SUBIC BAY ertine Number RISC Certification No. 18-026 Series of 2018 MEMORANDUM Subject az FIRST AMENDMENT TO THE RULES AND REGULATIONS IMPLEMENTING — THE PROVISIONS RELATIVE TO THE SUBIC SPECIAL ECONOMIC AND FREEPORT ZONE AND THE SUBIC BAY METROPOLITAN AUTHORITY UNDER REPUBLIC ACT NO. 7227 This certifies that: The records of the Board Secretariat show that during the Twenty-Seventh (27) Meeting of the Board of Directors of the Subic Bay Metropolitan Authority held last 26 January 2018 wherein there was a quorum to validly transact business, the following resolution was approved: Resolution No. 18-01-0553 “Resolve, as it is hereby resolved, that upon recommendation of Management and without prejudice to COA Regulations and pertinent laws on the matter, the Board hereby approves IN PRINCIPLE subject to the approval of the Department of Finance the proposed First Amendment to the Rules and Regulations Implementing the Provisions relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority under Republic Act No. 7227, otherwise known as ‘The Bases and Conversion and Development Act of 1992. Resolved further to task the Business and Investment Group to conduct a public hearing on the proposed amendment with the assistance of the Legal Department. A hard copy of the First Amendment to the Rules and Regulations Implementing the Provisions relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority is incorporated herein by way of reference.” Issued this 9" day of February 2018. SHERRYL/MARIE M. MILLORA Secretary for the Meeting Subic Bay Metropolitan Authority BOARD SECRETARIAT Bullding 229, Waterfront Road, Subic Bay Freeport Zone, 2222 Philippines + Tel: +8347 252.417214174 + Fax: +6347 252.4170suBK BAY 7 AMENDME! AND RE PLEMENT THE ‘TIVE TO THE, ECIAL ECON FREEPORT ZONE. UBIC BAY METI N AUTHORITY ER REPUBLIC At ‘OTHERWI: ‘ iS CONVERSION. :VELOPMEN! E WHEREAS, on March 13, 1992, Republic Act No. 7227 (RA No. 7227), otherwise known as “The Bases Conversion and Development Act of 1992", was enacted to accelerate the sound and balanced ‘conversion into alternative productive uses of the Clark and Subic military reservations; WHEREAS, Section 12(a) of RA No. 7227 created the Subic Bay Metropolitan Authority (SBMA) as the operating and implementing arm in the Subic Bay Freeport Zone (SBFZ): WHEREAS, Section 12(b}(2) of RA 7227 grants the SBMA the power to accept any local or foreign investment, business or enterprise, subject only to such rules and regulations to be promulgated by the SBMA; WHEREAS, pursuant to the foregoing, the SBMA promulgated the “Rules and Regulations {Implementing the Provisions Relative to the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan authority under Repubiic Act No. 7227 (IRR) on November 3, 1992; WHEREAS, Section 151 of the IRR grants the SBMA the power to amend the IRR or any portion thereof as may be necessary; WHEREAS, it has become timely to introduce amendments to the IRR to further improve the business ‘environment and the ease of doing business in the SBFZ; WHEREAS, SBMA conducted a public hearing on wherein Subic Bay Freeport Enterprises (SBF Enterprises) were given the opportunity to present thelr views on the following ‘amendment to the IRR; NOW THEREFORE, for and in consideration of the foregoing, WE, the BOARD OF DIRECTORS, by Virtue of the powers vested on US by lav, hereby RESOLVE to approve and adopt, as WE heraby Confirm, adopt and approve the following: SECTION 1. Section 23 of the IRR is hereby amended to read as follows: “Section 23. Validity and Renewal of Certificates. — The following shall govern the validity and renewal of the Certificates of Registration, or Residency, ("CRS") and Certificates of Registration & Tax Exemplion ("CRTES”) Issued by SBMA; ‘2. All CRs and CRTEs issued by the SBMA shall be valid for a period of three (3) years from its Issuance or renewal: Provided, That the term of the lease or sublease, or the remainder thereo, of the SBF Enterprise or Resident concerned ‘over the’ propertyiies or faciityies within SBFZ or in the expansion areas ‘covered by Executive Order No. 675, Series of 2007 (EO No. 675), is not less than three (3) years. '. In case the term ofthe lease or sublease, or the remainder thereof, of the SBF Enterprise or Resident concerned over the property/ies or faclityies vithin SBF or in the expansion areas covered by EO No. 875 is less than three (3) years, the vality of the CR or CRTE issued or renewed by SEMA to such SBF Enterprise or Resident shail be coterminous with the term of such lease or ‘sublease, or the remainder thereof. In no case shall the CRs and CRTEs issued or renewed by SBMA be valid for ‘more than three (3) years. 4d. All CRs and CRTEs issued by SBMA shall be automatically renewed {3} upon-————————__—__ submission of the required documents and payment of the preberibed fees by the SBF Enterprise or Resident al least shy (60) days prior to fhe ex} ‘said CR or CRTE, and (i) for as long as the SBF En or ‘remains qualffed to continue its business operations or residefwithin ‘SUBIC BAY METROPOLITAN AUTHORITY Bulging 228, Waterfor Road, Suble Boy Freeper Zone, 22 Philppines Tet 96347 252.72524000 Fax B34 252 4428. soemfr in the expansion areas covered by EO No. 676, under similar terms and ‘conditions for which the orginal CR or CRTE was issued, unless there exists cause for the non-automatic renewal of the CR or CRTE. . In accordance with Section 23 a and b above, the fees for the Issuance and renewal ofthe CRs and CRTEs shall stritly be in accordance with the following: Validity of the Issuance or Renewal of the Prescribed Fees (CRor CRTE (One (1) year or less. 100% Wore than one (1) year but not exceeding one (1) year and | 10% 8x (6) months. ofthe latest fee approved by ‘More than one (1) year and 3 (6) tho SBMA Board of Directors ‘months but not exceeding two (2) | 200% | forthe issuance or renewal of years. CRs and CRTES with a More than two (2) years Bul not validity of one (1) year. ‘exceeding two (2) years and six(6) | 250% [ae ‘months. ‘Wore than Wo (2) years andl ix (6) ‘months but not exceeding three (3) | 300% years. f. For avoidance of doubt, “Six (6) months" as used in Section 23 @ above shall be "understood as equivalent to one hurcred eighty days (180) calendar days, ‘SECTION 3. Repealing Clause. ~ Al! polices, rules, regulations, memoranda or other issuances or ‘any part thereof inconsistent with the provisions of this Amendment are hereby repealed, amended or modified accordingly. SECTION 4, Seporability Clause. ~ If for any reason or reasons, any portion or provision of this Amendment is declared unconstitutional or invalid, all other parts or provisions not affected thereby shall continue to remain in full force and effect. SECTION 5. Effectivity. — This Amendment shall take effect een (15) days after its complete ‘publication in at least one (1) newspaper of general circulation and its fling with the Office of the National Administrative Register in accordance with the Administrative Code of 1987. APPROVED by the Board of Directors of SEMA during ts_ Meeting held on. Fest Amendment tothe IRR of RA No, 7227(31LYH9) uondwaexy— xe pue uonesasibay jo 9}EDIIIIO / (UD) UOHeSIBaYy jo 9} 29113199 34} JO polled AjIpyen 94} 0} JUOUIPUSUIYW pesodoig Ave SaneSection 23 of the Implementing Rules and Regulations of the Subic Special Economic and Freeport Zone and the Subic Bay Metropolitan Authority under Republic Act No. 7227 Sec. 23. Validity. All certificates issued by the SBMA shall be valid for a period of one (1) year from issuance and shall be deemed automatically’ renewed every year upon payment of the prescribed fees at least ten (10) days prior to the expiration of the said one (1) year period for the particular year involved, and (ii) for as long as the SBF Enterprise or Resident remains qualified to continue its business operations or reside within the SBF under similar terms and conditions for which the original certificate(s) was/were issued.SS “sueek (¢) @eJ4} UBY} SS9] JOU SI “(G29 “ON OF) Z00Z JO SALES ‘G/9 ‘ON JepIO eAyNOeXy Aq PeJBA0d Seale UOISUedXS 94} UI JO Z4gGS UUM seI/AyIOR) 10 sel/AWadod ay} JAAO PEUJBDU0D JUSPISEY JO esiidia}UZ 4GS ay} Jo ‘JoeJey} sepurewiel eu} JO ‘aseajqns JO esee| 84} JO WS} OY} JEYL ‘PEpiAold :JeMeUe! JO eoURNss! Ss}! WO sIeaX (€) ees4 J poued e 40} pijen aq \leYs YAS ey} Aq panss! s¥145 pue SYD IIV'e “Vas Aq penss| (,,S3149,,) UoNdwex3 xe] g UONe.siBey Jo seyeoyrpED pue (.SY9,,) ‘Aouep|sey JO ‘uojesjsiBay Jo seyeoyN189 OU} Jo |emouaJ pue AYpI|eA aU) wenob |Jeys Buimojoy eU| — ‘sazeaynsay Jo jemauay pue Ape, “eZ u098S,, :SMO]|O} Se Peal Oo} papuewte Aqaiay SI yy] BY} JO EZ UONDES *L NOILLOASEnterprise or Resident concerned over the property/ies or facility/ies within S| in the expansion areas covered by EO No. 675 is less than three (3) year: ity of the CR or CRTE issued or renewed by SBMA to such SBF Enterprise’ or + Resident shall be coterminous with the term of such lease or sublease, on the 8 remainder thereof. c. In no case shall the CRs and CRTEs issued or renewed by SBMA be vali < more than three (3) years. d. All CRs and CRTEs issued by SBMA shall be automatically renewed (i) upon submission of the required documents and payment of the prescribed fees by the SBF Enterprise or Resident at least sixty (60) days prior to the expiration of said CR or CRTE, and (ii) for as long as the SBF Enterprise or Resident remains qualified to continue its business operations or reside within the SBF, or in the expansion areas covered by EO No. 675, under similar terms and conditions for which the original CR or CRTE was issued, unless there exists cause for the non-automatic renewal of the CR or CRTE.‘skep sepualed (9g) shep AyyBie paupuny auo 0} Juagjeainbe se poojsiepul 9q II2Ys eAoge 9 EZ UO}}9a¢ UI pasn se ,SyjUOW (9) XI, ‘JqNOp jo soUePIOAe JO4 EAM Cd ROM ely CRT Be RTT Celt] ) ecw el eC LarA ROMEO Ley hl erties (9) ete CSL E ra Rey ve LITT ttre c Bel Ble sa Re EOLA S Cod] cE A Corny Cee) Pratt 3nq sujuow _ CC) BP cEe ole OM Leo Mole elt cml Bite] oI YW OM RIUM LTE (ey I $soj 10 weak (L) BUD Roe CBs he) Eee ml Pe iry ee ay} JO |eMauaY Jo aouUeNss| See UIMO}|OJ BY} YM SOUPsOdIe UI Eq ANOUIS ||EYS SALYO pue syo ey} Jo jemoual pue soueNss! ay} JO} see} a4} ‘sAoge q pue e EZ UOI}DES YIM aoUePsONIe U| “a| Effectivity This Amendment shall take effect fifteen (15) days after its complete publication in at least one (1) newspaper x i 2 = general circulation and its filing with the Office of hp National Administrative Register in accordance with th Administrative Code of 1987.