First Amendment to the Rules and Regulations Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority Under R.A. No. 7227

April 5, 2018

FIRST AMENDMENT TO THE RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS RELATIVE TO THE SUBIC SPECIAL ECONOMIC AND FREEPORT ZONE AND THE SUBIC BAY METROPOLITAN AUTHORITY UNDER REPUBLIC ACT NO. 7227, OTHERWISE KNOWN AS "THE BASES CONVERSION AND DEVELOPMENT ACT OF 1992"

WHEREAS, on March 13, 1992, Republic Act No. 7227 (RA No. 7227), otherwise known as "The Bases Conversion and Development Act of 1992," was enacted to accelerate the sound and balanced conversion into alternative productive uses of the Clark and Subic military reservations;

WHEREAS, Section 13 (a) of RA No. 7227 created the Subic Bay Metropolitan Authority (SBMA) as the operating and Implementing arm in the Subic Bay Freeport Zone (SBFZ);

WHEREAS, Section 13 (b) (2) of RA 7227 grants the SBMA the power to accept any local or foreign investment, business or enterprise, subject only to such rules and regulations to be promulgated by the SBMA;

WHEREAS, pursuant to the foregoing, the SBMA promulgated the "Rules and Regulations Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan authority under Republic Act No. 7227 (IRR) on November 3, 1992; CAIHTE

WHEREAS, Section 151 of the IRR grants the SBMA the power to amend the IRR or any portion thereof as may be necessary;

WHEREAS, it has become timely to introduce amendments to the IRR to further improve the business environment and the ease of doing business in the SBFZ;

WHEREAS, SMBA conducted a public hearing on __________ wherein Subic Bay Freeport Enterprises (SBF Enterprises) were given the opportunity to present their views on the following amendment to the IRR;

NOW THEREFORE,for and in consideration of the foregoing, WE,the BOARD OF DIRECTORS,by virtue of the powers vested on US by law, hereby RESOLVE to approve and adopt, as WE hereby confirm, adopt and approve the following:

SECTION 1. Section 23 of the IRR is hereby amended to read as follows:

"Section 23. Validity and Renewal of Certificates.— The following shall govern the validity and renewal of the Certificates of Registration, or Residency, ("CRs") and Certificates of Registration & Tax Exemption ("CRTEs") issued by SBMA:

a. All CRs and CRTEs issued by the SBMA shall be valid for a period of three (3) years from its issuance or renewal: Provided, That the term of the lease or sublease, or the remainder thereof, of the SBF Enterprise or Resident concerned over the property/ies or facility/ies within SBFZ or in the expansion areas covered by Executive Order No. 675, Series of 2007 (EO No. 675),is not less than three (3) years.

b. In case the term of the lease or sublease, or the remainder thereof, of the SBF Enterprise or Resident concerned over the property/ies or facility/ies within SBF or in the expansion areas covered by EO No. 675 is less than three (3) years, the validity of the CR or CRTE issued or renewed by SBMA to such SBF Enterprise or Resident shall be coterminous with the term of such lease or sublease, or the remainder thereof.

c. In no case shall the CRs and CRTEs issued or renewed by SBMA be valid for more than three (3) years.

d. All CRs and CRTEs issued by SBMA shall be automatically renewed (i) upon submission of the required documents and payment of the prescribed fees by the SBF Enterprise or Resident at least sixty (60) days prior to the expiration of said CR or CRTE, and (ii) for as long as the SBF Enterprise or Resident remains qualified to continue its business operations or reside within the SBF, or in the expansion areas covered by EO No. 675, under similar terms and conditions for which the original CR or CRTE was issued, unless there exists cause for the non-automatic renewal of the CR or CRTE. DETACa

e. In accordance with Section 23 a and b above, the fees for the issuance and renewal of the CRs and CRTEs shall strictly be in accordance with the following:

 

Validity of the Issuance or Renewal of the CR or CRTE

Prescribed Fees

One (1) year or less.	100%	of the latest fee approved by the SBMA Board of Directors for the issuance or renewal of CRs and CRTEs with a validity of one (1) year.
More than one (1) year but not exceeding one (1) year and six (6) months.	150%
More than one (1) year and six (6) months but not exceeding two (2) years.	200%
More than two (2) years but not exceeding two (2) years and six (6) months.	250%
More than two (2) years and six (6) months but not exceeding three (3) years.	300%

 

f. For avoidance of doubt, "Six (6) months" as used in Section 23 e above shall be understood as equivalent to one hundred eighty days (180) calendar days;

SECTION 3. n  Repealing Clause.— All policies, rules, regulations, memoranda or other issuances or any part thereof inconsistent with the provisions of this Amendment are hereby repealed, amended or modified accordingly.

SECTION 4. Separability Clause.— If for any reason or reasons, any portion or provision of this Amendment is declared unconstitutional or invalid, all other parts or provisions not affected thereby shall continue to remain in full force and effect.

SECTION 5. Effectivity. — This Amendment shall take effect fifteen (15) days after its complete publication in at least one (1) newspaper of general circulation and its filing with the Office of the National Administrative Register in accordance with the Administrative Code of 1987.

APPROVED by the Board of Directors of SBMA during its _____ Meeting held on __________.

ATTACHMENT

Proposed Amendment to the Validity Period of the Certificate of Registration (CR)/Certificate of Registration and Tax Exemption (CRTE)

Section 23 of the Implementing Rules and Regulations of the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority under Republic Act No. 7227

SECTION 23. Validity.— All certificates issued by the SBMA shall be valid for a period of one (1) year from issuance and shall be deemed automatically renewed every year upon payment of the prescribed fees at least ten (10) days prior to the expiration of the said one (1) year period for the particular year involved, and (ii) for as long as the SBF Enterprise or Resident remains qualified to continue its business operations or reside within the SBF under similar terms and conditions for which the original certificate(s) was/were issued. aDSIHc

SECTION 1. Section 23 of the IRR is hereby amended to read as follows:

"Section 23. Validity and Renewal of Certificates.— The following shall govern the validity and renewal of the Certificates of Registration, or Residency, ("CRs") and Certificates of Registration & Tax Exemption ("CRTEs") issued by SBMA:

a. All CRs and CRTEs issued by the SBMA shall be valid for a period of three (3) years from its issuance or renewal: Provided, That the term of the lease or sublease, or the remainder thereof, of the SBF Enterprise or Resident concerned over the property/ies or facility/ies within SBFZ or in the expansion areas covered by Executive Order No. 675, Series of 2007 (EO No. 675),is not less than three (3) years.

b. In case the term of the lease or sublease, or the remainder thereof, of the SBF Enterprise or Resident concerned over the property/ies or facility/ies within SBF or in the expansion areas covered by EO No. 675 is less than three (3) years, the validity of the CR or CRTE issued or renewed by SBMA to such SBF Enterprise or Resident shall be coterminous with the term of such lease or sublease, or the remainder thereof.

c. In no case shall the CRs and CRTEs issued or renewed by SBMA be valid for more than three (3) years.

d. All CRs and CRTEs issued by SBMA shall be automatically renewed (i) upon submission of the required documents and payment of the prescribed fees by the SBF Enterprise or Resident at least sixty (60) days prior to the expiration of said CR or CRTE, and (ii) for as long as the SBF Enterprise or Resident remains qualified to continue its business operations or reside within the SBF, or in the expansion areas covered by EO No. 675, under similar terms and conditions for which the original CR or CRTE was issued, unless there exists cause for the non-automatic renewal of the CR or CRTE.

e. In accordance with Section 23 a and b above, the fees for the issuance and renewal of the CRs and CRTEs shall strictly be in accordance with the following: ETHIDa

 

Validity of the Issuance or Renewal of the CR or CRTE

Prescribed Fees

One (1) year or less	100%	of the latest fee approved by the SBMA Board of Directors for the issuance or renewal of CRs and CRTEs with a validity of one (1) year
More than one (1) year but not exceeding one (1) year and six (6) months	150%
More than one (1) year and six (6) months but not exceeding two (2) years	200%
More than two (2) years but not exceeding two (2) years and six (6) months	250%
More than two (2) years and six (6) months but not exceeding three (3) years	300%

 

f. For avoidance of doubt, "Six (6) months" as used in Section 23 e above shall be understood as equivalent to one hundred eighty days (180) calendar days;

Effectivity

This Amendment shall take effect fifteen (15) days after its complete publication in at least one (1) newspaper of general circulation and its filing with the office of the National Administrative Register in accordance with the Administrative Code of 1987. cSEDTC

 

n Note from the Publisher: Copied verbatim from the official copy. Missing "Section 2"."