QuestionsQuestions (EXECUTIVE ORDER NO. 619)
EO No. 619 is issued pursuant to Republic Act (RA) No. 7916 (as amended by RA No. 8784), in relation to RA No. 7227 (as amended by RA No. 9400).
The EO states that RA 9400 provided for the applicability of RA 7916 (as amended) and PEZA’s role for SEZ that may be created in Bataan, Zambales and in John Hay SEZ, but did not extend such applicability to the Subic SEZ, Poro Point Freeport Zone, and the new Clark Freeport Zone.
They are entitled to the same tax and duly incentives provided under RA 7916, as amended.
For purposes of administering the incentives, PEZA shall register, regulate, and supervise all registered enterprises within the designated SEZ in the Clark Freeport Zone.
EO No. 619 explains that the repeal in RA 9400 effectively recognizes that RA 7916, as amended, can now be made applicable to certain SEZ created pursuant to RA 7227, as amended.
The EO contemplates SEZs to be “created by proclamation inside the Clark Freeport Zone,” and EO No. 619 provides the applicable incentives/treatment once such SEZs are designated by the President by proclamation.
The President, by way of Proclamation, designates the specific areas inside the Clark Freeport Zone.
It repeals or modifies inconsistent laws, decrees, proclamations, rules and regulations, or other issuances (or portions thereof) with EO No. 619.
Immediately upon its publication in a national newspaper or newspaper of general circulation.
The EO’s recitals explain that shortly before its issuance, RA 9400 was enacted and contained provisions affecting which SEZ areas receive RA 7916 incentives and PEZA administration; EO No. 619 was issued to fill the gap for Clark Freeport Zone.
It invokes the policy of promoting and accelerating balanced and sound economic and social development, especially in rural areas, through SEZ development.
EO No. 619 ties RA 7227’s framework for establishing freeport zones/SEZs to RA 7916’s tax and incentive regime, ensuring RA 7916 incentives apply to Clark’s designated SEZs and that PEZA administers them.
No. Section 1 states that entitlement to the incentives is for “duly registered business enterprises” operating in the SEZs created by proclamation inside the Clark Freeport Zone.
PEZA’s authority includes registration, regulation, and supervision of all registered enterprises within the designated SEZs in the Clark Freeport Zone.
It illustrates how, even after a later law (RA 9400) changes the applicability and repeal provisions, an EO may be issued to ensure incentives administration (via RA 7916 and PEZA) extends to a specific area not expressly covered.