Question & AnswerQ&A (EXECUTIVE ORDER NO. 322)
The short title of Republic Act No. 9490 is the 'Aurora Special Economic Zone Act of 2007.'
The policy is to actively encourage, promote, induce, and accelerate sound and balanced industrial, economic, and social development to provide jobs, especially in rural areas, increase productivity and income, and improve living conditions through the establishment of special economic zones and attracting legitimate and productive foreign investments.
The Aurora Special Economic Zone covers barangays Esteves, Dibet, and Dibacong in the Municipality of Casiguran, Province of Aurora, comprising about 500 hectares of public agricultural land.
The Aurora Special Economic Zone Authority (ASEZA), a body corporate created by the Act, manages and operates the Aurora Ecozone.
Incentives include Income Tax Holiday (ITH), Net Operating Loss Carryover (NOLCO), a 5% tax on gross income earned replacing certain national and local taxes, accelerated depreciation, capital equipment tax exemptions, raw materials tax credits, and exemptions from wharfage dues among others.
A registered export enterprise is any enterprise registered with ASEZA engaged directly or indirectly in production, manufacture, or trade of products or services earning at least 70% of its normal operating revenues from export sales in foreign currency.
ASEZA can operate and develop the ecozone, register and supervise enterprises, coordinate with LGUs, regulate utilities and infrastructure, raise funds, protect environment, issue certificates of origin, grant working visas, issue rules and regulations, and perform all necessary duties to implement the Act.
Subject to Section 29 of Commonwealth Act No. 613, foreign nationals may be employed in supervisory or technical positions for up to 10 years, with exceptions for certain officers when foreign-owned majority capital stock exists; their spouses and children may enter and reside with special visas and exemptions from certain immigration requirements.
The corporate franchise of the ASEZA shall expire 50 years from the first day of the 5th calendar year after effectivity of the Act, unless extended by Congress.
LGUs retain their basic autonomy and identity; barangays operate under the Local Government Code. In case of conflicts on non-defense matters affecting the Aurora Ecozone, ASEZA's decision prevails.
The Board includes the Chairman/Administrator, a Vice Chairman from among the members, the Aurora Governor, Congressional Representative, Mayor of Casiguran, one domestic investor representative, one foreign investor representative, and two worker representatives.
Fiscal incentives may be enjoyed for up to 20 years from registration or start of commercial operation, with possible extensions for industries indispensable to national development.
Both the registered enterprise and the assignee shall be solidarily liable to pay twice the amount of taxes and duties exempted on the imported capital equipment.
Merchandise sent outside the Ecozone is subject to domestic tax laws, while importations of raw materials and capital equipment are treated under the Omnibus Investments Code with relevant tax exemptions and bonded warehouse access for export-oriented enterprises.
Additional investments may be entitled to income tax holidays corresponding to the nature of the investment subject to BOI determinations, with a total ITH for export enterprises not to exceed 20 years.