RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS RELATIVE TO THE SUBIC SPECIAL ECONOMIC AND FREEPORT ZONE AND THE SUBIC BAY METROPOLITAN AUTHORITY UNDER REPUBLIC ACT NO. 7227, OTHERWISE KNOWN AS THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992" CHAPTER I Preliminary Provisions SECTION 1. Scope. — These Rules and Regulations are hereby promulgated to implement the provisions
governing govern ing the Subic Subic Specia Speciall Econom Economic ic and Freepo Freeport rt Zone, Zone, and the Subic Subic Bay Metrop Metropoli olitan tan Autho Authority rity,, under Republic Republic Act o! "##", "##", other$ise other$ise %no$n as the Bases &onversion and 'evelopment 'evelopment Act o( )**#, )**#, and other related la$s! SECTION 2. Declaration of Policy. — +ithin the (rame$or% and subect to the mandate o( the &onstitution
and the pertinent pertinent provisions provisions o( the -ocal .overnment .overnment &ode, &ode, it is hereby declared declared the policy o( the SBMA to develop the Subic Special Economic and Freeport Zone into a sel(/sustaining, industrial, commercial, (inancial and investment center to generate employment opportunities in and around the Zone, to attract and promote productive (oreign investments, to accelerate the sound and balanced conversion into alternative productive uses o( the (ormer Subic aval Base and its contiguous contiguous e0tensions, e0tensions, and to enhance enhance the bene(its bene(its to be derived (rom the Zone in order to promote the economic and social development o( &entral -u1on in particular and the country in general! 2t is also declared the policy o( the SBMA to operate and manage the SBF as a separate customs territory ensuring (ree (lo$ or movement o( goods and capital $ithin, into and e0ported out o( the SBF, as $ell as provide incentives such as ta0 and duty (ree importations o( ra$ materials, capital and e3uipment! SECTION . Definitions. — For purposes o( these Rules, these terms shall be understood to have the
(ollo$ing meanings4 a! Act — re(ers to Republic Act o! "##", other$ise %no$n as the Bases &onversion and 'evelopment Act o( )**#! b! Rules — re(ers to these 2mplementing Rules and Regulations! Regulations! cdt c! SBF — is the Subic Bay Freeport re(erred to as the Special Economic and Freeport Zone in Section )# o( the Act, a separate customs territory consisting o( the &it y o( 5longapo and the municipality o( Subic, 6rovince o( Zambales, the lands occupied by the Subic aval Base and its contiguous e0tensions as embraced, covered and de(ined by the )*7" 6hilippine/8!S! Military Base Agreement Agreement as amended amended and $ithin the territorial territorial urisdiction urisdiction o( Morong Morong and 9ermosa, 6rovince o( Bataan, the metes and bounds o( $hich shall be delineated in a proclamation to be issued by the 6resident o( the 6hilippines: provided , that pending the establishment o( secure perimeters around the entire SBF, the SBF shall re(er to the area demarcated by the SBMA pursuant to Section ); hereo(! d! SBMA — re(ers to the Subic Bay Metropolitan Authority created under under Section ); o( the Act! e! Conversion Authority — re(ers to the Bases &onversion 'evelopment Authority created under Section ; o( the Act! (! Point of Entry — re(ers to any place designated by the SBMA $here articles may be la$(ully introduced into or removed (rom the SBF or any part therein designated by the SBMA! g! SBF Enterprise — re(ers to any business entity or concern $ithin the SBF duly registered $ith and
origin on $hich all duties and ta0es have been paid and upon $hich no dra$bac% or bounty has been allo$ed, or $hich have previously been entered into customs territory (ree o( duties or ta0es! m! Foreign Articles Articles — re(ers to articles o( (oreign origin on $hich duties and ta0es have not been paid, or upon $hich dra$bac% or bounty has been allo$ed, or $hich have not been previously entered into customs territory: or articles $hich are the gro$th, product or manu(acture o( the 6hilippines on $hich not all national internal revenue ta0es have been paid, i( subect thereto, or upon $hich dra$bac% dra$bac% or bounty has been allo$ed! n! Customs erritory erritory — re(ers to the portion o( the 6hilippines outside the SBF $here the Tari(( and &ustoms &ode o( the 6hilippines and other national tari(( and customs la$s are in (orce and e((ect! o! Articles — (or purposes o( these Rules, and $hen used $ith re(erence to importations or e0portations, the term includes ra$ materials, supplies, e3uipment, machinery, pac%aging materials, goods, $ares, merchandise and in general, anything that may, under the Rules o( the SBMA, be made the subect o( importation into or e0portation (rom the Zone! p! ransshipment — re(ers to transshipment o( articles discharged at ports or airports o( entry located in &ustoms Territory destined (or delivery to the SBF, and articles coming (rom the SBF intended (or e0port through a 6hilippine &ustoms port
(ollo$ing rules o( interpretation shall be observed in the implementation o( Sections )#, ); and )7, and other related provisions o( the Act, as $ell as the provisions o( these Rules4 a! All trade trade and bus busine iness, ss, immigra immigratio tion, n, corpor corporatio ation, n, ban%in ban%ing g and 3uaran 3uarantine tine la$s la$s shall shall be subordinated to and
descri described bed in Sectio Section n )# o( theAct theAct,, the metes and bounds bounds o( $hich $hich $ill $ill be (urthe (urtherr delinea delineated ted throug through h 6residential 6roclamation! 6ending the establishment o( secure perimeters around the SBF, the SBMA shall adopt and implement the gradual and phased operationali1ation o( areas $ithin the SBF to ensure strict compliance $ith the Act, these Rules and other 6hilippine la$s! CHAPTER II The Subic Bay Metropolitan Authority (SBMA A. !omposition and "peration of the Board of Directors SECTION #. Board of Directors . — The po$ers o( the SBMA shall be vested in and e0ercised by a Board o(
'irectors!
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SECTION 7. !omposition. — The Board shall be composed o( (i(teen =)>? members to be appointed by the
6resident o( the 6hilippines, as (ollo$s4 a! Representatives o( all local government units that concur to be part o( the SBF: b! T$o =#? representatives (rom the ational .overnment: c! Five =>? representatives (rom the private sector coming (rom the present naval air station, public $or%s center, ship repair (acility, naval supply depot, and naval station: d! The remaining balance to complete the Board membership shall be composed o( representatives (rom the business and investment sectors! SECTION $. !hairman#Administrator . — The 6resident shall appoint a pro(essional manager as
administrator o( the SBMA $ith a compensation to be determined by the Board subect to the approval o( the Secretary o( Budget, $ho shall be the e! officio chairman o( the Board and $ho shall serve as the chie( e0ecutive o((icer o( the SBMA: Provided , ho$ever, that (or the (irst year o( its operations (rom the e((ectivity o( theAct, the Mayor o( the &ity o( 5longapo shall be appointed as the chairman and chie( e0ecutive o((icer o( the SBMA! SECTION 9. By$%a&s. — The Board o( 'irectors shall adopt a set o( by/la$s that shall govern the SBMA@s
internal business and operations! B. Po&ers and Functions of the SBMA SECTION 1%. Po&ers and Functions . — The SBMA shall have the (ollo$ing po$ers and (unctions4
a! To operate, administer, manage and develop the ship repair and ship building (acility, container port, oil storage and re(ueling (acility and Subic Air Base $ithin the SBF as a (ree mar%et in accordance $ith the policies set (orth in Section )# o( the Act: b! To accept any local or (oreign investment, business or enterprise, subect only to these Rules and in con(ormity $ith the policies o( the Act, the SBMA and the &onversion Authority: c! To underta%e and regulate the establishment, operation and maintenance o( utilities, other services and in(rastructure in the SBF including shipping and related business, stevedoring and port terminal services or concessions incidental thereto and airport operations in coordination $hich the &ivil Aeronautics Board, and to (i0 ust and reasonable rates, (ares, charges, and other prices there(or: d! To construct, ac3uire, o$n, lease, operate and maintain on its o$n or through contract, (ranchise, license, permits, bul% purchase (rom the private sector and build/operate/trans(er scheme or oint venture, the re3uired utilities and in(rastructure in coordination $ith local government units and appropriate government agencies concerned and in con(ormity $ith e0isting applicable la$s there(or: e! To adopt, alter and use a corporate seal: to contract, lease, sell, dispose, ac3uire and o$n properties: to sue and be sued in order to carry out its duties and (unctions as provided (or in the Act: and to e0ercise the po$er o( eminent domain (or public use and public purpose: (! +ithin the limitation provided by la$, to raise and
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! To adopt and implement measures and standards (or environmental pollution control o( all areas $ithin its territory, including, but not limited to all bodies o( $ater and to en(orce the same! For this purpose, the SBMA shall create an Ecology &enter: and %! To raise revenues (rom among, but not limited to, the (ollo$ing4 =)? periodic license (ees and? service and utility charges: =? voluntary contributions: ="? resources (rom e0ternal, technical and (inancial assistance agencies: =? grants (rom the ational .overnment, local government units, local and (oreign state/o$ned and privately o$ned entities and international organi1ations! =*? donations and contributions o( all %inds: =)C? (unds (rom loans and
o( these Rules, the SBMA shall have the (ollo$ing responsibilities4 a! The SBMA shall e0ercise authority and urisdiction over all economic activity $ithin the SBF: b! The SBMA shall provide and establish its o$n internal security and (ire(ighting (orces! 9o$ever, the de(ense o( the SBF and the security o( its perimeters shall be the responsibility o( the ational .overnment in coordination $ith the SBMA: c! The SBMA $ill coordinate the provisions o( security, police, and municipal services $ithin the overall area o( the SBF $ith the e0isting local government units: d! The SBMA shall have the authority to e0clude (rom the SBF any article, substance, merchandise, operation, activity or process it considers to be inconsistent $ith the policies and purposes o( the Act and these Rules, or detrimental to the public interest, and to established procedures (or such e0clusion: e! The SBMA may re3uire SBF Enterprises or Residents to secure the necessary permits (or any article, substance, merchandise, transaction, activity, or operation in the SBF, speci(y conditions under $hich such permits $ill be issued, and established procedures (or issuing and revo%ing such permits: and (! &onsistent $ith the &onstitution, the SBMA shall have the (ollo$ing po$ers t o en(orce the la$ and these Rules in the SBF4 =)? to audit and inspect the records o( any SBF Enterprise: =#? to inspect and search the premises o( any SBF Enterprise or Resident, or any vehicle, aircra(t, vessel, or person in the SBF to detect any violation o( the la$ or these Rules! =;? to conduct investigations to any suspected violation o( the la$ or these Rules, provided that the investigation o( any violation o( the criminal la$s o( the 6hilippines occurring in the SBF shall not be conducted by the SBMA, but rather by the police or ational .overnment agency having urisdiction in the area $here the violation occurred: =7? to sei1e articles, substances, merchandise and records considered to be in violation o( the la$ and these Rules, or considered to be necessary (or conduct o( an investigation o( any violation o( the la$ and these Rules, and to provide (or their
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return to the enterprise or person (rom $hom they $ere sei1ed, or their (or(eiture to the SBMA: =>? to issue su(poena duces tecum and ad testificandum in the course o( its investigations: =? to arrest persons in the SBF (or any violation o( the la$s o( the 6hilippines: ="? to assess and collect administrative (ees or impose administrative (ines or other monetary penalties (or violations o( these Rules: =? to issue, alter, modi(y, suspend or revo%e (or cause, any permit, certi(icate, license, visa or privilege allo$ed under the Actor these Rules: =*? to regulate ingress to and egress (rom the SBF: =)C? to regulate tra((ic $ithin the SBF and to impose administrative (ines and penalties (or tra((ic violations, including charges (or to$ing and impounding: and =))? to promulgate such other rules, regulations and circulars as may be necessary, proper or incidental to carry out the policies and obectives o( the Act, these Rules, as $ell as the po$ers and duties o( the SBMA thereunder! SECTION 12. Best 'se of SBMA Properties . — The SBMA shall ta%e all measures necessary to secure the
best use o( its properties $ithin the SBF! The SBMA may lease the a(oresaid properties to private (acilities operators $ho may therea(ter, under conditions approved by the SBMA, sub/lease the (acilities or other$ise provide services based thereon to other SBF Enterprises! SECTION 1. stablishment of Secure Perimeters) Points of ntry and Duty and Ta* Free Areas of the SBF . — 6ending the establishment o( secure perimeters around the entire SBF, the SBMA shall have the
authority to establish and demarcate areas o( the SBF $ith secure perimeters $ithin $hich articles and merchandise (ree o( duties and internal revenue ta0es may be limited, $ithout preudice to the availment o( other bene(its con(erred by the Act and these Rules in the SBF outside such areas! The SBMA shall (urthermore have the authority to establish, regulate and maintain points o( entry to the SBF or to any limited duty and ta0/ (ree areas o( the SBF! SECTION 1!. +eneral %and 'se Plan . — The SBMA shall dra$ up and publish a general land use plan
speci(ying the general uses and economic activities to be promoted (or di((erent areas o( the SBF and shall en(orce said plan subect to such revisions as the SBMA may deem necessary or appropriate to accomplish the policies and obectives o( the Act! aisa dc SECTION 1. Annual Reports. — The SBMA shall render and publish annual reports on the economic
activities underta%en in the SBF! CHAPTER III Procedures for Re,istration of Subic Bay Freeport nterprises - Residents A. +eneral Provisions SECTION 1#. Re,istration "ffice . — The SBMA shall establish an o((ice to register all business enterprises
or concerns applying to be SBF Enterprises, as $ell as natural persons applying to be SBF Residents! This o((ice shall consist o( t$o =#? departments, to $it4 The SBF Enterprise 'epartment and The SBF Residents 'epartment, $hich shall in turn consist o( t$o =#? divisions each, to $it4 the Evaluation 'ivision and the Follo$/up 'ivision! The above departments shall issue standard application (orms and re3uire submission o( pertinent documents to the proper department $hich shall act thereon in the most e0peditious manner possible! 2( $arranted, the Registration 5((ice shall approve the application and register 3uali(ied enterprises and residents, a(ter $hich it shall issue certi(icates attesting to their registration and residency, respectively! A(ter issuance o( the certi(icates, the Registration 5((ice shall periodically monitor the status o( all SBF Enterprises and Residents! SECTION 17. .ho are li,ible . — Application (or SBF registration shall be open to nationals and business
enterprises o( any country in any area o( economic activity, e0cept only as is speci(ically limited by the &onstitution o( the 6hilippines!
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SECTION 1$. !onditions for Re,istration . — An SBF Enterprises shall be a constituted business enterprise
organi1ed or domiciled in the 6hilippines or any (oreign country! The enterprise must name a representative or agent $ho is a legal resident o( the SBF! 2( a((iliated $ith an e0isting enterprise in the 6hilippines outside o( the SBF, the SBF Enterprise must establish a separate business organi1ation to conduct business e0clusively $ithin the SBF $hich shall be a separate ta0able entity! SECTION 19. !riteria for Issuance of !ertificates . — The SBMA shall issue the &erti(icates o( Registration
or Residency to an SBF Enterprise or Resident, respectively, i( 3uali(ied and i( in the SBMA@s discretion such issuance $ill promote the policies set (orth in the Act and these Rules! SECTION 2%. Period for Issuance of !ertificate . — Should the application=s? merit approval, the SBMA
shall issue the certi(icates applied (or no later than thirty =;C? days (ollo$ing receipt o( the completed application and all re3uired supporting documents! SECTION 21. ffect of Issuance of !ertificates ! — 2ssuance o( the &erti(icate o( Registration or Residency to
an SBF Enterprise or Resident, respectively, shall entitle and subect the business enterprise or resident to all the bene(its and obligations under the Act and these Rules, and other regulations that may be promulgated by the SBMA, subect to the provisions o( Section > and ); hereo(! 2n general, any business or enterprise registered as an SBF Enterprise shall be automatically e0cluded (rom bene(iting (rom any other pre(erential regime such as that provided (or in Republic Act o! "C7#, other$ise %no$n as the Foreign 2nvestment Act o( )**) and E0ecutive 5rder o! ##, other$ise %no$n as the 5mnibus 2nvestments &ode o( )*", or other special la$s o( the 6hilippines! 2( the enterprise already enoys bene(its under these regimes, these bene(its shall be $ithdra$n in the same manner as they $ere granted, be(ore it can enoy any bene(its under these Rules or the Act! E0ceptions to the (oregoing may be separately made and issued by the SBMA in consultation $ith the Board o( 2nvestments, the 'epartment o( Finance and other concerned government agencies under circumstances to be determined by the SBMA! SECTION 22. Simultaneous Issuance of !ertificates of Re,istration and Residency . — 2ssuance o( the
&erti(icate o( Registration shall be accompanied by issue o( a &erti(icate=s? o( Residency to 3uali(ied enterprises and residents, respectively, $hen all re3uired supporting documents are included in the applications! SECTION 2. /alidity. — All certi(icates issued by the SBMA shall be valid (or a period o( one =)? year (rom
issuance and shall be deemed automatically rene$ed every year =i? upon payment o( the prescribed (ees at least ten =)C? days prior to the e0piration o( the said one =)? year period (or the particular year involved, and =ii? (or as long as the SBF Enterprise o( Resident remains 3uali(ied to continue its business operations or reside $ithin the SBF under similar terms and conditions (or $hich the original certi(icate=s? $as<$ere issued! SECTION 2!. Identification !ard System. — All SBF Residents must secure SBF 2denti(ication &ards (rom
the SBMA, under an identi(ication card system that the SBMA $ill en(orce and implement, $hich $ill contain such in(ormation as the SBMA may deem necessary, including, but not limited to, the name, age, address, blood type and s%ills o( the SBF Resident! 2denti(ication cards may also be re3uired o( domestic tourists and visitors to the SBF! These cards $ill constitute, among others, the domestic tourists@ or visitors@ permit to enter the SBF and
rene$al o( all applications, certi(icates and other similar documents that may be re3uired under these Rules! SECTION 2#. .ithdra&al) Suspension or !essation of "perations . — +henever an SBF Enterprise decides
to $ithdra$, suspend, or cease its registered activity or operations, $ritten notice thereo( shall be sent to the SBMA one =)? month prior to implementation o( the action! Subect to provisions o( pertinent la$s and the rights o( mortgage creditors, the $ithdra$al or cessation (rom business operations (or a continuous period o( t$o =#? months, unless e0tended upon $ritten re3uest o( the enterprise and approval o( the SBMA, shall have the e((ect o( automatically cancelling the &erti(icate o( Registration $ithout the need o( Board action! 8pon such $ithdra$al or cessation (rom operations, the SBF Enterprise shall cease to be entitled to the incentives provided (or in the Act and these regulations! Rules Implementing the Bases Conversion and Development Act of 1992 | 6
SECTION 27. Revocation) Suspension or !ancellation of !ertificates of Re,istration or Residency . —
+ithout preudice to the imposition o( penalties prescribed under the pertinent provisions o( the Tari(( and &ustoms &ode o( the 6hilippines and the ational 2nternal Revenue &ode o( the 6hilippines, the &erti(icates o( Registration issued by the SBMA to any SBF Enterprise or Resident may be revo%ed, suspended or cancelled (or any o( the (ollo$ing grounds4 a! Failure to maintain the 3uali(ications (or registration or license as re3uired by the Act: b! Diolation o( any provision o( 6hilippine la$, the Act and
SBF shall be eligible to register as an SBF Enterprise! SECTION 29. Re0uirements for Re,istration of *istin, nterprises . — 2n order to 3uali(y (or registration,
the prospective SBF Enterprise must submit an application in the (orm prescribed by the SBMA, as $ell as the (ollo$ing in(ormation4 a! copies o( relevant documentation o( the legal status o( the business enterprise =articles o( incorporation, partnership agreement, SE& registration, and similar documents? sho$ing, among others, bene(icial o$nership: b! i( a corporation, partnership or other business enterprise organi1ed or constituted outside the 6hilippines, the name and address o( the legal agent (or the enterprise in the SBF accompanied $ith s$orn proo( o( consent o( the agent to serve as such: cdt c! evidence o( the physical location o( the business enterprise $ithin the SBF, such as certi(icate o( title, ta0 declaration, property deed, lease agreement, and similar documents: d! i( previously part o( a larger business enterprise doing business else$here in the 6hilippines, evidence o( restructuring to e0clude all business operations ta%ing place outside the boundaries o( the SBF: e! list o( assets and other properties o$ned by the business enterprise: and (! such other documents that the SBMA may re3uire! SECTION %. ffect of not Ac0uirin, SBF Re,istration . — Any e0isting enterprise located $ithin the SBF
may elect not to register as an SBF Enterprise! 2n doing so, the enterprise shall not bene(it (rom ta0 and other advantages accorded SBF Enterprises! ot$ithstanding any such election, any enterprise located $ithin the SBF shall still be subect to the &ustoms and other regulations and procedures applicable to the SBF! SECTION 1. Re0uirement for Re,istration of *istin, Filipino Residents ! — &urrent Filipino residents o(
the SBF may apply (or a &erti(icate o( Residency upon submission o( an application in the (orm prescribed by the SBMA and presentation o( the (ollo$ing4 a! documentation o( residence $ithin the SBF, i!e! residence certi(icate! b! evidence o( nationality: c! evidence o( employment or other business operations $ithin the SBF: d! i( a spouse or child belo$ #) years o( age o( an SBF Resident, evidence o( such relationship, i!e! marriage license, birth certi(icate, etc!, accompanied by an a((idavit o( support by the SBF Resident: and e! such other documents that the SBMA may re3uire! For purposes o( these Rules, current Filipino residents o( the SBF re(er to all persons Filipino citi1ens residing $ithin the SBF continuously (or at least a period o( t$o =#? years as o( the date o( the promulgation o( these Rules!
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SECTION 2. Forei,n 1ationals . — Foreign nationals currently residing in the SBF continuously (or at least
a period o( t$o =#? years as o( the date o( the promulgation o( these Rules, and $ho have been accorded permanent residency status in the 6hilippines may apply (or a &erti(icate o( Residency in the SBF upon presentation o( su((icient proo( o( such residency status! Foreign nationals currently residing in the SBF $ho have not yet been accorded residency status shall be eligible there(or subect to the 2mmigration and other provisions o( these Rules! SECTION . !ertificate of Residency . — The SBMA shall issue a &erti(icate o( Residency to all 3uali(ied
current residents o( the SBF $ithin thirty =;C? days (rom receipt o( the re3uired application, in(ormation and documentation! This certi(icate shall attest to the residency o( the person $ithin the SBF, and shall entitle and subect the resident to the bene(its and obligations as de(ined in the Act, these Rules and other regulations that may be promulgated by the SBMA! C. Re,istration of 1e& Industrial) !ommercial and Service nterprises SECTION !. Filin, of Application . — 2ndustrial, commercial and service enterprises applying to be an SBF
Enterprise shall (ile an application in the (orm prescribed by the SBMA to be supported by the (ollo$ing4 a! copies o( relevant documentation o( the legal status o( the business enterprise =articles o( incorporation, partnership agreement, SE& Registration, and similar documents? sho$ing, among others, bene(icial o$nership: b! i( there is (oreign o$nership, proo( o( in$ard (oreign remittance and investment: c! evidence o( the intended physical location o( the enterprise $ithin the SBF =such as certi(icate o( title, deed o( sale, lease agreement, commitment letter, and other similar documents? and the manner by $hich such location $as secured =i!e!, $hether it $as secured directly $ith SBMA, (orm licensed (acilities operator, or other property o$ner?: d! i( part o( a larger business enterprise doing business else$here in the 6hilippines, evidence o( corporate restructuring $hich e0cludes (rom the SBF Enterprise all business operations ta%ing place outside the boundaries o( the SBF: e! list o( assets comprising the investment to be made: and (! such other documents that the SBMA may re3uire! D. Re,istration of Ban2s and Affiliates SECTION . Filin, of Application . — Application (or licensing o( &ommercial and 5((shore Ban%s or their
branches or a((iliates to be located $ithin the SBF shall be (iled $ith the SBMA! SBMA shall (or$ard the applications to the &entral Ban%, $hich i( $arranted shall directly issue a license and other re3uired documentation, in accordance $ith the provisions o( &hapter D222 o( these Rules! Should the applicant@s license not be issued by the &entral Ban% $ithin thirty =;C? days (rom the complete submission o( all re3uirements, the SBMA shall (orth$ith in(orm the ban% concerned and e0tend and e0tend the period (or the issuance o( the ban%@s &erti(icate o( Registration! cdtai SECTION #. Issuance of !ertificate . — 8pon approval o( the application and its proper endorsement by the
&entral Ban% to the SBMA, the latter shall issue the necessary &erti(icate o( Registration to the ban% under &hapters 222 and D222 o( these Rules! E. Re,istration of 1e& Subic Bay Freeport Residents SECTION 7. !ertificates of Residency of 1e& SBF Filipino Residents . — A &erti(icate o( Residency duly
issued by the SBMA shall be re3uired (or all ne$ Filipino residents o( the SBF! Subect to the conditions o( these Rules, such certi(icate shall be available to any Filipino actually residing $ithin the SBF $ho is an employee or o$ner o( an SBF Enterprise, and the immediate members o( the (amily o( such employee or o$ner, or $ho has leased or other$ise secured living 3uarters in SBF! SECTION $. Forei,n 1ationals Residin, "utside the SBF . — Foreign nationals accorded permanent
residency status in the 6hilippines may apply (or a &erti(icate o( Residency in the SBF upon presentation o( su((icient proo( o( such permanent residency status and employment or investment in the SBF! Foreign nationals $ithout prior permanent residency status in the 6hilippines shall be subect to the 2mmigration and other pertinent provisions o( these Rules!
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CHAPTER IV Ri,hts and "bli,ations of Subic Bay Freeport nterprises and Residents A. Subic Bay Freeport nterprises SECTION 9. Ri,hts and "bli,ations. — SBF Enterprises shall have the (ollo$ing rights and obligations4
a! To (reely engage in any business, trade, manu(acturing, (inancial or service activity, and to import and e0port (reely all types o( goods into and out o( the SBF, subect to the provisions o( the Act, these Rules and other regulations that may be promulgated by the SBMA: b! To employ (oreign nationals subect to evidence o( the unavailability o( comparably/s%illed Filipinos $ithin the 6hilippines: c! To (aith(ully comply $ith the Act, these Rules and other regulations that may be promulgated by the SBMA: d! To report periodically to the SBMA any in(ormation on business activity $hich the latter may reasonably re3uire: and e! To (ile periodically any in(ormation normally re3uired by the Bureau o( 2nternal Revenue! SECTION !%. Ri,hts and "bli,ations of SBF Facilities "perators . — SBF (acilities operators shall have the
rights and responsibilities o( other SBF Enterprises, plus the (ollo$ing4 a! to manage (acilities on real property it o$ns, has ac3uired or has leased $ithin the SBF: b! to lease out real property it o$ns or has leased $ithin the SBF, and to ac3uire and leased land and sell or lease out (acilities to SBF Enterprises, subect to overall property management guidelines approved by the SBMA and to the provisions o( Section )# hereo(: c! to ma%e improvements on, construct and maintain buildings, $arehouses, (actory shells, o((ice and commercial buildings and other (acilities, and develop all other in(rastructure necessary or desirable to enhance the SBF@s e((icient operation, or grant contracts or concessions to other private or public parties (or the construction or provision o( any o( the said (acilities, subect to the approval o( the SBMA and other concerned agencies o( the latter: d! to provide public or other services such as $ater, light and po$er, telecommunications, se$erage and any other public utilities or to contract or grant concessions to other individuals (or the provision o( such services to SBF Enterprises, subect to the approval o( the SBMA: e! to install ade3uate environmental protection (acilities and pollution control systems as the SBMA may deem necessary to protect the environment or other$ise con(orm to or observe all environmental and pollution control standards o( the SBMA: aisa dc (! to maintain ade3uate security measures including ade3uate (encing, enclosures, lighting, alarm systems, (ire(ighting e3uipment and other similar devices to secure the (acility, subect to SBMA approval and in cooperation $ith the SBMA security (orce: g! to charge and modi(y (ees (or any services or (acilities it provides $ithin the SBF, directly to those $ho use such services or (acilities: and h! to adopt internal rules and regulations to promote the sa(e, e((icient, and success(ul operation o( the (acility consistent $ith the provisions o( these Rules and subect to the approval o( the SBMA! B. Subic Bay Freeport Residents SECTION !1. Ri,hts of SBF Residents . — SBF Residents shall have the (ollo$ing rights $ithin the SBF4
a! to import directly, (ree o( &ustoms duties and control, (oreign articles in non/commercial 3uantities subect to these Rules and other regulations that may be promulgated by the SBMA: and b! to purchase, lease, or other$ise ac3uire articles (rom other SBF Residents or Enterprises, and maintain, utili1e or other$ise consume such goods $ithin the SBF (ree o( national internal revenue ta0es and custom duties! SECTION !2. "bli,ations of SBF Residents . — E0cept as e0pressly provided (or by e0ceptions in these
Rules and other regulations o( the SBMA, SBF Residents shall have the (ollo$ing obligations4 a! to obey and observe all la$s o( the 6hilippines: and b! to pay income and other ta0es levied on individuals in the 6hilippines!
Rules Implementing the Bases Conversion and Development Act of 1992 | 9
CHAPTER V Subic Bay Freeport Ta*ation and Trade Re,ime A. Incentives and *emptions SECTION !. Ta* *emption. — SBF Enterprises shall be e0empt (rom all national and local ta0es, including
but not limited to the (ollo$ing4 a! &ustoms and import duties and national internal revenue ta0es, such as DAT, e0cise and ad valorem ta0es on (oreign articles: b! 2nternal revenue ta0es, such as DAT, ad valorem and e0cise ta0es on their sales o( goods and services (or $hich they are directly liable: c! 2ncome ta0 on all income (rom sources $ithin the SBF and (oreign countries, E0port 6rocessing Zones, Bonded +arehouses and other Special Economic Zones $ithin the 6hilippines, as $ell as all other areas that may no$ or herea(ter be considered to be outside the &ustoms Territory, $hether or not payment o( such income is actually received, made or collected $ithin such areas: Provided , that SBF Enterprises shall, as $ithholding agents (or the ational .overnment, $ithhold ta0 on compensation and income payments to persons or individuals subect to e0panded $ithholding ta0: and d! Franchise, common carrier or value added ta0es and other percentage ta0es on public and service utilities and enterprises $ithin the SBF! 2n lieu o( paying ta0es, all SBF Enterprises shall pay a (inal ta0 o( (ive =>? percent o( gross income earned in accordance to brea%do$n speci(ied and de(ined under Section >" hereunder! SECTION !!. Percenta,e of Income Allo&able from Sources .ithin the !ustoms Territory . — SBF
Enterprises may generate income (rom sources $ithin the &ustoms Territory o( up to Thirty 6ercent =;C? o( its total income (rom all sources: provided , that should an SBF Enterprise@s income (rom sources $ithin the &ustoms Territory e0ceed Thirty 6ercent =;C? o( its total income (rom all sources, then it shall be subect to the income ta0 la$s o( the &ustoms Territory: provided , (urther, that in any case, customs duties and ta0es must be paid $ith respect to income (rom sales o( articles to the &ustoms Territory! SECTION !. Importation of Articles. — 2n general, all articles may be imported by SBF Enterprises into the
SBF (ree o( customs and import duties and national internal revenue ta0es, e0cept those articles prohibited by the SBMA and those absolutely prohibited by la$! SECTION !#. Importation by SBF Residents. — Articles may be imported by SBF Residents (ree o( customs
and import duties and national internal revenue ta0es, e0cept those articles prohibited by the SBMA and those absolutely prohibited by la$: provided , that such articles are limited only (or personal or household use or consumption $ithin the SBF! B. Transactions &ith the !ustoms Territory SECTION !7. Articles Removed or .ithdra&n from SBF . — ot$ithstanding the above/mentioned ta0 and
duty e0emptions, (oreign articles removed, $ithdra$n or other$ise disposed o( (rom the SBF into the &ustoms Territory, shall be subect to the payment o( customs duties and internal revenue ta0es as ordinary importations in accordance $ith the provisions o( the Tari(( and &ustoms &ode o( the 6hilippines, as amended, and the ational 2nternal Revenue &ode and other applicable la$s! Articles entered or introduced (rom the SBF into the &ustoms Territory $ill be presumed to be (oreign unless there is su((icient evidence presented to satis(y customs o((icials that they are domestic articles as de(ined in these Rules! SECTION !$. Articles Admitted into the SBF from !ustoms Territory . — Articles $hich are admitted to the
SBF (rom the &ustoms Territory under proper permit shall be considered e0ported (or purposes o( the la$s and regulations o( the 6hilippines, and shall be considered to be 1ero/rated and thereby become eligible (or dra$bac%, relie( (rom duties and ta0es, and any other ta0 or duty bene(it con(erred by reason o( e0portation: provided , that articles $hich are returned to the &ustoms Territory (rom the SBF shall be considered imported (or the purposes o( the la$s and regulations o( the 6hilippines! SECTION !9. Forei,n Articles 'sed as Ra& Materials . — Foreign articles to be used in the production,
manu(acture, processing o( (inished products may be brought (rom the SBF to designated Special Economic Rules Implementing the Bases Conversion and Development Act of 1992 | 10
Zones, Bonded +arehouses, E0port 6rocessing Zones, or under other duty or ta0/e0empt treatment in the &ustoms Territory by accredited sub/contractors, under bond acceptable to the SBMA and the Bureau o( &ustoms to guarantee the return o( the (inished goods to the SBF, (or e0port or (or sale $ithin the SBF! aisa dc SECTION %. Forei,n Articles Sold to SBF Residents . — Foreign articles sold by SBF Enterprises to SBF
Residents, or to travelers, tourists, and
and returning residents, (oreign articles purchased $ithin the SBF and brought out o( the SBF and entered into the &ustoms Territory (or personal use shall not be subect to customs duties and ta0es as ordinary importations: provided , that the value o( such articles purchased shall not e0ceed T+5 98'RE' '5--ARS =8!S! #CC!CC? per individual: provided) (urther, that this privilege shall be availed o( only once a month! SECTION 2. Sei3ure of Forei,n Articles . — Foreign articles $ithdra$n, transported, or ta%en in commercial
3uantities (rom the SBF to the &ustoms Territory $ithout payment o( duties and ta0es, shall be subect to sei1ure and (or(eiture proceedings pursuant to the pertinent provisions o( the Tari(( and &ustoms &ode and the ational 2nternal Revenue &ode o( the 6hilippines, $ithout preudice to any criminal and
SBF to a bonded $arehouse $ithin the &ustoms Territory shall be bonded in an amount to be determined by the SBMA $hich in no case shall be less than F2FTG T958SA' 6ES5S =6>C,CCC!CC?, 6hilippine currency, conditioned that the carrier shall transport and deliver the articles, $ithout delay, and in accordance $ith applicable rules and regulations, to the &ollector o( &ustoms at the port o( destination or e0port! The provisions o( the Tari(( and &ustoms &ode, as amended, and its implementing regulations, in respect o( transshipment o( articles (rom the ports in the &ustoms Territory to the SBF shall govern cases o( transshipment! SECTION !. Articles *ported to Forei,n !ountries and Re$*ported into !ustoms Territory . — Articles
$hich are manu(actured in the SBF and e0ported there(rom to a (oreign country shall, upon subse3uent importation into the &ustoms Territory, be subect to the import la$s applicable to li%e articles manu(actured in a (oreign country! SECTION . Responsibility for Forei,n Articles & Presumption on Missin, Articles . —
a! SBF Enterprises shall be responsible (or the sa(e%eeping and accounting o( all articles received by them in the SBF, and shall be relieved (rom responsibility (or the articles upon removal under proper permit (rom the SBF, trans(er to another SBF Enterprise or Resident, destruction in the SBF, or abandonment to the SBMA in the SBF! b! Articles $hich are missing or cannot be accounted (or in the SBF shall be presumed to have been trans(erred to the &ustoms Territory $ithout permit! Articles $hich are (ound in the SBF but cannot be accounted (or in the records o( an SBF Enterprise shall be t reated as having been received in the SBF $ithout permit! SECTION #. !ustoms Manual of "perations . — The SBMA may issue or promulgate &ustoms or any other
operations manual=s?, compliance o( the provisions o( $hich shall be the responsibility o( SBF Enterprises and Residents! C. Ta*es and Fiscal "bli,ations SECTION 7. "bli,ations and %iabilities . '
a! 6ursuant to Section )# =c? o( the Act, BSF Enterprises $ithin the SBF shall, in lieu o( paying local and national ta0es, pay a (ive =>? percent (inal ta0 on their gross income earned in the (ollo$ing percentages4 =)?
To the ational .overnment
; Rules Implementing the Bases Conversion and Development Act of 1992 | 11
=#?
=;?
To the -ocal .overnment 8nits a((ected by the declaration o( the Zone, to be distributed in the proportion to be determined by the Bureau o( 2nternal Revenue
)
To the Special 'evelopment Fund to be utili1ed (or the development o( municipalities outside the &ity o( 5longapo and the Municipality o( Subic and other municipalities contiguous to the base area
)
b! H.ross 2ncome EarnedH (or purposes o( these Rules re(ers to gross sales or gross revenues derived (rom any business activity, net o( returns, discounts and allo$ances, less costs o( sales, cost o( production or direct costs o( services =depending on the nature o( business? but be(ore any deduction (or administrative e0penses and incidental losses during a given ta0able period! 2n arriving at the base (or $hich the (ive =>? percent (inal ta0 stated in the preceding section shall be applied, the (ollo$ing deductions shall be allo$able
%nallo+a(le Deductions — Administrative salaries — &orporate management salaries — Mar%eting and sales salaries — 2nterest I (inancial charges on $or%ing capital — -oss on (oreign e0change translation — -oss on disposal o( assets — 2nsurance — Advertising — Miscellaneous supplies and e0penses — Entertainment e0pense ;! For Financial Enterprises Allo+a(le Deductions — one %nallo+a(le Deductions — 'irect salaries — Materials I supplies used — 'epreciation — E3uipment lease payments — Rent I utilities — Advertising — 2nterest paid — &ost o( securities — -oan losses — Mar%eting and sales salaries — E3uipment lease payments — 2nterest I (inancial charges — -oss
6rovided, that, the SBMA may (urther revie$, revise, amend, supplement or other$ise alter the (oregoing schedule o( allo$able and unallo$able deductions a(ter consultation $ith the SBF Enterprises that may be a((ected thereby! SECTION $. Returns and Payment of Ta* . —
a! Re,uirements! — All SBF Enterprises subect to the > ta0 on gross income earned prescribed in Section )# =c? o( the Act shall render in duplicate a true and accurate 3uarterly return and (inal or adustment return in accordance $ith the provisions o( Sections and *, &hapter 2J o( the ational 2nternal Revenue &ode, as amended! The return shall be (iled by the 6resident, Dice/6resident or other principal o((icer o( the SBF Enterprise and shall be s$orn to by the Treasurer or Assistant Treasurer! b! Place of Filing ! — The 3uarterly return and the (inal or adustment return re3uired in the preceding paragraph shall be (iled $ith the Revenue 'istrict 5((icer or the collection agent? percent (inal ta0 o( the gross income earned by the SBF Enterprise directly (rom the operation o( its registered activity shall be paid at the same time the return is (iled $ith the Revenue 'istrict 5((icer or the collecting agent" Rules Implementing the Bases Conversion and Development Act of 1992 | 13
=a? o( these Rules, and =ii? the other ), $hich is intended (or the Special 'evelopment (und, shall be %ept in trust!cd =#? ime for Filing the Returns-Payment of the a! ! The provisions o( Sections ; and * o( the ational 2nternal Revenue &ode, as amended, and e0isting regulations regarding the time (or (iling 3uarterly and (inal or adustment returns and payments o( the ta0 imposed herein, as $ell as the re3uirement o( $ithholding and remittances o( the ta0 under Section 7; =c?, &hapter D o( these Rules shall apply to all SBF Enterprises! SECTION 9. Boo22eepin, and Reportorial Re0uirements . — All SBF Enterprises shall %eep regular and
accurate records o( their transactions, and maintain boo%s o( accounts and allied documents in accordance $ith the boo%%eeping rules and regulations prescribed by the Bureau o( 2nternal Revenue and
a! 6ersons, baggage, vehicles, and cargo entering or leaving the SBF are subect to search by &ustoms o((icials as a condition to enter or leave the SBF! &ustoms o((icials are authori1ed to e0amine any merchandise held by SBF Enterprises during regular business hours! b! &ustoms o((icers may sei1e any article (ound during a &ustoms search upon entering or leaving the SBF to be in violation o( any provision o( the customs la$s (or $hich a sei1ure is authori1ed, and such sei1ure shall be disposed o( according to the customs la$s! Articles $hich are prohibited or e0cluded (rom the SBF under the rules and regulations o( the SBMA $hich are (ound by &ustoms o((icials during an audit, e0amination or chec% $ithin the SBF may be sei1ed by them and turned over to the SBMA (or disposition! c! The SBMA may secure the assistance o( and
are registered as SBF Enterprises shall be considered as income ta0es (or purposes o( application (or ta0 credits by said (oreign corporations in their respective countries! CHAPTER VI Subic Bay Freeport Immi,ration Re,ulations SECTION #2. +eneral Provisions ! — E0cept as provided in the Act, these Rules and other rules o( the
SBMA, all la$s o( the 6hilippines concerning the entry and immigration o( persons into the 6hilippines and their departure and emigration there(rom shall be applicable in the SBF to persons arriving directly in the SBF (rom a (oreign country or departing directly (rom the SBF to a (oreign country! SECTION #. Responsibility and Authority. — All la$s o( the 6hilippines, including the Act, these Rules,
and other rules o( the SBMA concerning the entry, immigration, departure, or immigration o( persons, including their arrival directly in or departure directly (rom the SBF, shall be carried out $ithin the SBF by personnel o( the Bureau o( 2mmigration in coordination $ith the SBMA! SECTION #!. Ri,ht to Allo& 1o$/isa ntry to !ertain Forei,n 1ationals . — ot$ithstanding the
immediately preceding provisions, the SBMA may allo$ the entry o( (oreign nationals, particularly 9ong Kong &hinese $ith British 6assports or &erti(icates o( 2dentity and Tai$anese nationals $ith Republic o( &hina Rules Implementing the Bases Conversion and Development Act of 1992 | 14
6assports, $ith the e0ception o( (oreign nationals barred (rom entering the 6hilippines, into the SBF $ithout visas (or a ma0imum period o( (ourteen =)7? days, unless e0tended by the ational .overnment: provided , that such entry $ill be limited to tourism and business purposes only: provided , (urther, that should the (oreign national desire to e0tend his
or departure o(, persons $ho see% to $or% and reside in the SBF under the Act and these Rules shall be applied outside the SBF by the Bureau o( 2mmigration or the 'epartment o( Foreign A((airs to4 a! 6ersons arriving in the 6hilippines (rom a (oreign country destined (or the SBF: b! 6ersons arriving in the &ustoms Territory (rom the SBF destined to (oreign countries: c! 6ersons in the &ustoms Territory and $hose $or% or residency visas $ere con(erred by the SBMA under the authority o( the Act, these Rules and other rules o( the SBMA: d! 6ersons outside the 6hilippines $ho are see%ing $or% or residency visas in the SBF: and e! Spouses and minor children o( the (oregoing! SECTION ##. Temporary .or2 and Residency /isas . — The SBMA is authori1ed to issue temporary $or%
and residency visas to (oreign nationals under the conditions and provisions o( these Rules! 8pon application by an SBF Enterprise, the SBMA may issue $or% visas $hich are valid (or and rene$able every t$o =#? years to (oreign nationals $ho possess e0ecutive or highly/technical s%ills $hich no Filipino citi1en $ithin the SBF possesses, as certi(ied by the 'epartment o( -abor and Employment! The SBF Enterprise shall apply to the SBMA (or rene$al not less than thirty =;C? days be(ore the scheduled e0piration date o( the $or% visas, and shall in(orm the SBMA $henever any (oreign national@s employment is terminated by reason o( contract e0piration or termination, (iring, redundancy, or other removal! The temporary $or% visas $ill be automatically terminated upon4 acd a! on/rene$al o( the visa, $hether by reason o( (ailure o( the SBF Enterprise to apply (or rene$al or determination made by the SBMA: b! E0piration o( the contract under $hich the (oreign national is $or%ing: c! 'ischarge or other termination o( the (oreign national by the SBF Enterprise: d! 'issolution o( the employing (irm or revocation o( its SBF registration: e! Acceptance o( $or% (or compensation outside the SBF $ithout the approval o( the SBMA: (! 'eath o( the (oreign national: g! &onviction, by a competent court, o( any o((ense de(ined by the Revised 6enal &ode or special or other la$s: h! &ommission o( acts inimical to national security, public interest, health, $el(are and morals: or i! 'etermination by the SBMA o( any other reason or circumstance by $hich the $or% o( the (oreign national is no longer needed in the SBF! SECTION #7. Revocation of Temporary .or2 /isa . — The SBMA may, a(ter appropriate hearing, revo%e a
temporary $or% visa (or any violation by the (oreign national or his or her dependent=s? o( =i? any 6hilippine la$ or regulation, including the Act, these Rules and other regulations o( the SBMA, or =ii? the terms and conditions (or the issuance o( the visa! SECTION #$. Temporary Residency /isas . — Temporary residency visas may be issued by the SBMA to any
(oreign national to $hom a $or% visa has been issued and to his or her spouse and dependent children under #) years o( age! The temporary residency visas o( the (oreign national, spouse, and children are valid (or residence either inside the SBF or the &ustoms Territory during the period o( validity o( the $or% visa! The temporary residency visas shall be deemed terminated upon the termination or revocation o( the $or% visa o( the (oreign national in accordance $ith Sections and " o( these Rules! SECTION #9. Reportorial Re0uirements. — The names o( (oreign nationals $ho are granted temporary $or%
or residency visas, or $hose $or% or residency visas are terminated or revo%ed, shall be reported by the SBMA to the Bureau o( 2mmigration $ithin thirty =;C? days a(ter issuance, termination or revocation! SECTION 7%. Permanent Residency /isas . — The SBMA is authori1ed to issue permanent residency visas to
(oreign nationals under the conditions and provisions o( these Rules! Rules Implementing the Bases Conversion and Development Act of 1992 | 15
SECTION 71. Permanent Residency /isas for Investors . — The SBMA may issue a permanent residency visa
$ithin the SBF to any investor $ho has made and continues to maintain an investment o( not less than T+5 98'RE' A' F2FTG T958SA' '5--ARS =8S#>C,CCC!CC? $ithin the SBF! This privilege may e0tend to the investor@s spouse and dependent children under #) years o( age! The visa $ill be provided upon application by the investor $ith evidence o( the invest ment, made in con(ormance $ith the SBF@s land use plan, $hich may be in the (orm o(4 a! Establishment o( an SBF Enterprise or other direct investment $ithin the SBF: b! A cash grant or interest/(ree loan to the SBMA or to an SBF Enterprise (or the purpose o( ma%ing capital improvements by the recipient in the SBF: c! A purchase o( real estate in the SBF or o( an SBF Enterprise (or the purpose o( renovation, construction, or e0pansion o( buildings, e3uipment, structures, or appurtenances (or capital improvement purposes: or d! A donation in %ind to the SBMA or an SBF Enterprise o( e3uipment or materials (or capital improvement purposes! SECTION 72. Revocation or Termination of Permanent Residency /isa of Investor . — The permanent
residency visas o( the investor, spouse, and children automatically terminates $hen the investor, his spouse, children or any other individual or entity acting in his behal(, ta%es the investment out o( the SBF through sale or receiving payment, in cash or in %ind, (or grants, donations, or interest/(ree loans other than the return o( principal! The SBMA may also revo%e summarily or a(ter hearing the permanent residency visa o( any investor, spouse, or child (or the same grounds enumerated in Sections and " o( these Rules, as may be applicable! casia SECTION 7. Permanent Residency /isa for Retirees . — The SBMA may issue permanent residency visas to
any (oreign national $ho is a retired person and his or her spouse and dependent children under #) years o( age (or residence in the SBF! A Hretired personH is a person =i? over C years o( age $ho can demonstrate to the satis(action o( the SBMA that he or she is o( good moral character: =ii? has not been convicted o( any crime involving moral turpitude: =iii? no longer employed or sel(/employed: and =iv? $ho receives a pension or passive income that is payable in the SBF and e0ceeds F2FTG T958SA' '5--ARS =8S>C,CCC!CC? per annum! Ho longer employed or sel(/employedH means the applicant (or the visa has $or%ed (or compensation (e$er than seven hundred and (i(ty =">C? hours during the year preceding the application (or the visa! SECTION 7!. Revocation or Termination of Permanent Residency /isa of Retiree . — The permanent
residency visa o( the retiree automatically terminates upon the ta%ing o( residence by the retired person outside the SBF, or the acceptance by the retired person or his or her spouse o( $or% (or compensation $ithin the SBF or the &ustoms Territory $ithout the approval o( the SBMA! The residency visa o( the spouse o( the retiree automatically terminates upon the death o( the person to $hom the residency visa $as granted, or upon their divorce, unless he or she ma%es application (or and receives a residency visa (rom the SBMA! The SBMA may summarily or a(ter hearing revo%e the residency visa o( any retiree, his
residency visas, or $hose permanent residency visas are terminated or revo%ed by the SBMA shall be reported by the SBMA to the Bureau o( 2mmigration $ithin thirty =;C? days a(ter issuance, termination or revocation! The residency visa is valid only (or the SBF and not (or the &ustoms Territory! 9o$ever, persons $ith residency visas may enter and leave the SBF $ithout any special authori1ation o( the Bureau o( 2mmigration! CHAPTER VII Subic Bay Freeport 4uarantine Re,ulations SECTION 7#. Applicability of Philippine %a&s Re,ardin, Animal and Plant 5ealth . — The la$s o( the
6hilippines concerning animal and plant health and 3uarantine and the protection o( animals and plants (rom disease and pestilence, shall be applied in the SBF, as $ell as to persons, baggage, carriers, and merchandise containing possible animal or plant disease/carrying vectors arriving in the SBF directly (rom (oreign countries!
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SECTION 77. Applicability of Philippine %a&s Re,ardin, Protection from Disease and Pestilence . — The
la$s o( the 6hilippines concerning the public health and the protection o( humans (rom diseases subect to 2nternational 9ealth Regulations promulgated by the +orld 9ealth 5rgani1ation and dangerous communicable diseases and 6estilence shall be applied in the SBF! Luarantine inspection o( persons, baggage, carriers, and merchandise containing possible human disease/carrying vectors arriving in the SBF directly (rom (oreign countries $ill be conducted in accordance $ith the 2nternational 9ealth Regulations promulgated by the +orld 9ealth 5rgani1ation! 2( the inspection o( such vessels or aircra(t is underta%en, it $ill be done be(ore immigration and customs clearance e0cept (or those vessels and aircra(t issued $ith radio prati3ue or controlled (ree prati3ue by the 'irector o( Luarantine! SECTION 7$. Persons Responsible for Implementation . — The la$s o( the 6hilippines concerning human,
animal, and plant health and 3uarantine shall be carried out in the SBF by personnel o( 6hilippine .overnment agencies responsible (or administering those la$s and regulations $or%ing under the supervision o( the SBMA! The SBMA shall establish the rules and procedures necessary to carry out human, animal, plant health and 3uarantine la$s and regulations $ithin the SBF! CHAPTER VIII Subic Bay Freeport Forei,n *chan,e and Ban2in, Re,ime A. Subic Bay Freeport Rules on Forei,n *chan,e SECTION 79. Forei,n *chan,e Accounts . — All SBF Enterprises and Residents shall be (ree to maintain
(oreign e0change accounts $ith any ban% or (inancial institution licensed to hold deposits in (oreign e0change! SECTION $%. Philippine !urrency Accounts. — All SBF Enterprises and Residents shall be (ree to maintain
accounts in the currency o( the 6hilippines $ith any ban% or (inancial institution licensed to hold deposits in the currency o( the 6hilippines! SECTION $1. Purchase of Forei,n *chan,e ! — All SBF Enterprises and Residents shall be (ree to buy and
sell (oreign e0change outside the ban%ing system! cd SECTION $2. Forei,n *chan,e in Business Transactions . — All SBF Enterprises and Residents shall be
(ree to engage in business transactions the valuation and
e0pressly (orbidden by la$, including but not limited to the (ollo$ing4 a! purchase o( goods: b! payment (or services rendered: c! repayment o( loans: d! trans(er o( pro(its earned by the SBF Enterprise: e! repatriation o( capital resulting (rom li3uidation or sale o( assets: (! any other transaction representing e0penses or a decrease in capital or assets to the enterprise! SECTION $!. Re,istration of Forei,n *chan,e . — The (oreign investments registration process provided
(or under &entral Ban% &ircular );>; shall be incorporated into the SBMA regular registration procedures! Trans(er to a((iliates or shareholders o( registered capital, and o( pro(its up to the amount o( cumulative pro(its declared net o( remittances in prior years shall be e((ected (ully!
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SECTION $. Philippine !urrency Transactions . ' All SBF Enterprises and Residents shall be (ree to
engage in business transactions the valuation and
la$s, these Rules and other SBMA regulations, the provisions o( &entral Ban% &ircular );>; HFurther -iberali1ing Foreign E0change RegulationsH, shall apply to SBF Enterprises and Residents: provided , ho$ever, that (or the (oreign e0change proceeds o( (oreign loans, including loans contracted in the 6hilippines in (oreign e0change, conversion into the currency o( the 6hilippines shall not be re3uired, i( there is no intention in the (uture to service such loans by (oreign e0change procured (rom the ban%ing system: provided , (urther that in the case o( (oreign investments, the (oreign e0change re3uired (or capital repatriation and remittance o( dividends shall not be sourced (rom the domestic =6hilippine? ban%ing system! B. Subic Bay Freeport Rules on Ban2in, and "ther Financial Institutions SECTION $7. In +eneral ! — Any ban% or (inancial institution intending to operate $ithin the SBF must (irst
be licensed by the &entral Ban%! SECTION $$. "ffshore Ban2in, 'nits . — Any (oreign ban% registered as an 5((shore Ban%ing 8nit =5B8?
may accept deposits, ma%e loans, and other$ise provide (inancial services in (oreign e0change to SBF Enterprises and Residents, in accordance $ith &entral Ban% regulations governing 5B8@s! cdasia SECTION $9. Forei,n !urrency Depository 'nits . — Any ban% registered as a Foreign &urrency 'epository
8nit =F&'8? may accept deposits, ma%e loans, and other$ise provide (inancial services in (oreign e0change to SBF Enterprises and Residents, in accordance $ith &entral Ban% regulations governing F&'8@s! SECTION 9%. Ban2s %icensed in the Philippines ! — Ban%s licensed in the 6hilippines may (reely open
branches $ithin the SBF! Minimum bids shall not be re3uired, and the number o( ban%s opening branches $ithin the SBF shall not be restricted! Ban%s applying to open branches shall be registered $ith the &entral Ban% provided that the ban% has not violated &entral Ban% conditions governing sa(e and sound ban%ing practices! Such branches may elect to be registered as SBF Enterprises $ith the SBMA, and shall be restricted to providing services or a((ecting transactions $ith SBF Enterprises and Residents! 2( such branches do not elect to be registered as SBF Enterprises, they shall not enoy the rights and privileges under these Rules including the pre(erential ta0 treatment accorded SBF Enterprises as set (orth in &hapter D o( these Rules, and shall not be restricted to transactions $ith SBF Enterprises or Residents! SECTION 91. "B' Affiliates. — Any (oreign ban% may apply $ith the &entral Ban% to establish =a? an
e0tension o((ice
branches and a((iliates $hich are registered as SBF Enterprises shall be e0empt (rom any and all ta0es other$ise levied on 5B8@s or ban%s and ban%ing transactions under the e0isting la$s and regulations, including but not limited to4 a! $ithholding or other (inal ta0es: b! remittance ta0es: c! capital ta0es: d! pro(its ta0es: e! gross receipts ta0es: (! documentary and science ta0!
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SECTION 9. Ta* %iability of SBF Re,istered Ban2s and Affiliates . — 2n lieu o( all local and national ta0es,
SBF 5B8@s and SBF ban% a((iliates and branches shall pay (ive =>? percent (inal ta0 o( gross income earned annually to the Bureau o( 2nternal Revenue, as provided (or in Section >", and subect to the provisions o( these Rules! SECTION 9!. ffect of *istin, !entral Ban2 Re,ulations of SBF Re,istered "B'9s ! — E0isting
regulations governing 5B8@s shall apply to SBF 5B8@s, e0cept as speci(ically provided in these Rules and other regulations o( the SBMA! SBF 5B8@s shall pay annual registration or license (ees normally re3uired directly to the &entral Ban%! &dt CHAPTER I( nvironmental Re,ulations SECTION 9. Principles. — SBMA recogni1es the importance o( maintaining a high degree o( environmental
3uality as a precursor to the sustainable economic development o( the areas both under and adacent to its urisdiction! Speci(ic regulations to protect and conserve environmental 3uality as may be promulgated by SBMA shall con(orm to and not contradict those environmental policies and regulations established by the ational .overnment! Recogni1ing that the 'epartment o( Environment and atural Resources and its predecessor agencies have established environmental 3uality and emission and e((luent standards (or air and $ater 3uality, the SBMA adopts those standards and incorporates them into the environmental 3uality standards and regulations to be adopted by the SBMA! SECTION 9#. Administration#colo,y !enter . — There is hereby created an Ecology &enter that shall have
responsibility (or the protection o( the environment and natural resources $ithin the SBF and
particularly 6residential 'ecrees os! *7, ))>), ))># and )>, as $ell as Republic Acts os! ** and ">, including the rules and regulations o( the 'epartment o( Environment and atural Resources and other government agencies concerning environmental pollution and pollution control inso(ar as these rules and regulations are not inconsistent $ith these Rules, are hereby adopted! SECTION 9$. !overa,e. — The regulations (or environmental and natural resources conservation and
protection shall be applicable to all areas $ithin the SBF and
permits and clearances related to environmental protection and conservation $ithin the SBF, such permits and clearances to include, but not limited to Environmental &ompliance &erti(icates, Authorities to &onstruct, Rules Implementing the Bases Conversion and Development Act of 1992 | 19
6ermits to 5perate, and +ater 8se 6ermits! The SBMA may, at its discretion, amend the re3uirements associated $ith such permits at any time and may introduce such other permits or clearances that it deems necessary to protect and conserve the environment! Environmental Compliance Certificates ! — 8nless other$ise e0empted (rom doing so by the SBMA, no business enterprise shall be registered as an SBF Enterprise and allo$ed to do business or underta%e any activity $ithin the SBF unless it secures an Environmental &ompliance &erti(icate (rom the SBMA! o SBF Enterprise shall be allo$ed to engage in any building and
cause to be protected the (orested area de(ined by 'ER and shall manage that area in accordance $ith practices acceptable to 'ER! This shall include the provision o( (orest guards, as de(ined by 'ER, to ensure that the natural resources o( the area are provided su((icient protection to insure their longevity! The atural Resource 6rotection Area agreed upon bet$een SBMA and 'ER shall include such area as necessary to provide (or the protection o( the $atershed upon $hich SBMA is dependent (or its $ater supply! This area shall include both virgin and residual (orests as agreed upon $ith 'ER! SECTION 1%1. Air 4uality. — The SBMA shall not permit air 3uality to deteriorate $ithin its urisdiction
and
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3uality management strategy (or limiting emissions (rom both mobile and stationary sources! The (ollo$ing standards may not be e0ceeded more than once per year! cdasia SECTION 1%2. .ater 4uality. — The SBMA shall not permit $ater 3uality to deteriorate $ithin its
urisdiction and
manner deemed appropriate by the SBMA! The SBMA shall de(ine solid and ha1ardous and to0ic $astes in a manner consistent $ith the de(initions developed by the 'ER underRepublic Act ** and shall de(ine the re3uirements (or $aste generators, transporters, and o$ners
their premises shall be included in these Rules and other regulations promulgated and adopted, or to be promulgated and adopted, by the SBMA to regulate such (acilities! o!ic and /a0ardous .aste Management ! — All to0ic and ha1ardous $astes used by any and all persons, businesses or other entities $ithin the SBF and
resources that $ill see% to ensure the sources o( $ater supply $ith the SBF and
o( the development goals o( the SBMA urisdiction and that there are competing uses o( the environment, the SBMA shall designate such areas that it deems appropriate as &onservation Areas! These Areas may include those areas necessary (or the protection o( $ater supplies =such as ground$ater a3ui(er recharge 1ones?, or areas important to the protection and preservation o( biodiversity =such as marine conservation and sanctuary areas and natural (orest areas?, or development that $ill be allo$ed in those areas, including the designation o( areas as e0cluded (rom development! Those areas designated as &onservation Areas shall be included in any land use plant or 1oning ordinance adopted by the SBMA! SECTION 1%#. mer,ency and !ontin,ency Plannin, . — All entities operating $ithin the SBF and
urisdiction o( the SBMA having potential to discharge oil, petroleum products, or other deleterious substances =including the a3uatic, marine or land environments? and detailing the measures to be employed in the event that such discharges occur! This plan shall be submitted to the SBMA and shall include the procedures to be (ollo$ed during the handling o( such materials and those to be (ollo$ed in the event o( their discharge! Such plans are to be prepared in con(ormance $ith the re3uirements o( the 6hilippine &oast .uard and $ith the standards o( practice o( the industry! CHAPTER ( "ther Provisions A. *propriation SECTION 1%7. Po&er of minent Domain. — The SBMA may e0ercise its po$er o( eminent domain over
any privately/o$ned property located $ithin the SBF subect to the re3uirements o( the &onstitution and e0isting la$! SECTION 1%$. ffect of *propriation on %ease A,reements . — Any cancellation or early termination o( a
lease agreement bet$een the SBMA and a lessee as a result o( e0propriation shall be governed by the terms o( that lease agreement! B. Security SECTION 1%9. Function of SBMA Security Force . — SBMA security (orce agents shall police and maintain
la$ and order $ithin the boundaries o( the SBF! Access into and departure (rom the SBF shall be (ully controlled by SBMA security agents!
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SECTION 11%. Responsibility for Security of SBF: %icense to !arry Firearms . — The security o( the SBF
and the maintenance o( peace and order therein shall be the responsibility o( the SBMA! SBF Facilities 5perators and
re3uest assistance (rom SBMA security (orces
e0iting (rom the SBF shall be subect to search and inspection! They shall be re3uired to register and
through vibrant economic activity in order to address the needs o( displaced (ormer base $or%ers, the people o( the cities and municipalities surrounding the (ormer Subic aval Base, as $ell as the victims o( the Mt! 6inatubo disaster! The SBMA adopts a policy o( industrial peace, harmony and productivity $ithin the SBF giving due consideration to the ne$ concept o( the (reeport in order to establish a business and commercial atmosphere $hich encourages investments and simultaneously promotes and enhances the lives and dignity o( all $or%ers! SECTION 11!. Applicability of %abor %a&s . — 8nless other$ise provided by la$, all 6hilippine labor and
social security la$s shall apply $ithin the SBF! 6ursuant to the above/stated policy, all la$s on stri%es and loc%/outs $ill be strictly en(orced! SECTION 11. %abor !enter . — A -abor &enter shall be established $ithin the SBMA! This &enter shall be
responsible (or studying and amicably settling pro(essional and labor relations and disputes, interpretation o( employment contracts, and monitoring $or%, hygiene and sa(ety standards $ithin the SBF! The -abor &enter shall comprise a -abor 5((ice: an 2ndustrial 9ealth and Sa(ety 5((ice: and an 2nspection and 'isputes 5((ice! SECTION 11#. Re0uirements for All Persons See2in, mployment .ithin the SBF . — All persons see%ing
employment $ithin the SBF must (irst register and secure clearance (rom the SBMA, through the -abor 5((ice o( the -abor &enter! For this purpose, the applicant must provide the SBMA in(ormation on his
contracts or collective bargaining agreements, all labor disputes must be brought be(ore the 2nspection and 'isputes 5((ice o( the -abor &enter $hich $ill attempt to amicably settle the case! 2n case the SBMA cannot settle the dispute amicably, it $ill certi(y the dispute (or mediation or arbitration be(ore the proper o((ice o( the 'epartment o( -abor and Employment or the Secretary o( -abor and Employment (or compulsory arbitration or assumption o( urisdiction! SECTION 11$. %abor S2ills Inventory & Identification !ard . — The -abor 5((ice shall maintain a -abor
S%ills 2nventory (or the SBF $hich shall contain a list o( employees already $or%ing in the SBF, (ormer 8!S! Base $or%ers and residents o( adoining cities and municipalities surrounding the (ormer 8!S! Bases, and other
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employees based on their s%ills and e0perience, including those $ho $ere (orced to go abroad due to the closure o( the 8!S! Bases! All employees $or%ing in the SBF must secure identi(ication cards (rom the SBMA pursuant to Section #7 hereo( $hich $ill contain, among others, the speci(ic s%ill=s?, trade or occupation o( the employee concerned! SECTION 119. mployment of Forei,n 1ationals . — SBF Enterprises desiring to employ (oreign nationals
must secure the prior approval o( the SBMA $ho shall see to the en(orcement o( relevant 6hilippine la$s and regulations! SECTION 12%. Trainin, Pro,ram for 'nderstudies . — An SBF Enterprise employing (oreign supervisory,
technical and
SBMA shall be granted a period o( not e0ceeding (ive =>? years and e0tendible (rom year to year depending upon the needs o( the SBF Enterprise: provided , that no e0tension to stay herein shall be recommended by the SBMA to the Bureau o( 2mmigration and 'eportation unless the training program re3uired has been complied $ith satis(actorily: provided , (urther, that the re3uest (or e0tension shall be (iled $ith the SBMA at least thirty =;C? days be(ore the e0piry date o( the authori1ed stay! SECTION 122. Spouses and Dependents of Forei,n 1ationals . — The spouses and unmarried children under
t$enty/one =#)? years o( age o( the (oreign national employed under the preceding sections shall be permitted to enter as dependents o( the (oreign national employee and reside in the SBF during the period o( employment o( such (oreign national in the SBF Enterprise! SECTION 12. Re,istration &ith the SBMA . — Every (oreign national employed under the preceding
sections shall register $ith the SBMA $hich shall issue to them &erti(icates o( Residency in accordance $ith the pertinent provisions o( these Rules! SECTION 12!. Apprenticeship Pro,ram . — The SBMA shall establish an apprenticeship program similar to
the apprenticeship program instituted and implemented by the (ormer 8!S! (acilities! SECTION 12. 4uarterly Reports . — The -abor 5((ice o( the SBMA shall publish 3uarterly reports on the
labor situation in the SBF! D. Sanitation) +arba,e and Se&a,e SECTION 12#. In +eneral . — The SBMA shall, in coordination $ith the local government units that have
concurred to be part o( the SBF, provide (or a system o( sanitation, garbage collection and disposal and se$age! SECTION 127. Fees. — The SBMA may impose and collect reasonable (ees (rom SBF Enterprise and
Residents (or the implementation o( a sanitation system, the collection and disposal o( garbage and
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SECTION 12$. Fines and Penalties . — The SBMA may impose administrative (ines and penalties against any
SBF Enterprise or Resident (or any violation o( sanitation, garbage or se$age rules and regulations that the SBMA may enact or promulgate! E. ducational and Medical Institutions SECTION 129. stablishment of Private Institutions . — The SBMA may authori1e the establishment o(
private educational and medical institutions! These private educational and medical institutions may, i( they so desire, apply to the SBF Enterprises, in $hich case, the pertinent provisions o( these Rules shall apply! SECTION 1%. Applicability of 1ational %a&s. — The SBMA shall adopt and implement rules and
regulations to govern educational and medical institutions to be established $ithin the SBF! 6ending the issuance o( such rules and regulations, all la$s on educational and medical institutions, as $ell as the rules and regulations o( the 'epartment o( Education, Sports and &ulture and the 'epartment o( 9ealth and other government agencies concerning educational and medical institutions are hereby adopted! F. Buildin, and !onstruction SECTION 11. Buildin, and !onstruction Plans . — All private and public business enterprises or agencies
desiring to build and
proect can be commenced unless the SBF Enterprise concerned secures an Environmental &ompliance &erti(icate (rom the SBMA as provided (or in Section ** o( these Rules! SECTION 1. Applicability of 1ational %a&s. — The SBMA shall adopt and implement rules and
regulations to govern building and
head3uarters companies may be domiciled in the SBF and registered $ith the SBMA! Such head3uarters companies must meet the re3uirements o( the Bureau o( 2nternal Revenue! SECTION 1. Ta* Privile,es of 1on$Resident 5ead0uarters . — on/resident head3uarters companies
domiciled in the SBF shall continue to be governed by provisions o( the head3uarters companies@ la$s $hich e0tend a complete e0emption on income ta0 (or 3uali(ying companies! SECTION 1#. "bli,ations of 1on$Resident 5ead0uarters . — on/resident head3uarters companies
domiciled $ithin the SBF must meet all re3uirements and obligations (or such companies as established in la$, decrees, and other applicable rules and regulations! H. Subic Bay Freeport Financial and !ommodities Mar2ets SECTION 17. .ho are li,ible to "r,ani3e . — 5rgani1ed mar%ets, e0changes, clearing houses and other
arrangements (or e((ecting transactions in standardi1ed (inancial instruments may be organi1ed by SBF Enterprises, SBF 5B8@s, ban% branches or their a((iliates! Such mar%ets may include transactions in securities, bonds, debt instruments, (oreign currencies, commodities, precious metals, (utures contract, or any other (inancial instruments as may be (reely traded among parties! SECTION 1$. Mode of "r,ani3ation! — Such (inancial mar%ets shall be organi1ed according to principles
and procedures established and agreed to by the member (irms o( each mar%et or e0change, and registered $ith the SBMA!
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I. Disputes and %iti,ation SECTION 19. Amicable Settlement . — 2n case o( disputes bet$een or among SBF Enterprises, the parties
shall promptly meet and e0ert best e((orts to$ards amicable settlement o( the dispute in good (aith! The SBMA may conciliate or mediate the disputes upon re3uest o( the parties! SECTION 1!%. Arbitration or %iti,ation . — Any dispute $hich is not amicably settled may be resolved by
arbitration or udicial action be(ore the competent courts in the 6hilippines having urisdiction over such dispute! ). Development Fund SECTION 1!1. stablishment . — There is hereby established a SBF 'evelopment Fund to be administered
and managed by the SBMA, $hich $ill consist o( one =)? percent o( the (ive =>? percent (inal ta0 on gross income earned to be utili1ed (or the development o( the municipalities outside the &ity o( 5longapo and the Municipality o( Subic, and other municipalities contiguous to the base areas! SECTION 1!2. "peratin, Procedures ! — The SBMA shall publish operating procedures (or the
administration and management o( the SBF 'evelopment Fund $hich $ill speci(y, but not be limited to, the (ollo$ing4 a! The appropriate uses o( the (und: b! The procedures (or allocating or accessing (und resources: c! The manner o( determining $hich municipalities are eligible to avail o( the (und: and d! Reporting re3uirements (or (und activities! cdt SECTION 1!. Transfer of Funds . — The Revenue 'istrict 5((icer or the accredited agent
the &ity o( 5longapo shall trans(er (unds representing one =)? percent o( the (ive =>? percent (inal ta0 on gross income earned, as herein de(ined, o( all SBF Enterprises to the SBF 'evelopment Fund! Such trans(ers shall be made in accordance $ith standard procedures (or internal revenue allotments to local government units! K. Miscellaneous and Transitory Provisions SECTION 1!!. Ban2ruptcy or %i0uidation . — The ban%ruptcy or li3uidation o( BSF Enterprises shall be
carried out in accordance $ith the la$s and regulations relating to li3uidation in (orce in the 6hilippines! SECTION 1!. %ien on Property of SBF nterprise ! — Any unpaid sums o( money o$ed by an SBF
Enterprise to the SBMA, or any unpaid duties, ta0es, penalties or charges o$ed to the Bureau o( 2nternal Revenue, or the Bureau o( &ustoms shall constitute a lien against the property o( the SBF Enterprises concerned! SECTION 1!#. %iability for Dama,es. — SBF Enterprises or Residents shall be liable (or damages arising
(rom violations o( the Act, these Rules and other regulations o( the SBMA! SECTION 1!7. +eneral Authority to Dispose of Abandoned) Foreclosed) Forfeited or 'nclaimed Articles .
— The SBMA has the authority, consistent $ith the &onstitution and e0isting la$s, to sell, destroy, or convert to its o$n use articles and merchandise that have been abandoned, le(t unclaimed, (oreclosed, or (or(eited to the SBMA in the SBF, and to establish procedures (or sale, destruction, or conversion! SECTION 1!$. ffect of Board Action on /ested Ri,hts . — 2n no case shall any Board action impair the
obligation o( contracts or vested rights that may have arisen by virtue o( the contractual obligations o( SBF Enterprises! S!TI"1 6<=> Issuance of Memoranda and !irculars ! — The SBMA shall, (rom time to time, issue memoranda and circulars to amend, alter, modi(y, supplement, ampli(y or implement the provisions o( these Rules, including but not limited to the imposition o( administrative penalties or (ines! SECTION 1%. Rules of Procedure for Investi,ations . — The SBMA shall promulgate rules o( procedure
governing the conduct o( investigations and hearings involving violations o( the provisions o( the Act and these Rules Implementing the Bases Conversion and Development Act of 1992 | 26
Rules, the corresponding implementing memoranda or circulars and the terms and conditions o( the registration agreement bet$een the SBMA and the SBF Enterprises! 6ending the promulgation o( said rules o( procedure, the SBMA may continue to conduct said investigations and hearings provided that the basic re3uirements o( due process o( la$ are met! L. Amendments) Separability and ffectivity SECTION 11. Po&er to Amend Rules . — The SBMA may amend, alter, supplement, suspend, modi(y or
revo%e these Rules or any portion thereo( as may be necessary: provided , ho$ever, that SBF Enterprises directly a((ected thereby shall have been properly noti(ied and given the opportunity to present their vie$s in a public hearing called (or the purpose! SECTION 12. Separability !lause. — 2( any clause, sentence, provision or section o( these Rules, including
any appendices thereto, shall be held invalid or unconstitutional, the remaining parts thereo( shall not be a((ected thereby! cd i SECTION 1. ffectivity !lause. — These Rules shall ta%e e((ect immediately upon its publication in a
ne$spaper o( general circulation! A66R5DE' by the Board o( 'irectors o( the Subic Bay Metropolitan Authority at its Board Meeting, on ; ovember, )**#! Pu(lished in he Philippine Star on May 12) 34456 NNN &*RR7RA 8118 93441:'
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