The South Cotabato Investment Code of 2014

2014 SOUTH COTABATO PROVINCIAL ORDINANCE NO. 025-14 AN ORDINANCE ENACTING THE SOUTH COTABATO INVESTMENT CODE OF 2014 TITLE I Declaration of Policy and Objectives SECTION 1. Title . This Ordinance shall be known as the "The South Cotabato Investment Code of 2014". SECTION 2. Declaration of Policy . It is the declared policy of the Province to create and maintain a business-friendly environment to accelerate economic progress, generate employment opportunities, increase revenues and income, reduce poverty, and improve the over-all quality of life for the people of South Cotabato. Specifically, it shall grant fiscal and non-fiscal incentives to attract investors, keep and retain existing investments, and encourage their expansion. SECTION 3. Purposes and Objectives . The purposes and objectives of the "South Cotabato Investment Code of 2014" are as follows: a. To provide guidelines, standards, and procedures for the grant, administration, and availment of local incentives; b. To define the scope of incentives that the Province may grant in its effort to attract investments to South Cotabato consistent with the policy of this Code; c. To promote and support Small and Medium Enterprises (SMEs) and create business opportunities that can pave the way to an improved utilization of local resources, and develop markets for local products; d. To provide guidelines and criteria for the identification of Investment Priority Areas (IPAs); e. To establish the South Cotabato Investments Board and the South Cotabato Economic and Investments Promotion Center (SCEIPC) to implement this Code; and f. To identify the conditions for the grant of incentives to investors and their continued enjoyment of the same, subject to the maximum term of the incentives. SECTION 4. Statement of Policies on the Identification of Priority Areas and Approval of Incentives Applications . In line with the foregoing declared policy, the Province of South Cotabato hereby adopts the following policies: a. Grant of incentives The grant of incentives shall be based on categorical/clear criteria, time-bound, and consistent with national laws. The incentives shall be fairly administered to ensure a level playing field for investors in the locality. The Province shall not consider an economic activity an IPA unless it is shown to be economically, technically, and financially sound after thorough investigation and analysis by the Board. b. Policy in the Identification of IPAs A business activity shall be considered for inclusion in the IPA List if the same substantially meet any of the following criteria: 1. Significant potential contribution to the growth of a sizable number of existing businesses or to a vital industry in the Province; 2. The business activity is aligned with the development vision of the Province as expressed in the Provincial Development and Physical Framework Plan; 3. Capacity to generate employment, whether direct or indirect, particularly for those within the Province; 4. Use of locally available materials and resources; 5. Amount of additional capital investment within the Province; 6. Pioneering nature of technology to be employed in the business; 7. Ability to promote the dispersal of business/commercial activities to less developed areas within the Province; 8. Ability to improve environmental conditions within the Province including bio-diversity, or involves activities that promote sustainability of existing natural resources of the Province; and 9. Contribution to infrastructure development in the Province through Public-Private Partnership (PPP).Provided, that in the case of existing businesses, they shall only be qualified to avail of incentives in case they undertake an Expansion or New Project, as defined in Section 5. c. On continuing conditions of the grant of incentives The Board may impose any of the following minimum conditions on Registered Enterprises for their continued entitlement to the incentives granted at the time of their registration: 1. Efficient use of natural resources to conserve and protect those indigenous to the Province; 2. They minimize the adverse impact or enhance the positive effect of their operation on the environment by undertaking business practices that adhere to the country's environmental laws; 3. Compliance with all applicable labor laws and standards, including those relating to occupational health and safety; and 4. For Any Registered Enterprise which has enjoyed fiscal incentives for more than three (3) years, it shall adopt social responsibility program to be implemented not later than the fourth year of its operation. d. On the procedure for the grant of incentives The procedure for the application, processing, and grant of applications for incentives shall be transparent and reasonable, and must be completed within a period of three (3) months from Date of Official Acceptance, as defined in Section 5. Additional requirement/s may be imposed only if the Board determines that there is categorical ample basis, reason or purpose for imposing the same. TITLE II Definition of Terms SECTION 5. Definitions . For purposes of this Code a. "Board" shall mean the South Cotabato Investments Board created under this Code, the composition of which shall be as provided under Section 7. b. "Board of Investments"/"BOI" shall refer to the implementing agency for Books One to Five of the Omnibus Investments Code (E.O. No. 226 dated 27 February 1987). c. "Capitalization" refers to the total project cost which includes land, building, machineries, equipment, and working capital that will be used in the pursuance of the business. d. Social Responsibility Program refers to business practices that involve participation in initiatives that benefit the community. It applies to business efforts that go beyond what may be required by laws, ordinances and or regulations. It may involve social initiatives which incur short-term costs that may not provide an immediate financial benefit to the enterprise, but may promote positive social and environmental development. e. "Clean Water Projects" refers to the establishment of waste water treatment facilities and sewerage collection integrated with treatment facilities and the adoption of water pollution control technology, cleaner production and waste minimization. f. "Code" shall refer to the South Cotabato Investments Code of 2014 promulgated pursuant to this Ordinance. g. "Date of Official Acceptance" refers to the date the application for registration was received by the SCEIPC and recorded in a logbook for the purpose. h. "Date of Registration" refers to the date when the Certificate of Registration is issued by the Chairman of the Board, which information shall be recorded in a Registration Logbook to be maintained by the SCEIPC. i. "ECOZONE" shall be as defined under the Special Economic Zone Act of 1995 (PEZA Law, Republic Act No. 7916), i.e. ,selected areas with highly developed or which have the potential to be developed into agro-industrial, industrial, tourist/recreational, commercial, banking, investment and financial centers. j. "Existing Businesses" are businesses engaged in activities included in the IPA List but are operating in the Province prior to the enactment of this Code or those businesses that are not Registered Enterprises under this Code and are intending to expand and/or diversify to other business ventures. k. "Expansion" shall mean installation of additional facilities/equipment that will result in the increase in the production capacity and efficiency of an Existing Business. It may include modernization, diversification, or rehabilitation. l. "Green Project" refers to the establishment of energy efficiency-related facilities where utilization of which would significantly lead to either the efficient use of energy, natural resources or raw materials, minimize/prevent pollution or reduce greenhouse gas emissions. m. "Incentive Law" shall refer to a law, such as the Omnibus Investments Code as administered by a designated government agency or office (Registering Agency), such as the BOI and PEZA. n. "Investment Priority Areas"/"IPAs" are investment areas/business activities identified by the Board to be priority investment areas and are encouraged to be pursued within the Province. o. "New Projects" refer to projects or activities undertaken by an existing or a newly organized enterprise that have not started commercial operation. p. "PEZA" shall refer to the Philippine Economic Zone Authority. q. "Project Study" refers to a project profile which presents, among others, highlights of the projected financial viability and environmental and socio-economic impact of the proposed business. r. "Registered Enterprise" refers to any individual, partnership, cooperative, or corporation, whether a domestic or foreign corporation licensed to do business in the Philippines that has been issued a Certificate of Registration pursuant to this Code. s. "Registering Agency" refers to any other government agency/office/instrumentality that is authorized to administer incentives such as but not limited to the BOI and the PEZA. t. "Renewable Energy Project" refers to the establishment of power generation facilities utilizing resources which are naturally replenished such as but not limited to hydro, wind, solar, geo-thermal, and biogas. This also covers the manufacture or fabrication of renewable energy equipment and components. u. "SCEIPC" refers to the South Cotabato Economic and Investment Promotion Center with the responsibilities and functions provided under Title IV of this Code. TITLE III South Cotabato Investment Board SECTION 6. The South Cotabato Investment Board. The South Cotabato Investment Board is hereby created to implement the provisions of this Code and to supervise and manage the operation of the SCEIPC. SECTION 7. Composition of the Board . The Board shall be composed of seven (7) members as follows: a. Provincial Governor as Chairperson; b. Sanggunian Chairperson of the Committee on Trade, Commerce and Industry as Vice Chairperson; c. Sanggunian Chairperson of the Committee on Appropriation and Finance; d. Sanggunian Chairperson of the Committee on Ways and Means; e. President of the South Cotabato Chamber of Commerce and Industry; f. Provincial Director of the Department of Trade and Industry; and g. Provincial Planning and Development Coordinator (PPDC). The Board may likewise invite, from time to time, representatives from other National Government Agencies (NGAs) and provincial government offices and other stakeholders for advice or consultation in their areas of expertise. SECTION 8. Meetings and Quorum of the Board . The Board shall meet at least once every quarter on such day and time as the Board may fix and upon the call of the Chairperson whenever he/she deems it necessary. Notice of meetings shall be given to all members of the Board. The presence of at least a majority of the members of the Board shall constitute a quorum and the affirmative vote of a majority of the quorum shall be necessary for the exercise of its powers and the performance of its duties, including the approval of all decisions and policies issued by the Board. SECTION 9. Powers and Functions of the Board. The primary functions of the Board are to establish a favorable and stable policy for business, encourage and support private sector investment, business retention and expansion. Pursuant to this, the Board is vested with the following powers and functions: a. Promulgate rules and regulations as may be necessary to implement the intent and provisions of this Code; b. Review annually IPAs eligible for incentives, taking into consideration the developmental needs, economic and technical factors, available resources, and prospects of an industry; c. Decide on issues or disputes concerning the implementation of this Code; d. Adopt an investments promotion program; e. Act on applications for registration and the grant of local incentives as well as suspend or cancel the incentives after due process; f. Recommend amendments to the Code as may be necessary; g. Supervise the operations of the SCEIPC; h. Establish cooperative undertakings with other local government units (LGUs),the private sector, non-governmental organizations (NGOs) or other institutions as may be necessary; i. Perform such other tasks necessary and incidental to the performance of its functions. SECTION 10. Powers and Functions of the Chairperson . The Chairperson of the Board shall have the following powers and duties: a. Preside over the regular and special meetings of the Board; b. Sign the Certificate of Registration in accordance with the rules and regulations of the Code; c. Exercise such other powers and perform such other duties as the Board may direct to carry out the objectives of this Code. SECTION 11. Powers and Functions of the Vice-Chairperson . The Vice Chairperson shall have the following powers and duties: a. To preside over the regular and special meetings of the Board in the absence of the Chairperson; b. To perform such duties and functions as may be necessary for and in behalf of the Chairperson; and c. Exercise such other powers and perform such other duties as the Board may direct to carry out the objectives of this Code. TITLE IV The South Cotabato Economic and Investments Promotion Center SECTION 12. Creation . The South Cotabato Economic and Investments Promotion Center is hereby created. SECTION 13. Organizational Structure and Composition . As amended by Ordinance No. 17, Series of 2017. The SCEIPC under the Provincial Governor's Office (PGO) shall have the following organizational structure and personnel complement: a. Organizational Structure: b. Composition: The SCEIPC shall be headed by the Development Management Officer IV as the Local Economic and Investment Promotion officer (LEIPO)-Designate and shall be directly under the supervision of the Provincial Governor. The SCEIPC shall consist of units performing functions such as Secretariat to the South Cotabato Investment Board, investment promotion or image building, investment generation and investment servicing. It shall be comprised of the following plantilla positions: Position Salary Grade No. of position Effectivity 1 Development Management Officer IV 22 1 To be implemented in 2018 2 Economist II 15 1 To be implemented in 2018 3 Development Management Officer II 15 1 To be implemented in 2018 4 Development Management Officer I 11 2 To be implemented in 2018 5 Economic Researcher 9 2 To be implemented in 2018 TOTAL 7 Additional personnel may be hired and service of non-plantilla personnel may be commissioned as the Board may deem necessary. SECTION 14. Duties and Functions . As amended by Ordinance No. 17, series of 2017. The SCEIPC shall serve as the technical secretariat of the Board and shall have the following responsibilities: a. Prepare and implement the annual investments promotion plan as approved by the Board; b. Facilitate the formulation, coordination and execution of an effective and responsive operational policies and procedures; c. Recommend measures and other related policies for appropriate legislation; d. Carry-out economic and investment promotion programs, projects and activities for sustainable local economic development of the province; e. Prepare and disseminate investments promotion collaterals; f. Conduct briefings to potential investors; g. Represent the provincial trade and investments meetings, missions, conferences, conventions and other similar undertakings as may be authorized by the Governor; h. Enhance the flow and actualization of investment in cooperation with other government agencies; i. Receive, Process and evaluate applications for registration for the availment of local incentives and submit its recommendation to the Board within fifteen (15) working days from the date of the official acceptance of the application; j. Assist in: (1) securing licenses and permits; (2) identifying business or joint venture partners, raw materials suppliers and possible business sites; (3) sourcing skilled manpower and service providers; and (4) facilitating the resolution of issues and concerns encountered by the business enterprise, among others; k. Render after-care services to registered enterprises, as well as to investors in general; l. Monitor and supervise compliance of registered enterprises with their undertakings and the terms of their Certificate of Registration, as well as properly administer the grant of incentives to investors; m. Collate, analyze, and compile pertinent data and studies concerning areas that have been or may be declared as Investment Priority Areas; and n. Perform such other functions as may be necessary to implement the intent of the Code." TITLE V Investment Priority Areas SECTION 15. The IPA List . The IPA List shall be determined in accordance with the policies and criteria for the identification of priority investment areas and the grant of incentives provided under Section 4 of this Code. Such list shall be determined and approved by the Board. SECTION 16. Periodic Review of the IPA List . The Board shall undertake an annual review of the IPAs and may amend the same based on the results of such review. The policies laid down in Section 4 shall likewise govern each and every subsequent amendment of the IPA List. TITLE VI Registration SECTION 17. General Qualifications . All enterprises seeking to apply for incentives under this Code must comply with the following: a. The Project must be in the Investment Priority Areas List; b. The Project must entail a minimum investment of Three Million Pesos (3,000,000.00); c. The project must have a minimum number of six (6) employees; d. The Project must be located in the Province of South Cotabato; and e. The Project must comply with the requirements under the Constitution, national laws, local ordinances and pertinent rules and regulations. SECTION 18. Registration Requirements . The application for registration shall be in the prescribed form duly accomplished and notarized in three (3) copies and filed with the SCEIPC, and proof of payment of a non-refundable filing fee of One Thousand Five Hundred Pesos (P1,500.00) together with the following minimum required documents: a. Certified true copy of the primary registration of the applicant to do business in the Philippines as issued by the DTI, SEC, or the CDA, as applicable; b. If the applicant has already commenced operation, its latest available comparative audited financial statements acknowledged received by the BIR and the SEC (in the case of corporations); c. Proof of proposed place of business which shall show that the main operating facility of the applicant, and not just the warehouse or the administrative office, is located within the territorial jurisdiction of the Province; d. A copy of the Project Study or Feasibility Study of the proposed investment including the list of officers and/or personnel responsible for or involved in the project; e. A copy of the resolution of the Board of Directors authorizing the filing of the application; f. A locational clearance from the component city/municipality concerned; and g. Other specific permits applicable to the business of the applicant by virtue of its location or the nature of its activity, e.g. ,environmental clearance certificate (ECC). SECTION 19. Registration Procedure . The procedure for the processing of registration under this Code is as follows: a. Filing of Applications All applications shall be filed with the SCEIPC together with all the documentary requirements listed above. Prior to acceptance of the application, the SCEIPC shall already evaluate the completeness of the application form and the other requirements so that the applicant can be advised immediately of any erroneous or missing documentary requirement. It is only upon the determination of completeness of the application form and the supporting documents that the application may be logged in the Registration Application Logbook and the application form is stamped "Received".The date stamped on the application and entered in the Registration Application Logbook shall be considered as the Date of Official Acceptance of the application. b. Evaluation/Approval of Application Once an application is officially accepted, the proposed project will be evaluated by the SCEIPC, which may conduct ocular inspection at the premises of the business, if necessary. The results of the evaluation by and the recommendation of the SCEIPC shall be submitted to the Board and included in the agenda for the immediately succeeding meeting of the Board. The SCEIPC shall inform the applicant in writing of the Board action on its application, together with the terms and conditions of the approval or the reasons of its disapproval, as the case may be. The Board shall act on the application within sixty (60) calendar days from the Date of Official Acceptance. If no action is made within the period indicated, at no fault attributable to the applicant, the Board is deemed to have approved the application, thus the Chairman of the Board shall nonetheless issue a Certificate of Registration with the usual terms and conditions. c. Issuance of Certificate of Registration Upon approval, a Certificate of Registration shall be issued which shall state, among others, the following: 1. Name of the Registered Enterprise; 2. The IPA in which the registered enterprise will engage; 3. The incentives granted and the respective term of each incentive; and 4. Such other terms and conditions to be observed by virtue of its registration. The Certificate of Registration shall be issued not later than five (5) working days from the date of approval of the application by the Board or the lapse of the prescribed processing period. TITLE VII Incentives SECTION 20. Fiscal Incentives . An Enterprise registered under this Code shall be exempt from payment of basic real property tax to the full amount of the share of the province on the basis of the amount of their investments and for the specified periods as follows: a. For New Projects or Enterprises: 1. with capitalization or investments of Three Million Pesos (P3,000,000.00) to Ten Million Pesos (P10,000,000.00) Two (2) years 2. with capitalization or investments of more than Ten Million Pesos (P10,000,000.00) to Twenty Five Million Pesos (P25,000.000.00) Three (3) years 3. with capitalization or investments of more than Twenty Five Million Pesos (P25,000,000.00) to Fifty Million Pesos (P50,000,000.00) Four (4) years 4. with capitalization or investments of more than Fifty Million Pesos (P50,000,000.00) to One Hundred Million Pesos (P100,000,000.00) Five (5) years 5. with capitalization or investments of more than One Hundred Million Pesos (P100,000,000.00) Six (6) years b. For Expanding Enterprise 1. with additional investments of Three Million Pesos (P3,000,000.00) to Ten Million Pesos (P10,000,000.00) Two (2) years 2. with additional investments of more than Ten Million Pesos (P10,000,000.00) to Twenty Five Million Pesos (P25,000,000.00) Three (3) years 3. with additional investments of more than Twenty Five Million Pesos (P25,000,000.00) to Fifty Million Pesos (P50,000,000.00) Four (4) years 4. with additional investments of more than Fifty Million Pesos (P50,000,000.00) to One Hundred Million Pesos (P100,000,000.00) Five (5) years 5. with additional investments of more than One Hundred Million Pesos (P100,000,000.00) Six (6) years c. For High Priority Projects or Industries which include Renewable Energy, Clean Water and Green Projects as defined in Section 5 of this Code. 1. with capitalization or investments of more than Ten Million Pesos (P10,000,000.00) to Twenty Five Million Pesos (P25,000,000.00) Four (4) years 2. with capitalization or investments of more than Twenty Five Million Pesos (P25,000,000.00) to Fifty Million Pesos (P50,000,000.00) Five (5) years 3. with capitalization or investments of more than Fifty Million Pesos (P50,000,000.00) to One Hundred Million Pesos (P100,000,000.00) Six (6) years 4. with capitalization or investments of more than One Hundred Million Pesos (P100,000,000.00) to Two Hundred Million Pesos (P200,000,000.00) Seven (7) years 5. with capitalization or investments of more than Two Hundred Million Pesos (P200,000,000.00) to Three Hundred Million Pesos (P300,000,000.00) Eight (8) years 6. with capitalization or investments of more than Three Hundred Million Pesos (P300,000,000.00) to Five Hundred Million Pesos (P500,000,000.00) Nine (9) years 7. with capitalization or investments of more than Five Hundred Million Pesos (P500,000,000.00) Ten (10) years d. For Expanding Enterprises (High Priority Projects or Industries) 1. with additional investments of more than Ten Million Pesos (P10,000,000.00) to Twenty Five Million Pesos (P25,000.000.00) Four (4) years 2. with additional investments of more than Twenty Five Million Pesos (P25,000,000.00) to Fifty Million Pesos (P50,000,000.00) Five (5) years 3. with additional investments of more than Fifty Million Pesos (P50,000,000.00) to One Hundred Million Pesos (P100,000,000.00) Six (6) years 4. with additional investments of more than One Hundred Million Pesos (P100,000,000.00) to Two Hundred Million Pesos (P200,000,000.00) Seven (7) years 5. with additional investments of more than Two Hundred Million Pesos (P200,000,000.00) to Three Hundred Million Pesos (P300,000,000.00) Eight (8) years 6. with additional investments of more than Three Hundred Million Pesos (P300,000,000.00) to Five Hundred Million Pesos (P500,000,000.00) Nine (9) years 7. with additional investments of more than Five Hundred Million Pesos (P500,000,000.00) Ten (10) years Provided that additional years of exemption shall be granted also to expanding registered enterprises when by reason of such additional investments the registered enterprise falls under a higher bracket in which case it shall enjoy the exemption for that bracket, which period shall include the period of exemption granted prior to the expansion and provided further, that additional years of exemption may be granted only upon application with and approval of the Board. SECTION 21. Other Fiscal Incentives . Registered enterprises shall also be granted exemption from the payment of Transfer Tax on acquired properties to be directly utilized in the business upon application for transfer. SECTION 22. General Policies in the Administration of Incentives . The grant of incentives shall be governed by the following general policies: a. The grant of local tax exemptions shall not extend to fees and charges imposed for services rendered by the Province and those levied for the use of government facilities and properties; b. Incentives granted shall take effect from the Date of Registration until the lapse of the term of such incentive, unless another reckoning date is approved by the Board on justifiable grounds, but in no case beyond six (6) months from the Date of Registration; c. In case of change of ownership, the incentives which the registered enterprise is enjoying shall be continued provided that the terms and conditions of its registration are assumed by the new owner/s. Any change in the controlling shareholders, ownership, or name of a Registered Enterprise shall be reported to the Board. In case of change of trade name and/or ownership, the enterprise shall file for registration together with a filing fee of One Thousand Five Hundred Pesos (PhP1,500.00) for the continuance of incentives; and d. Real Property Tax (RPT) Exemption covers buildings, machinery and equipment and other real properties, otherwise subject to real property tax, used directly in the registered activity of a Registered Enterprise. Land shall only be exempt from real property tax if the same is owned by the Registered Enterprise and only to the extent that the same is actually and exclusively used in the registered activity. The real property tax exemption herein provided shall exclude the Special Education Fund (SEF). SECTION 23. Non-Fiscal Incentives . The Board, through the SCEIPC, shall provide the following non-fiscal incentives to Registered Enterprises: a. Assistance in site selection and negotiation for right of way; b. Joint venture partner identification, partner referral, and identification of possible source of required labor and raw materials; c. Networking with concerned national agencies such as the Technical Education Skills and Development Authority (TESDA) and other similar institutions for training of workers to enhance manpower skills of the enterprise and assistance in identifying and sourcing of skilled human resources; d. Facilitation and/or referral of existing technical and financial assistance programs available through national and local government, and financing institutions; e. Access to information pertaining to resources, documents, data and other related information including databank on industries and businesses and the areas of trade, industry and business potentials available in the province; and f. Such other aftercare services that may be accorded to investors that are necessary in the promotion of local investment and economic development. TITLE VIII Conditions for Availment of Incentives SECTION 24. General Conditions . Registered Enterprises shall abide by the provisions of this Code and its implementing regulations as well as the terms and conditions specifically imposed in their respective Certificates of Registration. Compliance with the continuing conditions for the availment of the incentives, shall be subject to verification by the Board, and for which reason it shall have visitorial power. Non-compliance by a Registered Enterprise with the conditions of its registration shall be ground for revocation of the Certificate of Registration for Incentives. SECTION 25. Visitorial Power and Scope of Power . Without prejudice to the regulatory powers of the Province over businesses within its jurisdiction, as provided under the Local Government Code, the visitorial power provided under this Code shall be exercised solely for the purpose of ensuring that the Registered Enterprises continue to satisfy all the terms and conditions of its registration and continues to meet or satisfy the basis or criteria that rendered them eligible for incentives. SECTION 26. Continuing Eligibility for Registration . A Registered Enterprise shall continue to satisfy whatever criteria that rendered it eligible for registration. If the Registered Enterprise ceases to meet the said registration criteria, the Board shall have the authority to suspend the incentives of the Registered Enterprise or to revoke its registration subject to the provisions of Title XII below. SECTION 27. Periodic and Other Compliance Requirements . Nothing under this Code exempts a Registered Enterprise from applicable requirements of the Province on businesses, as generally applicable to all businesses or specifically applicable to the business activity or circumstances of the Registered Enterprise. Accordingly, Registered Enterprises, except those specifically exempt under applicable law, shall secure and comply with all the requirements to secure a Business Permit and renew the same annually. TITLE IX Social Responsibility Program (SRP) SECTION 28. SRP Requirement . A Registered Enterprise may continue to avail itself of additional incentive beyond the three (3)-year period; provided it adopts and pursues its SRP. SECTION 29. Eligible SR Programs . SR programs which a Registered Enterprise may undertake shall include but not be limited to the following: a. Environment-related programs and projects: 1. Rehabilitation and restoration of buildings or other structures in accordance with the urban renewal or restoration plan of the Province; and 2. Reforestation, rehabilitation, and urban greening or landscaping of major road sides; areas with historical or tourism value; eroded slopes as technically appropriate based on assessment by competent authorities; public open spaces especially in residential and commercial areas including street islands, parks, promenades, parking area peripheries, and the like, provided that the enterprise takes care of the maintenance of the trees and plants. b. Socio-economic and Cultural Projects 1. Employment of residents of South Cotabato of at least 60% of the workforce. 2. Housing for employees; 3. Educational projects; 4. Cultural revivals; 5. Programs for women, children, elderly, disabled, out of school youth and indigenous people; 6. Community infrastructure projects aligned with the development plan of the Province; 7. Such other projects or activities based on the development needs of the community where the project is located or as identified by the National Anti-Poverty Commission (NAPC);and TITLE X Environmental Protection SECTION 30. Environmental Policy . Projects or enterprises locating their activities or expansion projects in environmentally critical areas must comply with the requirements of the Environment Code of South Cotabato, Presidential Decree No. 1586 (Philippine Environmental Impact Statement System), and related issuances of the Department of Environment and Natural Resources (DENR) and other regulatory agencies. TITLE XI Budget Appropriations SECTION 31. Appropriations . The expenditures to operationalize the Board and the SCEIPC shall be provided through regular or supplemental budget. The Province shall appropriate the funds necessary for the implementation of the provisions of this Code based on a budget that may be presented by the Board to include Personal Services, Maintenance and Other Operating Expenses (MOOE),Capital Outlay, and Contingency. SECTION 32. Revenues from the Operation of the Code . Income derived from the operation of this Code shall go to a special account captioned "Local Economic and Investments Promotion Fund" (LEIP Fund) ,which shall be used solely for the maintenance and other operating expenses of the Board. TITLE XII Penalties SECTION 33. Penalties . The Certificate of Registration issued under this Code may be cancelled/revoked or the incentives of the Registered Enterprise temporarily suspended upon any of the grounds provided in Section 34 hereof. The cancellation or revocation of the Certificate of Registration shall mean withdrawal of all incentives granted under this Code. In case of cancellation or revocation of its Certificate of Registration due to fraudulent misrepresentation relating to a matter that would have otherwise disqualified it from or rendered it ineligible for registration under this Code, the Board shall require the enterprise to pay for all incentives availed of. The effect of the cancellation or revocation of the Certificate of Registration of a Registered Enterprise shall retroact to the day when the continuing condition for registration under the Code, as provided in the terms and conditions of the Certificate of Registration is proven to have been violated. The Board is likewise authorized to give Registered Enterprises a grace period within which they have to remedy any violation committed, whenever such grace period is justified or the violation is of a nature that can be remedied. SECTION 34. Grounds for Cancellation of Certificate of Registration . The grounds for cancellation of Certificate of Registration are as follows: a. Violation of the provisions of the Code and such other violations of relevant laws, rules and regulations or ordinances issued pursuant to or in relation to this Code; b. Violation of a material term/condition specified in the Certificate of Registration; or c. Material fraudulent misrepresentation by an enterprise in relation to its application for the grant of incentives under this Code. The Board may impose a temporary suspension of the incentives granted to the Registered Enterprise if the gravity of the violation, act, or omission committed by a Registered Enterprise is not of a serious nature, or the subsequent conduct or other relevant circumstances of the Registered Enterprise would justify the imposition of a less grave penalty than revocation of the Certificate of Registration of the Registered Enterprise. SECTION 35. Procedure for Suspension of Incentives, Cancellation, or Revocation of Certificate of Registration . The Board, upon a written complaint filed by any interested party or motu proprio ,may commence proceedings for the cancellation or revocation of the Certificate of Registration issued to an enterprise under this Code. Within ten (10) working days from receipt of a written complaint, the Board shall assess whether there is a prima facie case for cancellation or revocation based on such complaint. Should it find that there is a prima facie case for cancellation or revocation, the Board shall issue a show cause notice indicating the ground for cancellation or revocation and the specific circumstances constituting such ground, and directing the enterprise to explain within ten (10) working days from receipt of the notice why its Certificate of Registration should not be revoked. A copy of the written complaint shall be attached to the show cause notice. Within ten (10) working days from receipt of explanation of the enterprise together with its supporting documents, if any, the Board shall schedule a hearing and notify the enterprise of such hearing. Within five (5) days from the conduct of such hearing, the Board shall decide whether or not to cancel or revoke the enterprise's Certificate of Registration based on evidence on record. The enterprise concerned shall be notified in writing of the decision of the Board. SECTION 36. Motion for Reconsideration . The Registered Enterprise whose Certificate of Registration has been cancelled or revoked may file a motion for reconsideration with the Board within fifteen (15) days from receipt of the Board's decision, otherwise the decision shall become final and executory. TITLE XIII Final Provisions SECTION 37. Coordination among LGUs . The Board shall coordinate or consult with the Sanggunian or Board of concerned LGUs on matters pertaining to incentives such as real property tax, to allow them to align or harmonize their incentives. SECTION 38. Separability Clause . If, for any reason, any portion or provision, section or part of the Code is declared not valid by a court of competent jurisdiction or suspended or revoked by the Sanggunian, such judgment shall not affect or impair the remaining portions, provisions, sections, or parts hereof which shall remain or continue to be in full force and effect. SECTION 39. Repealing Clause . All local ordinances, rules and regulations or parts thereof which are in conflict or inconsistent with the provisions of this Code are hereby considered repealed, amended or modified, accordingly. SECTION 40. Implementing Rules and Regulations . The Board may issue such implementing rules and regulations as it deems necessary to aid in the orderly implementation of this Code and administration of incentives allowed to be extended under this Code. SECTION 41. Prospective Application . No ordinance shall be passed removing any incentive that is currently being enjoyed by a Registered Enterprise. All ordinances amending this Code, including the IPA List shall take effect prospectively and shall not be construed to adversely affect or impair the rights granted to Registered Enterprises pursuant to their Certificate of Registration. SECTION 42. Transitory Provision . All enterprises already enjoying incentives from the Province at the time this Code takes effect shall be required to comply with the requirements of the Code prospectively. In the interest of ensuring uniformity of treatment, registration in accordance with this Code shall still be required; however, their belated registration shall not result in any impairment or diminution of their incentives or imposition of any penalty. The enterprises covered under this provision shall have thirty (30) days to comply with the registration requirement and shall provide the latest available version of the documentary requirements listed under Section 18 of this Code. SECTION 43. Effectivity . This Code shall take effect fifteen (15) days after its posting in conspicuous places in the Provincial Capitol for three (3) consecutive weeks and its publication once a week for two (2) consecutive weeks in a newspaper of general circulation in the province, whichever occurs later. I HEREBY CERTIFY to the passage of this ordinance. (SGD.) ATTY. CECILE E. DIEL Vice Governor Presiding Officer ATTESTED: (SGD.) FELICITAS F. BIGCAS Secretary to the Sanggunian APPROVED: (SGD.) DAISY P. AVANCE-FUENTES Provincial Governor ATTACHMENT INVESTMENT PRIORITY LIST I. AGRICULTURE/AGRIBUSINESS AND FISHERY Production and commercial processing of High Value Commercial Crops (HVCC) such as: o Coffee o Fruits o Vegetables o Cacao o Bamboo o Herbs Production and processing of fishery products and livestock Feed Mill and Corn Mills Production of organic fertilizer inputs Certified Organic Farming II. TOURISM Adventure, sports, cultural, and eco-tourism facilities Retirement Villages Medical Tourism Agri-tourism farms and facilities III. MANUFACTURING Agricultural Machinery Fabrication/Manufacturing Testing and quality control laboratories Training and demonstration centers Metal casting and metal working facilities Furniture and wood working facilities (including Bamboo) Ceramics Jewelry-making IV. CREATIVE INDUSTRIES/KNOWLEDGE-BASED SERVICES Business process outsourcing and IT-enabled services Film-making V. RENEWABLE ENERGY, CLEAN WATER, AND GREEN PROJECTS Technical Working Group Chairman : Romeo S. Tamayo Chairperson, SP Committee on Trade, Commerce, Industry, Economic Affairs and Investments Members : Flora G. Gabunales Provincial Director, DTI South Cotabato Alfredo C. Dumanig Provincial Treasurer Danilo Ong President, South Cotabato Chamber of Commerce and Industry Emmanuel B. Jumilla APPDC\LEIPO Designate