2 RA 7227 BCDA IRR

RULES AND REGULATIONS IMPLEMENTING THE PROVISIONS RELATIVE TO THE SUBIC SPECIAL ECONOMIC AND FREEPORT ZONE AND THE SUBIC BAY METROPOLITAN AUTHORITY UNDER REPUBLIC ACT NO. 7227, OTHERWISE KNOWN AS THE "BASES CONVERSION AND DEVELOPMENT ACT OF 1992" CHAPTER I  Preliminary Provisions SECTION 1. Scope. — These Rules and Regulations are hereby promulgated to implement the provisions

governing govern ing the Subic Subic Specia Speciall Econom Economic ic and Freepo Freeport rt Zone, Zone, and the Subic Subic Bay Metrop Metropoli olitan tan Autho Authority rity,, under Republic Republic Act o! "##", "##", other$ise other$ise %no$n as the Bases &onversion and 'evelopment 'evelopment Act o( )**#, )**#, and other related la$s! SECTION 2. Declaration of Policy. — +ithin the (rame$or% and subect to the mandate o( the &onstitution

and the pertinent pertinent provisions provisions o( the -ocal .overnment .overnment &ode, &ode, it is hereby declared declared the policy o( the SBMA to develop the Subic Special Economic and Freeport Zone into a sel(/sustaining, industrial, commercial, (inancial and investment center to generate employment opportunities in and around the Zone, to attract and promote  productive (oreign investments, to accelerate the sound and balanced conversion into alternative productive uses o( the (ormer Subic aval Base and its contiguous contiguous e0tensions, e0tensions, and to enhance enhance the bene(its bene(its to be derived (rom the Zone in order to promote the economic and social development o( &entral -u1on in particular and the country in general! 2t is also declared the policy o( the SBMA to operate and manage the SBF as a separate customs territory ensuring (ree (lo$ or movement o( goods and capital $ithin, into and e0ported out o( the SBF, as $ell as provide incentives such as ta0 and duty (ree importations o( ra$ materials, capital and e3uipment! SECTION . Definitions.  — For purposes o( these Rules, these terms shall be understood to have the

(ollo$ing meanings4 a! Act — re(ers to Republic Act o! "##", other$ise %no$n as the Bases &onversion and 'evelopment Act o( )**#!  b! Rules — re(ers to these 2mplementing Rules and Regulations! Regulations! cdt c! SBF — is the Subic Bay Freeport re(erred to as the Special Economic and Freeport Zone in Section )# o( the Act, a separate customs territory consisting o( the &it y o( 5longapo and the municipality o( Subic, 6rovince o( Zambales, the lands occupied by the Subic aval Base and its contiguous e0tensions as embraced, covered and de(ined by the )*7" 6hilippine/8!S! Military Base Agreement Agreement as amended amended and $ithin the territorial territorial urisdiction urisdiction o( Morong Morong and 9ermosa, 6rovince o( Bataan, the metes and bounds o( $hich shall be delineated in a  proclamation to be issued by the 6resident o( the 6hilippines:  provided , that pending the establishment o( secure perimeters around the entire SBF, the SBF shall re(er to the area demarcated by the SBMA pursuant to Section ); hereo(! d! SBMA — re(ers to the Subic Bay Metropolitan Authority created under under Section ); o( the Act! e! Conversion Authority — re(ers to the Bases &onversion 'evelopment Authority created under  Section ; o( the Act! (! Point of Entry — re(ers to any place designated by the SBMA $here articles may be la$(ully introduced into or removed (rom the SBF or any part therein designated by the SBMA! g! SBF Enterprise — re(ers to any business entity or concern $ithin the SBF duly registered $ith and; shall be incorporated into the SBMA regular registration procedures! Trans(er to a((iliates or shareholders o( registered capital, and o( pro(its up to the amount o( cumulative pro(its declared net o( remittances in prior years shall be e((ected (ully!

Rules Implementing the Bases Conversion and Development Act of 1992  | 17

SECTION $. Philippine !urrency Transactions . '   All SBF Enterprises and Residents shall be (ree to

engage in business transactions the valuation and; HFurther  -iberali1ing Foreign E0change RegulationsH, shall apply to SBF Enterprises and Residents:  provided , ho$ever, that (or the (oreign e0change proceeds o( (oreign loans, including loans contracted in the 6hilippines in (oreign e0change, conversion into the currency o( the 6hilippines shall not be re3uired, i( there is no intention in the (uture to service such loans by (oreign e0change procured (rom the ban%ing system:  provided , (urther that in the case o( (oreign investments, the (oreign e0change re3uired (or capital repatriation and remittance o(  dividends shall not be sourced (rom the domestic =6hilippine? ban%ing system! B. Subic Bay Freeport Rules on Ban2in, and "ther Financial Institutions SECTION $7. In +eneral ! — Any ban% or (inancial institution intending to operate $ithin the SBF must (irst

 be licensed by the &entral Ban%! SECTION $$. "ffshore Ban2in, 'nits . — Any (oreign ban% registered as an 5((shore Ban%ing 8nit =5B8?

may accept deposits, ma%e loans, and other$ise provide (inancial services in (oreign e0change to SBF Enterprises and Residents, in accordance $ith &entral Ban% regulations governing 5B8@s! cdasia SECTION $9. Forei,n !urrency Depository 'nits . — Any ban% registered as a Foreign &urrency 'epository

8nit =F&'8? may accept deposits, ma%e loans, and other$ise provide (inancial services in (oreign e0change to SBF Enterprises and Residents, in accordance $ith &entral Ban% regulations governing F&'8@s! SECTION 9%. Ban2s %icensed in the Philippines ! — Ban%s licensed in the 6hilippines may (reely open

 branches $ithin the SBF! Minimum bids shall not be re3uired, and the number o( ban%s opening branches $ithin the SBF shall not be restricted! Ban%s applying to open branches shall be registered $ith the &entral Ban% provided that the ban% has not violated &entral Ban% conditions governing sa(e and sound ban%ing  practices! Such branches may elect to be registered as SBF Enterprises $ith the SBMA, and shall be restricted to providing services or a((ecting transactions $ith SBF Enterprises and Residents! 2( such branches do not elect to be registered as SBF Enterprises, they shall not enoy the rights and privileges under these Rules including the pre(erential ta0 treatment accorded SBF Enterprises as set (orth in &hapter D o( these Rules, and shall not be restricted to transactions $ith SBF Enterprises or Residents! SECTION 91. "B' Affiliates. — Any (oreign ban% may apply $ith the &entral Ban% to establish =a? an

e0tension o((ice? percent (inal ta0 o( gross income earned annually to the Bureau o( 2nternal Revenue, as provided (or in Section >", and subect to the provisions o( these Rules! SECTION 9!. ffect of *istin, !entral Ban2 Re,ulations of SBF Re,istered "B'9s ! — E0isting

regulations governing 5B8@s shall apply to SBF 5B8@s, e0cept as speci(ically provided in these Rules and other regulations o( the SBMA! SBF 5B8@s shall pay annual registration or license (ees normally re3uired directly to the &entral Ban%! &dt CHAPTER I(  nvironmental Re,ulations SECTION 9. Principles. — SBMA recogni1es the importance o( maintaining a high degree o( environmental

3uality as a precursor to the sustainable economic development o( the areas both under and adacent to its  urisdiction! Speci(ic regulations to protect and conserve environmental 3uality as may be promulgated by SBMA shall con(orm to and not contradict those environmental policies and regulations established by the  ational .overnment! Recogni1ing that the 'epartment o( Environment and atural Resources and its predecessor agencies have established environmental 3uality and emission and e((luent standards (or air and $ater 3uality, the SBMA adopts those standards and incorporates them into the environmental 3uality standards and regulations to be adopted by the SBMA! SECTION 9#. Administration#colo,y !enter . — There is hereby created an Ecology &enter that shall have

responsibility (or the protection o( the environment and natural resources $ithin the SBF and