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Currimao

EXCERPTS FROM THE MINUTES OF THE 17TH REGULAR SESSION OF THE 11TH SANGGUNIANG BAYAN OF CURRIMAO, ILOCOS NORTE, HELD ON THE 11TH DAY OF NOVEMBER, 2019 AT 9:00 IN THE MORNING HELD AT THE MUNICIPAL SESSION HALL.
PRESENT HON. SANDRA T. CABREROS Vice-Mayor/Presiding Officer
HON. CHARLES ANTHONY P. LAZO SB Member
HON. ELMER D. REYNO SB Member
HON. JAY LORD G. FERNANDO SB Member
HON. MARK LOUIE S. AGLIPAY SB Member
HON. REUBEN S. SILAO SB Member
HON. ISABELO Z. AGLIPAY III SB Member
HON. MARGARITA G. ALLADO SB Member
HON. LORETO P. VIDAD SB Member
HON. GEMMA N. FERNANDO ABC President
HON. CELINE BETINA P. PASCUA SK Federation President
ABSENT NONE

MUNICIPAL ORDINANCE NO. 2019-11-05

“AN ORDINANCE UPDATING THE CURRIMAO INVESTMENT & INCENTIVES CODE OF 2006, AND FOR OTHER PURPOSES

Be it ordained by the Sanggunian Bayan of Currimao, Ilocos Norte, that:

CHAPTER 1. TITLE AND DECLARATION OF POLICY

Section 1. Title. This ordinance shall be known as the Currimao Investment & Incentives Code of 2019.

Section 2. Declaration of Policy. It is hereby declared a policy of Currimao, Ilocos Norte to attract and promote the entry of productive investment from individuals, partnerships, corporation and government in activities, which would significantly contribute to the socio-economic development and industrialization of the municipality.

The municipality encourages the influx of foreign and domestic capital for new investments, infrastructures, expansion of agro-industrial, eco-cultural tourism activities and infrastructure and such other preferred areas of investment of the municipality.

Section 3. Purpose and Objectives. – The purposes and objectives of this code are as follows:

  1. To provide guidelines, standards, and procedures for the grant, administration, and availability of local incentives;
  2. To define the scope and breadth of incentives that the municipality may grant in its effort to attract investments consistent with the policy of this code, as well as promote and support micro-small medium enterprises (MSMEs) and create business opportunities that can pave the way to an improved utilization of local resources, develop markets for local products, and ignite the ingenuity of the entrepreneurs and other stakeholders;
  3. To provide the guidelines and criteria for the identification of Investment Priority Areas (IPAs);
  4. To provide for the promotion of the IPAs of the municipality;
  5. To establish the Currimao Investments and Incentive Board (CIIB) and Currimao Economic and Investments Promotion Center (CEIPC) to implement this Code and all the investments promotion programs of the municipality for business attraction, retention, and expansion and/or diversification; and
  6. 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 granted them.

Section 4. Statement of Policies on the Identification of Investment Priority Areas (IPAs) and Approval of Incentives Applications. In line with the foregoing declared policy, the Municipality of Currimao hereby adopts the following policies:

  1. 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 incentives shall be extended only to business activities that support and promote the development vision of the municipality, as expressed in its Comprehensive Development and Land Use Plans and those which are included in the investment thrust of the region and national government.

    The municipality 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, without prejudice, however, to the determination of the same by the national government as such. The determination of areas of investment to be included in the list of IPAs (IPA List) shall be based on long-term comparative advantage, taking into account the value of social objectives and employing economic criteria along with market, technical, and financial analysis.

  2. Policy in the Identification of IPAs – Business activities shall be considered for inclusion in the IPA List on the basis 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 municipality;
    2. the business activity is aligned with the development vision of the municipality;
    3. capacity to generate employment, whether direct or indirect, particularly for those within the city;
    4. use of locally available materials and resources;
    5. amount of additional capital investment within the municipality;
    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 municipality;
    8. ability to improve environmental conditions within the municipality including bio-diversity, or involves activities that promote sustainability of existing natural resources of the municipality; and
    9. contribution to the infrastructure in the municipality,

    Provided, that in the case of Existing Businesses (as defined in Section 5 hereof), in the interest of maintaining the current revenue sources of the municipality, they shall only be qualified to avail of incentives in case they undertake an Expansion or Modernization or New Project, as defined in Section 5.

  3. Identification of Investment Priority Areas – The business activities entitled to incentives should be limited to those included in the list of Mandatory Investment Priority Areas (MIPA List) or the list of Local Investment Priority Areas (LIPA List); provided that, the local incentives of those in the MIPA List shall generally be limited to those granted and subject to the terms and conditions under the relevant Incentive Law, as hereinafter defined.
  4. On continuing conditions of the grant of incentives – The Board may impose any of the following minimum continuing conditions on Registered Enterprises as a condition to 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 municipality;
    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, such as efficient solid waste pollution management, adopting technologies that reduce greenhouse gas emissions, and implementing climate change adaptation measures and disaster risk reduction and management, among others;
    3. compliance with all applicable labor law and standards, including those relating to occupational health and safety; and
    4. adopt a corporate social responsibility program to be implemented one year after its registration.
  5. 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 reasonable period not exceeding three (3) months from Date of Official Acceptance, as defined below. No requirement shall be imposed unless there is categorical ample basis, reason or purpose for imposing the same. Where the applicant for registration anchors its application on its status as an entity registered under an Incentive Law with a Registering Agency, as defined in this Code, the procedure for its registration under this Code shall be simplified and shall be made mainly dependent on the fact of its registration with the Registering Agency.

CHAPTER II DEFINITION OF TERMS

Section 5. Definitions – For purposes of this Code—

  1. Barangay Micro Business Enterprise”/“BMBEshall be as defined under the Barangay Micro Business Enterprises (BMBEs) Act of 2002 (Republic Act No. 9178), i.e., any business entity or enterprise engaged in the production, processing or manufacturing of products or commodities, including agro-processing, trading and services, whose total assets including those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00).
  2. Biodiversity (BD)- Friendly Business – refers to those investments that either directly or indirectly support the protection of the flora and fauna species and other natural resources conservation initiatives and activities. These type of business should incorporate biodiversity relevant knowledge and technical resources management and development processes and practices that enhance BD resource conservation to include those business that directly or indirectly support BD (i.e. use of indigenous species, protection of flora and fauna and the like).
  3. Boardshall mean the Currimao Investment and Incentives Board created under this Code, the powers and composition of which shall be as provided under Section 7.
  4. Board of Investments”/“BOIshall refer to the implementing agency for Books One to Five of the Omnibus Investments Code (EO No. 226 dated 27 February 1987) as created under the latter.
  5. Capitalizationrefers to the total project cost which includes land, building, machineries, equipment, and working capital except where it pertains to a BMBE, in which case, the same shall be exclusive of the cost of the land; provided that in the case of corporations, capitalization shall refer to its paid-up capital.
  6. Diversificationrefers to the introduction and production of a distinct line of products or services by an Existing Business, whether or not a Registered Enterprise; Provided, that, to be considered distinct, it should require new investment in terms of machinery or equipment or would involve the use of new skills set not currently used in the existing product or services, Provided further, that a new service or product may constitute a diversification even if such service or product is already within the scope of its original or existing business purposes.
  7. Existing Businessesare businesses engaged in activities included in the IPA List but are already engaged in operation within the municipality and are intending to expand and/or diversify to other business ventures falling within the IPAs as defined here
  8. Expansionshall mean installation of additional facilities/equipment that will result in the increase in the production capacity of an Existing Business. It may include modernization and rehabilitation. No expansion for additional capacity shall be allowed unless applicant has attained, in general, 85% utilization of its existing capacity.
  9. Incentive Lawshall refer to a law, such as the Omnibus Investments Code, granting incentives to specific businesses at both the national and local levels, by virtue of the nature of their business activity pursued or the location where such business is going to be pursued or undertaken, as administered by a designated government agency or office (Registering Agency), such as the BOI.
  10. Investment Priorities Plan”/“IPPshall refer to the annual listing of specific activities that have been identified as priority investment areas and thus encouraged by granting those engaging in the activities in the list the incentives under the Omnibus Investments Code, approved by the President of the Philippines, subject to the recommendation of the BOI.
  11. Investment Priority Areasshall refer to the business activities which are entitled to incentives granted by the municipality, which investment area or business activity is specifically included in the Mandatory Investment Priority Areas (MIPAs) or Local Investment Priority Areas (LIPAs), and summarized in an Investment Priority Areas List (IPA List) which shall be amended, as necessary, once every two (2) years.
  12. CEIPCrefers to the Currimao Economic and Investments Promotion Center with the responsibilities and functions provided under Title IV of this Code.
  13. Local Investment Priority Areas”/“LIPAsare investment areas/business activities identified by the Board to be priority investment areas specifically in the municipality which are not yet among the Mandatory Investment Priority Areas and are encouraged to be pursued within the municipality by granting to them incentives in accordance with the policy on the grant of incentives provided under subparagraph (1) of Section 5 above.
  14. Local Applicantsrefer to applicants for incentives under this Code which have no outstanding registration with a Registering Agency under an Incentive Law, provided that it’s proposed business is under the IPA List.
  15. Local Staffrefer to a worker or personnel who is a bonafide resident of the municipality for at least six (6) months where proof of residency consists of the presentation of voter’s ID/Registration and a Barangay Clearance from the barangay where he resides. Where the eligibility of an applicant to avail of incentives is anchored on its ability to generate employment, it should meet the minimum ratio of Local Staff to non-Local Staff, as the Board may prescribe.
  16. Mandatory Investment Priority Areas”/“MIPAare investment areas/business activities identified by the National Government as priority areas of investment and thus encouraged through the extension of incentives not only at the national but also at the local level pursuant to applicable Incentive Law, such as those included in the annual Investment Priorities Plan.
  17. Micro, Small, and Medium Enterprises”/“MSME, for purposes of this Code shall refer to businesses that meet the criteria below and which are to engage in a business activity included in the IPA List:

    By Asset Size:

    Micro Enterprise: Below Php3,000,000

    Small Enterprise: Php3,000,000 – Php15,000,000

    Medium Enterprise: Php15,000,001 – Php100,000,000

    Large: Over Php100,000,000

    Provided, that, in the case of Micro Enterprises, including BMBEs, land which is not officially contributed into the business as capital or purchased by the business shall not form part of the assets of the business for purposes of determining the asset size above.

    Provided further, that, for purposes of securing incentives, in lieu of meeting the foregoing criteria, an enterprise may qualify as an MSME using the following criteria:

    By Number of Employees:

    Micro Enterprise: 1-9 employees Small Enterprise: 10 - 50 employees Medium Enterprise: 51- 199 employees

    In the event that an enterprise falls under different classifications foregoing categories, the classification that will entitle it to more incentives shall be controlling.

    The foregoing categories may be amended, from time to time, to render the definitions consistent with national laws and other issuances pertaining to MSMEs.

  18. Modernization or Rehabilitation Projectsrefer to projects of Existing Businesses or Registered Enterprises, which projects are registrable and thus, eligible to incentives if any of following conditions are met:
    1. at least twenty percent (20%) reduction in production cost, which if sold in the Philippines should result in the reduction of the selling price of the product; or
    2. significant increase in productive efficiency including de-bottlenecking; or
    3.  iii. meaningful upgrading or product quality; or
    4. upgrade in the technology used in production to bring it at par with the technology used by leading manufacturers of the product manufactured by the Registered Enterprise.

    The modernization or rehabilitation contemplated may or may not result in increase in the operating capacity/actual production output to be eligible for registration.

  19. New Projectsrefer to projects or activities in the IPA List that have not started commercial operation, undertaken by (1) a newly organized/formed enterprise; or 2) an Existing Business that proposes to engage in an entirely distinct activity from its existing business as would qualify as a Diversification.
  20. Project Studyrefers to a project profile which presents, among others, highlights of the projected financial viability and environmental and socio-economic impact of the proposed business.
  21. Registered Enterpriserefers 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 by the Board pursuant to this Code.
  22. Registering Agencyrefers to any other government agency/office/instrumentality that is authorized to administer incentives under and register and regulate corporations that are enjoying incentives at the national level pursuant to an applicable Incentive Law, such as but not limited to the BOI and the PEZA.

CHAPTER III. CURRIMAO INVESTMENT AND INCENTIVES BOARD (CIIB)

Section 6. Creation – The Currimao Investment and Incentives Board shall be created to implement the provision of the Currimao Investment and Incentives Code and to supervise and manage the Currimao Economic Investment Promotions Center (CEIPC).

Section 7. Composition. The CIIB shall be composed of

Chairman - Local Chief Executive

Vice Chairman - Municipal Vice Mayor

Members:

  1. The Sangguniang Bayan Chairman of the Committee on Trade, Commerce and industry
  2. The Municipal Treasurer
  3. The Municipal Planning and Development Coordinator;
  4. The Municipal Assessor
  5. The Municipal Agriculture Officer
  6. Private Sector Representatives of significant business/industry in the locality to be appointed by the Local Chief Executive, for a term of two (2) years, duly accredited by the Sanggunian.

Secretariat . . . . . . . . . . . . . . . . . . .

LEIPO BPLO

The Municipality of Currimao may invite representatives from National Government Agencies(NGAs) and other relevant stakeholders into the LIIB or as persons/advisers.

Section 8. Meetings and Quorum of the Board – The Board shall meet once a month or as necessary, on such a day and time as it may fix. The presence of at least a majority of all the members shall constitute a quorum. All decisions and policies acted upon by at least the majority of the members present during the meeting, there being a quorum, shall be considered valid.

Section 9. Powers and Functions of the Board – The primary function of the Board shall be to establish a favorable and a stable policy on business climate which will encourage and support private sector investment and in the operation of business activities. Pursuant to this, the Board is generally vested with the following powers:

  1. Promulgate the Implementing Rules and Regulations (IRR) of the LIIC;
  2. Recommend to the Sanggunian Bayan any amendments on the Code;
  3. Adopt an Investment Promotions Program;
  4. Periodically review Investment Priority Areas (IPAs) eligible for incentives;
  5. Act on application for registration of projects and avail of local incentives;
  6. Supervise the operation of the IPC;
  7. Establish cooperative undertakings with order Municipality of Currimao the private sector, NGOs or other institutions as may be necessary;
  8. Establish trade and investment satellite offices in such other places as may be necessary to effectively carry out its mandates; and
  9. Perform such other tasks necessary and incidental to the exercise and performance of their functions.

Section 10. Powers and Functions of the Chairperson – The Chairman of the Board shall have the following powers and duties:

  1. To preside over the regular and special meetings of the Committee;
  2. To sign the Certificate of Registration in accordance with the rules and regulations of this Code;
  3. Generally, to exercise such other powers and performs such other duties as may be necessary to carry out the objectives of this Code.

Section 11.Powers and Functions of the Vice Chairperson - The Vice - Chairman of the Board shall have the following powers and duties:

  1. To preside over the regular and special meetings of the Committee in the absence of the Chairperson; and
  2. To perform such other duties and functions as may be necessary for and in behalf of the latter.

Section 12. Visitorial Power of the Board - The Board or any duly authorized member thereof, shall be empowered and authorized to conduct an ocular inspection of the premises or examination of the business activity of any enterprise, including the records and books of any enterprise, registered or applying for registration at any reasonable time of the day, during office hours, for verification or ascertaining the enterprise’s compliance with the provisions of the Code, or when the Board deems it necessary or incidental to the effective exercise and performance of their respective functions and powers.

CHAPTER IV. CURRIMAO ECONOMIC AND INVESTMENTS PROMOTION CENTER (CEIPC)

Section 13. Creation - The Investments Promotion Center (IPC) shall be created as the lead office on investments promotion and shall assist the Board in carrying out the objectives of this code.

Section 14. Composition The CEIPC shall be headed by the the Local Economic and Investments Promotion Officer (LEIPO) in accordance with DILG Memorandum Circular (MC) 2010-113 on the Designation of Local Economic and Investments Promotion Officers (LEIPOs /Investments Promotion Officer (IPO)/PPDO and shall be assisted by the BPLO.

Section 15. Functions of the CEIPC– The CEIPC as One-Stop-Shop shall serve as the Technical Secretariat of the Board and shall take an active role in implementing the Code. In addition, it shall have the following duties and functions:

  1. Prepare and implement the annual investments promotion plan as approved by the Board;
  2. Receive, process and evaluate applications for registration and applications for the availment of the local incentives and submit its recommendation to the Board within a specified period from the receipt of application;
  3. Assist in: (1) Securing Licenses and Permits; (2) Identifying business or joint venture partners, raw materials suppliers and possible business sites; (3) Sourcing out skilled manpower and service providers; (4) Facilitate in resolving issues and concerns encountered by investors, among others;
  4. Render after care services to registered enterprises/locators;
  5. Monitor and evaluate project implementation of registered enterprises;
  6. Establish and update data bank on general business information;
  7. Strengthen networking relationships;
  8. Prepare and disseminate investment promotion collaterals, e.i., brochures, industry and project profile as well as the cost of doing business in the Municipality of Currimao;
  9. Conduct briefings to investors;
  10. Represent the Municipality of Currimao in trade and investments meetings, conferences, fora, conventions, and other similar gatherings in both domestic and foreign venues whenever so directed by the Board;
  11. Collate, analyze and compile pertinent data and studies concerning areas that have been or may be declared as “Investment Priority Areas”
  12. Recommend to the Board any modification/amendments to existing legislation and procedures on local investments;
  13. Perform such other functions as may be necessary to implement the intent of the Code.

Section 16. Functions of the BPLO.

The BPLO shall have the following duties:

  1. Receive, process and evaluate applications for registration and applications for the availment of local incentives and submit its recommendation to the Board within a specified period from the official receipt of the application;
  2. Render after-care services to Registered Enterprises as well as to investors in General;
  3. 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 business enterprises, among others;
  4. 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; and
  5. Perform such other functions as may be necessary to implement the intent of the Code.

CHAPTER V. Investments Priority Areas (IPAs)

Section 17. Determining Investment Priority Areas (IPAs)

  1. The Municipality of Currimao through the IPC shall formulate its IPAs, consistent with the IPP, the CDP and CLUP, Zoning Regulations and such other criteria that will ensure sustainable and equitable economic and social development. The Municipality of Currimao, however are not precluded from including in their IPAs other activities that suit their needs as long as it is within the “metes and bounds” of laws, rules and regulations, and or ordinances.
  2. The following may be considered in determining the IPAs of the Municipality of Currimao:
    • Industry/sector specific
    • The potential of such areas of investments for creating productive employment considering the necessity for the dispersal of industries in less developed areas on a planned and balanced basis to the extent that is economically feasible and practicable;
    • The availability of local /indigenous raw materials and manpower needed for said project.
    • The Municipality of Currimao may include in its IPAs green projects, i.e. signboards and the like . An enterprise utilizing public property for its signboard may be free of any fees, tax or charges. Provided that, it promote environmental consciousness or other slogans or caricature supportive of growth and development. Provided further that, the enterprise name and logo shall be of a size and dimension that will not over shadow the aesthetic beauty of the project nor the message of the signboard duly approved by the appropriate office in the Municipality of Currimao.
    • Agriculture and eco-tourism is on the top list of priorities for development. Over and above the activities listed therein, the Municipality of Currimao may encourage organic agriculture, including the production of organic fertilizers of plant and animal origin, production of microbial fertilizer with nitrogen fixing organism and the like which are considered BD-friendly businesses such as in green economy.
    • The ‘green economy’ describes the recent business trend towards the production of environmentally-friendly goods and services that are more sustainable in the long-term and can thus moderate climate change and biodiversity loss. (i.e. Renewable energy production; Green transportation; Carbon capture; Green building practices).
    • The criteria for identifying and specifying Biodiversity-friendly businesses are classified according to the three (3) E’s of sustainable development, that is, ecology, economy, and equity.
  3. A periodic review of the IPAs should be undertaken. The following factors may be considered for the amendment of the IPAs.

    For purposes of inclusion of additional areas in the list of IPAs:

    • Number of local residents to be employed by the enterprise
    • High degree of value added features
    • Creation of linkages with local industries such as joint ventures with local investors
    • Projects of historical or cultural value such as restoration of historical buildings, cultural revivals, etc. in accordance with the program for historical or cultural revival of the locality

    For purposes of exclusion from the current list of IPAs:

    • Sufficient investments in the area has been attained;
    • Continued extension of incentives is no longer to the interest and benefit of the locality;
    • The investment area or activity cannot attract investors within a reasonable time and cost may result in unfavorable business climate; and
    • Lack of progress in the implementation of an environmental management plan.

CHAPTER VI. REGISTRATION

 Section 18 Pre- Qualification Requirements – For purposes of application for registration and availment of incentives under the LIIC, the following qualifications must be complied with:

  1. The enterprise must have complied with all the requirements mandated under existing laws, rules and regulations for doing business in the Philippines;
  2. The activity engaged in must be listed in the IPAs of the Municipality of Currimao;
  3. The place of operation or production be located within the territorial jurisdiction of the Municipality of Currimao;
  4. Specified percentage of its workforce must be bonafide residents of the Municipality of Currimao giving equal opportunities for men, women, the poor, indigenous people and the physically and handicapped;
  5. Project must have safeguards against pollution or resource use if necessary.

 Section 19. Types of Projects for Registration

  1. New Projects
  2. Expansion Projects
  3. Modernization Projects
  4. Diversification Projects

Section 20. Documentary Requirements

  1. Single Proprietorship
    • Copy of Business Name Registration issued by the Department of Trade and Industry (DTI);
    • Copy of Audited Financial Statements (if existing);
    • Copy of completed application form for registration under the LIIC; and
    • Such other documents that may be required by the Municipality of Currimao to be submitted.
  2. For Partnership / Corporation
    • Copy of the Articles of Partnership or Incorporation;
    • Certified true copy of its Certificate of Registration issued by the Securities and Exchange Commission (SEC), for Corporation Partnership;

    • Resolution of the applicant’s Board of Directors, in case of a Corporation authorizing the filing of application;
    • Copy of Audited Financial Statements (if existing);
    • Certificate (ECC) or Non Compliance Certificate (NCC), if applicable;
    • Copy of completed application form for registration under the LIIC; and
    • Such other documents that may be required by the Municipality of Currimao to be submitted.
  3. For BOI Registered Enterprises
    • Certified true copy of the BOI Certificate of Registration;
    • Copy of the documents submitted to BOI pertaining to their registration;

Section 21. Registration Procedures

  1. Filing of Applications - All applications shall be filed with the Investments Promotion Center (IPC) of the Municipality of Currimao.
  2. Check Listing / Assessment of Documents - Client shall present documents for check listing on its completeness and consistency of information.
  3. Date of Official Acceptance – Only complete application shall be officially accepted and registered in the Registration Book. Date stamped on the application shall be considered as the date of official acceptance of the application.
  4. Notice of filing of application in provincial, city, municipal or barangay hall shall suffice publication requirement.
  5. Order of Payment shall be issued for complete application for payment of the necessary fees.
  6. Evaluation /Approval of Application - Once an application is officially accepted, the project will be evaluated by the IPC, which may conduct an ocular inspection at the premises of the business, if necessary. The evaluation of the application shall be presented for the action of the Board. If the application is approved, the IPC shall notify the applicant and inform the Treasurer/s and the Assessor/s of such approval, guidance and appropriate action. If the application is denied, the IPC shall inform the applicant in writing. In both cases, a Board Resolution shall be entered in the minutes of the meeting of the Board.
  7. Processing Time -The processing time from date of official acceptance until the Board may act on the recommendation of the IPC should be indicated in the Code. A provision to the effect that the inaction of the Board within the specified period to act on the application is to be construed that the application is deemed approved.
  8. Filing Fee - A non-refundable filing fee to be determined by the CIIB shall be paid together with the required documents for registration. Micro enterprises may be exempted from the application fees while small enterprises may be given a 75 % reduction of registration fees.
  9. Certificate of Registration - Upon approval, an enterprise shall be issued a Certificate of Registration with the signature of the Chairman of the Board or such other officer as the Board may designate for the purpose as the need arises. It shall state among others, the following: (1) Name of the Registered Enterprise; (2) The Investment Priority Area (IPA) in which the registered enterprise will engage in; (3) The incentives granted and period of its availment; and (4) Such other terms and conditions to be observed by virtue of its registration.

No double availment of incentives/benefits under different laws and / or programs.

Section 22. Support to Micro, Small & Medium Sized Enterprises (MSMEs). The Board of Investments (BOI) promotes the unfolding of MSMEs on account of their contribution to employment generation, countryside development and the cultivation of the Filipino entrepreneurial spirit. The following assistance given to BOI registered MSMEs may be considered by the Municipality of Currimao:

  1. Preparation of simplified project application;
  2. Identification of MSMEs support companies;
  3. Exemption from payment of application and registration fees;
  4. 75% reduction in the application and registration fees for small enterprises;
  5. Exemption from the 25% equity requirement;
  6. Reduction of application fee for incentives;
  7. Posting of notice of filing of application in provincial, city, municipal or barangay hall in lieu of the publication in newspaper of general circulation;
  8. Simplified documentary, reportorial requirements and applications for Incentives.

Article 61 of Republic Act (RA) 9520, otherwise known as “The Philippine Cooperative Code of 2008” (check is 2010 or 2008) and RA 7916, otherwise known as “The Special Economic Zone Act of 1995” provides for the tax breaks of cooperatives and locators of ecozones, respectively.

CHAPTER VII. INCENTIVES

Section 23. Fiscal Incentives

The following fiscal incentives may be given to enterprises consistent with the Local Revenue Code and Book II the Local Government Code which may include the following:

  1. Exemption from local business taxes pursuant to Section 133 (g) of the LGC;
  2. Tax Exemption Privileges through ordinances duly approved pursuant to Section 192 of the LGC;

  3. Exemption from the payment of postal charges of fees pursuant to Article 282 of the LGC; (check with BLGF-postal code)
  4. Exemption from special levy on real property pursuant to Section 235.

Section 24. General Policies on Local Fiscal Incentives

  1. The incentive shall be granted only to new, expanding and or modernization project located within the Municipality of Currimao.
  2. Exemption under Section 133(g) of the Local Government Code (LGC) shall be for a period of six (6), for pioneer and four (4) years for non- pioneer from the date of registration; Exemptions under the LIIC shall be in addition to the incentives provided under Executive Order No. 226 or the“Omnibus Investments Code of 1987”.Provided that, they register with the LIIC. Otherwise, their incentives shall be limited to Sec.133 (g) of the LGC.
  3. The grant of tax incentives pursuant to Article 282 (Postal Charges) of the LGC’s IRR and Section 192 (Authority to Grant Tax Exemption Privileges) of the LGC should not be more than one (1) year from the actual date the start of business operations.
  4. The period of exemption from special levy should not be more than one (1) year. The incentive shall pertain only to the share of the Municipality of Currimao granting the fiscal incentive.
  5. The exemption should not extend to fees and charges imposed for services rendered by the Municipality of Currimao, such as garbage fees, sanitary inspection fees, electrical inspection fees and similar others, as well as rental for use of public utilities owned and operated by the local government such as charges for actual consumption of water, electric power use of government facilities and properties.
  6. The grant shall apply to all businesses similarly situated subject to the pertinent provisions of this Code.
  7. The exemption granted shall take effect only during the next calendar year for a specified number of years unless specified herein.
  8. On shared revenues, the exemption shall pertain only to the share of the local government unit granting such exemptions or relief unless the Municipality of Currimao concerned shall extend the same privilege to such enterprise qualified under this Code.
  9. The withdrawal of incentives for violation of the conditions for the grant of the same under the relevant Incentive Law or the pertinent Certificate of Registration shall automatically result in the withdrawal of local incentives granted pursuant to such Incentive Law or by virtue of the issuance of the Certificate of Registration by a Registering Agency.
  10. The municipality, through its LDC upon recommendation or coordination with the Board, may provide for incentives in addition to incentives provided under the Incentive Laws.

Section 25. Local Business Tax Holiday (LBT Holiday)

Registered enterprises shall, for the first three (3) years, enjoy 50% exemption from local business tax that is otherwise due on their gross receipts in accordance with the Revenue Code. On the fourth (4th) and fifth (5th) year, registered enterprises shall enjoy a 25% discount. The exemption shall be for a term of at least two (2) years but not more than five (5) years.

Section 26. Real Property Fiscal Incentive

The period of fiscal incentive should be not more than one (1) year. The incentive shall pertain only to the share of the Municipality of Currimao granting the fiscal incentives to Regional or Area Headquarters (RHQ) or Regional Operating Headquarters under Article 66, Chapter IV of RA 8756 (Amended Book III of EO 226)“Art. 66. Exemption From All Kinds of Local Taxes,Fees, or Charges. - The regional or area headquarters and regional operating headquarters of multinational companies shall be exempt from all kinds of local taxes, fees, or charges imposed by a local government unit except real property tax on land improvements and equipment”

Section 27. Green Incentives

Exemption from Payments for Environmental Services (PES) – Incentives for enterprises engaged in payments for environmental or ecosystem services with poor, marginalized communities or local governments for environmental protection and climate change adaptation. PES contributions may be in the form of direct technical and financial assistance on sustainable livelihood activities that will reduce the poor’s vulnerability to climate change, financing protection or rehabilitation of degraded ecosystems, and other environmental activities formally agreed on with concerned communities and local government units.

  1. An enterprise availing of the green investment incentive shall file an application with the IPC regarding its intent to undertake a green/social activity, the location and the date. Said activity shall either be a regular activity or that can be completed within the timeframe approved by the LIIB.
  2. The IPC shall be in charge of issuing a certification that the registered enterprise is in its environmental services program, or has undertaken regular green and socially responsible activities and is qualified for the incentive.
  3. After due verification of contributions to payments for environmental or ecosystem services program, urban greening and restoration, reforestation and planting of trees, and similar investments, the IPC shall issue a certification indicating the costs of such activities. Such certification shall be presented to the local treasurer concerned during the payment of the business tax to avail of the incentive.’
  4. This incentive is non- transferable. In case of a change of ownership of the enterprise, the incentives shall not be transferred to the new owner, but shall continue to be enjoyed by the original owner and applied to his new business enterprise, if any, provided that, the period of incentive shall expire within a given period from the date of application regardless of whether the owner availed of it or not. The new owner of the enterprise has the option to apply for green incentives, provided further that, the enterprise continues its green initiatives and complies with all the requirements to avail of the incentives.
  5. The Municipality of Currimao shall have the right to reappraise the cost of the re-greening or landscaping in case it finds the reported cost excessive.
  6. This incentive may be availed of only once every three years.

Section 28. Non-Fiscal Incentives – The following assistance shall be accorded to investors.

  1. Provide one-stop documentation for simplified documentation/registration procedures, which shall be facilitated with the assistance from the IPC;
  2. Support industrial peace through reconciliation and mediation efforts of the IPC;
  3. Assist investors in securing electric power and water supply connection;
  4. Coordinate the negotiation of special rates for utilities for industries with a certain minimum load;
  5. Assist investors in their site selection and negotiation for right of way;
  6. Network with concerned national agencies such as Technical Education Skills and Development Authority (TESDA) and other similar institutions for trainings of workers to enhance skills of manpower of the enterprise;
  7. Facilitate outbound and inbound missions of investors; and
  8. Such other after care services that may be accorded to investors.

CHAPTER VIII. CORPORATE SOCIAL RESPONSIBILITY (CSR) OF REGISTERED ENTERPRISES

BOI registered enterprises with projects under pioneer status must undertake Corporate Social Responsibility (CSR), whereas, those on non-pioneer status are encourage to undertake CSR, to the extent possible, in accordance with the development plan of the community where the registered project is located. To sustain environmental protection, adaptations to climate changes and reduce poverty in the local areas, the following may be undertaken as CSR of registered enterprises such as but not limited to:

Section 29. Greening/Re-greening of Area

  1. Rehabilitation and Restoration of buildings or other structures in accordance with the city/municipal urban renewal or restoration plan of the Municipality of Currimao
  2. Re-greening or landscaping may be in the form of urban greening or landscaping such as major road sides; areas with historical or tourism value; areas in bio-geographic zones; 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, otherwise, reimbursement of the incentive granted shall be due and demanded.

Section 30. Social Projects

  1. Housing for Employees
  2. Educational Projects
  3. Cultural Revivals
  4. Programs for Women, Children, Elderly, Disabled, Out of School Youths and Indigenous Peoples
  5. Community infrastructure projects aligned with the development plan of the Municipality of Currimao and
  6. Such other projects or activities based on the development needs of the community where the project is located or identified under NAPC.

Section 31. PROVISIONS FOR ENVIRONMENTAL PROTECTION

Environmental Impact Assessment. – Environmentally critical projects or enterprises locating their activities or expansion projects in environmentally critical areas shall comply with the requirements of Presidential Decree No.1586 (Philippine Environmental Impact Statement System) and related issuances of the Department of Environment and Natural Resources.

Hazardous Substances. – Projects involving the handling, transport, processing and storage of toxic, hazardous substances and/or nuclear waste shall not be entitled to any incentives.

Specific prohibitions.

  1. No industrial or manufacturing facility shall be operated without proper air pollution devices, wastewater treatment facilities, and solid waste management facilities;
  2. No industrial or manufacturing plant shall be operated at levels beyond the operating capacity of their respective waste treatment facilities in order to maintain the effluent quality within the standards required by law;
  3. All Industrial and manufacturing establishment shall subject their operations and premises, facilities and systems to periodic environmental compliance monitoring, which shall be conducted by the Municipality of Currimao in coordination with the Department of Environment and Natural Resources. Refusal to be subject to such inspection shall be sufficient ground for the forfeiture of any incentive and the revocation of its Certificate of Registration and/or Business Permit by the concerned local government units.

Regulation – The LIIB shall ensure that the green and socially responsible projects undertaken by enterprises on public property shall be in harmony with the overall environmental management program of the Municipality of Currimao and/or local government concerned as determined by the appropriate Municipality of Currimao office.

Section 32. Budget Appropriations

Provision for appropriation covering the expenditures to operationalize the Local Investments and Incentives Board (LIIB) and the Investments Promotion Center (IPC) shall be provided through regular or supplemental Budget.

Revenues from the Operation of the Code. The Municipality of Currimao may provide that income derived from the operation of this Code shall go to the special coffers captioned “Investments Promotion Fund”. Said fund shall be used solely for the operation and maintenance and other operating expenses of the IPC of the Municipality of Currimao; Immediate Release of Fund. For purposes of expediting the operations of the IPC, its allocation for the Investments Promotion Fund shall be immediately released.

Section 33. FINAL PROVISIONS

Penal Clause. Any violation of the provision of the Code shall be a ground for the cancellation or revocation of the Certificate of Registration of the project/business. The cancellation or revocation of the Certificate of Registration shall mean the withdrawal of all the incentives granted under the Code; and all fees and charges previously exempted shall become due and demandable.

Grounds for the Cancellation of the Certificate of Registration as follows:

  1. Violation of the provisions of the Code and such other violation of laws, rules and regulation or ordinances;
  2. Violation of the terms and conditions specified in the Certificate of Registration
  3. Material misrepresentation

Appeal from the Decision of the LIIB. The applicant or business enterprise adversely affected by any decision of the Board relative to its cancellation/revocation of registration or the impositions of fines/penalties in accordance with this Code may file a motion for reconsideration within 15 days from receipt of the decision, otherwise the decision shall become final and executory.

Refund and Penalties – In case of the cancellation of the Certificate of Registration, the LIIB shall require the refund of incentives availed of and impose corresponding fines and penalties.

Section 34. Separability Clause.

If, for any reason, any portion or provision, section or part of this Code is declared not valid by a Court of competent jurisdiction or suspended or revoked by the Sanggunian Bayan, such judgment shall not affect or impair the remaining portions, provisions, sections, or parts thereof which shall remain or continue to be in full force and effect.

Section 35. Repealing Clause.

All ordinances, rules and regulations, or part thereof, in conflict with, or inconsistent with any provisions of the Code, shall be considered repealed, amended or modified accordingly.

Section 36. Effectivity.

The ordinance or the Local Investments and Incentives Code shall take effect immediately upon or after a specified period after its approval.

Voting Profile:

In Favor : Hons. Lazo, Reyno, Fernando, M. Aglipay, Silao, Aglipay III, Allado, Vidad, G. Fernando and Pascua

Against : None

Abstention : None

CARRIED.

COPIES of this Ordinance be furnished the Sangguniang Panlalawigan, and all authorities concerned for their information, consideration and approval.

APPROVED UNANIMOUSLY,

I HEREBY CERTIFY to the correctness of the above-quoted Municipal Ordinance.

ARTHUR P. PASCUA

Secretary to the Sanggunian

ATTESTED:

HON. SANDRA T. CABREROS

Vice-Mayor & Presiding Officer

 APPROVED:

HON. EDWARD T. QUILALA

Municipal Mayor

Dingras

Dumalneg

Laoag

Marcos

Republic of the Philippines

OFFICE OF THE SANGGUNIANG BAYAN

Marcos, Ilocos Norte

EIGHTH SANGGUNIANG BAYAN

THIRD SANGGUNIAN SESSION

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG BAYAN OF MARCOS, ILOCOS NORTE HELD ON JANUARY 30, 2013 AT 1025 0'CLOCK A.M. AT THE SANGGUNIAN SESSION HALL

Hon. Jonel M. Rosqueta, Vice Mayor/Presiding Officer,

Hon. Rofel R. Pambid, Member,

Hon. Constancio T. Tamayo, Member,

Alicia S. Tamayo, Member,

Hon. Eloy A. Rosqueta, Member,

Hon. Stewart dela Cruz, Member,

Hon - Alwyn Ajerico F. Piflos, Member,

Hon. Noel R. Calaoagan, Member/Liga President,

Hon. Marcvon Vince R. Damaso,Member/PPSK President,

Hon. Wilson C. Simeon, Absent:Member,

Hon. Ignacio A. Agustin,Member.

ORDINANCE NO. 8-129-2013

AN ORDINANCE ENACTING THE MARCOS INVESTMENT AND INCENTIVE CODE OF 2013, AND FOR OTHER PURPOSES.

On motion of Member Constancio T. Tamayo, duly seconded, BE IT ORDAINED by the Sangguniang Bayan of Marcos assembled in session that:

CHAPTER l. TITLE AND DECLARATION OF POLICY

SECTION 1.Title- This ordinance shall be known as the MARCOS INVESTMENT AND INCENTIVE CODE OF 2013.

SECTION 2.Declaration of Policy. It is hereby declared a policy of Marcos to attract and promote productive investments from individuals, partnership, corporations and governments in activities which significantly contribute to the socio-economic development and industrialization of the municipality.

The municipality encourages foreign and domestic capital to new investment, expansion in agro-industrial , eco-cultural tourism activities and infrastructure and such other preferred areas of investment as may be determined from time to time which will provide employment and livelihood opportunities and raise the standard of living of the people of Marcos in accordance with the Provincial Framework Plan and Investment Program of the municipality.

CHAPTER ll. THE INVESTMENT AND INCENTIVE BOARD

SECTION 3. The Investment and Incentive Board. There is hereby created an Incentive Board (11B) to the provisions of this Code.

SECTION 4.Composition of the Board. The Board shall be composed of the following:

Chairman …………………………… Municipal Mayor

Vice-Chairman …………………… Municipal Vice-Mayor

Members:

Chairman, SB Committee on Public Works

Chairman, SB Committee on Finance and Appropriations

Chairman, SB Committee on Ways and Means

Municipal Planning & Development Coordinator Municipal Treasurer

Two (2) Private Sector Representatives

Provided that membership of the Board may be increased by the Sangguniang Bayan through the recommendation of the Board.

SECTION 5. Meetings and Quorum of the Board. The Board shall meet at least once every quarter or as often as maybe necessary as such day and time as it may fix. The presence of at least a majority of its members shall constitute a quorum for the Board to exercise its powers and functions.

SECTION 6. Powers and Functions of the Board. The functions of the Board shall be to establish a favorable and stable policy on business climate that will support and encourage investment and operation of business activities consistent with the development needs of the municipality. Pursuant to this, the Board shall be vested with the following powers:

  1. To promulgate the Implementing Rules and Regulations of the provisions of the Code;
  2. To commission economic and technical research groups for the purpose of identifying priority investment areas and / or activities as well as appropriate support measures to be used to attract visitors;
  3. To adopt a short and medium term investment promotion program;
  4. To periodically check and verify the compliance of the registered enterprises with the provisions of this Code and its implementing rules and regulations;
  5. After due notice, may cancel the registration or suspend the enjoyment of incentives or benefits of any registered enterprises;
  6. Exercise all functions and powers necessary to or incidental to the attainment of the objectives of this Code.

SECTION 7- The Marcos Investment Promotion Center- There is hereby created the Marcos Investment Promotions Center (MIPC) which shall serve as the Secretariat of the board and whose members shall be determined by the Board. The center shall have the following functions:

  1. Undertake pro-active and re-active investment generation;
  2. Provides services to potential investors;
  3. Assist investors in accomplishment of business requirements;
  4. Assist investment data banking services that will contain general business info ation on economic activities s and sites characteristics.

SECTION 8.Appropriations.An initial funding to defray expenses necessary or incidental to the implementation of the provisions of this code, shall be appropriated from the funds of the Municipal government. Thereafter, the municipal government shall appropriate annually the necessary funding requirements for the continued implementation of the provisions of this Code, subject to the usual accounting and auditing rules and regulations.

class="lead text-justify">CHAPTER Ill. PRIORITY INVESTMENT AREAS/ACTIVITIES AND APPROPRIATE INCENTIVES AND SUPPORT MEASURES.

SECTION 9. Priority Investment Areas. A list of priority investment areas and activities shall be drawn up by the Board, in consultation with concerned government agencies and private sector groups.

SECTION 10. Appropriate Incentive and Support Measures. The Board shall identify and recommend for the approval of the Sangguniang Bayan appropriate incentives and support measures which shall be extended to targeted investors to promote priority investment areas and activities.

SECTION 11. Effectivity of Appropriate Incentives and Support Measures. The Board shall review the package of appropriate incentives and support measures every three (3) years, provided that the Board may remove an area or activity from the list at any point when it deems that sufficient investments in the area or activity have been attained and where continued extension of incentives or support measures for expansion of said area or activity may place the interest of the municipality in adverse position. The Board may also remove an investment area from the list where it is convinced that the investments in such area or activity in the municipality cannot be attracted within reasonable cost or may result in unfavorable business climate.

CHAPTER REGISTRATION OF ENTERPRISES

SECTION 12. Qualification of Enterprises. New investors who intend to avail of the incentives provided in this Code must meet the following qualifications.

  1. That the business enterprises must have complied with all the requirements mandated under existing local and national laws;
  2. That the prospective investor's place of operation or production be located within the territorial jurisdiction of Marcos;
  3. That the prospective investors must engage in activities in preferred areas of investments;

d That the new enterprise must have a capitalization of at least Thirty Million (30M) in the case of corporation or partnership or Ten Million (10M) in the case of single proprietorship;

Provided, however, that the Sangguniang Bayan may authorize in meritorious cases the reduction of the capital requirements.

  1. That the new enterprise will provide out of the labor force and employment of persons who are bonafide residents of the municipality.

SECTION 13. Application Requirement. Application shall be filed with the Board, recorded on a registration book and the date appearing therein a stamped on the application shall be considered the date of t ng thereof.

A non-refundable filing fee of One Thousand Pesos (PI ,OOO.OO) shall be paid together with the following documents for registration;

  1. Four copies of the complete project study showing the project covered by the application is economically, technically and financially sound;
  2. Copies of the Article of Incorporation and By-laws submitted to the SEC, BOI or EPZA as the case maybe;
  3. Resolution or letter of the Board of Directors or President of the Board authorizing the filing of application;
  4. List of directors and other principal officers and their respective nationalities and current addresses, as certified by the Corporate Secretary.

SECTION 14. Approval and Registration Procedures. The Board is authorized to adopt regulation to facilitate action on applications filed with its prescribed criteria for the evaluation of several applications filed on preferred area; devise standard forms for use of applicants.

SECTION 15. Certificate of Registration. A registered enterprises under this Code shall be issued a certificate of registration with the signature of the Chairman and/or such other officer of the Board it may designate and empower for the purpose.

CHAPTER V. RIGHTS AND PRIVILEGES

SECTION 16. Right and Privileges Guaranteed by the Municipal Government. The Municipal Government through the Marcos Investment and Incentive Board shall;

  1. Provide a comprehensive information to prospective investors on the economic priorities of the Municipal Government, including target investment areas;
  2. Communicate investment evaluation criteria and procedures to enhance transparency in the granting of incentives;
  3. Take the fullest account of the needs of the investors for stability growth and profit in their operations in the formulation and modification of policies that affect investment;
  4. Avoid undue partially between and among enterprises operating within its territorial jurisdiction whether domestic or foreign. When granting any special incentives or exemptions in encouraging investments in the identified areas;
  5. Resolve all doubts concerning the benefits and incentives granted under this ordinance.

CHAPTER VI. INCENTIVES TO REGISTERED ENTERPRISES

SECTION 17. Incentives to Registered Enterprises. A registered enterprise qualified under this code shall enjoy the following incentives:

  1. Registered new enterprises shall have a graduated tax incentives of four (4) years after the issuance of Certificate of Registration;
  2. For the second year of operation, a tax rate of 20% of 1% shall be imposed;
  3. For the third year of operation, a tax rate of 27.5% of 1% shall be imposed;
  4. For the fourth and fifth year of operation, a tax rate of 35% of 1% shall be imposed;

Provide; that as essential commodity the above stated subsection c; d, e; a rate of not to exceed 12% of the prescribed (50% of 1 shall be imposed.

CHAPTER VII TERMINATION OF TAX INCENTIVE

SECTION 18.Termination of the Tax Incentive. The incentive shall be terminated after the fifth year of operation of the business and the Local Tax Revenue Code of 2012 shall automatically take effect, specifically Section 15 of the said code.

CHAPTER VIII. FINAL PROVISIONS

SECTION 19. Penal Clause. Any violation of the provisions of this Code, existing laws, ordinances, rules and regulations shall be ground for cancellation or revocation of the registration of the business and the withdrawal of all incentives granted under this Code.

SECTION 20. Separability Clause. If for any reason or reasons, any part or provisions of this Code is declared unconstitutional or invalid, the other provisions which are not affected thereby shall remain in force.

SECTION 21. Effectivity. This ordinance shall take effect immediately upon its approval

Nueva Era

Pagudpud

Paoay

Pasuquin

MUNICIPALITY OF PASUQUIN

Ilocos Norte

EXCERT FROM THE MINUTES/JOURNAL OF THE REGULAR SESSION OF THE SANGGUNIANG BAYAN OF PASUQUIN, ILOCOS NORTE, HELD AT ITS SESSION HAL ON DECEMBER 12, 2005 AT 9:45 A.M.

PRESENT:

HON. RODOLFO L. VALDEZ, Vice Mayor, Presiding Officer,

HON. JESUS D. LAGAZO, Member,

HON CLEMENTE R. GERVACIO, Member,

HON. FELIX D. AGUINALDO, JR., Member,

HON. MELCHOR M. ACIO, Member,

HON. NESTOR REY R. AGUINALDO, Member,

HON. ALFREDO F. REGIDOR, JR., M.D., Member,

HON. WILSON R. ANDRADA, Ex-Officio Member,

HON. HARRY KITT V. AGUINALDO, Ex-Officio Member.

ABSENT:

HON. ELSIE V. DELA CRUZ, on vacation leave.

HON. MICAELA ANGELA G. ARQUILLO, Member.

MUNICIPAL ORDINANCE NO. 2005-142

AN ORDINANCE ENACTING THE INVESTMENT INCENTIVE CODE OF THE MUNICIPALITY OF PASUQUIN, ILOCOS NORTE

BE IT ENACTED BY THE SANGGUNIANG BAYAN OF PASUQUIN, ILOCOS NORTE THAT:

CHAPTER I. GENERAL PROVISIONS

Section 1. Title. This ordinance shall be known and cited as the Pasuquin Investment Incentive Code of 2005.

Section 2. Construction of Code. In the construction of the Code, the following rules shall be observed unless the construction will be inconsistent with the manifest intent of the Code.

  1. General Rule. All words and phrases shall be construed and understood according to the common and approved usage of the language; technical words and phrases and such others as may have acquired a peculiar and appropriate meaning in the law shall be construed and understood to that peculiar and appropriate meaning.
  2. Gender and Number. Every word in the Code importing the masculine gender shall extend to both female and male. Every word importing the singular number shall extend and apply to several persons and every word importing the plural number shall extend and apply to one person.
  3. Person. The word person shall extend and be applied to natural and juridical persons such as firms, partnership, corporations, cooperative or associations, unless plainly inapplicable.
  4. Tense. The use of any verb in the present tense shall include future cases. “Shall” is mandatory and “may” is permissive.
  5. Reasonable Time or Notice. In all cases where any provision of the Code shall require any act to be done in reasonable time or reasonable notice to be given, that reasonable time or notice shall mean such time only as maybe necessary for the prompt performance of that duty, or compliance with that notice.

Section 3. Conflict with Different Sections. Should the conflict be within the different sections, the provisions of the Article, which is last in the ordinal sequence, shall govern.

Section 4. Declaration of Policy. To spur progress and development, it is hereby declared to be the policy of the local government unit to:

  1. Uphold the business enterprise as the basis of progress, economic growth and development;
  2. Encourage, attract, support and promote investments from local and foreign investors that will develop agri-business, infrastructure, manufacturing, forestry, tourism and such other preferred areas of investments that are non-polluting, labor intensive and skill imparting which will provide employment opportunities, raise the standard of living of the people and provide for an equitable distribution of income and wealth;
  3. Welcomes and encourage foreign and domestic investment to establish enterprises that would utilize substantial amount of local labor, raw materials and natural resources of the municipality;
  4. Encourage and support private sector initiatives, not complete with them;
  5. Encourage and support the establishment of, and protect trade, industry and consumer protection institutions that will harmonize and safeguard their members interests, free from perversions, restraints and illegal practices; and
  6. Promote the organization and operation of civil society organizations to serve as active partners in achieving local autonomy.

Section 5. Objectives of the Code. This Code is enacted with the following objectives:

  1. To encourage local and foreign investments in agriculture, industry, forestry, mining, tourism, and other sectors of the economy in order to provide employment opportunities;
  2. To increase the productivity of the land, forest, mineral, marine and other resources of the municipality;
  3. To improve the utilization of these products; and
  4. To improve the technical skills of the people and provide a basis for the progress and development of the economy of the municipality.

Section 6. Operative Principles. This Code is based upon the following principles:

  1. A private sector led economy, with the private sector as the principal engine of economic growth and progress;
  2. pursuit of a free enterprise system that is both socially responsible and dynamic;
  3. Uphold the business enterprise as the basis of economic growth, expansion and change;
  4. Encourage and support private sector initiatives, not complete with them; and
  5. Assist the private sector in creating a just and viable socio-economic structure in commerce, trade and industry, which are conductive to greater productivity and income.

Section 7. Definition of Terms. When used in this Code, the following terms and phrases shall mean as follows:

  1. Board – shall mean the Pasuquin Investment Incentive Board (PIIB) created under this Code.
  2. Center –shall mean the Pasuquin Investment Promotions Center (PIPC).
  3. Code – shall mean the Pasuquin Investment Incentive Code of 2005.
  4. Existing Enterprises – shall refer to establishments or enterprises whose places of operation or production are located within the municipality.
  5. New investors or enterprises – shall refer to prospective investors who have not yet engaged in any type or kind of business in the locality and are interested in establishing their place of operation or production in the municipality.
  6. Preferred Areas of Investments – all economic activities that have been approved and declared as such by the Board, after a thorough study and evaluation.
  7. Registered Enterprises – shall refer to those enterprises or business registered in accordance with the provisions of this Code.

CHAPTER II. THE PASUQUIN INVESTMENT INCENTIVE BOARD AND THE PASUQUIN INVESTMENT PROMOTIONS CENTER

Section 8. The Pasuquin Investment Incentive Board (PIIB). There is hereby created and organized the PIIB to implement the provisions of this Code. The PIIB shall be composed of the following:

Chairperson Municipal Mayor
Vice Chairperson Minicipal Vice Mayor
Menbers SB Chair on Public Works/Infrastructure
SB Chair on Economic Enterprises and Development
SB Chair on Finance, Ways and Means
SB Chair on Laws, Rules and Privileges
SB Chair on Agriculture
SB Chair on Tourism
SB Chair on Trade and Industry
SB Chair on Environment Protection
SB Chair on Public Utilities/Transportation
Two (2) Private Sector Representatives
DTI Representative
DENR Representative
DOT Representative

Provided, that membership of the Board may be increased by the Sangguniang Bayan upon recommendation of the PIIB.

Section 9. Powers, Duties and Functions of the Board. The primary function of the Board shall be to establish a favorable and stable business climate, which will support and encourage investments and operation of business activities consistent with the development needs of the municipality. Pursuant to this, the Board shall be vested with the following powers and functions:

  1. To screen, evaluate, accept, approve or disapprove applicants who wish to avail of these investment incentives and privileges and to issue Certificates of Registration.
  2. To commission economic and technical research groups for the purpose of identifying priority investment areas and/or activities to be promoted, as well as appropriate support measures to be extended to investors.
  3. To conduct investment promotional activities such as trade and investment missions, business conferences, for a, publication of promotional documents and flyers, and other related promotional and developmental activities for the purpose of generating investments and employment.
  4. To adopt a short and medium term investment promotion program which shall specify the list of priority investment areas and activities and the provision of corresponding incentives and support measures to be used to attract investors.
  5. To periodically check and verify the compliance of the registered enterprises with the provision of this Code.
  6. To enter into any agreement with other government agencies, private sector organizations for the purpose of simplifying systems, procedures and requirements on investments and business operations in the municipality.
  7. After due process, may cancel the registration or suspend the enjoyment of incentives or benefits of any registered enterprises for failure to maintain the qualifications required by this Code or registration with the Board, or violation of any provisions of this Code and of the terms and conditions of registration.
  8. Exercise all functions and powers necessary to or incidental to the attainment of the objectives of this Code.

Section 10. Power and Functions of the Chairperson. The Chairperson of the Board shall have the following duties, powers and functions:

  1. Confirm the mandated membership of the Board from the Vice-Chairperson to the members;
  2. To preside over regular and special meetings of the Board;
  3. To render annual reports to the municipality and such special reports as maybe necessary or required;
  4. To act as liaison between investors seeking joint venture arrangements in particular areas of investments;
  5. To recommend to the Board such policies and measures that are deemed necessary to carry out the objectives of this Code; and
  6. Exercise such other powers and perform such other duties as maybe authorized by the Board from time to time.

Section 11. Power and Functions of the Vice-Chairperson. The Vice-Chairperson of the Board shall have the following powers and functions:

  1. To act as managing Head of the Board;
  2. Preside over regular and special meetings of the Board in the absence of the Chairperson; and
  3. Perform such other duties of the Chairperson in the absence of the latter and such other duties as maybe assigned to him by the Board.

Section 12. Meetings and Quorum of the Board. The Board shall meet once every quarter or as often as maybe necessary, on such day and time as it may fix. The presence of at least a majority of its members shall constitute a quorum for the Board to exercise its powers and functions.

Section 13. The Pasuquin Investment Promotions Center (PIPC). There is created and organized the PIPC which shall serve as the secretariat to the Board and whose members shall be determined by the Board. The Head of the Center who shall be designated by the Board Chairperson shall also serve as secretary to the Board.

Section 14. Functions of the Center. In addition to its being the secretariat to the Board and implementing arm its policies and guidelines, the Center shall have the following duties and functions:

  1. Undertakes pro-active and re-active investment generation efforts;
  2. Provides hands-on services and necessary support services to potential investors;
  3. Assists investors in securing licenses and permits, arrange for the availment of local and national government incentives, and identify business or joint venture partners, raw material suppliers, labor sources, possible business sites and other requirements of investors;
  4. Provides investment data banking services which will contain, among others, general business information, information on economic activities, factory costs and site characteristics;
  5. Accepts, processes and evaluates all applications for registration for availment of incentives and submit its recommendations for action by the Chairman of the Board within ten (10) days from receipt of the application;
  6. Establishes and maintains networking relationships with other offices, agencies, civil society organizations, and NGFO’s/PO’s whenever appropriate and necessary;
  7. Prepares the agenda of meetings of the Board; and
  8. Prepares annual report on the activities of the Center and the Board within sixty (60) days after the end of the calendar year.

CHAPTER III. RIGHTS AND OBLAGATIONS OF THE MUNICIPAL GOVERNMENT AND INVESTORS.

Section 16. Rights and Obligations of the Municipal Government. To enhance investors confidence in the investment incentive program, of the municipal government through the Pasuquin Investment Incentive Board shall:

  1. Clearly publicize to prospective investors the economic development priorities of the municipality, including target investment areas and the general conditions applicable to incoming direct private investments;
  2. Communicate investment evaluation criteria and procedures to enhance transparency in the incentive granting process;
  3. In the formulation of qualifications, policies, rules and regulations that affect investments, take the fullest possible account of the need of investors in terms of stability, growth, and profitability in their operations;
  4. Avoid undue partiality between and among enterprises operating within the territorial jurisdiction of the municipality, whether foreign or domestic, when grating any special incentives or exemptions aimed at encouraging investments in the identified areas;
  5. Resolve all doubts concerning the benefits and incentives granted under this ordinance enacted for the purpose of encouraging investment in favor of the investor;
  6. Not to interfere or modify arrangement with investors after the details of implementation of an investment project that has been accepted and approved, and the ownership and management structure of the enterprise has been established;
  7. Not impose on enterprises wholly or partially foreign owned, taxes which are higher or more burdensome than to which domestic enterprises are subject; and
  8. Provide a stable tax system with gross sales or receipts and real property being taxed at rates which do not discourage private investment.

Section 17. Rights and Obligations of Investors and Registered Enterprises. Investors and registered enterprises shall have the following rights and obligations:

  1. Ensure in consultation with the PIIB that its proposed investments fit satisfactory with the identified priority investment areas and activities;
  2. Adequately and fully make known its expectations concerning the expansion of the business, employment, and marketing projects and the financing of its operations.
  3. In response to the interest shown by the community about the investment, take steps to provide relevant information about the operation of the enterprise, except for information that should be withheld for security or competitive reasons; and
  4. That the registered enterprises shall employ qualified bonafide residents of the municipality.

CHAPTER IV. QUALIFICATIONS AND REGISTRATION OF INVESTORS/ENTERPRISES.

Section 18. Qualification Requirements of New Investors/Enterprises. The provisions of this Code shall apply to any person, partnership, corporation, association or cooperatives that will put up new enterprises, provided that they shall meet the following qualification requirements:

  1. That the business enterprise must have complied with all the requirements mandated under existing national and local laws and the constitution;
  2. That the prospective investors’ place of operation or production should be located within the territorial jurisdiction of the municipality;
  3. That the prospective investors must engage in activities in the preferred areas of investments;
  4. That the new enterprise shall have a capitalization of at least Php 5,000,000.00 in case of Filipino investors and at least US$250,000.00 for foreign investors; provided however, that the Sangguniang Bayan may authorize in meritorious cases the reduction of the capital requirements; and
  5. That the new enterprise shall provide out of the labor force the employment of persons who are bonafide residents of the municipality.

Section 19. Qualification Requirements of Existing Enterprises. An existing enterprise may avail of the incentives mandated under this Code, provided it meets the following qualification requirements:

  1. That the business enterprise must have complied with all the requirements mandated under existing national and local laws and the constitution;
  2. That the diversification or expansion shall engage in activities in the preferred areas of investments;
  3. That existing enterprises whose place of operation or production is already located in the municipality shall expand its existing production capacity or operation or construct new buildings and other civil works for the installation of new machinery, equipment, or improvements which will result in increased production capacity or operation by at least 30%.
  4. That the expansion or diversification shall have a capitalization of at least Php 2,000,000.00 but less than Php 5,000,000.00 in case of small scale industries, and at least Php 5,000,000.00 but less than Php 20,000,000.00 in case of large scale enterprises.
  5. That the expansion or diversification shall provide out of the labor force an employment of at least twenty (20) persons in case of small scale enterprise; at least forty (40) people in case of medium scale enterprise; and at least one hundred (100) people in case of large scale enterprises.

Section 20. Application Requirements. Application shall be filed with the Board, recorded in a registration book and the date appearing therein stamped on the application shall be considered the date of official filing. A non-refundable filing fee of Php 1,000.00 shall be paid together with the following documents for registration:

  1. Three (3) copies of completed application forms to be provided by the Board in accordance with the provisions of this Code;
  2. A copy of the completed project study of the proposed investment showing that the project covered by the application is economically, technically and financially sound, feasible and viable;
  3. A copy of the Articles of Incorporation and By-Laws as approved by the Securities and Exchange Commission or Board of Investments;
  4. A certified true copy of its Certificate of Registration with the Securities and Exchange Commission, Board of Investment or Department of Trade and Industry;
  5. resolution or letter of the Board of Directors, or President of the Board authorizing the filling of the application; and
  6. List of directors and other principal officers and their respective nationalities and current addresses, as certified by the corporate secretary.

Section 21. Approval and Registration Procedures. The Board is authorized to adopt rules and regulations to facilitate action on applications filed with it; prescribe criteria for the evaluation of application filed in one preferred area of investment; and devise standard forms for use of applicants. Applications filed shall be considered automatically approved if not acted upon by the Board within twenty (20) working days from official acceptance thereof.

Section 22. Criteria for Evaluation of Application. The following are the criteria in the evaluation of applications for registration under a preferred area of investment:

  1. The extent of ownership control by Philippine citizens of the enterprise;
  2. The economic rates of return;
  3. The extent to which labor, materials and other resources obtained from indigenous sources are utilized;
  4. The extent to which technological advances are applied and adopted to local conditions;
  5. The amount of foreign exchange to be earned, used or saved in their operations;
  6. The measured capacity, provided that the measured capacity shall not result in a monopoly in any preferred area of investment which would unduly restrict trade and fair competition nor shall it be used to deny the entry of any enterprise in any field of endeavor or activity; and
  7. Such other criteria as the Board may determine.

Section 23. Appeal from Board’s Decision. Any order or decision of the Board shall be final and executor after thirty (30) days from its promulgation. Within the said period of thirty (30) days, said order or decision may be appealed to the Secretary of Trade and Industry. Where an appeal has been filed, said order or decision shall be final and executor ninety (90) days after the perfection of the appeal, unless reversed.

Section 24. Certificate of Registration. A registered enterprise under this Code shall be issued a Certificate of Registration under the seal of the PIIB and the signature of the Chairperson and such other officer of the PIIB as it may empower and designate for the purpose. The Certificate shall be in such form and style as the PIIB may determine and shall state, among other matters:

  1. The name of the registered enterprise;
  2. The preferred area of investment in which the registered enterprise is proposing to engage;
  3. The nature of the activity it is undertaking or proposing to undertake, whether pioneer or non-pioneer, and the registered capacity of the enterprise; and
  4. The other terms and conditions to be observed by the registered enterprise by virtue of the registration.

CHAPTER V. PRIVILEGES, INCENTIVES AND SUPPORT MEASURES

Section 25. Incentives to Registered Existing Enterprises. A registered existing enterprises, which will undertake expansion of business, shall enjoy the following tax incentives:

  1. Exemption from the payment of business taxes of the gross sales or receipts realized from the expansion or diversification activities of the existing enterprise for a period of three (3) years starting from the date of operation of the approved expansion –or diversification in the priority investment areas;
  2. Real properties actually and directly used in the expansion or diversification shall be exempt from paying the real property taxes for a period of three (3) years starting from the date of operation. The exemption shall apply only to the forty percent (40%) share of the municipality;
  3. Machineries and equipment used for pollution control and environment protection shall be exempt from real property taxes;
  4. Exemption from the payment of Mayor’s Permit fees, building permit and other charges which the municipality imposes five (5) years from date of registration for projects whose capitalization is Five Million Pesos (P5M) to Ten Million Pesos (P10M); and seven (7) years for projects whose capitalization is over Ten (P10M) pesos;
  5. Exemption from Land Tax for fifteen (15) years for commercial tree plantation;
  6. Exemption from Land Tax for ten (10) years for fruit bearing trees;
  7. The following shall be allowed as deduction from the taxable gross sales/receipts realized during the preceding year from the expansion or diversification activities of the registered enterprise for a period of three (3) years starting the third year from the date of operation of the enterprise:
    1. A non-cumulative net operating loss carry over equivalent to fifty percent (50%) of the losses in a given year resulting from business expansion or diversification in the priority investment areas as indicated in the audited financial reports;
    2. Twenty percent (20%) of the annual wages actually paid to newly hired workers who are employed in the registered expansion or diversification activities and who are bonafide residents of the municipality;
    3. Fifty percent (50%) of the approved expenditures on public infrastructures such as roads, bridges, etc. which are accessible and being used by the public;
    4. Expenditure on approved skills training but not to exceed Php 100,000.00;
    5. One hundred percent (100%) of the total cost of educational scholarship granted to the workers who are bonafide residents of the municipality;
    6. One hundred percent (100%) of the total amount donated to any social amelioration project of the municipality; and
    7. One hundred percent (100%) of the installation cost an effective and non-polluting solid waste management system established by the registered enterprise.

Section 26. Incentive to Registered New Enterprises. All newly registered enterprises which quality under this Code shall enjoy the following tax incentives.

  1. Exemption from the payment of business taxes of the gross sales or receipts realized for a period of three (3) years starting from the date of operation;
  2. Exemption from the payment of real property taxes for a period of three (3) years from the date of operation. The exemption shall apply only to the forty percent (40%) share of the municipality;
  3. Machineries and equipment used for pollution control and environment protection shall be exempt from real property taxes;
  4. Exemption from the payment of Mayor’s Permit fees, building permit and other charges which the municipality imposes five (5) years from date of registration for projects whose capitalization is Five Million Pesos (P5M) to Ten Million Pesos (P10M); and seven (7) years for projects whose capitalization is over Ten Million pesos;
  5. Exemption from Land Tax for fifteen (15) years for commercial tree plantation;
  6. Exemption from Land Tax for ten (10) years for fruit bearing trees;
  7. The following shall be allowed as deduction from the taxable gross sales/receipts realized during the preceding year from the expansion or diversification activities of the registered enterprise for a period of three (3) years starting the third year from the date of operation of the enterprise:
    1. Anon-cumulative net operating loss carry over equivalent to fifty percent (50%) of the losses in given year resulting from business expansion or diversification in the priority investment areas as indicated in the audited financial reports;
    2. Twenty percent (20%) of the annual wages actually paid to newly hired workers who are employed in the registered expansion or diversification activities and who are bonafide residents of the municipality;
    3. Fifty percent (50%) of the approved expenditures on public infrastructures such as roads, bridges, etc. which are accessible and being used by the public;
    4. Expenditure on approved skills training but not to exceed Php 100,000.00;
    5. One hundred percent (100%) of the total cost of educational scholarship granted to the workers who are bonafide residents of the municipality;
    6. One hundred percent (100%) of the total amount donated to any social amelioration project of the municipality; and
    7. One hundred percent (100%) of the installation cost an effective and non-polluting solid waste management system established by the registered enterprise.
    8. Fifty percent (50%) of the approved research and development expenditures.

Section 27. Other Privileges

  1. Free use of government land owned by the Municipal Government for a period of three (3) years, if the registered enterprises shall construct an infrastructure at the less developed area in the municipality, subject to the approval of the Sangguniang Bayan and Municipal Mayor; provided however, that after the expiration of the ten (10) years period, he may continue to occupy the infrastructure facilities without any rental, except to pay the rental of the lot where the infrastructure was constructed at a reasonable rate to be approved by the Sangguniang Bayan upon recommendation of the Local Finance Committee; provide finally, that the proposed site is not allotted for specific government use; and
  2. Exemption from examination and inspection of books of accounts and other pertinent records of business except when allowed by the Board.

Section 28. Effectively of Privileges, Incentives and Support Measure. The Board shall review the packages of appropriate privileges, incentives and support measures every two (2) years, provided that the Board may remove an area or activity from the list, at any point, when it deems that sufficient investment in the area or activity have been attained and where continued extension of incentives or support measures for the expansion of said area or activity may place the interest of the municipality and the public in adverse position.

The Board may also remove an investment area from the list where it is convinced that such investment in such area or activity cannot be attracted within reasonable cost or may result in unfavorable business climate.

CHAPTER VI. PRIORITY INVESTMENT AREAS/ACTIVITIES

Section 29. Investment Priorities Plan. The Board after consultation with the appropriate agencies and the private sector shall submit an annual Investment Priorities Plan to the Sangguniang Bayan foe evaluation and enactment.

Section 30. Priority Investment Areas. Business enterprises having the following type or nature of business shall be promoted and given priority under this Code;

  1. Agri-Business Enterprises;
  2. Manufacturing or processing enterprises such as cement plant, ceramics plant, and salt processing plants using raw materials that are abundant in the locality;
  3. Eco- Tourism oriented enterprises especially at the five (5) eco-tourism areas;
  4. Establishment of tourism facilities such as hotels, restaurants, golf courses, recreational centers and sports complexes;
  5. Development of tourism facilities such as beaches, diving resorts, mountain resorts, and tourism complex at Puyupuyan Spanish Watchtower;
  6. Agro-Forestry plantation projects;
  7. Hydro-electric and wind power plants; and
  8. Mining.

Section 32. Exception. This Code shall not apply to banking and financial institutions and other enterprises which are governed by the Central Banking Act and under Bangko Central ng Pilipinas (BSP) supervision.

Section 33. Annual Inspection. The Board shall conduct an annual inspection of the registered enterprises or through a local government agency to conduct said inspection. The inspection shall be limited to the total gross sales or receipts, compliance to the minimum wage law and to the provisions of this Code and the privileges granted as stated in the Certificate of Registration.

Section 34. Penalty Clause. Violation of any provisions of this Code and other pertinent laws, rules and regulations shall be ground for the forfeiture of the incentives and privileges granted the registered enterprises, and shall be required to pay all taxes and fees due from the start of its business operation upon recommendation of the Board and after due process. Violation of any of the provisions of this Code shall be penalized by a fine of not less than Php 1,000.00 but not more than Php 2,500.00 and or imprisonment at the discretion of the Court. In case the violation is committed by a partnership, association, corporation or cooperative, the Manager, President or Chief Executive Officer shall suffer the penalty provided in this Code.

Section 35. Separability Clause. If for any reason or reasons, any part or provisions of this Code is declared invalid or unconstitutional, the other provisions which are not affected, shall remain in full force and effect.

Section 36. Repealing Clause. All ordinances, executive orders, rules and regulations inconsistent with or in conflict with the provisions of this Code are hereby repealed, amended or modified accordingly.

Section 37. Effectivity. This Code shall take effect after 21 days from the date copies of this Code are posted in at least 3 conspicuous places in the municipality, or its publication in a newspaper of general circulation in the province for 3 consecutive weeks, whichever occurs later.

CARRIED.

Voting Profile:

AYES: Lagazo; Gervacio; Aguinaldo, N.R..; Regidor; Aguinald, N.R.; Acio; Aguinaldo, H.K.; Andrada

NAYS: NONE ABSTENTION: ANY

I HEREBY CERTIFY to the correctness of the above ordinance.

AURORA S. NATOZA

Secretary to the Sanggunian

ATTESTED:

RODOLFO L. VALDEZ

Vice Mayor & Presiding Officer

APPROVED:

OSCAR D. AGUINALDO

Municipal Mayor

Piddig

Pinili

San Nicolas

Sarrat

Solsona

Vintar