Republika ng Pilipinas Lungsod ng Caloocan “HO BEE TANGGAPAN NG SANGGUNIANG PANLUNGSOD @ ORDINANCE NO. 0570 s. 2015 «% (PROPOSED ORDINANCE No. 1435) | AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES. Sponsored By: HON. MA, MILAGROS “ROSE” S. MERCADO Co-Sponsored By: HON. LUIS CHITO S. ABEL, HON. CARMELO F. AFRICA III, HON. ALLEN ALEXANDER C. ARUELO, HON. DEAN ASISTIO, HON. TOLENTINO J. BAGUS, HON. AURORA A. HENSON, JR., HON. MARYLOU Z. NUBLA, HON. ROBERTO R. SAMSON, HON ANNA KARINA R. TEH AND HON. DALE GONZALO R. MALAPITAN WHEREAS, with the globalization as the main direction of the world economy, there is a need to encourage foreign and local industries to pour in their investment in our country especially in the City of Caloocan; WHEREAS, at present, no comprehensive plan on how to attract foreign and local investors has been adopted nor enacted by the Sangguniang Panlungsod; WHEREAS, it becomes imperative to pass an ordinance enacting an investment code to rationalize the system and process of investment accreditation and to intensify promotional and business development activities that would magnify the viability of the City of Caloocan as a haven for productive investment for both local and foreign investors; NOW, THEREFORE, BE IT ORDAINED as it is hereby ordained by the City’s ‘Sangguniang Panlungsod in session duly assembled THAT: ARTICLE General Provisions SECTION 1. SHORT TITLE — This Ordinance shall be known as the CALOOCAN CITY INVESTMENT CODE hereinafter referred to as the CODE; SECTION 2. DECLARATION OF POLICY — it is hereby declared the policy of the City Government of Caloocan to catalyze the development of the City through a program designed to enhance the socio-economic life of its residents. The City Government should endeavor to rationalize the system and process of investment accreditation and to intensity the promotion of business development activities that would magnify the viability of the City as one of the Highly Urbanized Cities in theage 2 of 9 Ordinance No. 0570 s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES country, Thus, the government shall forge partnerships with both local and foreign establishments or even institutions that would be instrumental in strengthening the economic potential of the City, hence creating more employment opportunities and livelihood projects. SECTION 3. DEFINITION OF TERMS ~ For purposes of this Ordinance, the following words and phrases shall mean: 1. CODE ~ shall mean the investment Code for the promotion of trade, commerce and industry in Caloocan City; 2. COUNCIL ~ shall refer to Caloocan City Investment and Business Promotion Council; 3. NEW ENTERPRISES — shall refer to those prospective entrepreneurs who have not yet engaged in any business activity in Caloocan City and are interested to venture and establish their operation herein: 4. CAPITALIZATION — shall mean the total of initial investment in a business ventures which may be in cash or property. 5. EXISTING ENTERPRISES - shall refer to those enterprises already operating within the jurisdiction of the City; 6. REGISTERED ENTERPRISES - shall refer to those enterprises registered in accordance with the provisions of this Ordinance, and; 7. INVESTMENT PRIORITY AREAS - shall mean the economic activities that the City government has identified as_hereinafter enumerated; ARTICLE I Creation, Objective, Composition, Powers and Functions of the Caloocan City Investment and Business Promotion Council SECTION 1. The Caloocan City Investment and Business Promotion Council — There shall be created a Council to be known as Caloocan Investment and Business Promotion Council (CCIBPC) to formulate policies and implement the provisions of this Code and shall be hereinafter be referred to as the Council. SECTION 2. Objectives of the Council (CCIBPC) - 1. To encourage local and foreign investors to establish business and livelihood activities which will provide opportunities for employment; 2, To encourage Filipino and Foreign investments or joint ventures tie-up in projects to develop industrial and manufacturing industries that would spur sustainable industrialization and expand livelihood opportunities; 3. To hasten economic development by expanding markets for local industries through intensified promotional and business development activities; 4. To rationalize and simplify the system and process of investment accreditation and develop promotional strategies that would magnify the viability of the City as an investment destination; andage 3 of 9 Ordinance No. 0570 s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PUR 5. To forge partnership with domestic and foreign institutions that would facilitate and strengthen economic potential of local entrepreneurs. SECTION 3. Composition of the Council — The Council shall be composed of the following; Chairman = - ~—City Mayor Co-Chairman - Member of the Sangguniang Panlungsod 1" Vice Chairman - The President or duly authorized representative of the Caloocan City Chamber of Commerce, Inc. 2" Vice Chairman - Representative from the Caloocan City Filipino- Chinese Chamber of Commerce and Industry Members - Chairman, SP Committee on Trade, Commerce and Industry - Chairman, SP Committee on Ways and Means - Representative from two (2) accredited and recognized business councils/associates such as tourism and real estate - Head, City Planning and Development Department Ex-Officio Members - City Treasurer - City Budget Officer - Chief, Business Permit and Licensing Office (BPLO) - Chief, LIRO - Other city officials as may be appointed by the Chairman SECTION 4. Powers and Functions of the Council - The Council is tasked mainly to come up with a favorable and stable policy on establishing business climate in the City which will encourage and support investment. It is vested with the following powers and functions; a. To screen, evaluate, accept, approve or disapprove the applications for registration for the availment of investment incentives and to issue certificate of registration. b. To accept all applications and be acted upon within thirty (30) days upon receipt thereof; ¢. To conduct hearing on issues concerning violations committed against any provisions in this Code; 4. To enter into agreement with other government agencies and/or private organizations for the purpose of simplifying the system, procedure and requirement in establishing new investment in the City; e. To call meeting/s, upon the initiative of the Chairman or the majority members of the Council, to formulate rules and regulations to ensure compliance with the provisions of this Code. The Council shall meet once a month or as the need arises; f. To conduct short and medium-term investment promotional activities Such as trade and investment missions, business conferences for andage 4 of 9 Ordinance No. 0570 s. 2015 MOSS DINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTNEIR PUR ee other related activities to attract investors and to and; 9. To create an Investment and Business Promotion Office (IBPO) to serve as technical secretariat for the implementation of the provisions of this Code. generate employment SECTION 5. Powers and Functions of the Chairman — have the following powers and duties: a. To confirm the mandated members of the Council from the Chairman down to the members except for the ex-officio members; b. To preside over the regular and special meetings of the Council; To render annual reports to the Sangguniang Panlungsod and such special report as may be necessary or requested; To recommend to the Council such policies and support measures that may be deemed necessary to carry out the objectives of this Code; and @. Generally, to exercise such other powers and perform such other duties as may be authorized by the Council, from time to time. The Chairman shall Vice ARTICLE III Investment Development Plan SECTION 1. Investment Development Plan — This is an over all plan to be formulated by the Council which contains analysis, synthesis and projection of data which includes; a. The specific areas of economic activity to be declared as investment priority area; b. The investment trends in the last five (5) years and the possible trends in the next three (3) to five (5) years; ¢. The specific public works projects that need to be undertaken by the local or national government; d. The respective roles of privilege sectors and government in bringing additional capacities into existence; and e. Other relevant factors which the Council may consider desirable to include. SECTION 2. Coverage ~ Business enterprises having the following type or nature shall be given priority under this Code; a. Call centers and IT enterprise: b. Electronic and electrical enterprises; ¢. Tourism and oriented enterprises; d. Services oriented enterprises; e. Telecommunications development enterprises; f. Transport enterprises; and g. Recycling enterprises. SECTION 3. Identified Investment Priority Areas (IPAs) a. Light Manufacturing«ige 5 of 9 Ordinance No. 0570 s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES. light metals toy manufacturing Ceramics jewelry making herbal medicines b. Infrastructure and Services - public utilities - buses public markets infrastructure — private eco-estate, concrete, road, solid waste disposal ¢. Tourism five-star hotels cultural centers and historical centers team parks and recreational parks eco-tourism centers five-star transport facilities film productions d. Consumer Productivities/Manufacturing - Gifts and hardwares, novelty gift items, Christmas and handmade décor; e. Engineering Industries - Pre-fabricated materials - Machine engineering - Lathe machines f. Electronic and Electrical Industry - electronic and electrical products g. Communications and Information Technology (IT) - Call centers, IT servers, IT enabled, IT parks h. Environmental Protection Projects - Pollution abatement or mitigation ecological facilities i, Mass Housing Projects - Fabrication of housing components SECTION 4. Determination of Additional Investment Area- The Council may include additional investment areas in the list of priority investment which upon due deliberation and approval shall then be adopted for implementation under the investment priority programs. SECTION 5. Deletion of the Priority Investment Area — The Council may remove or delete an area or activity from the list of priority/preferred area for investment which shall be based on the following;ge 6 of 9 Ordinance No. 0570 s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES. a. Sufficient investment in the area or activity has been attained; Continued extension of incentives or support measures for the ‘specific investment are no longer to the interest of the City; and ¢. Investment area or activity can not attract investors wi reasonable time. ARTICLE IV Registration of Enterprises SECTION 1. Qualification for New Investors — New investors must meet the following qualifications; a. That the business enterprise must have complied with all the requirements mandated under existing local and national laws, rules and poli That the prospective investors shall be duly registered with the appropriate government agencies; That the new enterprise must have a paid-up capitalization of not less. than Five Mi That the prospective investor must be engaged in activities under the Investment Priority Areas indentified and declared by the Council. ies of the government. lion Pesos (Php 5,000,000.00); and SECTION 2. Application Requirements — Applications shall be filed with the Council, recorded in the registration book and the date of the receipt stamped on the face thereof which shall be considered the date of the official receipt. SECTION 3. Venue for the Filing of Applications — All applications shall be filed directly at the Caloocan City Investment and Business Promotion Office. SECTION 4. Processing Time — Applications shall only be entered officially accepted upon submission of complete requirements to the Council. The Council, within one (1) day from acceptance thereof, shall act upon the application for incentive provided that all questions and inquiries relative thereto have been sufficiently satisfied. a. Four (4) copies of complete application form to be provided by the Council; b. Certified true copy of Articles of Incorporation and By-Laws as approved by the Securities and Exchange Commission (SEC) or the Department of Trade and Industry (DTI) as the case may be; c. In case of corporation, Board Resolution authorizing the applicant for the filing of application for registration; d. Latest audited Financial Statement; e. Project Feasibility Study; f. Other requirements as may be deemed necessary. Upon approval, the applicant is required to pay to the City Treasurer's Office, a registration fee of 1/10 of 1% based on the approved amount of investment.-ge7 of 9 Ordinance No. 0570s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES, ARTICLE V Investment and Business Promotion Office SECTION 1. Powers and Functions of the Investment and Business Promotion Office (IBPO) — This Office shall serve as the Secretariat of the Council and shall have the following powers and functions; a. Accept, process and evaluate all applicants for registration for the availment of local tax exemption, relief, incentive and ‘submit its recommendation for action by the Council within ten (10) working days. b. Provide the necessary support services to the investors such as: b.1. Facilities of registration, documents, permits and licenses; b.2. Provide business information to the investors; Establish and m networking relation with other offices and agencies whenever necessary; Recommend to the IBPC any amendment to existing ordinance, rules and regulations relative to local investment; e. Prepare the minutes and agenda of the meeting of the Council and submit for consideration and approval of the Council such policies and measures deemed necessary to carry out the provisions of this Code; f. Establish multi-sectoral linkage/network system. ARTICLE VI Tax Exemption, Privileges and Incentives SECTION 1. Tax exemption shall be conferred through the issuance of a tax exemption certificate which shall be non-transferable. The grant of these exemption and incentives shall be governed by the following factors; a. The tax exemption, privilege or incentive granted shall take effect only during the next calendar year for a period not exceeding twelve (12) months after the evaluation of the IBPO and approval of CCIBPC. b, Incentives granted to existing enterprises shall apply only to additional capitalization and shall not apply to previous investment from legal grantee to another and shall be enjoyed on one occasion only. SECTION 2. All registered enterprises with capitalization of not less than Five (5) Million Pesos and an existing enterprise with an additional capitalization of Three (3) Million Pesos or above shall be granted the following incentives; a. Exemption from payment of business tax for a period of one year and payment thereof equivalent to one-half (1/2) of the applicable business taxes for a period of five (5) years; b. Exemption from the payment of real property tax for a period of one (1) year and payment thereof equivalent to one-half (1/2) of real property taxes for a period of1 _e80f9 Ordinance No. 0570's. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR THE PROMOTION OF TRADE, COMMERCE AND INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES. c. Exemption for payment of franchise tax for a period of one (1) year and payment thereof equivalent to one-half of the applicable rate for a period of five (5) years and d. Exemption from payment of transfer tax of real property ownership is a one time payment. ARTICLE Vil Initial Appropriation SECTION 1. There shall allocated an initial appropriation of Five Million (P5,000,000.00) Investment and Business Promotion Fund. Thereafter, the Council shall present annual budget for the continued operation and maintenance of its office including the preparation of investment missions both local and foreign. ARTICLE VIII Final Provisions SECTION 1. Restriction and Expiration ~ Upon approval of the application for incentives granted to the applicant, the project either new or expansion, must be implemented within one (1) year, otherwise the incentives and other benefits will be nullified. SECTION 2. Penal Clause (1) Violation of any provision of this Code shall forfeit the incentives and privileges granted the registered enterprise and shall be required to pay all taxes due from the start of its business operation upon recommendation of the Investment and Business Promotion Office (2) Violation of the provision of this Code shall be penalized with a fine of not less than One Thousand (P1,000.00) Pesos but not more than Five Thousand (PS,000.00) or an imprisonment of not less than one (1) month but not more than one (1) year or both such fine and imprisonment at the discretion of the Court. In case the violation is committed by a corporation, partnership, association, the President or Chief Executive Officer, Manager, as the case may be, shall suffer the penalty provided herein. SECTION 3. IMPLEMENTING RULES AND REGULATIONS -The Business Permits and Licensing Office (BPLO) is hereby tasked to promulgate the necessary Implementing Rules and Regulations (IRR) for the effective Implementation of this Ordinance. SECTION 4, Separability Clause — If for any reason, any provision of this Code is declared to be unconstitutional or invalid by the Court, other provision/s hereof not affected thereby, shall continue to be in full force and effect. SECTION 5. Repealing Clause — All ordinances, resolutions, rules and regulations which are inconsistent to or in conflict with the provision/s of this Code, are hereby repealed, amended or modified accordingly. SECTION 6. Effectivity Clause — This Code shall take effect following its publication once in a newspaper of local circulation or at the end of the posting period for three (3) consecutive weeks at prominent places in the City Hall, whichever occurs later.-ige 9 of 9 Ordinance No. 0570 s. 2015 AN ORDINANCE ENACTING AN INVESTMENT CODE FOR Th INDUSTRY IN THE CITY OF CALOOCAN, PROVIDING FUNDS. HE PROMOTION OF TRADE, COMMERCE AND THEREFOR AND FOR OTHER PURPOSES. ENACTED BY THE SANGGUNIANG PANLUNGSOD, CITY OF CALOOCAN AT ITS REGULAR SESSJQN HELD ON THE 28" DAY OF APRIL 2015. HON, Luts CHITO S. ABEL won. KR Mon ARUELO Cir Councitor OUNCILOR HON. CARMELO F. AFRICA IIL crry @éuncitor Hon. Auroxa A. Henson, Jr. City CouNciLor d Mercado Hon. Marytou Z. NUBLA City Councitor N. ROBERTO R. SAMSON ened TeH Crry Councitor Cry Councitor Cir Councitor Ate HO Ho. Ma. Mi Grrr SouNciLoR APPROVED By His HONOR, THE CITY MAYOR ON 2015. HON. OSCAR G. MALAPITAN Hon. ARIO b, City Mayor Vice Mayor & Presidiir oo Secretary to the Mayor Secretary Sangguniang Panlungsod'URPOSES. 201: PROMOTION OF TRADE, COMMERCE AND PROVIDING FUNDS THEREFOR AND F¢ LUNGSOD, CITY OF CALOOCAN aT ITS 3 3 s S Su 2 ey z st = 38 Fi gf as Sy o> 28 & 2 38 24 Se zy 2 % g es 2 : INVESTMEN) F CAL GOGAT THE SANG LO GIN THE th ‘¢ ‘APPROVED Br ATTESTED BY! LIUIBETH I. Secretary