Establishment of SEZs in Clark Freeport Zone

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EXECUTIVE ORDER NO. 619: Establishment of SEZs in Clark Freeport Zone

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Title Source: Supreme Court: Establishment of SEZs in Clark Freeport Zone

Law: Executive Order No. 619

Decision Date: Apr 26, 2007

Gloria Macapagal-Arroyo's Executive Order No. 619 establishes special economic zones within the Clark Freeport Zone, granting tax incentives to registered businesses and enhancing economic development in the area.

Law Summary

Legal Basis and Amendments Affecting SEZs

Republic Act (RA) 9400, enacted on March 20, 2007, grants tax incentives to Clark SEZ, Subic Special Economic and Freeport Zone, John Hay SEZ, Poro Point SEZ, and other SEZs under RA 7227, as amended.
Section 12 of RA 9400 repealed Section 50 of RA 7916, recognizing the applicability of RA 7916, as amended, to certain SEZs created under RA 7227, as amended.

Scope of RA 7916 and Role of Philippine Economic Zone Authority (PEZA)

RA 9400 amendments clarify RA 7916’s applicability and authorize PEZA's regulatory role over SEZs in Bataan, Zambales, and John Hay SEZ.
The applicability of RA 7916 to Subic SEZ, Poro Point Freeport Zone, and the new Clark Freeport Zone was not initially specified.

Need and Presidential Authority to Apply RA 7916 to Clark Freeport Zone

It is necessary to extend RA 7916, as amended, to Clark Freeport Zone through presidential proclamation for specific designated areas.
This is to align Clark Freeport Zone with other SEZs benefiting from RA 7916 incentives and regulations.

Entitlement to Tax and Other Incentives for Clark SEZ Enterprises

Registered business enterprises in SEZs created within Clark Freeport Zone by proclamation are entitled to the same tax and other incentives under RA 7916, as amended.
The PEZA is mandated to register, regulate, and supervise all enterprises operating within these special economic zones to administer incentives.

Repeal and Modification of Inconsistent Laws

All laws, decrees, proclamations, rules, regulations, or other issuances inconsistent with this Executive Order shall be repealed or modified accordingly.

Effectivity

This Executive Order takes effect immediately upon its publication in a national newspaper of general circulation.

Legal Authority and Signatories

The Executive Order is issued by the President of the Philippines, Gloria Macapagal-Arroyo, under the legal powers vested in her.
The Order is signed by the Executive Secretary, Eduardo R. Ermita, on April 26, 2007, in Manila.

END