural production, in food processing or the industrial aspects of food production if substantially integrated with agricultural production, and in related services or facilities necessary to support agricultural production including specialized transport, handling and storage of products and by-products arising out of such production declared as a preferred area of investment under the Agricultural Investments Priorities Plan. In the case of a corporation, at least sixty per cent (60%) of the capital stock outstanding and entitled to vote is owned and held by Philippine nationals, and at least sixty per cent (60%) of the members of the Board of Directors are citizens of the Philippines and in the case of the other entities, the ownership and management thereof shall be by Philippine nationals. In case the Corporation does not possess the required degree of ownership by Philippine nationals, the following circumstances must be satisfactorily established: 1) That it proposes to engage in a pioneer project that is in accordance with the provisions of RA 1159 which, considering the nature and extent of capital requirements, processes, technical skills, national importance and relative business risks involved, is in the opinion of the Board of such a nature that the available measured capacity thereof cannot be readily and adequately filled by Philippine nationals. 2) That it obligates itself to attain the status of a Philippine national, as defined in paragraph (a) of this section within thirty (30) years from the date of registration by having its shares of stock listed with a Philippine stock exchange within fifteen (15) years from the date of registration and actually offering for sale the said shares to Philippine nationals immediately after the said period: Provided, however, That in case of a registered enterprise exporting at least seventy per cent (70%) of its total production, it shall attain the status of a Philippine national within forty years (40) from date of registration by listing its shares of stock within twenty-five (25) years from date of registration and actually selling its shares after the said period: Provided, further, That the Board may extend this period for another ten (10) years, subject to such conditions as it may impose in the national interest, and upon proof by the registered enterprise that it has exerted its best efforts to sell the required number of shares to Philippine nationals, as required by this Section but have not sold the same, and for such other cause as the Board may deem sufficient to justify the extension of the period. cSEDTC 3) That the pioneer area it will engage in is one that is not within the activities reserved by the Constitution or other laws of the Philippines to Filipino citizens or corporations owned or controlled by Filipino citizens. b) The enterprise is capable of operating on a sound and efficient basis and of contributing to the national development of the preferred or pioneer area in particular and of the national economy in general; c) If the enterprise is engaged or proposes to engage in undertakings or activities other than preferred or pioneer projects, in addition to projects mentioned in subsection (a) hereof, it has installed or undertake to install an accounting system adequate to identify the investments, revenues, costs, and profits or losses of each preferred or pioneer project undertaken by the enterprise separately from the aggregate investment, revenues, costs, and profits or losses of the whole enterprise or to establish a separate corporation for each preferred or pioneer project if the Board should so require. Notwithstanding the provisions of this Section, if the measured capacity of any preferred area is not filled within three years from the date of its declaration as such, the Board shall allow enterprises not possessing the required percentage of Philippine ownership and control, but otherwise qualified, to be registered in such areas, under the conditions prescribed above for pioneer areas. SECTION 4B.04. Penalty. Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER V Producer, Trader or Exporter ARTICLE A Policy and Definition SECTION 5A.01. Investment Policy . It is hereby declared as the policy of this municipality to encourage private domestic and foreign investments in industry, agriculture, mining and other sectors of the economy which shall: a. provide significant employment opportunities relative to the amount of the capital being invested; increase productivity of the land, minerals, forestry, aquatic and other resources of the country, and improve utilization of the products thereof; improve technical skills of the people employed in the enterprise; b. provide a foundation for the future development of the economy; meet the tests of international competitiveness; accelerate the development of less developed areas of this municipality; and result in increased volume and value of exports for the economy. SECTION 5A.02. Definitions . As used in this Article, the following terms: Registered Domestic Producer shall mean a registered enterprise engaged in the production, manufacturing or processing of goods or commodities primarily for the domestic market and inclusive of production services. Registered Agricultural Producer shall mean a registered enterprise engaged in agricultural production and/or services directly related to, and necessary for, such production. Registered New or Expanding Export Producer shall mean a registered enterprise proposing (1) to engage in or expand the production, manufacture or processing of export products; and (2) to directly export at least fifty percent (50%) of its products or sell them to an export trader which subsequently exports said products. Registered Existing Export Producer shall mean a registered enterprise already engaged, at the time of registration, in the production, manufacture or processing of export products as defined in Article 23 of the Code and directly exporting its products or selling them to an export trader which subsequently exports said products. Registered Indirect Export Producer shall mean an enterprise which sells its products to another producer as raw materials for, or components to, an export product which is finally exported. Registered Export Trader shall mean an enterprise engaged or proposing to engage in the sale abroad of export products bought by it from one or more export producers, and duly registered as such by the Board of Investments (BOI). Registered export producer shall mean any person, corporation, partnership or other entity organized and existing under Philippine laws: 1) registered with the Board of Investments in accordance with RA 6135; 2) engaged or proposing to engage in the manufacture or processing of export products as herein below defined; and 3) directly exporting its export products, or selling them: a) to a registered export trader that subsequently exports the said products, or b) to other export producers who utilize said products as direct inputs in products subsequently manufactured or processed by them and thereafter exported. Registered service exporter shall mean a person, corporation, partnership or other entity organized and existing under Philippine laws: 1) registered with the Board of Investments in accordance with RA 6135; and 2) engaged or proposing to engage in: a) rendering technical, professional or other services which are paid for in foreign currency, including, but not limited to, the fields of law, medicine, accounting, management, valuation and appraisals, engineering, construction, geodetics, surveying, teaching, pharmacy, nursing, cultural presentations or promotions, works of arts, and entertainment; or b) in exporting television and motion pictures and musical recordings made or produced in the Philippines, either directly or through a registered export trader. Export products shall mean manufactured or processed products: (1) not more than eighty per cent (80%) of whose individual F.O.B. Philippine port value is attributable to imported raw materials, but said maximum percentage may, after three (3) years from the enactment of RA 6135, progressively be decreased by the Board of Investments at such annual rate as may be warranted by technological advancement, the availability of domestic raw materials, and similar factors; (2) the total F.O.B. Philippine port value of the exports of which did not exceed five million dollars in United States currency in the calendar year 1968; and (3) which meet standards of quality set by the Bureau of Standards or, in default of such standards, by the Board or by such public or private organization, chamber, group or body as the Board may designate. Export sale shall mean the Philippine port F.O.B. value, determined from invoices, bills of lading, inward letters of credit, landing certificates and other commercial documents, of export products exported directly by a registered export producer or registered export trader, or the net selling price of export products sold by a registered export producer to a registered export trader who subsequently exports the same; but sales of export products to a registered export trader shall only be deemed export sales when actually exported by the latter as evidenced by landing certificates or similar commercial documents. Exportation of goods on consignment shall not be deemed export sales until the export products consigned are in fact sold by the consignee. Export fees shall mean the total foreign exchange which is charged or received by a registered service exporter for furnishing or performing services, or permitting the showing or playing, outside of the Philippines, of television or motion pictures or musical recordings. Production cost shall mean the total of the cost of direct labor, raw materials, and manufacturing overhead, determined in accordance with generally accepted accounting principles, which are incurred in manufacturing or processing the products of a registered export producer. Processing shall mean converting raw materials into marketable form by a special treatment or a series of actions that results in a change of the nature or state of the products, such as by slaughtering, milling, pasteurizing, drying or desiccating, quick freezing, and the like. Merely packing, packaging, or sorting out and classifying shall not, by themselves, constitute processing. ARTICLE B Investment Incentives SECTION 5B.01. Incentive Privileges . In addition to the incentives already granted under Batas Pambansa No. 391 otherwise known as the "Investment Incentive Policy Act of 1983"; RA 6135 and other existing laws, all Registered Domestic Producer; Registered Agricultural Producer; Registered New or Expanding Export Producer; Registered Existing Export Producer; Registered Indirect Export Producer; Registered Export Trader; Registered Export Producer; and Registered Service Exporter duly registered with the Board of Investments are hereby granted the following incentive privileges: 1. Exemption from local business taxes for a period of one (1) year from the date of its actual operation. SDAaTC 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 5B.02. Rules and Regulations . 1) Only duly Registered Domestic Producer; Registered Agricultural Producer; Registered New or Expanding Export Producer; Registered Existing Export Producer; Registered Indirect Export Producer; Registered Export Trader; Registered Export Producer; and Registered Service Exporter with the Board of Investments (BOI) shall be entitled to the incentive privileges granted in the preceding Section. 2) All duly Registered Domestic Producer; Registered Agricultural Producer; Registered New or Expanding Export Producer; Registered Existing Export Producer; Registered Indirect Export Producer; Registered Export Trader; Registered Export Producer; and Registered Service Exporter with the Board of Investments established or operating in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof. 3) In the event they use a brand name on its products, such brand name shall first be registered with the Bureau of Domestic Trade, Department of Trade and Industry (DTI). 4) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 5) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 5B.03. Employment of Foreign National . Subject to the provisions of Section 29 of Commonwealth Act Numbered 613, as amended, a registered domestic producer may employ foreign nationals in supervisory, technical or advisory positions for a period not exceeding five (5) years from its registration, extendible for limited periods at the discretion of the Board of Investments. Provided, however, That when the majority of the capital stock of a pioneer registered domestic producer is owned by foreign investors, the positions of president, treasurer and general manager or their equivalents may be retained by foreign nationals beyond the period set forth herein. Foreign nationals under employment contract within the purview of this incentive, their spouses and unmarried children under twenty-one (21) years of age, who are not excluded by Section 29 of Commonwealth Act Numbered 613, as amended, shall be permitted to enter and reside in this municipality during the period of employment of such foreign nationals as allowed under Art. 45, Chapter I, BP 391. A registered domestic producer shall train Filipinos as understudies of foreign nationals in administrative, supervisory and technical skills and shall submit annual reports on such training to the Board. SECTION 5B.04. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER VI Small and Medium Scale Enterprises ARTICLE A Policy and Definitions SECTION 6A.01. Declaration of Policy . Recognizing that small and medium scale enterprises have the potential for more employment generation and economic growth and therefore can help provide a self-sufficient industrial foundation for the country, it is hereby declared the policy of this municipality to promote, support, strengthen and encourage the growth and development of small and medium enterprises in all productive sectors of the economy particularly rural agri-based enterprises. To this end, this municipality shall undertake and spur the growth and development of small and medium enterprises within its jurisdiction and thereby attain countryside industrialization: a) by assuring, through the establishment of adequate support structure, and the creation and promotion of an environment conducive to the viability of these enterprises, establishment of mechanisms, the access and transfer of appropriate technology needed by small and medium enterprises; b) by intensifying and expanding programs for training in entrepreneurship and for skills, development for labor; by facilitating their access to sources of funds; c) by assuring to them access to a fair share of government contracts and related incentives and preferences; d) by complementing and supplementing financing programs for small and medium enterprises and doing away with stringent and burdensome collateral requirements that small entrepreneurs invariably find extreme difficulty complying with; e) by instituting safeguards for the protection and stability of the credit delivery system; f) by raising government efficiency and effectiveness in providing assistance to small and medium enterprises throughout the country, at the least cost; g) by promoting linkages between large and small enterprises, and by encouraging the establishment of common service facilities; h) by making the private sector a partner in the task of building up small and medium enterprises through the promotion and participation of private voluntary organizations, viable small industry associations, and cooperatives; and i) by assuring a balanced and sustainable development through the establishment of a feedback and evaluation mechanism that will monitor the economic contributions as well as bottlenecks and environmental effects of the development of small and medium scale enterprises. SECTION 6A.02. Definitions . As used in this Article, the term: Small and medium enterprise shall be defined as any business activity or enterprise engaged in industry, agri-business and/or services, whether single proprietorship, cooperative, partnership or corporation whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, must have a value falling under the following categories: micro: less than P50,000 cottage: P50,001 P500,000 small: P500,001 P5,000,000 medium: P5,000,001 P20,000,000 In a generic sense, all enterprises with a total assets of Five million pesos (P5,000,000) and below shall be called small enterprises. The above definitions shall be subject to review and adjustment by the Small and Medium Enterprise Development Council, DTI as it may be deemed necessary, taking into account inflation and other economic factors. (Sec. 3, RA 6977) ARTICLE B Investment Incentives SECTION 6B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "Small and Medium Scale Enterprises" operating within this municipality are hereby granted the following incentive privileges: 1) Exemption from local business taxes for a period of one (1) year from the date of its actual operation. 2) Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. acEHCD SECTION 6B.02. Rules and Regulations . 1) Only "Small and Medium Scale Enterprises" duly registered with the Business Permit and Licensing Section, Office of the Mayor shall be entitled to the incentive privileges granted in the preceding Section. 2) All duly registered Small and Medium Scale Enterprises established or operating in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) In the event they use a brand name on its products, such brand name shall first be registered with the Bureau of Domestic Trade, Department of Trade and Industry (DTI). 4) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 5) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 6B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER VII Tourism Industry ARTICLE A Policy and Definitions SECTION 7A.01. Declaration of Policy . It is hereby declared as the policy of this municipality to encourage and promote tourism within its territorial jurisdiction, particularly in providing services to foreign tourists and travelers, in order to increase foreign exchange earnings and thereby assist in hastening the economic development of the nation. SECTION 7A.02. Definitions . As used in this Article, the term: Philippine Tourism Authority or simple "Authority" shall mean the Philippine Tourism Authority as defined in its charter. (Presidential Decree 189) Registered Tourism Enterprise shall mean a person, corporation partnership or other entity organized and existing under the Philippine Constitution registered with the Authority in accordance with this Decree (PD 189) and engaged in or proposing to engage in rendering services to foreign tourists and travelers covered by the Tourism Priorities Plan and subject to the guidelines prepared by the Philippine Tourism Authority, Department of Tourism. ARTICLE B Investment Incentives SECTION 7B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "Tourism Enterprise" duly registered with the Department of Tourism operating within this municipality are hereby granted the following incentive privileges: 1] Exemption from local business taxes for a period of one (1) year from the date of its actual operation. 2] Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 7B.02. Rules and Regulations . 1. Only "Tourism Enterprise" duly registered with the Department of Tourism shall be entitled to the incentive privileges granted in the preceding Section. 2. All duly registered "Tourism Enterprise" established or operating in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3. The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4. All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 7B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER VIII Business Enterprises with Productivity Incentives Program ARTICLE A Policy, Coverage and Definitions SECTION 8A.01. Declaration of Policy . It is the declared policy of this municipality to encourage higher levels of productivity, maintain industrial peace and harmony and promote the principle of shared responsibility in the relationship between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of business enterprise to reasonable returns on investments and to expansion and growth, and accordingly to provide corresponding incentives to both labor and capital for undertaking voluntary programs to ensure greater sharing by the workers in the fruits of their labor. SECTION 8A.02. Coverage . This Article shall apply to all business enterprises with or without existing and duly recognized or certified labor organizations, including government-owned and controlled corporations performing proprietary functions. It shall cover all employees and workers including casual, regular, supervisory and managerial employees. SECTION 8A.03. Definitions . As used in this Article, the term: Business Enterprise refers to industrial, agricultural, or agro-industrial establishments engaged in the production manufacturing, processing, repacking, or assembly of goods, including service-oriented enterprises, duly certified as such by appropriate government agencies. Labor-Management Committee refers to a negotiating body in a business enterprise composed of the representatives of labor and management created to establish a productivity incentives program, and to settle disputes arising therefrom in accordance with Section 9 of RA 6971 otherwise known as the "Productivity Incentives Program of 1990." Productivity Incentives Program refers to a formal agreement established by the labor-management committee containing a process that will promote gainful employment, improve working conditions and result in increased productivity, including cost savings, whereby the employees are granted salary bonuses proportionate to increases in current productivity over the average for the preceding three (3) consecutive years. The agreement shall be ratified by at least a majority of the employees who have rendered at least six (6) months of continuous service. ARTICLE B Investment Incentives SECTION 8B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "Business Enterprises" with adopted "Productivity Incentives Program" established and operating within this municipality are hereby granted the following incentive privileges: 1. Exemption from local business taxes for a period of one (1) year from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 8B.02. Rules and Regulations . 1. Only "Business Enterprises" with adopted "Productivity Incentives Program" shall be entitled to the incentive privileges granted in the preceding Section. 2. All "Business Enterprises" with adopted "Productivity Incentives Program" established or operating in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3. The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4. All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SDHTEC SECTION 8B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER IX Foreign Investors with Long Term Lease Contract of Private Lands ARTICLE A Policy, Coverage and Definitions SECTION 9A.01. Declaration of Policy . It is hereby declared the policy of this municipality to encourage foreign investments consistent with the constitutional mandate to conserve and develop our own patrimony. Towards this end, this municipality hereby adopts a flexible and dynamic policy in the granting of long-term lease on private lands to foreign investors for the establishment of industrial estates, factories, assembly or processing plants, agro-industrial enterprises, land development for industrial, or commercial use, tourism, and other similar priority productive endeavors. SECTION 9A.02. Coverage . Any foreign investor investing in this municipality shall be allowed to lease private lands in accordance with the laws of the Republic of the Philippines subject to the following conditions: 1) No lease contract shall be for a period exceeding fifty (50) years, renewable once for a period of not more than twenty-five (25) years; 2) The leased area shall be used solely for the purpose of the investment upon the mutual agreement of the parties; 3) The leased premises shall comprise such area as may reasonably be required for the purpose of the investment subject however to the Comprehensive Agrarian Reform Law and the Local Government Code. The leasehold right acquired under long-term lease contracts entered into pursuant to RA 7652 may be sold, transferred, or assigned: Provided, That when the buyer, transferee, or assignee is a foreigner or a foreign-owned enterprise, the conditions and limitations in respect to the use of the leased property as provided for under RA 7652 shall continue to apply. SECTION 9A.03. Definitions . As used in this Article, the term: Investing in the Philippines shall mean making an equity investment in the Philippines through actual remittance of foreign exchange or transfer of assets, whether in the form of capital goods, patents, formulas, or other technological rights or processes, upon registration with the Securities and Exchange Commission; and Withdrawal of approved investment shall mean either: (a) the failure to operate the investment project for any three (3) consecutive years; or (b) outright abandonment of the investment project at any time during the approved lease period: Provided, That failure to pay lease rental for three (3) consecutive months coupled with the failure to operate the investment project for the same period shall be deemed as outright abandonment of the project. SECTION 9A.04. Limitations . 1) Foreign individuals, corporations, associations, or partnerships not otherwise investing in the Philippines as defined herein shall continue to be covered by Presidential Decree No. 471 and other existing laws in the lease of lands to foreigners. 2) Withdrawal of the approved investment in the Philippines within the period of the lease agreement entered into, or use of the leased area for the purpose other than that authorized, shall warrant the ipso facto termination of the lease agreement without prejudice to the right of the lessor to be compensated for the damages he may have suffered thereby. 3) Any lease agreement under this Act which is renewable at the option of the lessee subject to the same terms and conditions of the original contract shall be interpreted to mean as renewable upon the mutual agreement of the parties. 4) In addition to the conditions for the renewal of a lease agreement after the period of fifty (50) years as provided herein, the foreign lease shall show that it has made social and economic contributions to the country. 5) In the case of tourism projects, lease of private lands by foreign investors qualified herein shall be limited to projects with an investment of not less than five million (5M) US dollars, seventy percent (70%) of which shall be infused in said project within three years from the signing of the lease contract. ARTICLE B Investment Incentives SECTION 9B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "Foreign Investors with Long Term Lease Contract of Private Lands" within this municipality are hereby granted the following incentive privileges: a. Exemption from local business taxes of the business enterprise located in the leased area for a period of one (1) year from the date of its actual operation. b. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration with the Business Permit and Licensing Section, Office of the Mayor. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 9B.02. Rules and Regulations . 1) Only "Business Enterprises" located in the areas leased by foreign investors shall be entitled to the incentive privileges granted in the preceding Section. 2) All "Business Enterprises" located in the areas leased by foreign investors in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 9B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER X Registered Enterprise in Less Developed Area ARTICLE A Policy and Definitions SECTION 10A.01. Declaration of Policy . In line with the policy of equitable distribution of wealth and balanced national economic growth and development, it is hereby declared as the policy of this municipality to encourage investments and to assist the establishment and development of industrial and agricultural projects to generate employment and raise the standard of living in less developed areas. SECTION 10A.02. Definitions . As used in this Article, the term: Board shall refer to the Board of Investments created under Republic Act 5186, as amended. Less Developed Area shall refer to specific localities within the municipality appearing in the "Less Developed Areas List" prepared jointly by the DTI, HLURB and the National Economic and Development Authority (NEDA). Less Developed Area Registered Enterprise shall mean enterprises located in an identified less developed area and registered with the Board under either Republic Act 5186, 6135; Presidential Decree 1159 or Batas Pambansa No. 44 for incentive advisement in industrial and agricultural activities listed in the priorities plans of the Board. Additional Investor's Incentives in a Less Developed Area Registered Enterprise An investor in a less developed areas registered enterprise, in addition to the investors' incentive provided under Republic Act 5186 or 6135 or Presidential Decree 1159, shall, subject to the nationality requirements provided under the said laws, be entitled to an investment allowance to the extent of his actual investment, paid in cash or property, as a deduction from his taxable income but not to exceed thirty per cent (30%) thereof, inclusive of the normal tax allowance under its law of registration: Provided, (1) That this incentive shall not apply to investments in mining ventures; (2) That the investment is made in subscription of shares in the original and/or increased capital stock of an enterprise within seven years from the date of registration as a less developed area registered enterprise; (3) That the shares are held for a period of not less than three years; and (4) That the investment is registered with the Board and deemed necessary by the Board for setting up the business or expanding or strengthening an existing business already located or proposed to be transferred to a less developed area. If the shares are disposed of within the said three-year period, the taxpayer shall lose the benefit of this deduction, his income tax liability shall be recomputed, and he shall pay the same and whatever additional sum is due, plus interest thereon, within thirty days from the date of disposition. A surcharge shall be imposed thereon in the event of failure to pay the obligation within the said period. (Restatement of Sec. 4, BP 44) AScHCD ARTICLE B Investment Incentives SECTION 10B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "Less Developed Area Registered Enterprise" within this municipality are hereby granted the following incentive privileges: 1. Exemption from local business taxes of the business enterprise for a period of one (1) year from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 10B.02. Rules and Regulations . 1) Only "Less Developed Area Registered Enterprise" duly registered with the Board of Investments shall be entitled to the incentive privileges granted in the preceding Section. 2) All "Less Developed Area Registered Enterprise" established or being operated in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 10B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER XI Exploration and Development of Natural Resources ARTICLE A Policy and Definition SECTION 11A.01. Declaration of Policy . It is hereby declared to be the policy of this municipality that it is vital to the local and national development program to encourage the mining industry to pursue continuous exploration and development of our natural resources. SECTION 11A.02. Definitions . As used in this Article, the term: Exploration of mineral deposits means the process or acts of ascertaining the existence, location, extent, or quality and quantity of any deposit of ore or other kinds of mineral deposits within the jurisdiction of this municipality. It includes the searching or prospecting for mineral resources by geological, geochemical or geophysical surveys, remote sensing, test pitting, trending, drilling, shaft sinking, tunneling, or any other means for the purpose of determining the existence, extent, quantity and quality thereof and the feasibility of mining them for profit. Development of natural resources means the development stage of the mineral or other natural deposits beginning at the time the minerals are shown to exist in sufficient commercial quantity and quality and shall end upon commencement of actual commercial extraction. It includes the work undertaken to explore and prepare an ore body or a mineral deposit for mining, including the construction of necessary infrastructure and related facilities. Environmental Compliance Certificate (ECC) refers to the document issued by the government agency concerned certifying that the project under consideration will not bring about an unacceptable environmental impact and that the proponent has complied with the requirements of the environmental impact statement system. Environmental Impact Statement (EIS) is the document which aims to identify, predict, interpret, and communicate information regarding changes in environmental quality associated with a proposed project and which examines the range of alternatives for the objectives of the proposal and their impact on the environment. Exploration Permit a permit granted to a qualified person, by the Mines and Geosciences Bureau, DENR to conduct exploration for all minerals in specified areas. ARTICLE B Investment Incentives SECTION 11B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all business activities related to the "exploration" and "development" of minerals and other natural resources within this municipality are hereby granted the following incentive privileges: 1. Exemption from local business taxes of the business enterprise for a period of one (1) year from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 11B.02. Rules and Regulations . 1) Only business activities related to the "exploration and development" of minerals and other natural resources in this municipality duly registered with the Mines and Geosciences Bureau, DENR or with an exploration permit issued by the Mines and Geosciences Bureau shall be entitled to the incentive privileges granted in the preceding Section. 2) All business activities related to the "exploration and development" of minerals and other natural resources in this municipality duly registered with the Bureau of Mines that is now existing, or to be established or operated in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 11B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER XII People's Small Scale Mining Program ARTICLE A Policy and Definitions SECTION 12A.01. Declaration of Policy . It is hereby declared the policy of this municipality to promote, develop, protect and rationalize viable small-scale mining activities in order to generate more employment opportunities and provide an equitable sharing of the nation's wealth and natural resources, giving due regard to existing rights of other persons concerned. SECTION 12A.02. Definitions . For purposes of this Article, the following terms shall be defined as follows: Mineralized areas refer to areas with naturally occurring mineral deposits of gold, silver, chromite, kaolin, silica, marble, gravel, clay and like mineral resources; Small-scale mining refers to mining activities which rely heavily on manual labor using simple implement and methods and do not use explosives or heavy mining equipment; Small-scale miners refer to Filipino citizens who, individually or in the company of other Filipino citizens, voluntarily form a cooperative duly licensed by the Department of Environment and Natural Resources to engage, under the terms and conditions of a contract, in the extraction or removal of minerals or ore-bearing materials from the ground; Small-scale mining contract refers to co-production, joint venture or mineral production sharing agreement between the State and a small-scale mining contractor for the small-scale utilization of a plot of mineral land; Small-scale mining contractor refers to an individual or a cooperative of small-scale miners, registered with the Securities and Exchange Commission or other appropriate government agency, which has entered into an agreement with the State for the small-scale utilization of a plot of mineral land within a people's small-scale mining area; Active mining area refers to areas under actual exploration, development, exploitation or commercial production as determined by the Secretary after the necessary field investigation or verification including contiguous and geologically related areas belonging to the same claim owner and/or under contract with an operator, but in no case to exceed the maximum area allowed by law; Existing mining right refers to perfected and subsisting claim, lease, license or permit covering a mineralized area prior to its declaration as a people's small-scale mining area; Claim owner refers to a holder of an existing mining right; Processor refers to a person issued a license to engage in the treatment of minerals or ore-bearing materials such as by gravity concentration, leaching beneficiation, cyanidation, cutting, sizing, polishing and other similar activities; License refers to the privilege granted to a person to legitimately pursue his occupation as a small-scale miner or processor under this Act (RA 7076); AcICHD Mining plan refers to a two-year program of activities and methodologies employed in the extraction and production of minerals or ore-bearing materials, including the financial plan and other resources in support thereof; Director refers to the regional executive director of the Department of Environment and Natural Resources; and Secretary refers to the Secretary of the Department of Environment and Natural Resources. ARTICLE B Investment Incentives SECTION 12B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "small scale miners" or persons, natural or juridical, duly licensed by the Department of Environment and Natural Resources (DENR) now engaged, or to be engaged, in small scale mining operations in this municipality are hereby granted the following incentive privileges: 1. Exemption from local business taxes of the business enterprise for a period of one (1) year from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 12B.02. Rules and Regulations . 1) Only business activities related to the "small scale mining" operations in this municipality duly registered with, or licensed by, the Mines and Geosciences Bureau, DENR shall be entitled to the incentive privileges granted in the preceding Section. 2) All business activities related to "small scale mining" operations in this municipality duly registered with, or licensed by, the Mines and Geosciences Bureau, DENR established or being operated in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 12B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER XIII Iron and Steel Industry ARTICLE A Policy, Objectives and Definitions SECTION 13A.01. Policy . It is hereby declared a policy of the State to promote industrialization through the immediate establishment of an integrated iron and steel industry that makes full and efficient use of the country's human and natural resources taking into consideration its critical impact on employment, indigenous resources utilization, foreign exchange and balance of payments position. The State shall provide impetus to the growth, promotion, and development of the iron and steel industry as the springboard and basis for launching Philippine industrialization. SECTION 13A.02. Objectives . 1. Provide a framework for a rational integrated iron and steel program consistent with the requirements of the government environment protection program; 2. Establish policy direction governing the rationalization of government corporations in the iron and steel industry taking into consideration the requirements of the iron and steel industry; the possible effect to the private users of iron and steel products manufactured by government corporations; and, the strategic nature and vital role of this corporations in the industry; 3. Provide measures to strengthen its demand and supply structures primarily through the establishment of an integrated iron and steel plant which is technologically and economically efficient, internationally competitive and contributing to industrialization and accelerated development of the country; 4. Provide stiffer penalties for smuggling of iron and steel products; and 5. Provide a set of quality and industry standards for iron and steel products. SECTION 13A.03. Definitions . As used in this Article, the term: Iron and steel industry refers to the preparation, smelting, crushing, soaking, blooming, slabbing, melting, firing, rolling, casting, shaping, plating, galvanizing and all other processes involved in transforming raw materials ( i.e. ,iron ore, coke, limestones, flourspar, dolomite and silica) into semi-finished products ( i.e. ,ingots, slabs, blooms and billets) and/or semi-finished products into finished products (products in their final physical state like hot-rolled coils and strips, plates and sheets). Backward integration refers to the process by which the development or increased production of a product or products in a certain stage in the industry results into the development of increased production of products in preceding stages. Forward integration refers to the process by which the development or increased production of a product or products in a certain stage in the industry results into the development or increased production of products in succeeding stages. Upstream industries refers to industries which produce and/or process raw materials for the manufacture of semi-finished products. Downstream industries refer to industries which process semi-finished products for the manufacture of finished products, or industries that use the finished products. Less developed areas refers to those geographic areas included in the list prepared by the Board of Investments after consultation with the National Economic and Development Authority and other appropriate government agencies, taking into consideration the following criteria; low per capita domestic product; low level of investments; high rate of unemployment and/or underemployment; and level of infrastructure development including its accessibility to developed urban centers. Certified Enterprises are those enterprises certified by the Board of Investments, in consultation with other government agencies, as eligible for incentives under RA 7103 that meet the following conditions: a) Nationality The enterprise shall be undertaken by a citizen of the Philippines or a corporation, partnership, or other association organized under the laws of the Philippines at least thirty-five percent (35%) of the capital of which is owned and controlled by citizens of the Philippines. As a matter of principle, and whenever possible, Filipino investors will be given preference in investing up to one hundred percent (100%) in the equity capital of an enterprise. b) Manufacturing Activity . The enterprise shall engage in: 1) production of primary steel products in the form of refined iron ore, ingots, slabs, blooms, and billets; or intermediate steel products such as plates, hot-rolled or cold-rolled coils, or sheets, or their equivalents; or 2) manufacture or processing of products or provision of infrastructure such as roads, auxiliary facilities, such as ports and harbors; and, industrial services, primarily for the direct use of enterprises engaged in the activities referred to in (1) above; or 3) refinement or treatment of by-products or waste-products predominantly of the enterprises in (1) above; c) Technical and Economic Capability The enterprise shall be capable of operating and establishing on a technologically up-to-date, economically efficient and internationally competitive basis and of contributing to national development, taking into account the markets proposed to be addressed by the enterprise; d) Separate Accounts If the enterprise is engaged or proposes to engage in undertakings other than the manufacturing activity described in subsection (b) above, it has installed or undertakes to install an accounting system adequate to record and identify the investments, revenues, costs, and profits and losses of such manufacturing activity separate from the other projects undertaken by such enterprise; and e) Environmental Protection The enterprise shall comply with laws and regulations on environmental protection so as not to adversely affect the residents and ecological balance of the location(s) of the manufacturing activity. TAIaHE For purposes of this Article, the establishment and operation of the iron and steel plant composed of iron-making, steel-making and continuous casting shall be classified as infrastructure activity. In financing manufacturing activity as herein defined, private sector participation shall be encouraged; certified enterprises shall tap other means of financing such as the build-operate-transfer scheme, and privatization in the case of government corporations. ARTICLE B Investment Incentives SECTION 13B.01. Incentive Privileges . In addition to the incentives already granted under existing laws, all "iron and steel industry" or persons, natural or juridical, duly registered with the Board of Investments (BOI) that are now engaged, or to be engaged, in "iron and steel industry" operations in this municipality are hereby granted the following incentive privileges: 1. Exemption from local business taxes of the business enterprise for a period of one (1) year from the date of its actual operation. 2. Exemption from all kinds of regulatory fees for a period of one (1) year from the date of its registration. Provided, however, that they are still subject to the requirements of securing the corresponding Mayor's Permit, health and/or sanitation permit, building permit, zoning or location clearance and other requirements prescribed under existing ordinances but FREE OF CHARGE or exempted from the payment of the corresponding regulatory fees imposed therein within the aforesaid period. SECTION 13B.02. Rules and Regulations . 1) Only business activities related to the "iron and steel industry" operations in this municipality duly registered with, or licensed by, the Board of Investments (BOI) shall be entitled to the incentive privileges granted in the preceding Section. 2) All business activities related to "iron and steel industry" operations in this municipality duly registered with, or licensed by, the Board of Investments (BOI) that are now being operated, or to be established, in this municipality shall secure the corresponding Mayor's Permit required for all kinds of business or trade undertaking and shall be subject to all the rules and regulations on health and sanitation, fire safety, zoning or location clearance, building and occupation permit, and other requirements imposed under existing ordinances of this municipality. However, unlike other kinds of business activities, they are exempted from the payment of the corresponding regulatory fees required thereof for a period of one (1) year from the date of its registration. 3) The aforementioned business enterprises shall, as far as practicable, recruit its employees and utilize the indigenous and other existing resources within this municipality. 4) All the exemptions and other benefits herein provided shall, after due notice and hearing, be forfeited in case of any violation of the provisions of this Article by them or by any of their officers and authorized representatives. SECTION 13B.03. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER XIV Regulations on Businesses or Trade Activities ARTICLE A Mayor's Permit to Operate or Engage in Business or Trade Activities SECTION 14A.01. Regulated Acts . No person shall operate, or engage in any kind of business or trade activities, without first securing a permit therefor from the Municipal Mayor including, but not limited to, the following: 1. Countryside and Barangay Business Enterprises (CBBE); 2. Duly Registered Cooperatives; 3. All Agricultural Enterprises Including Pioneer or Non-Pioneer Agricultural Enterprise; 4. Registered Domestic Producer; 5. Registered Agricultural Producer; 6. Registered New or Expanding Export Producer; 7. Registered Existing Export Producer; 8. Registered Indirect Export Producer; 9. Registered Export Trader; 10. Registered Export Producer; 11. Registered Service Exporter; 12. Small and Medium Scale Enterprises; 13. Registered Tourism Enterprise; Tourism Industry; 14. Business Enterprises with Productivity Incentives Program; 13. n Foreign Investors with Long Term Lease Contract of Private Lands; 14. Registered Enterprise in Less Developed Area; 15. Exploration and Development of Natural Resources; 16. People's Small Scale Mining Enterprise; and 17. Iron and steel industry. ARTICLE B Administrative Provisions SECTION 14B.01. Filing of Application for a Mayor's Permit . A written application for a permit to operate, or engage in, a business shall be filed with the Office of the Municipal Mayor in four (4) copies. The application form shall set forth the name and address of the applicant, the description or style of business, the place where the business shall be conducted and such other pertinent information or data as may hereafter be required. Upon submission of the application, it shall be the duty of the proper authorities to verify if the other requirements regarding the operation of the business or activity are complied with. The permit to operate shall be issued only upon such compliance and after the payment of the corresponding taxes and fees as required under existing tax ordinances. Any false statement deliberately made by the applicant shall constitute sufficient ground for denying or revoking the permit issued by the Municipal Mayor, and the applicant or licensee may further be prosecuted in accordance with the provisions in this Code. A Mayor's Permit to operate shall be refused to any applicant on the following grounds: (1) The business establishment or undertaking does not conform with zoning regulations, safety or health regulations and other requirements; (2) The applicant concerned is disqualified under the provision of law or ordinance to establish or operate the business for which a permit is being applied for; (3) The applicant did not secure the corresponding "barangay clearance" from the Punong Barangay concerned; (4) Other requirements that may hereafter be imposed. SECTION 14B.02. Separate Permit for Separate Business . There shall be a separate permit for every separate or distinct establishment or place where the business or trade activity is conducted. One line of business or activity does not become exempt from securing a Mayor's Permit by being conducted with some other business for which a permit has been granted or issued. SECTION 14B.03. Issuance of Permit . Upon approval of the application for a Mayor's Permit, two copies of the application duly approved by the Municipal Mayor shall be returned to the applicant. One copy shall be presented to the Municipal Treasurer's Office as basis for the collection of permit fee and the corresponding business tax, if the applicant is liable therefor. The Mayor's Permit shall be issued by the Municipal Mayor or his duly authorized representative upon submission by the applicant of the required papers or documents. Every permit issued by the Municipal Mayor shall show the name and residence of the applicant; his nationality and civil status; nature of the organization, i.e. ,whether the business is a sole proprietorship, corporation or partnership; location of the business; date of issue and expiration of permit; and such other information as may be necessary. SECTION 14B.04. Posting of Permit . Every licensee shall keep the permit conspicuously posted at all times in the place of business or office, or if the individual has no place of business, shall keep the permit in his person. The permit shall be immediately produced upon demand by the Municipal Mayor or his duly authorized representatives. SECTION 14B.05. Duration and Renewal of Permit . The Mayor's permit shall be granted for a period of not more than one (1) year and shall expire on the thirty-first (31st) of December following the date of issuance unless revoked or surrendered earlier. It shall have continuing validity only upon renewal thereof and payment of the corresponding fee. SECTION 14B.06. Revocation of Permit . When a person doing business under the provisions of this Code violates any provision thereof; refuses to pay the tax or fee imposed by existing tax ordinances; abuses his privilege to do business to the injury of public morals or peace; when a place where such business is established is being conducted in disorderly or unlawful manner; is nuisance or is permitted to be used as a resort for disorderly conduct, criminals or women of ill-repute, the Municipal Mayor, after investigation and upon the recommendation of the local department head concerned, may revoke the permit that he issued. Such revocation shall operate to forfeit all sums which may have been paid in respect of said privilege, in addition to the fine and imprisonment that may be imposed by the Court for violation of any provision of this Code or ordinance governing the establishment and maintenance of business and to prohibit the exercise thereof by the person whose privilege is revoked, until restored by the Sangguniang Bayan. SECTION 14B.07. Requirements for Mayor's Permit . Application for a Mayor's Permit shall be accompanied by the following: 1) For a newly started business: a] Accomplishment of the form for the operation of business in triplicate (form to be supplied by the Office of the Mayor); b] Location sketch of the new business at the back of the application form; c] Paid-up capital of business as shown in Articles of Incorporation or partnership papers. For sole proprietorship, a sworn statement of owner-operator indicating capital invested; d] If business is tax-exempt, a certificate of such tax exemption; e] Certification from the zoning officer that the location of the new business is within the commercial or industrial area, as the case may be; f] Tax clearance showing that the operator has paid all tax obligations, if applicable; g] Together with the application for a new business permit, the applicant shall submit three copies of his picture, passport size, and the picture of the senior partner if a partnership or that of the president and/or general manager in the case of a corporation; Upon submission of the accomplished application, the local government officers concerned shall verify if the sanitary requirements, the installation of power and light requirements, as well as the other safety requirements are complied with, and to require applicant to comply if found unsatisfactory. The permit to operate shall be issued only upon compliance with such safety requirements, and after the payment of the corresponding inspection fees as required by the local tax ordinance; h] Barangay clearance; i] Certificate of Registration from the Board of Investments, if applicable; j] Sanitary Permit from the Municipal Health Officer; k] Other documents as may hereafter be required except police clearance, court clearance, Lupong Tagapamayapa clearance and other kinds of clearances or certifications which are commonly used in applying for employment or travel abroad. 2) For renewal of existing Mayor's permit: a] Accomplishment of the application form for renewal of business permit, with the following documents to be attached: i. Previous year's Mayor's Permit; ii. Photocopy of the annual or quarterly tax payments, if applicable; iii. Photocopy of all receipts showing payment of all regulatory fees as provided for in the local tax ordinance, if applicable. b] Sworn statement of the owner-operator that the capital investment of the business has not been increased or decreased, as the case may be. In cases where the permit of the business being renewed falls under one schedule ( e.g. , retailers, independent wholesalers and distributors) and the operator thereof has only one capital investment for all, only one permit is required for all such businesses. In no case shall the capital be unilaterally divided into three parts (one for retailer, another for wholesaler, and still another for distributor), unless the operator himself indicates the respective capital for each. On the other hand, where the operator operates two or more businesses under different schedules as provided for under the Local Tax Code ( e.g. ,drugstore with soda fountain or refreshment and restaurant),such operator should be required to specify the corresponding capital for each, and a separate permit is accordingly issued; c] Certificate of tax exemption, if any; Health Certificate for all food handlers, and those required by ordinance to secure such health certificates, if applicable; d] Sworn statement of the assessed value of the real property as indicated in the Real Property Tax Declaration (for real estate lessors); e] Certificate of exemption, if exempted under any law or decree, if applicable; f] Barangay clearance; g] Sanitary Permit from the Municipal Health Officer; i] n Tax clearance showing that the operator has paid all his tax obligations in this municipality, if applicable; j] Two (2) passport size pictures of the operators. In the case of partnership, the picture of its President or General Manager; k] Presentation of the Community Tax Certificate and receipt for the payment of the Professional Tax or Occupation Fee, as the case may be, if the applicant is liable therefor; and l] Other supporting papers as may hereafter be required except police clearance, court clearance, Lupong Tagapamayapa clearance and other kinds of clearances or certifications which are commonly used in applying for employment, travel abroad and similar purposes. SECTION 14B.08. Fulfillment of Other Requirements . The issuance of a mayor's permit shall not exempt the licensee or permitee from the fulfillment of other requirements in connection with the operation of the business or in the conduct of an activity prescribed under this Code, laws and other ordinances of this municipality. SECTION 14B.09. Exemptions . Ordinary employees of private firms such as salesgirls, salesmen or similar ordinary wage earners in stores and like establishments are exempted from securing a Mayor's permit since they are not rendering services for a fee but only receive their wage or salary as employees. They are also exempted from the payment of "occupation fee" since they are mere employees and not practicing any "occupation or calling." SECTION 14B.10. Penalty . Any person who shall violate any provisions of this Chapter or who shall in any other manner commit any act to defeat any provisions of this Chapter shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. Provided, however, That should the same act or omission committed under this Chapter be likewise covered by another law, decree or order which provides for heavier penalty, the latter shall be made applicable: Provided, further, That should the act or omission punishable under this Chapter be committed by a public officer, the latter shall be prosecuted under the provisions of existing applicable laws. CHAPTER XV Final Provisions ARTICLE A General Penal Provision SECTION 15A.01. Penalty . Any violation of the provisions of this Code, or of the rules and regulations promulgated under the authority of this Code, but not covered by a specific penalty hereof shall, upon conviction, be punished by a fine of not exceeding Two Thousand Five Hundred Pesos (P2,500.00) or an imprisonment for a period not exceeding six (6) months, or both, at the discretion of the Court. If the violation is committed by any juridical entity, the President, General Manager, or any person entrusted with the administration thereof at the time of the commission of the offense shall be held responsible or liable thereof. SECTION 15A.02. Imposition of Penalty . Any person who commits an offense which is punishable under the provisions of this Code but not punishable under any other existing laws shall be penalized only under the provisions hereof. If the offense committed is punishable both under the provisions of this Code and that of other existing laws, it shall be prosecuted only under either but not in both, otherwise the offender will be twice put in jeopardy of punishment for the same offense which is prohibited under Section 21, Article III of the Philippine Constitution. SECTION 15A.03. Penalty for Other Offenses . The conviction of any person for any offense under this Code shall not bar his prosecution for any other offenses which may have been committed by such person concurrently with the commission of the offense for which he was convicted or in doing the act or series of acts which constituted the offense for which he was convicted. SECTION 15A.04. Compromise Settlement Fee . The Municipal Mayor is hereby authorized to enter into an out-of-court or extra-judicial settlement of any offense committed in violation of any provisions of this Code, subject, however, to the following conditions, viz. : 1) The offense committed does not involve fraud; 2) The offender shall pay to the Municipal Treasurer a "compromise settlement fee" of not less than Two Hundred Pesos (P200.00) but not more than Two Thousand Five Hundred Pesos (P2,500.00),as may be agreed upon by both parties. 3) The payment of the "compromise settlement fee" above mentioned shall not relieve the offender from the payment of the corresponding tax, fee or charge due from him as provided under existing tax ordinances, if he is liable therefor. cDHAES 4) No other third party shall be adversely affected by the compromise settlement. ARTICLE B Separability, Applicability, Repealing and Effectivity Clauses SECTION 15B.01. Separability Clause . If, for any reason, any provision, section or part of this Code is declared not valid by a Court of competent jurisdiction or suspended or revoked by the authorities concerned, such judgment shall not affect or impair the remaining provisions, sections or parts which shall continue to be in full force and effect. SECTION 15B.02. Applicability Clause . All other related matters not specifically provided in this Code shall be governed by the pertinent provisions of existing applicable laws or ordinances. SECTION 15B.03. Repealing Clause . All ordinances, rules and regulations, or parts thereof, in conflict with, or inconsistent with any provisions of this Code are hereby repealed or modified accordingly. Should there be existing general or special ordinances which were inadvertently excluded in the codification process during the formulation of this Code, they shall continue to be in full force and effect provided that they are not in conflict with, or contrary to, the provisions of this Code. SECTION 15B.04. Effectivity . This Code shall take effect after thirty (30) days from the date of its approval. UNANIMOUSLY APPROVED ,this 24th day of April, two thousand seventeen. I hereby certify that this resolution has been duly approved by the Sangguniang Bayan. (SGD.) EDGAR P. RAMIREZ Secretary to the Sangguniang Bayan ATTESTED: (SGD.) HENRY R. LUTAO Municipal Vice Mayor Presiding Officer APPROVED: May 18, 2017 Date (SGD.) JUANITO H. SANTIAGO Municipal Mayor n Note from the Publisher: Copied verbatim from the official copy. Irregular numerical sequence. n Note from the Publisher: Copied verbatim from the official copy. Missing Letter h].