THE EFFICIENCY

MENDOZA
OF SUBIC BAY
PANDIAN
PASTRANA METROPOLITAN
QUIBLAT
REJANO
REYES
AUTHORITY
TOWARDS THE
INDUSTRY
 CHAPTER 1:
INDTRODUCTION
BACKGROUND OF THE STUDY
 • Government Owned and/or
Controlled Corporation (GOCC) is
an agency organized as a stock
or non-stock corporation, vested
with functions relating to public.
BACKGROUND OF GOCC Governance Act of 2011.
THE STUDY • Subic Bay Metropolitan Authority
(SBMA) is a Government Owned
and Controlled Corporation
tasked with the management and
administration of the Subic Bay
Freeport Zone.
 • SBMA is the operating arm of the
Government of the Philippines
for the development of the area
BACKGROUND OF of Subic Bay Freeport into a self-
THE STUDY sustaining tourism, industrial,
commercial, financial, and
investment center to generate
employment opportunities.
 • The said area was a former US
Naval facility in Subic Bay for
almost ninety (90) years and
BACKGROUND OF was turned over to the
THE STUDY Philippines after the Philippine
Senate rejects the renewal of the
1947 US-Philippines Military
Bases Agreement.
 • The Philippine Congress passed
Republic Act No. 7227 also
known as the “Bases Conversion
and Development Act of 1992”
BACKGROUND OF in the anticipation of the pullout
THE STUDY of the US in the country and
Section 13 of Republic Act No.
7227, as amended by Republic
Act No. 9400, created SBMA
which states that:

BASES CONVERSION
A N D D E V E LO P M E N T
AC T O F 1 9 9 2 , S E C . 1 3
(A)
“SECTION 13. The Subic Bay Metropolitan
Authority -
(a) Creation of the Subic Bay
Metropolitan Authority - A body corporate to
be known as the Subic Bay Metropolitan
Authority, is hereby created as an operating
and implementing arm of the Conversion
Authority.”
 • SBMA has a total of twenty
seven (27) departments and this
2019 the Chairperson and
Administrator is Atty. Wilma T.
BACKGROUND OF Eismaand she is tasked to
THE STUDY develop and maintain the
agency’s sound financial and
internal control structure in
alignment with the country’s
strategic plans and policies.
 • The current mission for SBMA is
to grow the Freeport to be an
environmentally sustainable
community where locators are
BACKGROUND OF ahead of their competitors and
THE STUDY their stakeholders enjoy the
highest quality of life also
SBMA’s vision is to be the
leading Eco-urban Freeport in
Southeast Asia.
 • SBMA does not just hold
authority to the Subic Bay
Freeport Zone but as a Special
BACKGROUND OF Economic Zone. Republic Act No.
THE STUDY 7227, as amended, also created
the Special Economic Zone for
Subic under Section 12 that
states:
 “Subject to the concurrence by resolution of
the sanggunian panlungsod of the City of
Olongapo and the Sangguniang bayan of
Subic, Morong and Hermosa, there is hereby
created a Special Economic Zone and
Freeport Zone consisting of the City of
Olongapo and the Municipality of Subic,
SECTION 12. THE Province of Zambales, the lands occupied by
SUBIC SPECIAL the Subic Naval Base and its contagious
ECONOMIC ZONE extensions as embraced, covered, and
defined by the 1947 Military Base Agreement
between the Philippines and the United
States of America as amended, and within
the territorial jurisdiction of the
Municipalities of Morong and Hermosa,
Province of Bataan, hereinafter referred to as
Subic Special Economic Zone…..”
 Free zones and Special Economic Zones
are are different from one another that
the former is considered as a separate
customs territory under existing laws
and regulations but it does not
necessarily mean that it is separate
from the Philippine State.
BACKG ROUND
OF THE
STUDY
All laws of the country, other than
customs and tariff laws, remain
applicable even within the boundaries
of the free zones.
STATEMENT OF THE PROBLEM
 MAIN RESEARCH PROBLEM

THE EFFICIENCY OF THE SUBIC BAY

METROPOLITAN AUTHORITY IN THE SUBIC
SPECIAL ECONOMIC AND FREEPORT ZONE
TOWARDS THE INDUSTRY OF
INTERNATIONAL TRADE AND COMMERCE
 made to encourage investment and
aimed at providing better on-site and
off-site infrastructure, and locators are
granted fiscal and non-fiscal
incentives.
SUBIC
SPECIAL
ECONOMIC
AND
In general, the area was made:
FREEPORT
ZONE
To encourage
investments,
To promote To create
particularly
exports employment
foreign
investments
 • as amended, has expanded the
traditional model of the Special
Economic Zone (SEZ) by including the
establishment of forward and
backward linkages among industries in
and around the zone, promoting the
RA 7916 greater financial and/or industrial
linkage between the Philippines and
the rest of the world through
technology transfer, and the
broadening of the geographic
dispersion of different industries in the
country.
 What are the
different
What is the legal Identify the
transaction
basis for SBMA and documentary
processes
Subic Bay Special requirements for
undertaken in
Economic and each transaction
SBMA in terms of
Freeport Zone? processes.
importation and
exportation?
Identify the actual
operation in SBMA What are the
COROLLARY under the supervision
and control of the
Bureau of Customs and
different
commodities being
Identify challenges
the SBMA currently
RESEARCH locators operating
under the Philippine
imported and
exported from
faces.

QUESTIONS Economic Zone and

Freeport Zone.
SBMA?

What are the

What are the Tax
current events that
Incentives received
affect the future of
and its effects?
SBMA?
SIGNIFICANCE OF THE STUDY
 To contribute to the understanding of the
application of different existing laws, rules and
regulations with regards to Special Economic
and Freeport Zones while using the area and
authority the Subic Bay Metropolitan Authority

To tackle and analyze actual processes

encountered by different sectors on the
effectiveness of the rules and regulations
established by the Bureau of Customs

SIGN IFI C AN C E OF
T H E ST UDY
To explore warehousing inside SBMA in relation
to the subject CUS05B entitled Warehousing in
General

To help possible investors who may encounter

this study in understanding the competitiveness
of the Philippines in International Trade with the
focus on becoming locators in Special Economic
and Freeport Zones
SCOPE OF THE STUDY
 The focus will be mainly on
the efficiency of Subic Bay
Metropolitan Authority and
SCOPE OF THE
STUDY Subic Special Economic
and Freeport Zone in the
Financial and Economic
Growth of the Philippines.
 “AN ACT ACCELERATING THE
CONVERSION OF MILITARY
RESERVATIONS INTO OTHER
PRODUCTIVE USES, CREATING
REPUBLIC ACT THE BASES CONVERSION AND
NO. 7227 DEVELOPMENT AUTHORITY FOR
THE PURPOSE, PROVIDING FUNDS
THEREFORE AND FOR OTHER
PURPOSES”
 ‘AN ACT AMENDING REPUBLIC
ACT NO. 7227, AS AMENDED,

REPUBLIC ACT
NO. 9400 OTHERWISE KNOWN AS THE
BASES CONVERSION AND
DEVELOPMENT ACT OF 1992,
AND FOR OTHER PURPOSES’
 ‘AN ACT PROVIDING FOR THE
LEGAL FRAMEWORK AND
MECHANISMS FOR THE
CREATION, OPERATION,
R E P U B L I C AC T N O.
ADMINISTRATION, AND
7 9 1 6 A S A M E N D E D BY COORDINATION OF SPECIAL
R E P U B L I C AC T N O. ECONOMIC ZONES IN THE
8748
PHILIPPINES, CREATING FOR THIS
PURPOSE, THE PHILIPPINE
ECONOMIC ZONE AUTHORITY
(PEZA) AND FOR OTHER
PURPOSES’
 CHAPTER II:
REVIEW OF RELATED LITERATURE
EXPORT PROCESSING ZONES: A
CONCEPT
 Special Economic Zones (SEZ) are one of the
centrepieces in the economic development
policy in the world.

The nomenclature of special economic zones

carry from different countries and includes
the types such as industrial parks, free trade
E XPO RT zones, export processing sones, foreign trade
P RO C E SS ING zones, trade cooperation zones, economic
technological development zones and
ZO NE S : A C O NCE PT business parks (Baissac, 2011)

The number of special economic zones

worldwide is estimated to be around 4,300
zones in 2015 (The Economist, 2015)
 LIBERALIZE liberalize economies

MOST OF THE COUNTRIES

S TA RT E D I M P L E M E N T I N G capture foreign
THE SPECIAL ECONOMIC
Z O N E S T R AT E GY A S A N
CAPTURE investments
E F F O RT T O :

( D U M AYA S , 2 0 1 8 )

INCREASE increase exports

 U N D E R LY I N G G O A L S O F
THESE ECONOMIC ZONES
H AV E C O N S E Q U E N T LY
E V O LV E D

FROM A MAINLY TO HIGH

EXPORT-ORIENTED TECHNOLOGY AND
INNOVATION-
ORIENTED ZONES
 CHANGE OF
MANAGEMENT
OF ZONES
FROM ONLY TO PUBLIC-PRIVATE
GOVERNMENT-INITIATED PARTNERSHIP OR PURELY
OR GOVERNMENT- PRIVATE
OPERATED
SPECIAL ECONOMIC ZONE: A CONCEPT
 geographic area with different rules and
regulations from the national territory
instituted to:

attract investments

SPECIAL
ECONOMIC ZONE
( C A RT E R A N D H A R D I N G , 2 0 1 1 )
promote exports

generate employment
FREEPORT ZONE: A CONCEPT
 free zones are a separate
customs territory

Goods are considered to not

FREEPORT have entered customs territory
and as such, technically not
ZONE importations

( F R E E Z O N E S - A S E PA R AT E
C U S T O M S T E R R I T O RY , Goods are normally termed as
2008)
admissions

When withdrawn from free

zones to customs territory it will
be treated as an importation as
if for the first time.
 operated as a separate
Customs territory

guaranteed a free and

unimpeded flow of goods
FREEPORT ZONE including consumption goods

( PAY U M O , 2 0 1 0 )
without the payment of duties
and taxes

Provided they are consumed

within or exported out of the
freeport
 M A N AG E M E N T
AND
PERFORMANCE OF
ECONOMIC ZONES
 has evolved in
terms of:

SPEC IAL
EC ONO MIC ZON E
zone Incentives structure,
( A G G A RWA L , 2 0 1 0 )
objectives

location, ownership
from facilitating trade and
generating employment

E VO LU T I O N O F
E S TA B L I S H M E N T O F
SPECIAL ECONOMIC
ZONE
to fostering high-skilled and
high-technological
activities, stimulating
economic activity, and
diversifying export
composition
 FROM THE TRADITIONAL TAX RELATED INCENTIVES

TO VARIOUS INCENTIVES SUCH AS

E VO LU T I O N O F
IN C E N T I V E O F
SPECIAL ECONOMIC
ZONE infrastructure, services,

labor policies,
industrial
and corporate
policies,
taxation.
 stand-alone industrial
estates

E VO LU T I O N O F
STRUCTURE OF
SPECIAL ECONOMIC
ZONE

integrated industrial
townships
 E V O LU T I O N O F
ECONOMIC ACTIVITIES
OF SPECIAL ECONOMIC
ZONE
TRADE-ORIENTED AND TO HIGH-TECHNOLOGY
LABOR-INTENSIVE INTENSIVE
 located near the port
areas

E VO LU T I O N O F
LO C AT I O N PATT E R N S
OF SPECIAL
ECONOMIC ZONE various parts of the country
with the aim of integration
with the main country
 Static economic
benefits
O U TC O M E O F
ASSESSMENT OF
THE PERFORMANCE
OF ECONOMIC ZONE
Dynamic economic
benefits
 short term and pertains to
outcomes when economic zones
are used as instruments of trade
and investment policy
STATIC
ECONOMIC MEANS OF MEASUREMENT:
BENEFITS

employmen foreign- foreign value-

t direct exchange added
investment through
s exports
 MEANS OF MEASUREMENT:

non-traditional hard and soft

economic technology
activities transfer
DYNAMIC
ECONOMIC
BENEFITS the
encouragemen promotion of
t of domestic an open
entrepreneursh economy
ip
 CHAPTER III:
METHODOLOGY
 Qualitativ Quantitati
e
Class tour to Subic Bay
ve
Data from the SBMA
APPROACH Metropolitan Authority about its present
that handles the Subic collections and
Special Economic and developments are
Freeport Zone. used, as well as other
Seminar and tour by Mr. governmental reports
Alvin A. Dela Cruz - the as Subic is a
Division Chief / Government Owned
International Ship and and/or Controlled
Port Facility Security Corporation (GOCC)
(ISPS) Coordinator
 CHAPTER IV:
PRESENTATION, ANALYSIS
AND INTERPRETATION OF
DATA
 ANALYSIS OF THE PHILIPPINE
STATUTES

legal basis on the existence of Subic Bay Metropolitan Authority

“(b) Powers and Functions of the Subic Bay

RA 7227 of Section 13 Bases Metropolitan Authority - The Subic Bay
Conversion and Development Act of 1992
Metropolitan Authority known as Subic
Authority shall have the following powers
“SECTION 13. The Subic Bay Metropolitan
and functions:
Authority -
 
(1) To operate,
(a) Creation of the Subic Bay
administer, manage and develop
Metropolitan Authority - A body corporate
the ship repair and ship building
to be known as the Subic Bay
facility, container port, oil storage
Metropolitan Authority, is hereby created
and refuelling facility and Subic
as an operating and implementing arm of
Air Base within the Subic Special
the Conversion Authority.”
Economic Zone and Free Port
Zone as a free market in
 AMENDMENT CONCERNING SUBIC
SEZ

Section 12 of RA 7227
 
Section 12. Subic Special Economic Zone - xxxxxxxxxxx

(b) xxxxxxxxxxxxxx However, exportation or removal of goods from the territory of the
Subic Special Economic Zone to the other parts of the Philippine territory shall be subject to
customs duties and taxes under Tariff Code and Customs Code of the Philippines, as amended,
and other relevant tax laws of the Philippines;
 
(c) xxxxxxxxxxxx In lieu of said taxes, a five percent (5%) tax on gross income earned
shall be paid by all business enterprises within the Subic Special Economic Zone and shall be
remitted as follows: three percent (3%) to the National Government, and two percent (2%) to
the Subic Bay Metropolitan Authority (SBMA) for distribution to the local government units
affected by the declaration of and contagious to the zone, namely: the City of Olongapo and the
municipalities of Subic, San Antonio, San Marcelino and Dos Castillejos of the Province of
Zambales’ and the municipalities of Morong, Hermosa and Dinalupihan of the Province of
Bataan, on the basis of population (50%), land area (25%), and equal sharing (25%).
 REPEALING CLAUSE

 
Section 12. Repealing Clause - XXXXXXXXX
 
The provision of Section 50 of Republic Act No. 7916, as amended, is
hereby repealed.
 
The provisions of Section (b)(3) of Republic Act No. 7227, as
amended, with respect to public utilities engaged in the provision of
electric power and telecommunication services are hereby repealed.
 with regards to the electric power, the
operation and maintenance of facilities was
handed to the Aboitiz Company under the
EnerZone Group

Under the EnerZone Group is the Subic

EnerZone Corporation which is a privately-
owned electric distributor that specializes in
sustainability of electric power
REPEAL OF
SECTION (B)(3)
The transfer to Aboitiz was in early 2007

PLDT holds the operation and maintenance

of the telecommunications used in Subic.
Repeal of Sec 50 under RA 7916, SBMA
and the area it holds are under the
authority of the Philippine Economic
Zone Authority (PEZA) which was
established by RA 7916 and in Section
11 of said law:

“Section 11. The Philippine Economic

Zone Authority (PEZA) Board- There is
hereby created a body to be known as
the Philippine Economic Zone Authority
(PEZA) attached to the Department of
Trade and Industry. xxxxxxxxxxx”
 The Rules and Regulations for Customs
Operations in the Subic Special
Economic and Freeport Zone or
Customs Administrative Order No. 04-
93 is the BOC’s way of implementing
RA 7227 as amended and the Tariff and
BUREAU OF Customs Code of the Philippine (TCCP).
C U ST O M S I S S U A N C E
WITH SBMA
P R O C E S S F LO W S There is a draft for a newly Customs
Issuances related to the Customs
Modernization Act (CMTA) for Free
Zones but is still not signed and
effected.
Under CAO 04-93 a Point of Entry or Exit is
defined as any place designated by the Subic
Bay Metropolitan Authority (SBMA) and the
BOC, Department of Finance, where articles
may be lawfully introduced into or removed
from the Secured Area of the Zone, or any area
to which duty and tax free benefits are limited
by the SBMA pending the establishment of a
secure perimeter around the Zone.

However, the Port/Airport of Entry for the

importation and exportation of foreign articles
into and from the zone in accordance with the
administrative order shall be the premises
declared by the President of the Republic of the
Philippines as International Port/Airport of Entry
and where the Customs house shall be located.
 PROCESS: ISSUANCE OF ADMISSION
PERMIT

Notation from the

Receipt of request Log request for
Senior Deputy
start for Admission Admission Permit /
Administrator for
Permit (AP) Photocopy
Ports

Examination,
Evaluation and
Preparation of Review / Approval
Validation of
space allocation of space allocation Preparation of
request for
for Admission for Admission Admission Permit
Admission Permit
Permit Permit and report
and attach
documents

Recording /
Release of
Approval of Updating of
Approved end
Admission Permit Admission Permit
Admission Permit
Ledger
REQUIREMENTS: ISSUANCE OF SAD-
YELLOW ASYCUDA

Admission Permit

Airway Bill / Bill of Lading Invoice

Packing List

Authorization Letter

SPA

Valid IDs

Documents secured from other government

agencies
 PROCESS: ISSUANCE OF SAD-
YELLOW ASYCUDA

Receipt of
Review and
accomplished Single
evaluation of SAD Rerouting of
start Administrative
and attached documents
Documents (SAD) &
documents
attached documents

Release of rerouted
SAD to the billing
Stamp, log and section Seaport
end
segregate Department for
computation of
cargo charges
 PROCESS: ISSUANCE OF SAD-RED
ASYCUDA
Receipt of
accomplished
Review and
Single
evaluation of SAD Final Review and
start Administrative
and attached Approval of SAD
Documents (SAD)
documents
& attached
documents

Logging and Release of ARS or

NO: segregating SAD to the billing
Motor Vehicle
Approved approved SAD or section of Seaport
ARS Dept.

YES: Final Review and

Preparation / Approval of ARS end
Assessment of ARS
 REQUIREMENTS: EXPORT
CLEARANCE

DTI Form Export Declaration

Invoice

Packing List

Authorization Letter / SPA

Documents secured from other

government agencies or from other
SBMA offices
 PROCESS: EXPORT CLEARANCE

Receipt of Review and

accomplished DTI – Assignment of Evaluation of
start Export Declaration Export Clearance Export Declaration
Form and attached Number and attached
documents documents

Dry Seal,
Segregation and
release of signed
Approval of Export
documents to end
Documents
OSEDC (One Stop
Declaration Center)
personnel
 Import and Export from the zone are not just the
The sale of tax and duty customs releases, entry or admission made in
SBMA but also from Customs Bonded Warehouses
free consumer items in (CBW for brevity). Goods may be admitted into the
the zone shall only be zone from a CBW within the customs territory shall
be clearly marked “TO SUBIC BAY FREEPORT” or
allowed in duly similar wordings to show both origin and
destination of the shipment. Acceptance and
authorized duty-free acknowledgement of authorized receipt by a
shops and these said locator in ate zone shall constitute fulfilment of the
obligation for safe delivery from the sending of
shops shall be subject CBW to the zone.
to the joint regulations
Transfer of goods which have been admitted to or
of BOC and the SBMA to produced in the zone may be transferred therefrom for
insure proper exportation, transshipment through customs territory
transportation to a CBW within the customs territory or
accounting of import transfer to the customs territory for consumption. Foreign
and sales. or domestic goods may be transferred to CBW in the
customs territory with the same wordings showing both
origin and destination of shipment is allowed. The different
transaction process undertaken in SBMA are both for
CHALLENGES
FOR SBMA
TRABAHO BILL OR THE TAX LACK OF AVAILABILITY FOR
REFORM FOR ATTRACTING LAND MASS
BETTER AND HIGH-QUALITY
OPPORTUNITIES (HB 8083)

T RA B A H O B I L L O R T H E
TA X R E F O R M F O R
AT T R A C T I N G B E T T E R A N D
HIGH-QUALITY
O P P O RT U N I T I E S ( H B 8 0 8 3 )
forced to lay off at least
30,000 workers to survive the
rationalization of tax
incentives under the current
version of the bill
Locators may consider
moving out of the country if
the 5% gross income earned
(GIE) granted will raise to
28% CIT (Rosales, 2018)
threatens locators and future
investors.
 there is a move for the expansion of
the Freeport to be used as economic
zones.

L ACK OF
AVAIL ABILITY
FOR L AND MASS requires the SBMA Board of Directors to
provide a Master Plan for the phased
expansion of the freeport zone every
two (2) years in Olongapo City,
Zambales and Dinalupihan, Hermosa
and Morong, Bataan (Aguinaldo, 2019).
Senator Richard Gordon who is the
current chairman for the chamber’s
committee on government
corporations and public enterprises
sponsored a bill seeking to increase
the powers of the Bases Conversion
Development Authority (BCDA). The
updating would affect the charter of
the BCDA under RA 7227.
 9,000 10,000
PLEDGES OF MORE hectares in hectares in
THAN 21,000 San Antonio San Marcelino
H E C TA R E S O F
E X PA N S I O N A R E A S
FOR FUTURE
INVESTMENT 500-600
PROJECTS 500 hectares
hectares in
in Castillejos
Subic
(DUNGOG, 2019)

900 hectares 505 hectares

in Olongapo in Hermosa,
City Bataan
 given additional power to
inspect and register leisure
ships and pleasure yachts

create an ecology center to

ADDITIONAL issue environmental
POWERS UNDER compliance certificates for
THE BILL non-environmentally critical
projects

regulation of the operations

of land transportation, toll
roads, shipping, port
terminal services, and other
related businesses
 INCENTIVES

Exemption from all local and national taxes

• 5% final tax on gross income earned computed based on Gross Sales
less the following "allowable deductions" depending on the activities
such as manufacturing, infrastructure, development and service.
• Some enterprises, depending on the specific type of enterprise, are
likewise allowed to deduct some other expenses as specified under
the law which are tax and duty-free importations of raw materials,
capital and equipment, can have business with up to 100% foreign
ownership, no foreign exchange control and full repatriation of profit
is allowed, percentage of Income allowable from Sources Within the
Customs Territory, enterprises may generate income from sources
within the customs territory of up to thirty percent (30%) of its total
income from all sources, provided, that should an Enterprise's income
from sources within the customs territory exceed thirty percent (30%)
of its total income from all sources, then it shall be subject to the
income tax laws of the Customs Territory; provided, further, that in
any case, customs duties and taxes must be paid with respect to
income from sales and goods to the customs territory. Other non-
fiscal incentives are Visa Free entry for 14 days and is renewable and
there are special Subic-Clark visas available to expatriates.
STATISTICS ON THE PERFORMANCE
OF SBMA
NATIONAL TREASURY
STATISTICS ON THE PERFORMANCE
OF SBMA
EXPORT VALUE
STATISTICS ON THE PERFORMANCE
OF SBMA
REMITTANCE TO LGUs & THE NATIONAL GOVERNMENT
STATISTICS ON THE PERFORMANCE
OF SBMA
JOB OPPORTUNITIES
 CHAPTER V:
SUMMARY, CONCLUSION
AND RECOMMENDATIONS
 SBMA had a much more prolific number in 2018
than any other years

misunderstandings in the application of both laws

surrounding Special Economic Zones and Free Ports
due to misinterpretation and a lot of repealed and
amended sections.

SBMA and SEZs and Free Ports in general had been

amiss due to the incorrect usage of both words.

SUMMARY SBMA is a wholly owned subsidiary of Freeport

Service Corporation that is a corporation created by
the National Government making SBMA a
Government Owned and/or Controlled Company and
not because SBMA is under PEZA.
Section 50 of RA 7916 may have been repealed but
only to some extent of the operations under the
ecozone. SBMA and its area is still fully governed by
RA 7227 till this day.

still is coordinated with the Bureau of Customs in

the application of Customs Administrative Order No.
04-93
 Newly housed bills are
geographical area of the
threatening to stop the
Subic ecozone and
continuing developments of
hampers SBMAs expansion
the authority

RA 7227 itself which needs

SUMMARY OF amendment before the

expansion of said ecozone shut down of the 5th
since there is a need for a world’s biggest shipyard
CHALLENGES statute or revision of
current applicable laws
and SBMA’s biggest
investor HHIC Phil
before an area is deemed a
SEZ and Freeport Area

change of fiscal incentives

being threatened with the
TRABAHO bill
 SBMA’s performance is considered
effective but at its pace is not efficient.

SBMA faces a lot of changes now that their

are newly created laws and possible bills
that clash with the operations of Subic as a
SEZ and Free Port Zone.

CONCLUSION
lack of update in the BOC’s memorandum
orders that are still under the TCCP not the
CMTA.

PEZA is now currently for independence

and voices out the need to become a GOCC
under the Office of the President.
 CONCLUSION

The static economic benefits for SBMA are outstanding

while the dynamic economic benefits are being shaken
down bit by bit. At the end of the day, creations of
economic zones must not be taken as a single means to
an end and such policy should be understood and used
in the context of a broader trade policy reform together
with a favorable legal and regulatory framework.
 RECOMMENDATIONS

SUBIC SPECIAL ECONOMIC CURRENT LAWS, RULES AND MORE UNIFIED APPROACH BENEFITS IS SEZS AND PRIVATE DEVELOPMENTS OF
AND FREE PORT ZONE TO REGULATIONS MUST BE FOR SEZS AND FREEPORT FREEPORT AREAS ARE WELL SEZS INCREASES CHANCE OF
BECOME MORE COMPETITIVE AMENDED OR HARMONIZED AREAS NEED TO BE INTEGRATED INTO THE SUCCESS
WITH OTHER SEZS AND FREE WITH INCOMING PASSAGE OF ADDRESSED WHEN DOMESTIC ECONOMY RATHER
PORT AREA. BILLS AND NEWLY REVISIONS OF STATUTES ARE THAN BEING OPERATED AS
PROMULGATED STATUTES. TACKLED. ENCLAVES. LAWS, RULES AND
REGULATIONS MUST BE
FLEXIBLE ENOUGH TO
ACCOMMODATE BOTH
EXPORTERS AND NON-
EXPORTERS.
REFERENCES PROVIDED IN HARD
COPY
 • SETH KIM MENDAROS
• NORFAH PANDIAN
• DANIEL PASTRANA

THANK YOU • ROBINSON QUIBLAT

• VANESSA REJANO
• RHENSKY REYES