Research Paper on Authority of Freeport Area of

Bataan (A.F.A.B.)
Group IV- B318
CHAPTER 1: The problem and it’s Background
FREE PORT ARE OF BATAAN (FAB/AFAB)
(BACKGROUND)
In 1972, the Bataan Export Processing Zone (BEPZ) became the first
official economic zone in the Philippines (thru Republic Act 5490 or
1969). The BEPZ was one of the most progressive communities in Luzon
during its first decade of operation.

The area attracted over one hundred multinational locators, Despite the
economic activity and growth in the area brought about by the
development of Subic and Clark in the 1990’s, the development in the
BEZ stagnated and then declined rapidly to put a halt to the decline of the
BEZ and to allow the zone to fulfill its original mandate to become a
catalyst for progress and development in the region and to create
employment and livelihood opportunities for the people, Congress passed
the Freeport Area of Bataan (FAB) Act (Republic Act 9728), which was
enacted into law in October 2009.

The Authority’s efforts to meet the demands of a highly competitive global

investments environment made the FAB the fastest growing Freeport in
the country. It prides itself in its highly skilled manpower pool, capable of
supporting operations in manufacturing, semiconductors and electronic,
shipbuilding, logistics, BPO, energy and tourism.

The free port area of bataan (FAB/AFAB) is located within the

municipalty of Mariveles in the province of Bataan in the Philippines with
a total land area of 1,691.55 hectares. It is accessible by land, sea and air.
The Freeport is under the administration of the Authority of the Freeport
of Bataan (AFAB).

The FAB was originally designed as an Export Processing Zone. Its

existing infrastructures include 11 Standard Factory Buildings (SFB) with
three stories each, and a total working area of 8,352 sqms. Per SFB. It is
currently home to over 70 locators engages in manufacturing products for
export ranging from tennis balls to yachts. AFAB also has two locators
using their facilities for warehousing, one locator engages in animal feeds
processing and an enterprise currently constructing a clean coal power
plant. These enterprises employ a total of 16,724 workers.

The objective of the AFAB is to revive the area and expand the Freeport.
To accomplish these objectives, the Freeport seeks to attract more locators
in the manufacturing, Business Process Outsourcing (BPO), electronics
industries and green industries, among others. It is also seeking investors
to boost its tourism capabilities by refurbishing its existing recreational
facilities. The AFAB is also targeting new investors to build hotels,
entertainment establishments, duty free shops, resorts, team-building
facilities, and sports facilities, among others, to encourage the influx of
local and foreign tourist. It also hopes to attract a medical center to the
Freeport with a view towards medical tourism. Finally, it aims to
encourage universities and colleges to locate in the area, to create and
sustain a talent pool that can service the human resource needs of the
locators.

Statement of the Problems;

1. Why is the “Authority of Freeport Area of Bataan” AFAB is one of the
FASTEST growing Freeport in the Philippines?
2. How does the AFAB maintain to be the FASTEST growing Freeport in
the Philippines?
3. Is the Illegal gambling allegation about AFAB true?
4. Did they really violate R.A 9728?
5. If AFAB really issuing visas to Chinese to as online dealers?

CHAPTER 2: Legal Basis

1. Based on the AFAB background they maintain to be the fastest growing
Freeport in the Philippines because authority efforts to meet the
demands of a highly competitive global investment environment and
the pride itself in its highly skilled manpower pool, capable of
supporting operations in manufacturing, semiconductors and
electronics, shipbuilding, logistics, BPO, energy and tourism.

2. Based on the gathered facts in Manila times issued last January 10,2016
the AFAB is really undergoing on illegal gambling inside the Freeport.
(No wonder that the AFAB is one of the fastest growing Freeport in the
Philippines).

3. Based on the gathered facts in Manila times issued last January 10,2016
the AFAB did violate R.A 9728 or the Freeport of Bataan Act of 2009,
Based on R.A 9728 “operate on its own, either directly or through a
license, other tourism-related activities, including games, amusements,
recreational and sports facilities, subject to the approval and supervision
of the Philippine Amusement and Gaming Corp. (Pagcor), Cagayan
Economic Authority Zone (CEZA), and Aurora Pacific Economic Zone
and Freeport Authority (APECO).

4. Based on the gathered facts in Manila times issued last January 10,2016
they are issuing VISA to the Chinese, and they violating R.A 7916 or
the Special Economic Zone Act of 1995 Rule XXII(12) Section 3. Sub
Section e.)Acceptance of work for compensation outside the
ECOZONE without the approval of the PEZA.

Republic of the Philippines

CONGRESS OF THE PHILIPPINES
Metro Manila

Fourteenth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the twenty seventh day of
July, two thousand nine.

Republic Act No. 9728

AN ACT CONVERTING THE BATAAN ECONOMIC ZONE

LOCATED IN THE MUNICIPALITY OF MARIVELES.
PROVINCE OF BATAAN, INTO THE FREEPORT AREA OF
BATAAN (FAB), CREATING FOR THIS PURPOSE THE
AUTHORITY OF THE FREEPORT AREA OF BATAAN (AFAB),
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled.

Section 1. Short Title. - This Act shall be known as the "Freeport Area of
Bataan (FAB) Act of 2009.

Section 2. Declaration of Policy. - It IS hereby declared the policy of the

State to actively encourage, promote, induce and accelerate a sound and
balanced Industrial, economic and social development of the country In
order to provide jobs to the people especially those in the rural areas,
increase productivity and individual and family income, and thereby
improve the level and quality of living condition through the
establishment, among others, of special economic zones in suitable and
strategic locations in the country and through measures that will attract
legitimate and productive foreign investments.

Section 3. Conversion of the Bataan Economic Zone (BEZ) into the

Freeport Area of Bataan. - The existing Bataan Economic Zone located in
the Municipality of Mariveles, Province of Bataan is hereby converted into
a special economic zone and Freeport to be known as the Freeport Area of
Bataan (FAB). The FAB shall cover the Municipality of Mariveles,
Province of Bataan.

Section 4. Governing Principles. - The FAB shall be managed and

operated under the following principles: (a) Within the framework and
limitations of the Constitution and applicable provisions of the Local
Government Code, the FAB shall be developed into and operated as a
decentralized, self - reliant and self - sustaining industrial, commercial -
trading, agro - Industrial, tourist, banking, financial and investment center
with suitable residential areas:

(b) The FAB shall continue to be provided with transportation,

telecommunications and other facilities needed to attract legitimate and
productive investments, generate linkage industries and employment
opportunities for the people of the Province of Bataan and its neighboring
towns and cities;

(c) The FAB may establish mutually beneficial economic relations with
other entities or enterprises within the country or with foreign entities or
enterprises;

(d) Foreign citizens and companies owned by non - Filipinos m whatever

proportion may set up enterprises In the FAB either by themselves or in
Joint venture with Filipinos in any sector of industry, international trade
and. commerce within the FAB;

(e) The F AB shall be managed and operated as a separate customs

territory ensuring free flow or movement of goods and capital within, into
and out of its territory;

(f) The FAB shall provide incentives such as tax and duty - free
importations of raw materials, capital and equipment to registered
enterprises located therein, However, exportation or removal of goods
from the territory of the F AB to the other parts of the Philippine territory'
shall be subject to customs duties and taxes under the Tariff and Customs
Code of the Philippines, as amended, and the National Internal Revenue
Code (NIRC) of 1997, as amended;

(g) The areas comprising the FAB may be expanded or reduced when
necessary, For this purpose, the F AB Authority which will be created
under this Act, with the concurrence of the local government units
(LGUs), in accordance with existing laws and local ordinances shall have
the power to acquire either by purchase, negotiation or condemnation
proceedings, any private lands within or adjacent to the FAB for the
following purposes: (1) consolidation of lands for FAB development; (2)
acquisition of right of way to the F AB; and (3) the protection of
watershed areas and the maintenance and improvement of its water Yield
and natural assets valuable to the prosperity of the FAB, the management
of solid and water waste and its impact to adjacent areas within the local
government concerned.

The LGU and the FAB shall provide for a mechanism to address
inappropriate exploitation of the natural environment and disruptive land
use within the jurisdiction of the FAB;

(h) Goods manufactured by the FAB enterprise shall be made available for
immediate retail sale in the domestic market, subject to the payment of
corresponding taxes on raw materials and other regulations that may be
formulated by the FAB Authority, together with the Philippine Economic
Zone Authority (PEZA), the Bangko Sentral ng Pilipinas (BSP), the
Department of Finance (DOF), the Bureau of Customs (BOC) and the
Department of Trade and Industry (DTI) in accordance with the NIRC of
1997, as amended, and the Tariff and Customs Code of the Philippines, as
amended, However, in order to protect the domestic Industries, a negative
list of industries shall be drawn up and regularly updated by the PEZA.
Enterprises engaged m industries included in such negative list shall not be
allowed to sell their products locally; and

The defense of the FAB and the security of its perimeter fence
shall be the responsibility of the National Government m
coordination with the FAB Authority and the LGUs.

Section 5. Fiscal Incentives. - The registered enterprises operating within

the FAB may be entitled to the existing pertinent fiscal incentives as
provided for under Republic Act No. 7916, as amended by Republic Act
No. 8748, also known as the Special Economic Zone Act of 1995, or those
provided under Executive Order No. 226, as amended, otherwise known as
the Omnibus Investment Code of 1987.

Section 6. Imposition of a Tax Rate of Five Percent (5%) on Gross Income

Earned. - No taxes, local and national, shall be imposed on business
establishments operating within the FAB. In lieu thereof, said business
establishments shall pay a five percent (5%) final tax on their gross
income earned in the following percentages:

One per centum (1%) to the National Government;

One per centum (1%) to the Province of Bataan;

 One per centum (1%) to the treasurer's office of the
Municipality of Mariveles; and1avvphi1

Two per centum (2%) to the Authority of the Freeport of

Area of Bataan.

Section 7. Incentive to Investors. - Any foreign national who invests an

amount of One hundred fifty thousand US dollars (US$150,000.00), either
in cash and/or equipment, in a registered enterprise shall be entitled to an
investor's visa: Provided, That he has the following qualifications:

He is at least eighteen (18) years of age;

He has not been convicted of a crime involving moral

turpitude;

He is not afflicted with any loathsome, dangerous or

contagious disease; and

He has not been institutionalized for any mental disorder

or disability.

As a holder of investor's visa, an alien shall be entitled to reside m the

Philippines while his investment subsists. For this purpose, he should
submit an annual report, m the form duly prescribed for the purpose, to
prove that he has maintained his investment in the country, should said
alien withdraw his investments from the Philippines, then the investor's
visa issued to him shall automatically expire.

Section 8. Administration, Implementation and Monitoring of Incentives. -

For the proper administration, implementation and monitoring of tax
incentives provided under this law, the following are herein mandated: (a)
The AF AB shall be responsible for the administration and implementation
of the incentives granted to its respective registered enterprises. Among
others, it shall adopt and implement systems and procedures affecting
trade and customs policies . . The BOC shall set up and establish a
custom's controlled area outside the gate of the F AB to facilitate payment
of taxes on goods entering the Philippine customs territory; and (b) The
AFAB shall likewise submit to the DOF its annual tax expenditures based
on the tax incentives granted to its registered enterprises. The DOF, for its
part, shall create a single database of all incentives provided by the
governing authority. The DOF shall monitor the incentives granted, and
submit all annual report to the President.

Section 9. Extension of Period of Availment. - The availment period of the

incentives provided herein may be extended by AF AB, in the event that
the registered enterprise has suffered operational force majeure that has
impaired its viability, equivalent thereto.

Section 10. Duration of Incentives. - Enterprises registered with AFAB

may enjoy the income tax holiday (ITH) or the net operating loss
carryover (NOLCO) granted by the authority prior to the availment of the
five percent (5%) gross income earned (GIE). Fiscal incentives under this
Act shall be terminated after a cumulative period of twenty (20) years
from date of registration or start of commercial operation, whichever is
applicable, except that it could be extended with regard to industries
deemed indispensable to national development. The industries exempted
from this provision shall be determined by the AFAB.

Section 11. Creation of the Authority of the Freeport Area of Bataan

(AFAB). - There is hereby created a body corporate to be known as the
Authority of the Freeport Area of Bataan (AFAB), hereafter referred to as
the AFAB which shall manage and operate the FAB, in accordance with
the provisions of this Act.

Section 12. Principal Office of the AFAB. - The AFAE shall maintain its
principal office in the Municipality of Mariveles, Province of Bataan, but
it may establish liaison offices within the Philippines as may be necessary
for the proper conduct of its business.

Section 13. Powers and Functions of the AFAB. - The AFAB shall have
the following functions:

To adopt, alter, use a corporate seal, to contract, lease,

buy, sell, acquire, own and dispose properties of whatever
nature;

To sue and be sued in order to carry out its duties,

responsibilities, privileges, powers and functions as
granted and provided for in this Act and to exercise the
power of eminent domain for public use and public
purpose;
To operate, administer, manage, develop, m accordance
with Executive Order No. 525, as amended, the FAB
according to the principles and provisions set forth in this
Act and to coordinate with the LGUs for the development
plans, activities and operation of the FAB;

To recommend to the President the issuance of a

proclamation to fix and delimit the site of the FAB;

To register, regulate and supervise the enterprises in the

FAB in an efficient and decentralized manner, subject to
existing laws;

To coordinate with the LGUs and exercise general

supervision over the development plans, activities and
operations of the FAB;

To authorize or undertake, on its own or through others,

and to regulate the establishment, construction, operation
and maintenance of public utilities, services, and
infrastructure in the FAB such as shipping, barging,
stevedoring, cargo, handling, hauling, warehousing,
storage of cargo, port services or concessions, piers,
wharves, bulkheads, bulk terminals, mooring areas,
storage areas, roads, bridges, reclamation projects,
terminals, conveyors, water supply and storage, sewerage,
drainage, airport operations in coordination with the Civil
Aeronautics Board, and such other services or concessions
or infrastructure necessary or incidental to the
accomplishment of the objectives of this Act: Provided,
however, That the private investors in the FAB shall be
given priority in the awarding of contracts, franchises,
licenses, or permits for the establishment, operation and
maintenance of utilities, services and infrastructure in the
FAB;

To license, set fees, regulate and undertake the

establishment, operation and maintenance of utilities,
other services, educational and medical Institutions and
infrastructure in the F AB such as, but not limited to, heat,
light and power, water supply, telecommunications,
mobile, internet and other data facilities, transport, toll
roads and bridges, port services, etc., and to fix just,
reasonable and competitive rates, fares, charges and prices
thereof;

To construct, acquire, own, lease, operate and maintain on

its own or through contracts, franchises, licenses, bulk
purchase from the private sector and build - operate -
transfer scheme, or under a Joint venture with the private
sectors, any or all of the public utilities and infrastructure
required or needed for the operation and development of
the FAB, in coordination with appropriate national and
local government authorities and in conformity with
applicable laws thereon;

To operate on its own, either directly or through a license

to other tourism - related activities, including games,
amusements, recreational and sports facilities, subject to
the approval and supervision of the Philippine
Amusement and Gaming Corporation (PAGCOR);

To raise or borrow, within the limitation provided by law,

adequate and necessary funds from local or foreign
sources, to finance its projects and programs under this
Act, and for that purpose, to Issue bonds, promissory
notes, and other forms of securities, and to secure the
same by a guarantee, pledge, mortgage, deed of trust, or
an assignment of all or part of its property or assets;

To provide security for the F AB in coordination with

the national and local governments.ten.lihpwal For
this purpose, the AFAB may establish and maintain
its security forces and firefighting capability or hire
others to provide the same. In the event that an
assistance of the military force is necessary, it shall
not interfere in the internal affairs of the FAB except
to provide the necessary security and defense, and
their expenses shall be borne by the National
Government;
 To protect, preserve, maintain and develop the virgin
forests, beaches, coral and coral reefs, and maintain
ecological balance within the FAB. For this purpose, the
rules and regulations of the Department of Environment
and Natural Resources (DENR) and other government
agencies involved in the above functions shall be
implemented by the AFAB;

To create, operate and/or contract to operate such

functional units or offices of the AFAB as it may deem
necessary;

To issue certificates of origin for products manufactured

or processed in the FAB;

To Issue rules and regulations consistent with the

provisions of this Act as may be necessary to implement
and accomplish the purposes, objectives and policl8s
provided herein;

To exercise such powers as may be essential, necessary or

incidental to the powers granted to it hereunder as well as
those that shall enable It to carry out, implement and
accomplish the purposes, objectives and policies of this
Act; and

To be vested with other powers enjoyed or exercised by

other free port zone authorities.

Section 14. Board of Directors of the FAB. - The powers of the AFAB
shall be vested in and exercised by a Board of Directors, hereinafter
referred to as the Board, which shall be composed of the following:

The chairman who shall, at the same time, be the

administrator of the AFAB;

A vice chairman who shall come from among the

members of the Board;

Members consisting of:

 Two (2) representatives from the National
Government;

One (1) representative from the Province of

Bataan;

One (1) representative from the district

covering the site of the FAB;

One (1) representative from the Municipality of

Mariveles, Province of Bataan;

One (1) representative from the domestic

investors;

One (1) representative from the foreign

investors; and

One (1) representative from the workers

working in the FAB.

The chairman and the members of the Board, shall be appointed by the
President of the Philippines to serve for a term of six (6) years, unless
sooner separated from service due to death, voluntary resignation or
removal for cause. In case of death, resignation or removal for cause, the
replacement shall serve only the unused portion of the term.

Except for the representatives of the business and labor sectors, no person
shall be appointed by the President of the Philippines as a member of the
Board unless he is a Filipino citizen, of good moral character, of proven
probity and integrity, and a degree holder in any of the following fields:
economics, business, public administration, law, management or their
equivalent, and with at least ten (10) years relevant working experience
preferably m the field of management or public administration.

The members of the Board shall each receive per diem at rates to be
determined by the Department of Budget and Management (DBM) in
accordance with existing rules and regulations: Provided, however, That
the total per diem collected each month shall not exceed the equivalent per
diem for four (4) meetings.
Section 15. Powers and Duties of the Chairman-Administrator. - The
chairman - administrator shall have the following powers and duties:

To direct and manage the affairs of the AFAB in

accordance with the policies of the Board;

To establish the internal organization of the AFAB under

such conditions that the Board may prescribe;

To submit an annual budget and necessary supplemental

budget to the Board for Its approval;

To submit within thirty (30) days after the close of each

fiscal year an annual report to the Board and such other
reports as may be required;

To submit to the Board for its approval policies, systems,

procedures, rules and regulations that are essential to the
operation of the AFAB;

To create a mechanism m coordination with relevant

agencies for the promotion of industrial peace, the
protection of the environment, and the advancement of the
quality of life m the FAB; and

To perform such other duties as may be assigned to him

by the Board or which are necessary or incidental to his
office.

Section 16. Organization and Personnel. - The AF AB Board of Directors

shall provide for an organizational structure and appoint employees,
subject to the civil service law. Upon the recommendation of the chairman
- administrator and with the approval of the Secretary of the DTI, the
Board shall appoint and fix the remuneration and other emoluments of its
officers and employees in accordance with existing laws on compensation
and position classification: Provided, That the Board shall exercise
administrative supervision on their employees.

The officers and employees of the AFAB, including all members of the
Board, shall not engage directly or indirectly in partisan activities nor take
part in any election, except to vote.
No officer or employee of the AFAB, subject to civil service laws and
regulations, shall be removed or suspended except for cause, as provided
by law.

Section 17. Labor Center. - A labor center shall be established within' the
FAB. This center shall be responsible for studying and amicably settling
professional and labor relations and disputes, interpretation of employment
contracts, and monitoring work, hygiene and safety standards within the
FAB. The labor center shall comprise a labor office, an industrial health
and safety office, and an inspection and disputes office.

Section 18. Banking Rules and Regulations. - Existing banking laws and
rules/regulations of the BSP shall apply to banks and financial institutions
to be established in the FAB.

Section 19. Remittances. - In the case of foreign investments, a registered

enterprise m the Bataan Ecozone shall have the right to remit earnings
from the investment in the currency m which the investment was originally
made and at the exchange rate prevailing at the time of remittance, subject
to the provisions of Section 74 of Republic Act No. 265, as amended.

Section 20. Applicability Clause. - The provisions of Sections 30-41 of

Republic Act No. 7916, otherwise known as "The Special Economic Zone
Act of 1995", as amended, shall likewise apply to the FAB.

Section 21. Capitalization. - The AFAB shall have an authorized capital

stock of Two billion pesos (Php2,000,000,000.00), with option to. increase
capitalization upon the discretion of the AF AB, divided into twenty
thousand (20,000) no - par shares fully subscribed and paid up by the
Republic of the Philippines with: (a) All lands embraced and covered by
the F AB, as well as permanent improvements and fixtures upon proper
inventory not otherwise alienated, conveyed, or transferred to another
government agency; (b) All other assets which the President may transfer
to the AFAB as part of the equity contribution of the government; and (c)
Cash contribution by the government in the amount of Five hundred
million pesos (Php500,000,000.00) a year for the next five (5) years,
which is hereby appropriated out of any fund in the National Treasury not
otherwise appropriated.
Section 22. Supervision and Control. - For purposes of policy direction
and coordination, the AF AB shall be under the direct control and
supervision of the Office of the President of the Philippines.

Section 23. Regional Development Council. - The AFAB shall determine

the development goals for the FAB within the framework of national
development plans, policies and goals. The administrator shall, upon
approval by the Board, submit the FAB plans, programs and projects to the
Regional Development Council for inclusion and inputs to the overall
regional development plan.

Section 24. Relationship with Local Government Units. - Except as herein

provided, the Municipality of Mariveles in the Province of Bataan shall
operate and function in accordance with the Local Government Code of
1991. In case of any conflict between the AFAB and the local government
units (LGUs) and the National Government (NG) on matters affecting the
FAB other than defense and security matters, the decision of the AFAB
shall prevail.

Section 25. Legal Counsel. - The AFAB shall have its own internal legal
counsel under the supervision of the Government Corporate Counsel.
When the exigencies of its businesses and operations demand, the AFAB
may engage the services of an outside counsel either on a c a s e - t o - c a
s e or on a fixed retainer basis.

Section 26. Interpretation/ Construction. - The powers, authorities and

functions that are vested m the AFAB are intended to establish
decentralization of governmental functions and authority and promote an
efficient and effective working relationship between the AFAB, the
National Government and the LGU.

Section 27. Audit. - The Commission on Audit shall appoint a full - time
auditor in the AFAB or may assign such number of personnel as may be
necessary in the performance of their functions.

Section 28. Transitory Provisions. - All properties, assets, funds, rights,

obligations, and liabilities are hereby transferred to the AFAB except for
the liabilities that are not properly accounted for as per the reports coming
from the Commission on Audit, which shall be retained by the PEZA.
The AFAB shall be responsible for the operations, administration,
management and development of the FAB. The AFAB shall effect the
transfer herein provided m a manner that will ensure the least disruption of
ongoing programs of the BEZ. The qualified and necessary personnel of
the BEZ shall be transferred to and absorbed by the AF AB: Provided,
That the tenure, rank, salaries and privileges of such personnel are not
reduced or adversely affected. The personnel whose services are not
retained by the AFAB shall be granted separation pay and retirement and
other benefits they are entitled to under existing laws but in no case shall
the separation pay be less than one (1) month for every year of service.

In the period prior to the actual assumption of duties by the AF AB, all
officers and employees of the BEZ shall continue to exercise their
functions and discharge their duties and responsibilities. The BEZ shall be
deemed abolished upon the organization of the AF AB.

Section 29. Implementing Rules and Regulations. - The DTI, the DOF, the
LGU and the Department of the Interior and Local Government shall
formulate the implementing rules and regulations of this Act within ninety
(90) days after its approval. Such rules and regulations shall take effect
fifteen (15) days after their publication in a newspaper of general
circulation in the Philippines.

Section 30. Separability Clause. - If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected
shall remain m full force and effect.

Section 31. Repealing Clause. - Republic Act No. 5490 and Presidential
Decree No. 66 are hereby amended. All laws, executive orders or
issuances or any part thereof which are inconsistent herewith are hereby
repealed or amended accordingly.

Section 32. Effectivity Clause. - This Act shall take effect upon its
publication in at least one (1) newspaper of general circulation.

Approved,

JUAN PONCE ENRILE PROSPERO C. NOGRALES

President of the Senate Speaker of the House of
Representatives
This Act which is a consolidation of Senate Bill No. 2118 and House Bill
No. 5344 was finally passed by the Senate and the House of
Representatives on September 14, 2009 and September 16,2009,
respectively.

EMMA LIRIO-REYES MARILYN B. BARUA-YAP

Secretary of the Senate Secretary General House of
Representatives
CHAPTER 3: Methods and Procedures

For importers to register as an importer, businesses first need an Import

Clearance Certificate from the Bureau of Internal Revenue. Importers then
register with the Bureau of Customs (BOC) and set up an account with the
Client Profile Registration System (CPRS). The Import Clearance
Certificate is valid for three years while the Customs Client Profile
Accreditation must be updated annually. The CPRS accreditation costs
P1000 (US$20) and typically takes 15 working days to process.

Required documents:
for importers Businesses importing into the Philippines must provide the
following documents when their goods arrive:
Packing list;
Invoice:
Bill of lading;
Import Permit;
Customs Import Declaration; and
Certificate of Origin.
Additional documents for certain imports, Importers bringing in animals,
plants, foodstuff, medicine or chemicals must additionally obtain a
Certificate of Product Registration from the Philippines’ Food and Drug
Administration.

Movement of Goods:
Within the Zone:
Free Zones shall have the responsibility to monitor the movement of
goods within the Free Zone where the goods were admitted, provided that
the Free
Zones shall share such information with the Bureau.
Into and From Free Zones:
Transfer of Goods from one Free Zone into another Free Zone shall be
covered by the necessary Transit permit.
Withdrawal of Goods from Free Zones:
Imported Goods shall be withdrawn from the Free Zone for Entry to the
Customs Territory when the Goods Declaration is electronically lodged,
together with required documents at the time of the withdrawal from the
Free Zone upon payment of appropriate duties and taxes, if any. If the
goods declaration is not lodged electronically or manually, the imported
goods shall not be transferred to the warehouse of the Free Zone Locators.

In case of withdrawal of imported goods from Free Zones for introduction

to the Customs Territory, the duty rate at the time of withdrawal shall be
applicable on the goods originally admitted, whether withdrawn in its
original or advanced form. However, the Value Added Tax (VAT) due
shall be computed based on the selling price at the time of withdrawal
from Free Zones to be paid by the locator, importer or the buyer.
Withdrawal from the Free Zone into the Customs Territory shall be
covered by the necessary Goods Declaration for consumption or
warehousing.

Business Registration & Licensing Procedure:

Application and assessment:
Client, submit the following requirements;
- Business permit Application form
- DTI business Name Certificate:
- For corporation- SEC registration.
- For cooperative- CDA certificate.
- For drugstore/pharmacy- BFAD certificate.
- For schools- DECS certificate/accreditation.
- Barangay Clearance for business
- Sanitary Permit
- Community Tax Certificate
- Zoning/Location Clearance- MPOD
- BIR Registration Tax
- Identification Number (TIN)
- SSS Clearance
- Philhealth Clearance
- Pag-ibig Clearance
- Market Clearance ( For Mariveles Public Market Stallholder only)
- Financial Statement

Payment:
Client, proceed to cashier to payment.
-BPLO Staff: Accept and process payment for issuance of OR.

Releasing:
Client, proceed to mayor’s office and present O.R and get the Mayor’s
Permit/Business Permit.
-BPLO Staff: Issue’s mayor’s permit/business permit (1 signatory)

Section 4. Governing Principles. - The FAB shall be managed and

operated under the following principles: (a) Within the framework and
limitations of the Constitution and applicable provisions of the Local
Government Code, the FAB shall be developed into and operated as a
decentralized, self - reliant and self - sustaining industrial, commercial -
trading, agro - Industrial, tourist, banking, financial and investment center
with suitable residential areas:

(b) The FAB shall continue to be provided with transportation,

telecommunications and other facilities needed to attract legitimate
and productive investments, generate linkage industries and
employment opportunities for the people of the Province of Bataan
and its neighboring towns and cities;

(c) The FAB may establish mutually beneficial economic relations

with other entities or enterprises within the country or with foreign
entities or enterprises;

(d) Foreign citizens and companies owned by non - Filipinos m

whatever proportion may set up enterprises In the FAB either by
themselves or in Joint venture with Filipinos in any sector of
industry, international trade and. commerce within the FAB;

(e) The F AB shall be managed and operated as a separate customs

territory ensuring free flow or movement of goods and capital
within, into and out of its territory;

(f) The FAB shall provide incentives such as tax and duty - free
importations of raw materials, capital and equipment to registered
enterprises located therein, However, exportation or removal of
goods from the territory of the F AB to the other parts of the
Philippine territory' shall be subject to customs duties and taxes
under the Tariff and Customs Code of the Philippines, as amended,
and the National Internal Revenue Code (NIRC) of 1997, as
amended;

(g) The areas comprising the FAB may be expanded or reduced

when necessary, For this purpose, the F AB Authority which will be
created under this Act, with the concurrence of the local government
units (LGUs), in accordance with existing laws and local ordinances
shall have the power to acquire either by purchase, negotiation or
condemnation proceedings, any private lands within or adjacent to
the FAB for the following purposes: (1) consolidation of lands for
FAB development; (2) acquisition of right of way to the F AB; and
(3) the protection of watershed areas and the maintenance and
improvement of its water Yield and natural assets valuable to the
prosperity of the FAB, the management of solid and water waste and
its impact to adjacent areas within the local government concerned.

The LGU and the FAB shall provide for a mechanism to address
inappropriate exploitation of the natural environment and disruptive
land use within the jurisdiction of the FAB;

(h) Goods manufactured by the FAB enterprise shall be made

available for immediate retail sale in the domestic market, subject to
the payment of corresponding taxes on raw materials and other
regulations that may be formulated by the FAB Authority, together
with the Philippine Economic Zone Authority (PEZA), the Bangko
Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the
Bureau of Customs (BOC) and the Department of Trade and
Industry (DTI) in accordance with the NIRC of 1997, as amended,
and the Tariff and Customs Code of the Philippines, as amended,
However, in order to protect the domestic Industries, a negative list
of industries shall be drawn up and regularly updated by the PEZA.
Enterprises engaged m industries included in such negative list shall
not be allowed to sell their products locally; and

(i) The defense of the FAB and the security of its perimeter fence
shall be the responsibility of the National Government m
coordination with the FAB Authority and the LGUs.

PROCESSING OF HAZARDOUS WASTE

FOR -EXIT FROM AFAB:
- Who may avail of the service?: FAB registered enterprises
- What are requirements?:
- Original copy of permit to transport or export clearance
- Original or Certified copy of transport/hauler’s EMB
registration certificate
- Seven copies of completely filled out uniform hazardous
manifest form
- Transport hauler’s personnel certificate of training on
hazardous waste handling and transport
- Transport hauler’s emergency response/continuous plan
- Transport hauler’s emergency response equipment/personnel
protective equipment
- Properly contained and labeled hazardous waste
- Authorized/Accredited transport vehicle

WASTE MATERIALS CLASSIFIED AS:

Hazardous Waste: Hazardous waste listed in table 1,DENR
Administrative Order 36, 5. 2004
Duration: 2hours and 40minutes

How to avail this services?:

Step 1: Submit Documentary Requirements,

- Checks and evaluates documentary requirements
- If requirements are satisfied, conducts inspection using the
Hazardous Waste Transport Inspection Checklist;
- If requirements are not satisfied, advise the applicant to rework
requirements,

Stamps and approve documents, issues control number, then records

in Hazardous waste logbook.

Step 2: Receives and approved documentary requirements and signs

in the Hazardous waste logbook.
- Issues approved documentary requirements advises applicant to
sign in the Hazardous waste logbook.

PROCESSING OF ENVIRONMENTAL AND

SAFETY CERTIFICATE:

- Who may avail of the services: FAB Registered Enterprises

- What are requirements:
- Environmental compliance certificate/Certificate of non-
coverage
- Certificate of interconnection
- Compliance to environmental laws and safety standards
- How to avail this services:

Step 1: Submit request for issuance of Permit to Operate and

Documentary requirements
- Receives request for issuance of Permit to Operate schedules
inspection and client for the schedule of inspections
- If requirements are satisfied conducts inspection
- If requirements are not satisfied advise applicant to rework
requirements

Step 2: Present list of Electro-Mechanical Equipment

- Receives list of Electro-Mechanical Equipment, prepares
Billing assessment and endorse to Accounting Staff
- Issues official billing statement and returns to EUD Staff
- Delivers official billing to client

Step 3: Pays assessed Amount

- Process Payment

Step 4: Submits photocopy of O.R to EUD Staff

- Received photocopy of O.R prepares permit to Operate
(PTO) land endorses to the FFD Department Manager
- Signs the PTO and endorse to the Chairman and
Administrator
- Sign the PTO and resume to EUD staff

Step 5: Receives PTO and signs the receiving copy

- Issues PTO and advises applicant to sign in the concerning
copy
CHAPTER 4: Presentation, Analysis and
Interpretation
Introduction

The purpose of this study is to identify if Authority of Freeport Area of

Bataan is one of the fastest growing Freeport in the Philippines and if the
illegal allegations to AFAB were true.

The objective of this research were to determine

 How does the AFAB maintain to be the FASTEST growing Freeport

in the Philippines?

 Is the Illegal gambling allegation about AFAB true?

 Did they really violate R.A 9728?

 If AFAB really issuing visas to Chinese to as online dealers?

Summary of Data

How does the AFAB maintain to be the FASTEST growing Freeport

in the Philippines?

AFAB meets the demands of a highly competitive global investment. FAB

is highly skilled with manpower and capable of supporting operations in
manufacturing, logistics, energy and tourism.
AFAB ranks the highest in the human development index in Region 3, also
ranking the 4th nationwide and with the biggest manpower-training facility
situated at the FAB itself. Locators are assured of capable and well-
equipped workers thus making AFAB one of the fast growing Freeport in
the Philippines.

Is the Illegal gambling allegation about AFAB true?

Based on the gathered facts in Manila times issued last January 10, 2016.
AFAB, under board chairman and administrator Deogracias G.P.
Custodio, has allegedly allowed the freeport to become a hub for illegal
online gambling operations.
The AFAB authorized the Grand Innovasia Concept Corp., a locator, as a
“master licensor” of online international casino operators

Dozens of gambling lords have reportedly set up their illicit operation,

which has become a multi-million dollar business at the freeport. Which
were granted by the GICC to operate at the freeport

Did they really violate R.A 9728

Under R.A 9728 “operate on its own, either directly or through a license,
other tourism-related activities, including games, amusements, recreational
and sports facilities, subject to the approval and supervision of the
Philippine Amusement and Gaming Corp. (Pagcor), Cagayan Economic
Authority Zone (CEZA), and Aurora Pacific Economic Zone and Freeport
Authority (APECO)”

The gambling operations that were allowed by AFAB has no approval of

PAGCOR which conclude to the invalid licenses which were issued by the
GICC.

Is AFAB really issuing visas to Chinese to as online dealers?

Based on the gathered facts in Manila times issued last January 10, 2016
they are issuing VISA to the Chinese, and they violating R.A 7916 or the
Special Economic Zone Act of 1995 Rule XXII(12) Section 3. Sub Section
e.)Acceptance of work for compensation outside the ECOZONE without
the approval of the PEZA..

They were issuing VISAs to the Chinese to work as call center agents or
customer service representatives to this illegal gambling establishments.
CHAPTER 5: Summary, Conclusion,
Recommendation and References
Summary

In 1972, the Bataan Export Processing Zone (BEPZ) turned into the main
authority financial zone in the Philippines (through Republic Act 5490 or
1969). The BEPZ was a standout amongst the most dynamic groups in
Luzon amid its first decade of activity. The zone pulled in more than one
hundred multinational locators, Despite the monetary action and
development in the region achieved by the advancement of Subic and
Clark in the 1990's, the improvement in the BEZ stagnated and afterward
declined quickly to put a stop to the decay of the BEZ and to enable the
zone to satisfy its unique command to wind up an impetus for advance and
improvement in the district and to make business and employment open
doors for the general population, Congress passed the Freeport Area of
Bataan (FAB) Act (Republic Act 9728), which was ordered into law in
October 2009. The Authority's endeavors to meet the requests of an
exceedingly focused worldwide ventures condition made the FAB the
quickest developing Freeport in the nation.

It values its very gifted labor pool, fit for supporting activities in
assembling, semiconductors and electronic, shipbuilding, coordination,
BPO, vitality and tourism. The free port region of Bataan (FAB/AFAB) is
situated inside the municipality of Mariveles in the territory of Bataan in
the Philippines with an aggregate land zone of 1,691.55 hectares. It is open
via land, ocean and air. The Freeport is under the organization of the
Authority of the Freeport of Bataan (AFAB). The FAB was initially
planned as an Export Processing Zone. Its current foundations incorporate
11 Standard Factory Buildings (SFB) with three stories each, and an
aggregate working zone of 8,352 sqms. Per SFB.

It is at present home to more than 70 locators takes part in assembling

items for send out going from tennis balls to yachts. AFAB likewise has
two locators utilizing their offices for warehousing, one locator
participates in creature nourishes handling and an endeavor right now
developing a perfect coal control plant. These endeavors utilize an
aggregate of 16,724 laborers. The goal of the AFAB is to restore the zone
and extend the Freeport. To achieve these destinations, the Freeport looks
to draw in more locators in the assembling, Business Process Outsourcing
(BPO), hardware enterprises and green ventures, among others. It is
likewise looking for financial specialists to help its tourism abilities by
repairing its current recreational offices.

The AFAB is additionally focusing on new speculators to manufacture

lodgings, diversion foundations, obligation free shops, resorts, group
building offices, and games offices, among others, to support the
inundation of nearby and remote traveler. It likewise would like to draw in
a restorative focus to the Freeport with a view towards therapeutic tourism.
At long last, it means to urge colleges and universities to situate in the
region, to make and manage an ability pool that can benefit the human
asset needs of the locators. In light of the AFAB foundation they keep up
to be the quickest developing Freeport in the Philippines since specialist
endeavors to meet the requests of an exceptionally focused worldwide
venture condition and the value its very talented labor pool, fit for
supporting activities in assembling, semiconductors and hardware,
shipbuilding, coordinations, BPO, vitality and tourism. In light of the
assembled certainties in Manila times issued last January 10,2016 the
AFAB is truly experiencing on illicit betting inside the Freeport. (No big
surprise that the AFAB is one of the quickest developing Freeport in the
Philippines). In view of the accumulated actualities in Manila times issued
last January 10,2016 the AFAB violated R.A 9728 or the Freeport of
Bataan Act of 2009, Based on R.A 9728 "work individually, either
specifically or through a permit, other tourism-related exercises, including
diversions, entertainments, recreational and sports offices, subject to the
endorsement and supervision of the Philippine Amusement and Gaming
Corp. (Pagcor), Cagayan Economic Authority Zone (CEZA), and Aurora
Pacific Economic Zone and Freeport Authority (APECO).

In light of the assembled actualities in Manila times issued last January

10,2016 they are issuing VISA to the Chinese, and they damaging R.A
7916 or the Special Economic Zone Act of 1995 Rule XXII(12) Section 3.
Sub Section e.)Acceptance of work for pay outside the ECOZONE without
the endorsement of the PEZA. It IS hereby declared the policy of the State
to actively encourage, promote, induce and accelerate a sound and
balanced Industrial, economic and social development of the country In
order to provide jobs to the people especially those in the rural areas,
increase productivity and individual and family income, and thereby
improve the level and quality of living condition through the
establishment, among others, of special economic zones in suitable and
strategic locations in the country.

Conclusion

These are regions assigned by the legislature for advancement into

adjusted farming, modern, business, and traveler/recreational locales. Each
Ecozone is to be created as a free group with least government obstruction.
It should oversee its own particular monetary, budgetary, modern and
tourism advancement without assistance from the national government. It
might likewise furnish satisfactory offices to set up linkages with
encompassing groups and different substances inside the nation.
Motivators conceded by PEZA might apply just to enlisted Ecozone
organizations and just amid the time of their enrollment with PEZA.

Fare undertakings enlisted under the Export Processing Zone Authority

might keep on enjoying their present motivators. Nonetheless, PEZA
undertakings whose Income Tax Holiday has officially lapsed will be
liable to the exceptional 5% assess rate as gave in the Act. In compatibility
of these arrangements, the legislature should effectively empower,
advance, initiate and quicken a sound and adjusted mechanical, monetary
and social advancement of the nation keeping in mind the end goal to give
occupations to the general population extraordinarily those in the rustic
territories, increment their profitability and their individual and family
salary, and in this manner enhance the level and nature of their living
condition through the foundation, among others, of exceptional financial
zones in appropriate and vital areas in the nation and through measures
that might viably pull in real and beneficial outside speculations.

Recommendation

Following a noteworthy execution a year ago, the Authority of the

Freeport Area of Bataan (AFAB) is idealistic that the nation's first fare
preparing zone will proceed with its exceptional record. AFAB executive
and head Emmanuel Pineda featured the most recent turning point of the
ecozone in Mariveles town, who accomplished an aggregate of P13 billion
ventures from 2010 to 2017 out of the enrolled 125 operational locators.
As per Pineda, the great execution of AFAB has additionally added to
territorial development by expanding the work rate in Central Luzon.
He said the quantity of locators in the FAB rose to 37,455 laborers as of
December 2017 from 12,000 of every 2011. The AFAB seat refers to the
expanding nearness of financial specialists from Asian, European and
American in the ecozone as key to the advancement of the zone's eco-
mechanical status. Pineda said locators are headed to put resources into
FAB due to its nearness to Manila Bay region and the nation's capital
district. Another favorable position of the FAB is its availability to Manila
global air terminal and its connect to Clark Ecozone in Angeles City,
Pampanga area and the Subic Bay Metropolitan Authority.

Bataan Gov. Abet Garcia has elucidated that web based betting is
permitted in the region by righteousness of the order given to the
Authority of Freeport Area of Bataan (AFAB) to work its own particular
betting gambling clubs, web based gaming and other tourism-related
exercises. Garcia, a previous congressman, is the vital creator of Republic
Act 9728 that made the AFAB.

Under the updated executing standards and controls of R.A. 9728, AFAB
can "control individually, either specifically or through a permit to other
tourism-related exercises, including diversions, entertainments, betting
gambling clubs, horse dashing and canine hustling, recreational and sports
offices, subject to endorsement and supervision of PAGCOR, which
endorsement must not be absurdly witheld… "

The illumination was made by Garcia amid a current discourse went to by

top government and police authorities, AFAB director and head
Emmanuel Pineda. "It is clear under RA 9728 that AFAB can work web
based gaming, betting gambling clubs, and so on as this will create pay
and business," Garcia said.

Fantastic Innovasia Concept Corp (GICC), drove by its leader Sheryl

Tancio Lou Xiaojing, had prior communicated profound concern and
trepidation following the attack directed at Fortune Leisure Park last Nov.
25 in Clark.

GICC is the elite ace licensor working a web based gaming inside Bataan
Freeport. Pineda, as far as it matters for him, focused on that the
occurrence has influenced their locators and future financial specialists and
"making strain, fears, anexiety and vulnerability."
Pineda said they have gotten data in regards to an approaching assault by
specialists to web based gaming administrators, saying this is a genuine
issue that made worry locators. (Blemish SUPNAD)

References:

http://invest.bataan.gov.ph

https://www.aseanbriefing.com/news/2017/06/23/imp
ort-and-export-procedures-in-the-philippines-best-
practices.html

http://customs.gov.ph/wp-
content/uploads/2014/04/Free-Zones-and-
Transit.pdf

http://invest.bataan.gov.ph/ease-of-doing-
business/business-registration-licensing-procedure/
http://www.manilatimes.net/illegal-online-casinos-
swamp-bataan-freeport/238306/

R.A 9728 Section 4,

https://www.lawphil.net/statutes/repacts/ra2009/ra_
9728_2009.html
AFAB TOUR
https://www.lawphil.net/statutes/repacts/ra2009/ra_
9728_2009.html
INDIVIDUAL LEARNINGS:

B318

GROUP #4:

- Sibal, Angelica Rose

- Sollano, Ashley
- Prada, Christian Lorenz
- Sapasap, Ella
- Santos, Jan Miguel
- Santos, Maverick
- Quimirista, Jayar
- Tolentino, Keannie
- Penero, Kimberly
- Roman, Kyle
- Sobvrevega, Marc Angelo
Maverick S. Santos
B318

Understandings About AFAB tour/research:

I learned that the PEZA is different from the ordinary port of entry, I thought that all
the documents used in the ordinary port of entry is used also in a PEZA locator, and they
have also so called ETAPS short for Electronic Transit Admission Permit System an Import
process which is a web-based system that allows locators online preparation and single
submission of admission permit application in lieu of the current Import Permit, BOC Import
Entry Declaration and other documents such as warehouse entry, transshipment and other
documents and if they have ETAPS for Import transaction they also have AEDS short for
Automated Export Documentation System, an Export process which is also an electronic
web-based system for the filing and processing of export documents of Ecozone Export
Enterprises (EEEs) and Ecozone Logistics Service Enterprises (ELSEs) with an online
facility for payment of Export Processing Fee (EPF) using an auto-debit cash advance
scheme. It’s so amazing how they manage to use electronics and how highly skilled they are
when it comes to processing documents just like other port of entry but PEZA is one of the
fastest growing Freeport in the country because of their highly skilled manpower pool and
they are also capable of supporting operations in manufacturing, semiconductors etc. I was so
lucky that I have participated in this kind of tour/research because I’ve learned a lot of things
and the things I learned can help me for my future job.
Angelica Rose Sibal
B318

The Philippine Economic Zone Authority (PEZA) is a Department of Trade and industry
agency tasked to perpetually flip the Philippines into a principal destination for investments.
It promotes the countrys aggressiveness by facilitating the business operations of foreign
entities in export-oriented producing and service facilities inside the Special Economic
Zones. it's underneath The Special Economic Zone Act of 1995 or RA 7916 with the goal of
encouraging and promoting the institution and development of economic zones (ecozones) in
known and designated areas within the country.

Export enterprises within the Philippines like outsourcing and offshoring operations that area
unit in hand by foreign firms will value more highly to register with PEZA. The Philippine
government offers edges and incentives within the kind of tax holidays and exemptions to
encourage investment. Tax incentives generally rely on the geographic location of a business.

Being licenced by PEZA opens the door for businesses to not solely thrive, but to require
advantage of the benefits that would save them cash.

PEZA registration typically takes twenty one days from the submission of documentary
necessities. However, it depends on the supply of the board and if all the specified and
necessary documents were provided.
Kimberly Penero
B318

WIFM (What's In It For Me)

First, I never expected myself to go in AFAB's location and to have that as an opportunity to
hear the seminar for a research purposes. From there, I learned about AFAB's background,
their main functions, their methods and processes, their policies, the different requirements
together with the legal basis and the different benefits that I can get if I'm a registered
enterprise operating within the AFAB. Second, I was so touched slowly knowing that AFAB
is not only performing to actively encourage, promote, induce and accelerate a sound and
balanced industrial, economic and social development of the country in order for providing
jobs to the people especially those in the rural areas, but also they increase productivity and
individual and family income for the improvement of level and quality of living condition
through the establishment, among others, of special economic zones in suitable and strategic
locations in the country. Through that, it is the way and measures to attract legitimate and
productive foreign investments. Lastly, while we're in our tour in AFAB, I realized that there
are different types of taxes and incentives that we may receive if we are a registered
enterprise there. I was also amazed that I saw different stages or types of rocks and sands in
the said facility/warehouse/yard because for all of my life, I didn't know that our country can
really export/re-export rocks or sands to others countries. I thought we are creating our own
rocks and sands, since we've been using mining for years now because our country is rich in
natural resources. I'm very thankful for the knowledge we gathered from the tour and to
research we conducted also we got to see the glimpse of what it looks like within AFAB.
Prada, Christian Lorenz A.
B318

In 1972, the Bataan Export Processing Zone (BEPZ) became the first official economic zone
in the Philippines (thru Republic Act 5490 of 1969). The BEPZ was one of the most
progressive communities in Luzon during its first decade of operation. The area attracted over
one hundred multinational locators. Despite the economic activity and growth in the area
brought about by the development of Subic and Clark in the 1990s, the development in the
BEZ stagnated and then declined rapidly. BEZ and to allow the zone to fulfil its original
mandate to become a catalyst for progress and development in the region and to create
employment and livelihood opportunities for the people, Congress passed the Freeport Area
of Bataan (FAB) Act (RA 9728), which was enacted into law in October 2009. This Act
converted the BEZ into the FAB, a special economic zone and Freeport with a dedicated
governing authority, the Authority of the Freeport Area of Bataan (AFAB).

I learned AFAB’s background their functions, the methods and processes in documentation
and their policies. The AFAB has its own documentary processes they have ETAPS or
Electronic Transit Admission Permit System for import and it is web-based system. They
give incentives to their investors. AFAB promotes economic and social development for the
country. The Philippine government offers edges and incentives within the kind of tax
holidays and exemptions to encourage investment. Tax incentives generally rely on the
geographic location of a business, AFAB is one of the fastest growing Freeport in the country
because of their highly skilled manpower and manufacture good.
Marc Sobrevega
B318

"Our visit/tour in AFAB has shown us the many possibilities for Pilipino business
opportunities towards exportation and importation. Many laws were approves or amended for
the goal of investment in the Philippines and give Pilipino employment, however for one to
gain such benefits one must also follow the requirements needed to gain such incentives. It’s
not as simple as just filing a simple form but must show the trust needed. AFAB also show us
the needed documentation for such importation and exportation, incentives to its clients, and
its history and importance to the economic world in the Philippines. I have learned that as a
Bachelor of Science in Customs Administration Student for an effective and sufficient
business like a Freeport zone it does not require the knowledge of memorizing documents or
laws but the proving of one’s faith and good moral character in such profession."

Jayar Quimirista
B318

(WIFM) What’s in It for Me? Authority of the Free Port Area of Bataan/ AFAB
: AFAB tour really help me to learn more about Free Port Zone, specially the history of
Bataan Export Processing Zone (BEPZ) and how it turned to be AFAB. This tour helps me to
know the opportunities that Free Port gives to its clients, the incentives given by the AFAB
really helps those manufacturers to grow and how different commodities being imported and
exported from the AFAB. At first I don’t really have the knowledge about Free Port and
Special Economic Zone but after the Free Port tour it really gave me a lot of knowledge about
it and it definitely help me to understand the topic in Customs. During the AFAB tour they
also illustrated the specific procedures and the documentary requirements or forms for
commodities being imported or exported by a particular industry. Overall AFAB Tour
exceeded my expectations, I thought that I would be hard for me to understand about how
they process or do the specific procedure and the different types of document to produce but I
was wrong. It was great we were learning in that moment specially when we asked the
speaker about our question regarding AFAB.
Ashley Sollano
B318

PEZA or Philippine Economic Zone Authority is attached to the Department of Trade and
Industry and also PEZA is the Philippine government agency tasked to promote investments,
grant incentives to and facilitate the business operations of investors in export-oriented
manufacturing and service facilities inside selected areas throughout the country.
AFAB ( Authority of free port area of BATAAN) the former BEPZ ( BATAAN Export
Processing Zone) it is the first official economic zone in the philippines established in year
1977 and it is one of the fastest growing freeport in the Philippines. What I’ve learned is that
AFAB provides more job opportunities to the resident of BATAAN . AFAB ensure that the
people avail the benefits from the continuous growth of the local economy. I can say that last
seminar i learned or it gives me an idea about their history and what are different the permit
and the required documents needed to transfer goods from custom custody to Afab , to
transfer, sell and etc. They discuss their main process, power and functions example To adopt
,alter, use a corporate seal,to contract lease ,buy ,sell, acquire , own and dispose properties of
whatever nature and also they issue certificates of origin for products manufactured or
processed.

Jan Miguel Santos

B318

I learn many things when we went to Authority Freeport Area of Bataan (AFAB) including
their history because in 1972 the Bataan Export Processing Zone became the first official
economic zone in the Philippines and it is one of the most progressive communities in Luzon.
The authority’s efforts to meet the demand of highly competitive global investments
environment that made them the fastest growing Freeport in the country and also it prides
itself in its highly skilled manpower pool, capable of supporting operations in manufacturing,
semiconductors and electronic, ship building, logistics, Business Processing Outsourcing,
energy tourism. The Freeport Area of Bataan designed as an Export Processing Zone which
they have the power to operate on its own, or to license, tourism-related enterprises, including
games, gambling casinos, horse racing and other recreational and sports facilities, subject to
the approval and supervision of PAGCOR. I also knew the procedures in AFAB and how the
imported goods entered in free zone of Bataan.