Strengthening Powers of Freeport Area of Bataan

FAB is developed as a decentralized, self-reliant hub focusing on manufacturing, technology, research, commerce, tourism, health services, and financial activities, including emerging technologies like AI, blockchain, fintech, IoT, and VR.
National and local governments shall provide transportation, telecommunications, and other necessary infrastructure to support investments and employment.
Foreign ownership in enterprises within FAB is permitted with possible minimum investment requirements.
FAB operates as a separate customs territory ensuring free flow of goods and capital; customs control remains with Bureau of Customs.
FAB boundaries may be expanded or reduced with proper concurrence, approval, and compliance with land use plans; expansions may be revoked by the President.
Goods manufactured in FAB can be sold domestically subject to tax payments and regulations; a negative list restricts sale of products by certain industries locally.
Security and defense responsibilities are shared between the National Government and AFAB.

Registered enterprises in the FAB pay a 5% final tax on gross income in lieu of all other national and local taxes, allocated as follows:
- 1% to National Government
- 1% to Province of Bataan
- 1% to host city or municipality
- 2% to the Authority of the Freeport Area of Bataan
Foreign nationals investing at least US$75,000 in FAB-registered enterprises qualify for an investor's visa, subject to conditions regarding age, criminal record, health, and mental capacity.

AFAB is responsible for operation, management, development, and regulation of the FAB, coordinating with local governments.
It regulates enterprises, enforces building and fire codes, issues permits, imposes fees, and manages internal affairs.
AFAB oversees the establishment, operation, and licensing of utilities, transport, port services, and infrastructure within the FAB, prioritizing private investors.
It can raise funds through borrowing, issuance of securities, and entering joint ventures.
It maintains security forces and coordinates with Philippine National Police and military for perimeter and internal security.
Environmental protection and management of natural resources within FAB are under AFAB's jurisdiction, including issuance of environmental permits.
AFAB acts as an offshore financial center offering various international financial and business services under applicable laws.
It facilitates ease of doing business by establishing one-stop shops for permits and certifications, and can recommend special visas for foreign experts and retirees.

The AFAB Board of Directors holds AFAB’s powers, including a chairman, vice chairman, administrator, and representatives from national and local governments, domestic and foreign investors, and FAB workers.
Board members must be Filipino citizens with qualifications in relevant fields and at least ten years’ experience.
The Board members and administrator are appointed by the President for six-year terms.
Officers and employees are appointed subject to Civil Service Law and must avoid partisan political activities.

Manages the AFAB’s affairs according to Board policies.
Establishes internal organization and submits budget and reports to the Board.
Develops policies, systems, and procedures essential to AFAB operations.
Coordinates industrial peace, environmental protection, and quality of life improvements within FAB.

The Board defines organizational structure and appoints personnel based on Civil Service Law.
The administrator’s salary is comparable to top executives in similar government corporations.
Employment security is protected, and removal or suspension can only be for cause.

A labor center within FAB handles labor relations, disputes, contract interpretation, and work safety.
Labor relations comply with the Labor Code and related laws; the Department of Labor and Employment (DOLE) is granted visitorial powers and inspection authority.
The Department of Health is tasked to establish and operate a tertiary hospital within FAB.
The National Housing Authority will provide housing developments for marginalized and low-income residents in the FAB area.

Registered FAB enterprises have rights to remit foreign investment earnings subject to applicable foreign exchange laws and central bank regulations.

Government capitalization of AFAB is set at PhP 2.5 billion with options to increase.
Capital includes all lands, permanent improvements, and assets of the FAB, including properties transferred from GSIS and SSS, subject to proper inventory.

All contracts, permits, and licenses issued by AFAB before this Act’s effectivity remain valid and unimpaired.
The current chairman and administrator serve their remaining terms and may be reappointed.

Unconstitutional provisions do not nullify the entire Act; other provisions remain effective.
Repeals inconsistent laws and proclamations regarding land conveyances and development mandates.
The Act takes effect fifteen (15) days after publication in the Official Gazette or newspapers of general circulation, whichever is earlier.