APPENDIX C

(Guidelines)

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 Republic of the Philippines

PHILIPPINE ECONOMIC ZONE AUTHORITY

Roxas Boulevard corner San Luis Street Pasay City

CERTIFICATE OF BOARD RESOLUTION

This is to certify that at the Board Meeting of the Philippine Economic Zone
Authority (PEZA) held on 16 May 2007, during which a quorum was present, the following
resolution was approved:

RESOLUTION NO. 07-232

RESOLVED, That the PEZA Board hereby APPROVES the herein proposed
Guidelines for the Registration and Administration of Incentives to Agro-Industrial
Economic Zone Developers/Operators and Locators under Republic Act No. 7916, as
amended, as follows:

I. POLICY

It is the policy of the government to accelerate agro-industrial development by

establishing, among others, agro-industrial estates zones in selected areas in the
countryside with the active participation of the private sector. Toward this end, the private
sector shall play a major role in the establishment of agro-industrial economic zones by
providing and developing such areas to spur agro-industrial development.

II. OBJECTIVES

It shall be the objective of the agro-industrial economic zones to:

1. Open opportunities for farmers to increase their income and improve their quality of life;

2. Help farmers gain access to modern farm technology resulting from the activities of
registered agro-industrial ecozone export enterprises and agro-industrial ecozone
enterprises.

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3. Serve as locations for operations of agro-industrial enterprises in order to accelerate the
growth and development of the Philippine agro-industrial sector;

4. Promote and support the national biofuel program of the government to lessen the
country's dependence on imported fuel;

5. Promote linkages thru the production of high value-added and better quality agricultural
and marine products geared primarily for the export market;

6. Increase the agro-industrial share in export earnings and employment;

7. Encourage the private sector to participate more actively in agro-industrial development;

and

8. Accelerate agri-business development in the countryside;

In this connection, PEW shall implement the following guidelines on the

registration of Agro-Industrial Enterprises and Agro-Industrial Economic Zones, in order
to avail of incentives provided for under Republic Act No. 7916 (The Special Economic
Zone Act of 1995), as amended by Republic Act No. 8748.

IV. COVERAGE

These Guidelines shall cover the PEZA registration and the grant of fiscal and non-
fiscal incentives to Agro-Industrial Economic Zone Developer/Operators and Agro-
Industrial Economic Zone Enterprises, as provided under R.A. No. 7916, as amended.

1. Location

PEZA-registered Agro-Industrial Economic Zones shall be located in priority areas

outside of the National Capital Region (NCR), identified by the Department of Agriculture
(DA) and/or the Bureau of Fisheries and Aquatic Resources (BFAR), which are suitable
for the processing of agricultural and aquatic products, consistent with the Agriculture and
Fisheries Modernization Act.

2. Landholding Rights

A PEZA-registered Agro-Industrial Economic Zone Developer/Operator shall have

proof of ownership or right authority to use the land subject of the Agro- Industrial
Economic Zone and shall be responsible for the management and operation of such Agro-
Industrial Economic Zone. An Agro-Industrial Economic Zone may serve as location for
Filipino, foreign and/or joint venture enterprises engaged in Agro-processing and related

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activities, registered or given locational clearance by PEZA. Location of an enterprise
establishment in an Agro-Industrial Economic Zone, therefore, shall not automatically
entitle the enterprise to avail of incentives provided under R.A. No. 7916, as amended.

3. Area

Agro-Industrial Estate to be developed into an Agro-Industrial Economic Zone

shall have a minimum area of five (5) hectares.

4. Registrable Activities and Fiscal Incentives

The "National list" of the 2006 Investment Priorities Plan (IPP) on activities
registrable with the Board of Investments to avail of incentives includes commercial
production and commercial processing of agricultural and fishery products including their
by-products and wastes, under the category of "Preferred Activities".

The following enterprises, activities and facilities, may be considered for PEW-
registration to avail of fiscal and non-fiscal incentives provided for under R.A. No. 7916,
as amended:

a. Agro-Industrial Ecozone Developer/Operator shall be entitled to the special 5% tax on

gross income earned, in lieu of all national and local taxes, except real property taxes on
land owned by the developer operator (5% GIT incentive).

b. The PEZA-registered Agro-Industrial Ecozone Export Enterprises and Agro-Industrial

Ecozone Enterprises shall be engaged in any of the following types of activities:

1. Import-substituting commercial production and processing of agricultural crops

for bio-fuel (such as but not limited to coconut, jathropha, sugarcane, cassava, corn
and sweet sorghum).

2. Processing/Manufacturing for export of agricultural and marine products

(livestock and poultry, fruits and vegetables, aquaculture products).

3. Integrated livestock, poultry and related projects involving primary production

up to processing and export of final product.

4. Production of agricultural inputs such as feeds, veterinary drugs and vaccines,

fertilizers, and agri-chemicals for export.

5. Projects involving the processing of agricultural waste materials into a

commercially valuable product for export.

6. Bio-technology products using agricultural products as inputs or to be used as

inputs for agricultural production.

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 Support services such as cold storages and warehouses, and other facilities that shall
service primarily PEZA-registered Agro-Industrial Export Enterprises may be registered
as Economic Zone Facilities Enterprise.

AN ACT INSTITUTING A NATIONAL MARKET CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

TITLE I - PRELIMINARY PROVISIONS

SECTION 1. Name of Act - This Act shall be known and cited as the "National Market
Code of the Philippines."

SEC. 2. General Objective - It is the purpose of this Code to make public markets
responsive and effective instruments of public service as well as dynamic and viable
enterprises to strengthen the financial capabilities of cities and municipalities, thus
significantly contributing to national and local development, and towards this end, to
develop, regulate, and standardize market systems and professionalize market services.

SEC. 3. Scope of Application - This Code shall govern all public markets as hereinafter
defined, whether owned and/or managed by the government or by private groups or
individuals.

TITLE II. BASIC POLICIES AND REGULATIONS

Chapter 1. - LOCATION, ESTABLISHMENT & CONSTRUCTION

SEC. 5. Site - No public market of any kind shall be established except on sites determined
in accordance with the National Building Code, zoning laws, and applicable local
ordinances. In any case no such public market shall be established beside a national or local
road if it is deemed to cause traffic congestion due to the absence of ample parking space
within the vicinity of the market area.

SEC. 5. Establishment Requirement -- Subject to permit or licensing requirements of the

local government unit concerned, the design and construction of every public market shall
be in accordance with the provisions of existing laws.

SEC. 7. Number of Markets -- The local Sanclclunian shall taking into consideration the
economic viability of the areas, determine the number of public markets to be established

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in the city or municipality, whether owned and/or managed by the government or by private
groups or individuals based on the needs of both consumers and traders in the area.

Chapter 4. -- SERVICE AREA/FACILITIES

SEC. 28. Storage Areas -- Storage facilities such as those intended for ice and cold storage
shall be appropriately situated to facilitate efficient storage and distribution of ice and
perishable goods delivered to the market.

SEC. 29. Ramps and Stairways -- Ramps shall be strategically located for purposes of
visibility, near the approach points to the market structure, and shall conform to the
provisions of the existing accessibility law which requires buildings, institutions,
establishment and public utilities to install facilities and other devices to enhance the
mobility of disabled persons. They shall provide convenient linkages to related functional
market activities. Regular stairways shall complement the market system.

SEC. 30. Market Aisles -- To facilitate mobility, security and safety at all times, market
aisles shall be free from any obstructions. Market officials and personnel and policemen
detailed in the vicinity of the city/municipal markets shalt exercise strict vigilance
regarding this matter and enjoin strict compliance with these provisions.

SEC. 31. Weighing Scales -- The city or municipality shall provide weighing scales or the
use of consumers to safeguard them against short weighing of commodities. It shall be
located as strategic points in the public market.

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