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Appendix 1

LIIC TEMPLATE

THE LGU XYZ

INVESTMENTS AND INCENTIVES
CODE OF YEAR OF PROMULGATION/ENACTMENT

AN ORDINANCE ENACTING THE LGU XYZ INVESTMENTS AND INCENTIVES CODE OF

CALENDAR YEAR, AND FOR OTHER PURPOSES.

Be it ordained by the Sangguniang Panglalawigan/Panglunsod, l-GU XYZ , that:

CHAPTER I. TITLE

SECTION 1. Title. - This ordinance shall be known and cited as the LGU XYZ
Investments and Incentives Code .

CHAPTER II. DECLARATION OF POLICY

SECTION 2. Declaration of Policy. - To accelerate the sound development of LGU XYZ

in accordance with the updated LGU XYZ comprehensive development plan (CDP), land
use plan (CLUP), investments priority areas (IPAs) and the national development plan,
it is hereby declared to be the policy of LGU XYZ to encourage investments both local
and foreign, in new, expansion, diversification, and or modernization in identified
priority areas by providing fiscal and non-fiscal incentives.

The LGU XYZ welcomes and encourages utilization of substantial amount of local
labor, raw materials, and natural resources of the province/city/municipality.

It is further declared to be the policy of the province/city/municipality to promote

private sector participation in LED.

CHAPTER III. DEFINITION OF TERMS

SECTION 3. Definition of Terms. - When used under this Code, the following terms
and phrases shall mean as follows:
 a' "Board" shall refer to the LGU xyz Investments and Incentives
Board created
under this Code.
b. "Code" shall refer to the LGU xz Investments and Incentives
Code of Yeaf.
c. "Existing establishments/enterprises" shall refer to those
establishments/enterprises whose places of operation or production
are
located within the territorial jurisdiction of LGu xyz.
d. "New projects" shall refer to those prospectiue investors who have not
engaged in any kind or type of business in LGU XyZ and is interested
in
establishing its places of operation or production in the province/
city/municipality.
e. Expansion projects- shall refer to include modernization and rehabilitation and
shall mean increase of existing volume or value of production or upgrading
the quality of the registered product or utilization of inefficient or idle
equipment under such guidelines as the Board may adopt.
f."Investment priority areas (lPAs)" shall mean the economic activities
that the
Board shall have approved and declared as such after a thorough study
and
evaluation,
g. "Registered enterprises" shall mean those enterprises/businesses
registered
in accordance with the provisions of this Code.
h. Local fiscal and non-fiscal incentives
I

l. Existing Capacity and capacity utilization

CHAPTER IV. LGU XYZ INVESTMENTS AND INCENTIVES BOARD

sEcrroN 4. xyz Investments and Incentives Board. - There is hereby created a

LGU
LGU xYZ Investments and Incentives Board to implement the provisions
of this Code.
sEcTIoN 5. Composition of the Board - The Board maybe composed of but not
limited to the following:

The Local Chief Executive , as the Board Chairperson;

The Vice-Chair - President of the Local Chamber or any other duly
accredited
private/busi ness organ ization

Members:

1. The Local Planning and Development Coordinator;

2. (2) Department Heads representing major local economic drivers (tourism,
agriculture, as the case maybe)
3 . The Sa ngg u n ia n Cha irperson of the Com m ittee on Trade, Commerce
and
Industry or Economic Development
 4. At least three (3) Private Sector Representatives representing significant
business/industry in the locality to be appointed by the Local Chief Executive,
for a term of two (2) years

Ex officio members

1. Director of the Department of Trade and Industry (DTI) in case of

province and HUCs
2. Director of DENR, in case of provinces and HUCs
3. Other NGAs as needed

SECTION 6. Meetings and Quorum of the Board.- The Board shall meet at least once
a month or as necessary, on such a day and time as it may fix. The presence of at least
a majority of its members shall constitute a quorum and a majority of the quorum of a
meeting, validly held, shall be required for the Board to exercise its powers and perform
its functions.

SECTION 7. Powers and Functions of the Board - The primary function of the Board
shall be to establish a favorable and stable policy on business climate which will
encourage and support private sector investment and in the operation of business
activities consistent with the development needs of LGU_ lYZ. Pursuant to this, the
Board shall be vested with the following powers:

a. Promulgate the governing Implementing Rules and Regulations in the

implementation of the provisions of this Code subject to the approval of the
Sanggunian;
b. Recommend to the sanggunian any amendments on the Code
c. Adopt a short and medium-term investments promotion program
d. Supervise the operations of the Investments Promotion Center
e. Establish cooperative undertakings with other LGUs, partnership with the
private sector or other institutions as may be necessary
f. Act on applications for registration and availment of local incentives
g. Secure additional funding and other resources to supplement the budgetary
support provided by the LGU XYZ Government for the operation of the
Secretariat in its implementation of the Code; and
h. Enlist the assistance of local government offices, national agencies and
private sector organizations, as may be necessary, useful and incidental to
the effective and efficient implementation of this Code.
i. Establish trade and investment satellite offices in places to be determined by
the Board, as may be necessary, to promote the local business climate; and,
j. Such other powers and functions which are necessary and incidental to the
exercise and performance of the aforesaid functions.
 CHAPTER V. INVESTMENTS PROMOTION CENTER

sEcTIoN 8.LGU XYZ Investments Promotion Center -

There shall be created an
office known as LGU xyz Investment Promotions Center, which maybe staffed by
permanent qualified personnel, and shall be headed by the LEIpo.

SECTION 9. Powers and Duties of the Center.

- The Center shall perform the following
functions:

a. Accept, process and evaluate applications of projects for registration and

availment of local incentives
b. submit recommendations regarding the application of the project for
availment of local incentives for appropriate action by the Board
;
C. Provide the necessary support services to investors as guaranteed under the
Code;
Establish and maintain networking relations with other offices and agencies
whenever appropriate and necessary;
Establish data base of investment related information;
Recommend to the Board modifications/amendments to existing legislations
and procedures on local investments when the need warrants;
Formulate marketing strategies for investments promotions
Identify LGU projects for ppp
Recommend to the Board policies and measures which are deemed necessary
to carry out the provisions of the Code;
submit annual report on the operation of the Ipc to the Board;
Acts as secretariat to the Board; and
Perform such other functions that are necessary and incidental for the
effective implementation of the Code.

sEcTIoN 10. support services of the Ipc

1' INVESTOR ASSISTANCE AND SERVICING. Assist prospective investors by
providing assistance, among others:

a. One-stop documentation services (facilitating business permits, licenses,

incentive availment);
b. Investment counseling; and
c. business matching.
 2. INVESTMENT AND TRADE PROMOTION AND GENERATION. Hand|e
promotional activities that will directly influence infusion of investments and
influx of trade and tourism, such as:

a. Trade and investment missions;

b. Investment fora/seminars;
c. Direct investment marketing;
d. Trade fairs and exhibits;
e. Investment briefings/orientations;
f. Setting-up of a showroom/exhibition area;
g. Promo collaterals preparation and dissemination.

3. INFORMATION MANAGEMENT AND DEVELOPMENT. In the aTea of

information and development, shall:

a. Handle data generation, processing and packaging;

b. Handle data storage and retrieval;
c. Support direct investor servicing through operation of an on-line information
assistance desk;
d. Review existing incentives and prepare recommendations and/or policy
papers for its improvement;
e. Prepare project profiles, pre-investment studies, viability and feasibility,
industry profiles and situationers

CHAPTER VI. INVESTMENT PRIORITY AREAS (IpAs)

SECTION 11. Investment Priority Areas. - the ff priority investment areas shall be
promoted to targeted investors . Examples of priority areas (taken from existing LIICs)

CHAPTER VII . QUALIFICATTON FOR REGISTRATTON OF PROJECTS

SECTION 12. New Projects - Investors with new projects who intend to avail of the
incentives provided in this Code must meet the following qualifications: (the ff are
examples )

a, That the project must have complied with all the requirements mandated
under existing local and national laws and the Constitution;
b. That the prospective investor's place of operation or production be located
within the territorial jurisdiction of LGU XyZ;
c. That the prospective investment must engage in activities in preferred areas
of investments as may hereafter be declared by the Board;
d' The new projects must have a capitalization of at least One Million Pesos ;
 e, That the new project will employ at least 50% of its workforce who are bona
fide residents of LGU xyz.

SECTION 13. Expansion Projects. - An expansion project may qualifu for incentives if
the following conditions exist:

a. That the project must have complied with all the requirements mandated
under existing local and national laws and the Constitution;
b. That the expansion project is listed in the local IPAs and should have
attained at least B5o/o of its existing production capacity and the proposed
incremental capacity is at least 25o/o of its existing capacity

c. That the expansion project shall have a capitalization of at least One Million
Pesos;
d. That the new project will employ at least 50o/o of its workforce who are bona
fide residents of LGU XYZ.

SECTION 14. Diversification Projects - A diversification project may qualify for

incentives if the following conditions are met:

a. That the project will entail new products and new production facilities;
b. That the diversification project is listed in the local IPAs
c. That the diversification project shall have a capitalization of at least One Million
Pesos;
d. That the new project will employ at least 50o/o of its workforce who are bona fide
residents of LGU XYZ

Section 15. Modernization Projects - A modernization project may qualify for

incentives if the ff. requirements are met:

a. That the project ( get from OIC)

Section 16. Application for Registration - Application shall be filed with the Board,
recorded in a registration book and the date appearing therein and stamped on the
application shall be considered the date of official receipt thereof. (refer to OIC)

A non-refundable filing fee shall be paid together with the following documents for
registration:

a) Completed application form

b) Project profile;
c) Certified true copy of its Certificate of Registration with SEC for partnerships,
and corporations or DTI for single proprietorship
 d) For corporations, a resolution of the Board authorizing the filing of
application.

SECTION 17. Approval - The Board shall Act on the application within 10 working
days from official receipt thereof. Otherwise, the application for registration is deemed
approved.

SECTION 18. Certificate of Registration. - Upon approval of the Board, a certificate of

registration shall be issued.

CHAPTER VIII. INCENTIVES TO REGISTERED PROJECTS

Section 19. Fiscal and Non-Fiscal Incentives to Registered Projects. - In addition to

the incentives provided by existing laws, a registered project under this Code shall
enjoy the following local fiscal and non-fiscal incentives as maybe deemed sound and
appropriate by the Board and approved by the Sangguian:

A. Fiscal Incentives

The LGU may design or provide incentives depending on what can be afforded
by the LGU in accordance with the provisions of the LG Code of 1991.(Fiscal
Incentives would gradually decrease for the duration of the incentive so that the
LGUs can gradually generate incremental revenues over time from said
investments.

B. Non-Fiscal Incentives

In addition to the Support Services of the IPC, other Non-Fiscal Incentives may
be offered by the LGU:
a) Establishment of Incubation Centers or Common Services Facilities for
investors
b) Establishment of Entrepreneurship Training Camps and Enterprise
Development Program
c) Establish Issue/Conflict Resolution Mechanism
d) Assistance to investors in navigating through bureaucratic processes
e) Formulation of LGU employment policies in collaboration with local firms to
initiate job creation
f) Skills and manpower development
g) Providing adequate land supply through efficient zoning and proper area
management
h) Site selection and negotiation assistance
i) Establishment of hotlines and quick response teams to crimes, emergencies,
calamities and fortuitous events
 CHAPTER IX. APPROPRIATIONS

SECTION 20. Appropriations. - To defray the expenses for personal services

(P.S.), monthly operating and overhead expenses (MOOE) and capital/equipment
outlay necessary for the implementation of the provisions of this Ordinance,
funds shall be sourced thru a Supplemental Budget from the General Fund
and/or from the 20o/o Annual Development Fund. Appropriations for the
succeeding years shall be included in the regular Annual Budget, upon the
recommendation of the Board.

CHAPTER X. FINAL PROVISIONS

SECTION 21. PenaQClause. - Any violation of the provisions of this Code,
existing laws, ordinances, rules and regulations, shall be ground for the
cancellation or revocation of the registration of the business and the withdrawal
of all the incentives granted under this Code.

SECTION 22. Separability Clause, The provisions of this Code are hereby
declared to be separable and in the event that one or more of the other
provisions are held illegal or unconstitutional, the validity of the other provisions
shall not be affected.

SECTION 23. Repealing Clause. - Ordinances, executive orders and other local
legislation inconsistent with this Ordinance are hereby modified or repealed
accord ing ly.

SECTION 24. Effectivity. - The Code shall take effect immediately after ten
(10) days from the datc a copy thereof is posted on a bulletin board at the
entrance of the provincial capitol or city, municipal halls , as the case maybe, and
in at least two (2) other conspicuous places in the LGU.

ENACTED, by a unanimous vote of all the Members of the

Sanggunian present there being a quorum.

CERTIFIED CORRECT:

Acting Secretary
Sa ngg u nia n
ATTESTED:

Vice LCE
Presiding Officer/ Sanggunian

APPROVED: , 2011

Local Chief Executive

Name of LGU

ATTESTED:

Local Administrator