QuestionsQuestions (Republic Act No. 7903)
RA No. 7903 is known as the Zamboanga City Special Economic Zone Act of 1995.
To encourage and promote sound and balanced industrial, economic, and social development by establishing special economic zones that provide incentives to attract investors, generate employment, and encourage regional dispersal of industries.
The specific metes and bounds are to be more particularly defined in a presidential proclamation issued for that purpose.
The creation of the special economic zone is subject to the concurrence of the city government of Zamboanga affected by the zone.
It is to be developed as a decentralized, self-reliant agro-industrial, commercial, financial, investment, and tourist center and free port, with necessary infrastructure; it is managed as a separate customs territory; it may establish relations with other entities; foreign investors may set up enterprises within the zone; and it must operate within constitutional and Local Government Code limits.
It shall be managed and operated as a separate customs territory to facilitate free flow of entry and movement of machinery and other goods, and it is authorized to issue certificates of origin for products manufactured or processed in the zone.
They are entitled to existing fiscal incentives under PD 66, the EPZA law, Book VI of EO 226 (Omnibus Investment Code), and incentives enjoyed by Subic SEZ under RA 7227; and additionally, no taxes (local and national) are imposed—in lieu of taxes, businesses pay 2% of gross income to the national government and 3% of gross income to Zamboanga City (2% to city government and 1% to the barangay special development fund).
RA 7903 creates a barangay special development fund; it receives 1% of the business establishments’ gross income remittances to be used for development and improvement of barangays within Zamboanga City.
No. The Authority is exempt from taxes, duties, fees, imposts, charges, costs, and service fees in court/administrative proceedings as stated, but the President may lift the exemptions entirely or partially after five years from effectivity, upon recommendation of the Secretary of Finance if the Authority is found self-sustaining and financially capable.
The foreign investor (and spouse, dependents, and unmarried children below 21 years) is granted permanent resident status within the ZAMBOECOZONE, with freedom of ingress and egress without special authorization from the Bureau of Immigration and Deportation.
Within thirty (30) days from such grant.
The Authority shall issue working visas renewable every two (2) years to foreign executives and foreign technicians with highly specialized skills which no Filipino possesses, as certified by the DOLE.
To operate/administer/manage the zone; recommend the delimiting proclamation; register and regulate enterprises; regulate and establish utilities and infrastructure and fix reasonable rates; construct/acquire/own/lease/operate utilities and infrastructure through allowed schemes in RA 6957 or in joint ventures; raise/borrow funds and issue bonds/securities; provide security in coordination with national/local governments; protect environment (virgin forests, beaches, coral and coral reefs); and issue implementing rules and regulations.
It has a chairman-administrator; a vice-chairman from the national agency coordinating and monitoring special economic zones; and six members including: the city’s congressional representative, mayor of Zamboanga (ex officio voting members), a city council representative (ex officio voting member), plus domestic investors, foreign investors, and labor sector representatives. The chairman and the non-ex officio members are appointed by the President for six-year terms.
For matters affecting the ZAMBOECOZONE other than defense and security matters, the decision of the ZAMBOECOZONE Authority shall prevail.
Authorized capital stock is 2,000,000,000 no-par shares with a minimum issue value of P10.00 each. The national government initially subscribes and fully pays 300,000,000 shares.