ORDINANCE NO.

090-07

ENACTING THE MASBATE CITY INVESTMENT INCENTIVE CODE 2007.

CHAPTER 1
GENERAL PROVISIONS

Article I
TITLE AND DECLARATION OF POLICY STATEMENT

Section 1. Title- This Ordinance shall be known and cited as the MASBATE CITY
INVESTMENT INCENTIVE CODE OF 2007.

Section 2. Declaration of Policy. To accelerate the sound development of the City of

Masbate in accordance with the vision for a “Vibrant Masbate City of 2020”, it is hereby declared
to be the policy of the City to encourage new investments for expansion/diversification in agro-
industrial development framework that will provide services, employment opportunities,
generate hard currencies, raise the standard of living of the people of the City, maintain and
enhance the socio-ecological balance that will provide an equitable distribution of wealth in the
City of Masbate.

The City of Masbate welcomes and encourages domestic and foreign investments to
establish enterprises that will utilize substantial amount of labor, raw materials and natural
resources of the City.

It is further declared to be the policy of the City to enhance the establishment and
participation of non-government organizations to serve as active partners to achieve socio-
economic development.

Article II
DEFINITION OF TERMS

Section 3. Definition- When used in this Code.

(a) Enterprise- includes single proprietorship, partnership, corporation, cooperative and the
like.
(b) Board- shall refer to the Masbate City Investment and Incentive Board (MCIIB), created
under this Code.
(c) Bona fide Resident- refers to a person with 6 months residency, pr a registered voter of
Masbate City.
(d) City- shall mean the City of Masbate covering all the areas within is territorial jurisdiction
as provided by law.
(e) Code- shall refer to the Masbate City Investment Incentive Code of 2007 (MCIIC).
(f) Existing Enterprise- refers to establishment/enterprise whose place of operation or
production is located within the territorial jurisdiction of the City before the enactment of
this Code.
(g) New Enterprise- refers to a new investment that is within the Priority Investment Area
that is not engaged in any kind or type of business, which is interested in establishing its
place of operation or production in the City of Masbate.
 (h) Priority Investment Areas (PIA)- shall mean the economic activities that the Board
shall declare and approved as such after a thorough study and evaluation.
(i) Registered Enterprises- shall mean those enterprises/businesses which have already
qualified for incentive.
(j) TWG- refers to the Technical Working Group.
(k) IPC- refers to Investment Promotion Center.

Article III
RULES OF CONSTRUCTION

Section 4. General Rules- In construing the provisions of this Code, the following rules of
construction shall be observed unless inconsistent with the manifest intent of such provision.

(a) Words and Phrases- Words and phrases shall be construed and understood to their
common and approved usages. Words and phrases that may require a technical,
peculiar or appropriate meaning under this Code shall be construed and understood
according to such technical, peculiar or appropriate meaning.

(b) Gender and Number- Every word in this Code importing the masculine gender shall
extend and apply to both male and female. Every word importing the plural number shall
extend to one person or thing as well.

(c) Reasonable Time- In all cases where the act is required to be done within a reasonable
time, the time required should mean the period that is necessary for the prompt
performance of such an act.

(d) Computation of Time- The time within which an act to be done as provided in this Code
or any rule or regulation issued pursuant thereto, when expressed in days, shall be
computed by excluding the first day and including the last day. If the last day falls on
Sunday or holiday, the same shall be excluded from the computation and the day
following shall be considered the last day.

(e) References- All references to chapters, articles, sections are to chapters, articles, and
sections in this Code, unless otherwise specified.

(f) Conflicting Provisions of Chapters or Articles- If the provisions of the different chapters
or articles contravene each other, the provision of each chapter or article shall prevail as
to specific matters and questions involved therein.

(g) Conflicting Provisions of Sections-If the provisions of different sections in the same
chapter or article conflict with each other, the provision of the section which is the last in
point or sequence shall prevail.

CHAPTER II
MASBATE CITY INVESTMENT INCENTIVE BOARD

Article IV
THE INVESTMENT INCENTIVE BOARD
Masbate City Investment Incentive Board (MCIIB) to implement the provisions of this Code.

Section 6. Composition of the Board- The Board shall be composed of the following:

Chairman - City Mayor

Vice Chairman - Provincial Director, Department of Trade and Industry
Members - SP Chairman, Oversight Committee
- SP Member/Chairman, Committee on Trade & Commerce
- SP Member/Chairman, Committee on Food, Agriculture &
Fisheries
- SP Member/Chairman, Committee on Finance & Appropriations
- City Planning and Development Officer
- President, Masbate Chamber of Commerce and Industry (MCCI)
- Chairman, City Agriculture and Fishery Council (CAFC)
- Provincial Manager, Philippine Coconut Authority (PCA)
- Provincial Director, Dept. of Science & Technology (DOST)
- Provincial Director, Technical Education & Skills Development
Authority (TESDA)
- President, Dr. Emilio B. Espinosa Sr. Memorial State College of
Arts & Technology (DEBESMSCAT)
- Two (2) Non-Government Organization (NGO) Representatives
duly accredited by the Sangguniang Panlungsod
- Representative of the Provincial Governor

Provided, that the membership of the Board may be altered by the Sangguniang
Panlungsod through the recommendation of the Board as it may be deemed necessary for the
effective implementation of the provisions of this Code; Further, that the representatives of the
MCCI, CAFC and Non-Government Organizations (NGO’s) shall be appointed by the City
Mayor upon the recommendation of the sector it represents; Provided, finally, that the term of
office of the two (2) NGO representatives shall be for two (2) years.

Section 7. Meetings and Quorum of the Board- The first organizational meeting of the Board
shall be held within fifteen days after the publication of this Code in the newspaper of general
circulation within the City of Masbate to determine its internal policies and guidelines; Thereafter
the Board shall meet at least once every quarter or as often as may be necessary on such a day
and time as it may fix. The presence of at least a majority of the members shall constitute a
quorum to perform its functions.

Section 8. Powers and Functions of the Board- The following shall be the powers and
functions of the Board;

General:

To promulgate such rules and regulations as may be necessary to implement the intent
of this Code by taking into consideration the holistic development needs of the City,
support/safeguard the policy-demands of the business climate, and to protect private sectors’
investments in their business activities.

Specific:
 a) To promulgate the governing Implementing Rules and Regulations consistent with
the provisions of this Code, subject to the approval of the Sangguniang Panlungsod;
b) To formulate and review package of appropriate annual incentives and support
measures on Priority Investment Areas based on the findings and recommendations
of the Technical Working Group;
c) To promote a short and medium-term investment programs/activities on account of
their contributions to employment generation, countryside development and with their
cultivation of the entrepreneurial spirit, they shall be extended with corresponding
incentives/support in order to attract other investors;
d) To conduct Investment Missions both local and foreign for the purpose of inviting
investors by providing necessary information to parties who are willing to avail of the
Investment Incentive Program under this Code. Provided, however, that in the case
of foreign trade missions, the approval of the Sangguniang Panlungsod must be
secured;
e) To enter into an agreement with any government entities/agencies and/or private
sector organizations in the implementation of this program by simplifying the
systems, procedures and requirements of business operations in the City;
f) To establish and create an Investment Promotion and Assistance Center (IPAC) and
an Technical Working Group (TWG) that will assist the Board in promoting the City
as an investment destination.
g) To designate the City Planning and Development Office to act as the Secretariat of
the Board/TWG in all its meetings.

Article V
INVESTMENT PROMOTION AND ASSISTANCE CENTER

Section 9. The Investment Promotion Center- The Investment Promotion and Assistance
Center (IPAC) and the IPAC Officer are hereby created and shall be under the direct
supervision of the City Mayor with the following objectives and functions;

a) Objectives:

1. To establish a central source of information and services related to investments

in order to facilitate fast and accurate transactions;
2. To strengthen the network between and among government agencies both
national and local, private sectoral and other entities concerned with investment;
3. To establish a reliable and user-friendly data banking system that will be easily
available to potential investors.

b) Functions:

1. Provide investment services;

2. Prepare and disseminate promotion collaterals;
3. Prepare and undertake a market programs;
4. Lobby policy advocacy;
5. Implement a network linkage with national and local government agencies,
private sectors and other organizations/institutions.
 Article VI
TECHNICAL WORKING GROUP

Section 10. Technical Working Group- There shall be created a Technical Group (TWG) to
compose as follows:

Chairman - Investment Promotion and Assistance Center Officer

Vice Chairman - City Planning & Development Officer
Member - Provincial Director, Department of Trade & Industry
- City Agriculture Officer
- City Treasurer
- Provincial Director, Technical Education & Skills
Development Authority (TESDA)
- Provincial Director, Department of Labor & Employment

The Technical Working Group (TWG) shall mainly assist the Board in the performance of its
powers and functions, specifically:

a. Conduct studies, gather and analyze facts and figures for the effective
implementation of the program in accordance with of the powers and functions
vested with the Board;
b. Evaluate and recommend policy proposals for the Board’s consideration;
c. Monitor the implementation of incentives granted to an enterprise based on the
criteria approved by the Board and the Sangguniang Panlungsod; and
d. Perform other functions as directed by the Board.

Article VII
PRIORITY INVESTMENT AREAS AND APPROPRIATE INCENTIVES

Section 11. Priority Investment Areas- A list of priority areas shall be promoted to investors to
be drawn up by the Board and shall be classified into ; 1st Priority, 2nd Priority, and 3rd Priority
Investment Areas based on the findings and recommendations of the Technical Working Group
commissioned for the purpose and in consultation with other government and private sector
leaders in the City.

Section 12. Coverage of Priority Investment Areas- Priority shall be given but not limited to
such business enterprises/establishments herein provided as follows;

a. Export Activities
b. Agriculture, Aqua and Forestry-Based Industries
c. Basic Industries
d. Consumer Manufactures
e. Infrastructure and Services
f. All new projects except those in wholesale and retail enterprises

CHAPTER III
REGISTRATION OF ENTERPRISES

Article VIII
 QUALIFICATIONS

Section 13. Qualifications of New Enterprises- New investors who intend to avail of the
incentives provided in this Code must meet the following qualifications;

a) That the business enterprises must have complied with all the requirements
mandated under existing local and national laws and the Constitution;

b) That the prospective investment/expansion and or diversification must be in the list of

Priority Investment Areas;

c) That the prospective investor’s place of operation or production be located within the
territorial jurisdiction of Masbate City;

d) That the programs and projects to be implemented entails social responsibility;

e) That the new enterprise must have a capitalization of at least One Hundred
Thousand Pesos (PHP100,000.00) pesos and will provide at least 75% labor force
that are bonafide residents of Masbate City.

Section 14. Qualification of Existing Enterprises- An existing enterprise may avail of the
incentives under this Code provided that it meets the following qualifications;

a) That the business enterprises must have complied with all the requirements mandated
under existing local and national laws and the Constitution;
b) That the expansion/diversification must engage in activities covered under the Priority
Investment Areas;
c) That in the case of existing enterprise whose place of operation or production is already
located in the City of Masbate, will be required to undertake the following
activities/projects;

1. Expand its existing production capacity or construct new buildings and civil works for
the installation of new machineries and equipments or improvements thereof, which
will result in an increase in production capacity.
d) That the expansion/diversification shall have capitalization of at least One Hundred
Thousand Pesos (Php100,000.00) Pesos and will provide 75% labor force that are
bonafide residents of Masbate City.

Section 15. Applicant Requirements- Application shall be filed with the Board which shall be
recorded in a registration book and the date and stamped appearing on the application shall be
considered as the date of official receipt thereof.

A payment of non-refundable/non-transferable filing fee of One Thousand (Php1,000.00)

Pesos shall be paid together with the following documents;

a) Three (3) copies of accomplished application forms to be provided for by the Board;
b) A copy of the complete project study of the proposed investment showing that the
project is environmentally safe, economically, technically and financially feasible and
viable;
 c) A copy of its Articles of Incorporation and By-Laws as approved by the Securities and
Exchange Commission (SEC), for corporations; Articles of Cooperation and By-Laws
approved by the Cooperative Development Authority (CDA), for cooperatives; Business
Name Registration Certificate from the Department of Trade and Industry (DTI), for sole
proprietorship and Certificate of Registration if registered with the Board of Investment
(BOI), as the case may be;
d) A certified true copy of its Certificate of Registration issued by the Cooperative
Development Authority, Securities and Exchange Commission, the Board of investment
and the Department of Trade and Industry, as the case may be.
e) Resolution of the applicant’s Board of Directors, in case of cooperative or a corporation,
authorizing the filing of the application
f) For existing enterprise, a copy of the latest audited financial statement.

Section 16. Approval and Registration Procedures- The Board is authorized to adopt rules
and regulations to facilitate action on applications filed with it; prescribed criteria for the
evaluation of several applications filed in one preferred area; devise standard forms for use of
applicants.

Section 17. Certificate of Registration- A registered enterprise under this code shall be issued
a Certificate of Registration with the signature of the Chairman and/or such other officers as the
Board may empower and designate for the purpose. The Certificate of Registration shall be in a
form and style as the Board may determine.

Article IX
RIGHTS AND PRIVILEGES

Section 18. Rights and Privileges Guaranteed by the City Government- All investors and
registered enterprises are entitled to the rights and privileges provided by law and the
Constitution. In furtherance thereto and in order to foster the investors’ confidence, the City
Government of Masbate, thru the Masbate City Investment Incentive Board, shall;

a) Provide concise and comprehensive information to prospective investors about the

economic priorities of the City Government, including target investment areas and the
general conditions applicable to incoming direct private investments;

b) Formulate investment evaluation criteria and procedures to enhance transparency in the

process of granting government incentives;

c) The fullest possible account of the investors after details of the profit in their operations
in the formulation or modification of policies or ordinances that effect investments;

d) Not interfere or modify any arrangement with the investors after details of the
implementation of an investment project has been accepted, approved and the
ownership or management structure of the enterprise has been established, unless the
law provides otherwise;
 e) Avoid undue distortion of completion between or among enterprises operating within the
City jurisdiction, whether domestic or foreign, when granting any special exemptions or
incentives aimed at encouraging investments in the identified target areas;

f) In accordance with law and where no local personnel or workers are capable or
available, allow the employment of qualified foreign personnel when necessary for the
efficient operation of the enterprise or technology transfer; and

g) Resolve all doubts concerning the benefits and incentives granted under an ordinance
enacted for the purpose of encouraging investment.

Article X
DUTIES AND RESPONSIBILITIES OF REGISTERED ENTERPRISES

Section 19. The following shall be the Duties and Responsibilities of a Registered
Enterprises;

(1) Submission of Reports and other Documents – Every Registered Enterprise shall
submit to the Board the following reports and/or documents within the reasonable time
herein prescribed;

a) Amendments of Articles of Incorporation or By-Laws, or Articles of Partnership, or

Articles of Incorporation, within thirty (30) calendar days from the date of submission of
said amendments with the Securities and Exchange Commission or Cooperative
Development Authority;

b) Change of Directors within thirty (30) calendar days from the date of such change;

c) Report on alien officers or employees within thirty (30) calendar days from date of
registration or from the appointment of such aliens/replacements; Provided: that such
aliens are registered as much with the Bureau of Immigration and Deportation (BID), and
with the Department of Labor and Employment (DOLE);

d) Report on employment of bona fide Masbate City residents within thirty (30) calendar
days from the date of registration or from the appointment of their replacement;

e) Audited Financial Statements, within thirty (30) calendar days after its submission to the
Bureau of Internal Revenue;

f) Report on total local incentives availed of under this Code.

(2) Compliance with the Provisions of this Code- The Certificate of Registration of a
Business Enterprises as provided in this Code, may be cancelled or revoked due to the
following;

a) Violation of any of the provision of this Code; and

b) Failure to commence actual project development within reasonable time from
approval or Registration;
 1) Cancellation or revocation of the Certificate of Registration shall mean withdrawal
of all incentives granted under this Code, and all fees and charges from the time
it was revoked shall be forfeited in favor of the City government.

2) Upon recommendation of the Technical Working Group for valid cause the Board
may cancel or revoke the Certificate of Registration of the concerned business
enterprise through a formal written notice and shall take effect on the 16th day
from receipt thereof.

3) The applicant or business enterprise adversely affected by any decision of the

Board may appeal the same to the Sangguniang Panlungsod whose decision
shall be final and executor.

CHAPTER IV
APPROPRIATIONS

Article XI
FUNDING SOURCE

SECTION 20. Appropriations of the Board and the Technical Working Group (TWG) – An
initial funding to defray the expenses for or incidental to the implementation of the provisions of
this Code and of the Masbate City Investment and Incentive Board shall be secured from the
Masbate City Government Fund. Thereafter, the City Government shall appropriate annually
based on the budget presented by the Board and the TWG, the necessary funding requirements
which is deemed necessary for the continued implementation of the provisions of this Code,
subject to the usual government accounting and auditing rules and regulations.

Article XII
FINAL PROVISIONS

Section 21. Separability Clause- If for any reason, any provisions, sections, or part of this
Code is declared not valid by any court of competent jurisdiction; such judgment shall not affect
or impair the remaining provisions, section, or parts which shall continue to be in force and
effect.

Section 22. Applicability Clause – All other matters relating to the implementation of this Code
shall be governed by pertinent provisions of existing laws and other ordinances.

Section 23. Repealing Clause – All ordinances, executive orders and rules and regulations
inconsistent or in conflict with the provisions hereof are hereby repealed, amended or modified
accordingly.

Section 24. Effectivity – This Code shall take effect immediately upon its approval.

Enacted, November 27, 2007