CHAPTER 7

LEGAL ANALYSIS
REGULATORY COMPLIANCE

SPECIAL ECONOMIC ZONES

The Agro Industrial Economic Zone will comply with the requirements of
Republic Act No. 7916 or The Special Economic Zone Act of 1995 that provides
for the legal framework and mechanisms for the creation, operation,
administration and coordination of special economic zones, industrial
estates/parks, export processing zones and other economic zones like agro-
industrial in the Philippines specifically the following criteria of Section 6 Criteria
for the Establishment of Other ECOZONES to wit:

a) The proposed area must be identified as a regional growth center in the

Medium-Term Philippine Development Plan or by the Regional Development
Council;

b) The existence of required infrastructure in the proposed ECOZONE, such as

roads, railways, telephones, ports, airports, etc., and the suitability and
capacity of the proposed site to absorb such improvements;

c) The availability of water source and electric power supply for use of the
ECOZONE;

d) The extent of vacant lands available for industrial and commercial

development and future expansion of the ECOZONE as well as of lands
adjacent to the ECOZONE available for development of residential areas for
the ECOZONE workers;

e) The availability of skilled, semi-skilled and non-skilled trainable labor force in

and around the ECOZONE;

f) The area must have a significant incremental advantage over the existing
economic zones and its potential profitability can be established;
g) The area must be strategically located; and

h) The area must be situated where controls can easily be established to curtail
smuggling activities.

i) That after five (5) years the area must have attained a substantial degree of
development.

The Agro Industrial Economic Zone will be developed, as much as possible,

into a decentralized, self-reliant and self-sustaining Agro-Industrial Zone with
minimum government intervention in accordance with Section 7 of this Act with
transportation, telecommunications, and other facilities needed to generate
linkage with industries and employment opportunities for its own inhabitants and
those of nearby towns and cities.

The Agro-Industrial Economic Zone shall administer itself on economic,

financial, industrial, tourism development and such other matters within the
exclusive competence of the national government.

It may establish mutually beneficial economic relations with other entities

within the country, or, subject to the administrative guidance of the Department of
Foreign Affairs and/or the Department of Trade and Industry, with foreign entities
or enterprises.

Foreign citizens and companies owned by non-Filipinos in whatever

proportion may set up enterprises in the Agro-Industrial Economic Zone, either
by themselves or in joint venture with Filipinos in any sector of industry,
international trade and commerce within the ECOZONE. Their assets, profits
and other legitimate interests shall be protected: Provided, That the ECOZONE
through the PEZA may require a minimum investment for any ECOZONE
enterprise in freely convertible currencies: Provided, further, That the new
investment shall fall under the priorities, thrusts and limits provided for in this Act.
LOCAL ZONING ORDINANCE

The Agro Industrial Economic Zone will be developed within the approved
Land Use for Agro Industrial projects of the Zoning Department of Puerto
Princesa City. The area is strategically located at Bgy. Sta. Lourdes near the
Honda Bay.

The Agro Industrial Economic Zone will comply with the requirements of
City Ordinance No. 560 or the Revised Zoning Ordinance of 2013 for Industrial
Development located in suitable areas under Section 23 to wit:

a) Industrial development adjacent to residential zones to be designed

and sited so as to protect residents from any adverse effects of non-
residential activities.

b) Residential development in industrial zones provided adequate

protection for residents from air and noise pollution, traffic disturbance
and other harmful effects on health or amenity associated with
industrial processes, products and by-product.

ENVIRONMENTAL COMPLIANCE

The Agro-Industrial Economic Zone will secure the mandatory

Environmental Compliance Certificate (ECC) from the Department of
Environment and Natural Resources (DENR) and the Strategic Environmental
Plan (SEP) Clearance from Palawan Council for Sustainable Development Staff
(PCSDS) covered by Republic Act No. 7611 or the Strategic Environmental Plan
for Palawan Act (SEP Law).

It shall also develop the following Environmental Management Plan as

required prior to registration: 1. Liquid waste management program 2. Solid
waste management plan 3. Toxic and hazardous waste management plan 4.
Prevention and abatement of pollution plan (air, noise, water).
PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA) REGISTRATION

The Agro Industrial Economic Zone shall register with the Philippine Economic
Zone Authority (PEZA) and shall comply with the following requirements:

a) Anti-Graft Certificate (R.A. 3019)

b) Favorable Endorsement from the Department of Agriculture
c) Endorsement of the Sangguniang Bayan/Panlungsod of the proposed
economic zone
d) DAR Conversion clearance/exemption certificate or HLURB Zoning
Certification, whichever is applicable
e) Certification from the Department of Agriculture (DA) that the proposed
area is not covered by Administrative Order No. 20 and that such land has
ceased to be economically feasible for agricultural purposes
f) SEC Registration including Articles of Incorporation and By Laws
g) Environmental Compliance Certificate issued by the Department of
Environment and Natural Resources/Environmental Management Bureau
(DENR/EMB)
h) Certification from the National Water Resources Board or the Local Water
provider that the identified source(s) of water for the economic zone shall
not cause water supply and related problems in adjacent communities

BUILDING PERMIT REQUIREMENT

Agro-industrial Zones falls into the Group J – Accessory and classified as

Division J1 for agricultural structures.

The Agro-Industrial Economic Zone will comply with the provisions of Republic
Act No. 6541 or the National Building Code of the Philippines including the
building permits specifically for Group J occupancies of Section 1.02.03 to wit:

(a) Any person, firm, or corporation, including any department, office, bureau,
agency of instrumentality of the government intending to construct, alter, repair,
move, convert or demolish any building or structure, or cause the same to be
done, shall obtain a building permit from the Building Official for whichever of
such work is proposed to be undertaken for the building or structure, before any
such work is started.

The Agro-Industrial Economic Zone will comply with the provisions of Republic
Act No. 6541 or the National Building Code of the Philippines pertaining to
periodic inspection and detailed supervision of the construction to conform with
approved plans and specifications covered by the building permit under
Section1.02.05 (a) to wit:

(a) Inspection. The duly licensed architect or engineer engaged by the owner
to undertake inspection and detailed supervision of the construction shall
periodically certify that the construction conforms to the plans and
specifications submitted in the application for a building permit. Upon
submission of such periodic certifications during the progress of
construction, the Building Official shall periodically issue the required
authority to continue with the subsequent phases of construction, without
prejudice to his right to conduct on his own initiative any inspection of the
said construction. Upon completion of the construction, the said duly
licensed architect or engineer shall submit to the Building Official the final
certification that the building conforms to the provisions of the Code and
with the detailed plans and specifications submitted.

The Agro-Industrial Economic Zone shall comply with Batas Pambansa BLG.
344 (Accessibility Law of The Philippines, 2012) that requires consideration of
disabled persons for buildings, establishments, and facilities under Section 1 to
wit:

SECTION 1. In order to promote the realization of the rights of disabled persons

to participate fully in the social life and the development of the societies in which
they live and the enjoyment of the opportunities available to other citizens, no
license or permit for the construction, repair or renovation of public and private
buildings for public use. Educational institutions, airports, sports and recreation
centers and complexes, shopping centers or establishments, public parking
places, work-places, public utilities, shall be granted or issued unless the owner
or operator thereof shall install and incorporate in such building, establishment,
institution or public utility, such architectural facilities or structural features as
shall reasonably enhance the mobility of disabled persons such as sidewalks,
ramps, railings and the like. If feasible, all such existing buildings, institutions,
establishments, or public utilities to be constructed or established for which
licenses or permits had already been issued may comply with the requirements
of this law:

OCCUPANCY PERMIT REQUIREMENT

The Agro-Industrial Economic Zone will comply with the provisions of Republic
Act No. 6541 or the National Building Code of the Philippines pertaining to
acquisition of Certificate of Occupancy prior to actual occupancy of the building
under Section1.02.05 (b) to wit:

(b) Certificates of Occupancy. The proper Certificate of Occupancy shall

be issued to the applicant within seven (7) days from completion of the
requirements for inspection and occupancy and payment of any and all
fees therefore, unless the building Official or his Deputy issuing the
Certificate shall show cause in writing why the Certificate should not be
issued and shall indicate there on the particular provisions of the Code
violated or the particular requirements not complied with. Within fifteen
(15) days from receipt by the applicant of the advice from Building Official
or his Deputy authorized to issue the certificate why the certificate should
not be issued, or why the certificate is suspended or revoked, the
applicant may appeal the non-issuance, suspension, or revocation thereof,
to the Mayor of the chartered city or municipality, or the Governor of the
province where the building for which the certificate is being applied for is
located. Said appeal shall be decided within fifteen (15) days from receipts
thereof, otherwise, the applicant may bring the matter to the proper Court
 of Justice for final disposition. The building may be occupied only upon
issuance of the Certificate of Occupancy.

BUSINESS REGISTRATION

All businesses in the Philippines are required to secure the applicable permits
and licenses prior to start of any business activity.

The Agro Industrial Economic Zone required to register as Corporation with the
Securities and Exchange Commission shall also secure the following business
registration and permits:

 Bureau of Internal Revenue

 Social Security System
 Philippine Health Insurance Corporation
 Home Development Mutual Fund (PAGIBIG)
 Local Government of Puerto Princesa City
 Department of Health