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1.0
Introduction
Ecozones
are areas designated by the government for development into balanced
agricultural, industrial, commercial, and tourist/recreational regions.
Each Ecozone is to be developed as an independent community with
minimum government interference. It shall administer its own economic,
financial, industrial and tourism development without help from
the national government. It shall also provide adequate facilities
to establish linkages with surrounding communities and other entities
within the country.
Ecozones are among the measures adopted by the Government to implement
its policy of promoting the preferential use of Filipino labor,
domestic materials and locally produced goods, and to help them
make them internationally competitive. They are established in strategic
locations in the country designed to effectively attract legitimate
and productive foreign investments.
Ecozones are created by virtue of EO 226 otherwise known as Omnibus
Investment Code which becomes effective on July 1997 and by Presidential
Decree No. 66 otherwise known as PEZA law. The present laws affecting
ecozones includes RA 7916 or the Special Economic Zone Act of 1995
which was signed into law on February 24, 1995 which was later amended
by RA 8748. An ecozones are managed and operated by the Philippine
Economic Zone Authority (PEZA) " as a separate customs territory."
2.0
Nature and type of ECOZONES
Ecozones
are divided into the following types :
{Private}1.
Industrial Estates (IEs) are tracts of land developed for
the use of industries. They have basic infrastructure such
as roads, water and sewage systems, pre-built factory buildings,
and residential housing for the use of the community.
2. Export Processing Zones (EPZs) are special IEs whose
locator companies are mainly export-oriented. EPZ incentives
include tax- and duty-free importation of capital equipment,
raw materials and spare parts. The government has designated
4 EPZs; Bataan, Cavite, Baguio City and Mactan Island in
the Visayas. There are about 250 registered companies in
the EPZs, most of which are involved in the manufacture
and export of electronics, garments, rubber products, fabricated
metals, plastics, electrical machinery, transport equipment
and industrial chemicals.
3. Free Trade Zones are areas nearby ports of entry, such
as seaports and airports. Imported goods may be unloaded,
repacked, sorted and manipulated without being subjected
to import duties. However, if these goods are moved into
a non-free trade zone, they will be subjected to customs
duties. ASEAN has agreed to create an Free Trade Zones by
2003.
4. Tourist & Recreational Centers contain establishments
that cater to both local and foreign visitors to the Ecozones.
Such businesses include hotels, resorts, apartments and
sports facilities.
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Business
establishments located and operating inside ecozones are referred
to as "ecozone enterprises." An enterprise maybe operated
by an individual, association, partnership or a corporation.
The
brief descriptions of each type of Ecozone Enterprise follows:
{Private}-
Export Enterprise - manufactures, assembles, or processes
products which are 100% exported, unless a lower percentage
is approved by PEZA.
-
Free Trade Enterprise - imports and markets tax- and duty-
free goods within the free trade area in the Ecozone. Goods
brought outside the free trade area will be subject to customs
and tariff duties.
-
Service Enterprise - is engaged in any one or a combination
of the following activities : customs brokerage, trucking/forwarding,
janitorial, security, insurance and/or banking, consulting
or any such service approved by PEZA.
-
Domestic Market Enterprise - manufacturer, assembler or
processor if goods that cannot export at least 50% of their
output for a period of three years if majority-owned by
Filipinos and at least 70% if majority-owned by foreign
nationals.
-Pioneer
Enterprise, with any of the following conditions:
-
Manufactures, processes or produces goods not produced
in a Commercial scale in the country;
-
Uses a design, formula, scheme, method or process which
is new and Untried in the Philippines;
- produces non-conventional fuels or manufactures equipment
that utilizes non-conventional sources of energy ;
- develops areas for agri-export processing development;
or
- given such a status under the Investment Priorities
Plan.
-
Utilities Enterprise - contracted to provide light and power,
water supply and distribution, communications and transportation
systems in the Ecozone.
-
Facilities Enterprise - contracted to build and maintain
necessary infrastructure such as warehouses, buildings,
road networks, ports, sewerage and drainage systems, and
other facilities considered as necessary by PEZA in the
development and operations of the Ecozone.
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Tourism Enterprise - operates tourist accommodation facilities,
restaurants, and sports and recreational facilities in the
Ecozone.
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Ecozone Developer/Operator - develops, operates, and maintains
the Ecozone, all component sectors (i.e. IEs, EPZs, Free
Trade Zones, and Tourist/Recreational Centers) and all related
infrastructure (roads, light and power systems, drainage
facilities, etc.)
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