Question & AnswerQ&A (Republic Act No. 11453)
Republic Act No. 11453 aims to further strengthen the powers and functions of the Authority of the Freeport Area of Bataan (AFAB) by amending Republic Act No. 9728. It converts the Bataan Economic Zone into a special economic zone and freeport to promote investment, industrial development, and other economic activities in the Freeport Area of Bataan (FAB).
The FAB covers (a) the land territories in the Municipality of Mariveles, Province of Bataan formerly part of the Bataan Economic Zone comprising approximately 1,742.48 hectares ('FAB main zone'), and (b) all other expansion areas within the Province of Bataan declared as part of the FAB, including all municipal waters within these zones ('other FAB zones').
No, registered enterprises in the FAB cannot enjoy incentives from two or more investment promotion agencies simultaneously. Furthermore, an AFAB-registered enterprise shall not be located within an economic zone administered or managed by another investment promotion agency.
The FAB shall be developed and operated as a decentralized, self-reliant, and self-sustaining area for industries and services including industrial, commercial-trading, research and development, engineering, medical, education, ICT including emerging technologies like AI, blockchain, cybersecurity, fintech, BPO, agriculture, tourism, banking, multinational trading, retirement, healthcare services, and suitable residential areas.
Registered business establishments operating within the FAB shall pay a five percent (5%) final tax on their gross income earned, distributed as follows: 1% to the National Government, 1% to the Province of Bataan, 1% to the host city/municipality, and 2% to the Authority of the Freeport Area of Bataan.
Foreign nationals investing at least Seventy-five thousand US dollars (US$75,000) in a registered enterprise within the FAB are entitled to an investor's visa, which allows them to reside in the Philippines while their investment subsists, subject to certain qualifications such as age, good moral character, and health requirements.
AFAB has powers to operate, administer, and manage the FAB; register and supervise enterprises; coordinate with local governments; regulate utilities and infrastructure; issue permits; enforce environmental laws; raise funds; enforce the National Building and Fire Codes; provide security; recommend visas; and implement measures to improve the business climate within the FAB.
The AFAB is governed by a Board of Directors composed of a chairman, vice chairman (both elected from among the members), the administrator, and representatives from the National Government, Province of Bataan, Municipality of Mariveles, registered domestic and foreign investors, and workers in the FAB. All members must be Filipino citizens and appointed by the President.
The administrator directs and manages AFAB affairs, establishes the internal organization, submits annual budgets and reports to the Board, proposes policies and regulations, coordinates for industrial peace, environmental protection, quality of life improvement in the FAB, and performs duties necessary to implement the Act's objectives.
Yes, labor and management relations within the FAB are governed by the Labor Code of the Philippines, as amended. The FAB has a Labor Center responsible for settling labor disputes and monitoring work, hygiene, and safety standards. The AFAB permits labor inspections by the Department of Labor and Employment (DOLE).
Yes, the FAB can be expanded or reduced as necessary. Expansion requires AFAB approval, concurrence of local government units, and adherence to land use plans. Expansion can also be revoked by the President if it is outside the Municipality of Mariveles.
The AFAB is mandated to protect, preserve, and maintain forests, beaches, coral reefs, and ecological balance. The AFAB implements DENR rules, and has exclusive control over environmental permits and clearances such as ECCs and tree cutting permits for areas within the FAB.
The National Government is responsible for the defense and security of the FAB's perimeter fence in coordination with AFAB and local governments. AFAB itself provides internal security and firefighting forces. The Philippine National Police is also authorized to establish a police substation to maintain law and order within the FAB.
The government’s capital contribution to AFAB is Two Billion Five Hundred Million Pesos (₱2.5 billion), plus all lands embraced within the FAB, including properties conveyed to GSIS and SSS, permanent improvements and fixtures, and any other assets transferred by the President as equity contribution.
Yes, all existing contracts, permits, and licenses duly granted by the AFAB before the effectivity of this Act remain valid, unimpaired, and shall continue to be recognized by the government.