CHAPTER 2
● Explain the possibility of public service as a
THE TOURISM PUBLIC SECTOR
Role of Government. Loyalty to the nation all the
time, loyalty to the government when it deserves
it. (Mark Twain, American novelist)
The Case of the Overpriced Airport
The Ninoy Aquino International Airport
Terminal 3 was constructed by a Japanese
contractor Takenaka and opened last March 2007.
However, the airport facility which was meant to
address the capacity problem of NAIA Terminals 1
and 2 was besieged with two major problems.
First, the alleged overpricing of the NAIA Terminal
3 by $140 million has led to a cabinet-level probe.
Takenaka priced the project at $275 million.
Fraport AG, one of the corporate outfits of the
Philippine International Air Terminal Company
(PIATCO) consortium, which got the contract
claimed that it invested $425 million in the said
project. The award was later nullified by the
Supreme Court due to the various changes in the
concession contracts which the High Tribunal
declared as disadvantageous to the government.
Following the High Court's ruling, the government
took over the NAIA 3 facility, claiming that the
project was tainted with massive corruption on top
of violations of Philippine laws such as the anti-
dummy law. The second problem of NAIA 3 was
the substandard construction reflected by the
rapid deterioration of some parts of the said
terminal.
Questions
1. What lessons have we learned from this
case?
2. How can the Philippine government
prevent a repeat of this incident?
3. What charges may be filed against public
officials linked to this scandal?
4. Is it possible to allow a scandal-riddled
project to open and operate while the
decision of the court is still pending?
Learning Objectives
● Identify the various government agencies
involved in the development and
promotion of the tourism industry as well
as their functions
● Describe the relationships of these
agencies with one another
career in the industry
It was during the year 1973 when the Philippine
government realized that there is a need to realign
government efforts toward trade promotion and
tourism development for greater effectiveness;
hence, the need for the government's immediate
and priority attention. This gave rise to Presidential
Decree No. 189 (May 11, 1973) creating the
Department of Tourism which was enacted to
make the tourism industry a positive instrument
toward accelerated national development through
which more people from other countries may visit
and better appreciate the country and through
which the Filipinos themselves may learn more
about the natural beauty, history, and culture of
the Philippines and, thus, develop greater pride in
and commitment to the nation.
This chapter deals with various government
agencies directly or indirectly involved in the
promotion of tourism in our country.
The Law
Department of Tourism
The Department of Tourism (DOT) was
created by virtue of Presidential Decree No. 189. It
is the primary policymaking, planning
programming, coordinating and administrative
entity of the executive branch of the government
in the development of the tourism industry, both
domestic and international.
The DOT has the following major functions:
a) Supervises all activities of the government
which concern tourism;
b) Effects the removal of unnecessary barriers
to travel; the integration and simplification
of travel regulations; as well as their
efficient, fair and courteous enforcement to
assure expeditious and hospitable
reception of all visitors;
c) Formulates an integrated program of
promotion and publicity designated to
attract and induce people abroad to visit
the Philippines, patronize things which are
Philippine-made, and to enhance the
prestige of the Filipino people and the
Republic;
d) Reviews all tourism projects which involve
loans from government financial
institutions before said institutions may
take action on them, and approve all
tourism projects and firms applying for tax
 incentives under the Export Incentives Act,
as amended by Presidential Decree No. 92,
before the Board of Investments may take
action on them;
e) Represents the Government in all
conferences and meetings concerning
tourism; and travel and discharge such
responsibilities of the Government as may
arise from treaties, agreements and other
commitments on tourism and travel, to
which it is a signatory;
f) Accredits travel agents, tour operators, and
tour guides;
g) Classifies and accredits hotels, resorts, inns,
motels, hotels, restaurants and other
related facilities and services which cater to
foreign and domestic tourists and in
addition, formulates suitable standards to
ensure that the highest possible standards
are met, reasonable fees and charges are
made and that services are given with
honesty, courtesy, and efficiency; and
h) Performs such other functions as may be
provided by law.
Discussion of the Law
The power to regulate, license, and
supervise tour operators and accommodation
facilities has now been devolved to the local
government units. However, it must be noted that
the "power to regulate" does not include the
"power to prohibit operation of these
establishments" without due process of the law.
The word "regulate," as used in subsection (1),
Section 2444 of the Administrative Code, means
and includes the power to control, to govern, and
to restrain; but "regulate" should not be construed
as synonymous with "suppress" or "prohibit."
Application of the Law
Case: The Malate Tourist Development
Corporation (MTDC), a corporation engaged in the
business of operating hotels, motels, hostels, and
lodging houses, built and opened Victoria Court
Malate which was licensed as a motel although
duly accredited with the DOT as a hotel. On March
30, 1993, an ordinance was passed prohibiting the
establishment or operation of business providing
certain forms of amusement, entertainment,
services and facilities in the Ermita-Malate Area
where women are used as tools for entertainment,
and which tend to disturb and affect the social and
moral welfare of the community. On June 28, 1993,
MTDC questioned the validity of the Ordinance
and prayed that the same insofar as it includes
motels and inns as among its prohibited
establishments, be declared invalid and
unconstitutional. In its defense, the City of Manila
alleged that such Ordinance is a valid exercise of
the police power of the state as it has the "power
to regulate" such establishments as mandated
under the Local Government Code of 1991. How will
you rule on the issues?
Legal Opinion: The Ordinance should be declared
unconstitutional and invalid. The "power to
regulate" means the power to control, to govern,
and to restrain places of exhibition and
amusement, but the "power to regulate" should
not be construed as synonymous with the "power
to suppress" or "power to prohibit." The police
power granted to local government units must
always be exercised with utmost observance of the
rights of the people to due process and equal
protection of the law. Such power cannot be
exercised whimsically, arbitrarily, or despotically.
The Law
By virtue of the enactment of the Tourism
Act of 2009, certain tourism public sectors have
been reorganized and renamed.
The DOT, under this law, is reorganized and
given considerable sources of funding to achieve
its designated mandated and functions, which
includes increasing tourist access. Certain areas
are to be designated as Tourism Enterprise Zones
(TEZ) and incentives are given to covered tourism
enterprises.
The Philippine Tourism Authority (PTA) is
hereby reorganized as the Tourism Infrastructure
and Enterprise Zone Authority (TIEZA).
The Philippine Conventions and Visitors
Corporation (PCVC) is hereby reorganized as the
Tourism Promotions Board (TPB), as hereinafter
provided.
The Bureaus for Domestic and International
Tourism Promotions, and the Office of Tourism
Information of the Department, are hereby
absorbed into the Tourism Promotions Board.
Discussion of the Law
Some of its highlights are as follows:
Under said law. The DOT shall be the
primary planning, programming, coordinating,
implementing, and regulatory government agency
in the development and promotion of the tourism
industry, both domestic and international, in
coordination with attached agencies and other
government instrumentalities.
The TIEZA shall be attached to the DOT for
purposes of program and policy coordination.
Accordingly, the TIEZA shall be a body corporate
which shall designate, regulate and supervise the
TEZs, as well as develop, manage and supervise
tourism infrastructure projects in the country. It
shall supervise and regulate the cultural, economic
and environmentally sustainable development of
TEZs toward the primary objective of encouraging,
investments therein. It shall ensure strict
compliance of the TEZ operator with the approved
development plan. Pursuant thereto, the TIEZA
shall have the power to impose penalties for failure
or refusal of the tourism enterprises to comply
with the approved development plan, which shall
also be considered a violation of the terms of
accreditation. The TIEZA remains to be the
principal agency responsible for the timely,
effective and efficient collection of travel taxes. The
amounts collected by the TIEZA shall be
distributed as follows:
a) 50%-TIEZA;
b) 40%-CHED Higher Education Development
Fund; and
c) 10%-National Commission and Arts (NCAA).
The TPB shall formulate and implement an
integrated domestic and international promotions
and marketing program for the DOT. The TPB shall
be responsible for marketing and promoting the
Philippines domestically and internationally as a
major global tourism destination, highlighting the
uniqueness and assisting the development of its
tourism products and services, with the end in
view of increasing tourist arrivals and tourism
investment. Specifically, it shall market the
Philippines as a major convention destination in
Asia. To this end, it shall take charge of attracting,
promoting, facilitating, and servicing large-scale
events, international fairs and conventions,
congresses, sports competitions, expositions, and
the like. It shall also ensure the regular
advertisement abroad of the country's major
tourism destinations and other tourism products,
not limited to TEZs. It may also provide incentives
to travel agencies abroad which are able to draw
tourists and tourism investments to the country.
The Intramuros Administration, the National
Parks Development Committee and the Nayong
Pilipino Foundation shall continue to be attached
to the DOT and shall operate under their
respective charters. They may be authorized to
operate TEZs, under the supervision of the TIEZA,
within their respective jurisdictions.
The Duty-Free Philippines Corporation (DFPC)
shall have exclusive authority to operate and/or
franchise out the operation of stores and shops
that shall sell, among others, duty and tax-free
merchandise, goods and articles in international
airports and seaports, other ports of entry
throughout the country and in TEZA. Any
geographic area where a TEZ may be established
shall conform with the following general criteria to
ensure that they will not proliferate in a manner
that diminishes their strategic economic and
developmental value to the national economy: (a)
The area is capable of being defined into one
contiguous territory; (b) It has historical and
cultural significance, environmental beauty, or
existing or potential integrated leisure facilities
within its bounds or reasonable distances from it;
(c) It has; or it may have, strategic access through
transportation infrastructure, and reasonable
connection within utilities infrastructure systems;
(d) It is sufficient in size, such that it may be further
utilized for bringing in new investments in tourism
establishments and services; and (e) It is in a
strategic location such as to catalyze the
socioeconomic development of neighboring
communities.
Application of the Law
Case: Fairmont Hotel Makati opened its doors to
the public in December 2012. The deluxe property,
the latest addition to the international hotel chain,
boasts of 280 elegantly appointed guestrooms.
Five food and beverage outlets, a state-of-the- art
spa and technogym, and meeting and conference
facilities. The hotel is part of Ayala Land Hotels and
Resorts which has recently developed Anvaya
Cove, acquired El Nido Resorts, and opened Seda
Hotels.
Is it possible to open the said property and
not be accredited by the DOT? Can it be applied as
a tourism enterprise zone?
Legal Opinion: Under the new law, the Tourism
Act of 2009, all primary tourism establishments
must mandatorily be accredited by the DOT before
they could operate and offer products and services
to the public. Thus, the business development
manager of Fairmont Hotel Makati should apply
for the said accreditation 6 months prior to its
target opening to allow sufficient time for
documentation process and inspection visits by
DOT officials. Moreover, Fairmont Hotel Makati
may not qualify as a tourism enterprise zone
because it does not meet the minimum
requirements set by the Tourism Infrastructure
and Enterprise Zone Authority (TIEZA).

The Law
Tourism Infrastructure and Enterprise Zone
Authority (TIEZA)
The former Philippine Tourism Authority
has now been renamed and converted into the
Tourism Infrastructure and Enterprise Zone
Authority (TIEZA). Its main thrusts include
maximizing revenue-generating to achieve
national and organizational goals and objectives;
upgrading management information systems to
improve operational competence; implementing
approved reorganization plan of PTA as TIEZA:
effective managing of all Tourism Enterprise Zones
around the country; developing and managing
tourism infrastructures in areas having strong
tourism potentials; hastening privatization of
disposable operating and non-operating
properties; and continuously improving personnel
efficiency and competency through relevant
personnel development programs.
Presidential Decree 564 (October 2, 1974)
was enacted revising the charter of the Philippine
Tourism Authority (PTA) which was originally
created under Presidential Decree No. 189 dated
May 11, 1973. Strengthening the PTA was needed in
order to be in a better position to effectively unify
and integrate related activities and services of both
government and private entities pertaining to
tourism development projects.
Travel tax collection is PTA's main source of
income. Travel tax is a levy imposed by the
government on individuals (citizens of the
Philippines, permanent resident aliens who have
stayed in the country for more than a year) who
are leaving the country irrespective of the place
where the air ticket is issued as provided for P.D.
1183 as amended by P.D. 1205, Batas Pambansa
Blg. 38, and E.O. 283 on travel tax. of travel taxes
are coursed thru the Bureau of Internal Revenue,
157
Discussion of the Law
The mandate of the TIEZA under R.A. No. 9593
includes the following:
a) To designate, regulate, and supervise
tourism enterprise zones established under
R.A. 9593;
b) To develop, manage, and supervise tourism
infrastructure projects nationwide;
c) To provide technical and financial
assistance to qualified tourism projects,
investors and proponents (both
government and private);
d) To generate revenues to fund both national
and corporate development needs and/or
undertakings; and
e) To exercise PTA functions under P.D. 564.
A Tourism Enterprise Zone is defined as follows:
Any entity duly incorporated under the
Corporation Code and other relevant laws, or any
LGU or any other instrumentality of government in
the pursuit of their mandate may qualify as an
applicant for the designation of an area as a TEZ.
TEZs can be any geographical area in the
country that conforms to the following criteria:
(a) The area is capable of being into one
contiguous territory:
(b) It has historical and cultural significance,
environmental beauty, exercising or
potential integrated leisure facilities within
its bound reasonable distance from it;
(c) It has, or it may have, strategic access
through transportation infrastructure and
reasonable connection with utilities
infrastructure systems,
(d) It must be at least five (5) hectares and
sufficient in size, such that may be further
utilized for bringing in new investments in
tourism establishments and services;
(e) It is in a strategic location such as to
stimulate the sustainable socio-economic
development of neighboring communities;
and
(f) The area must be situated where controls
can easily be established to curtail illegal
activities.
Based on the particular purpose stated in the
applicant's development plan, the TEZs to be
created shall be classified as follows:
(a) Cultural Heritage Tourism Zone - areas that
will allow the tourist to experience the places,
artifacts, and activities that authentically represent
the stories of the people living in the area, past or
present. The area may include, but will not be
limited to:
1) Cultural landscapes;
2) Historic sites, areas, and precincts;
3) Ruins, archaeological and maritime sites;
4) Sites associated with industrial, scientific
and agricultural heritage:
5) Collections that house or collectively
promote objects of heritage significance;
6) Historic places and areas, including villages,
small towns, cities and parts of larger urban
 areas with significant cultural and heritage
assets, and
7) Museums Art Galleries, Cultural Centers, Art
& Crafts Shops. and Antique Shops, and
Cultural Sites.
Retirement communities and facilities duly
accredited by the Philippine Retirement Authority
may be located in General Leisure Tourism Zones,
Health and Wellness Tourism Zones, and Mixed-
use Tourism Zones.

(b) Health and Wellness Tourism Zone - areas In accordance with the Tourism Act of 2009
that will allow visitors to avail of quality but or R.A. No. 9593, TIEZA started to accept
affordable mainstream, traditional, or alternative applications for designation of Tourism Enterprise
healthcare services for treatment of illnesses and Zone (TEZs) and registration of existing
health problems in order to maintain one's health accommodation establishments which will
and well-being. The area may include, but will not undertake substantial expansion. The TIEZA
be limited to enterprises that are, or offer: Guidelines for Designation and Supervision of
Tourism Enterprise Zone and Administration of
1) Medical and Allied Services; Incentives under R.A. No. 9593 which took effect on
2) Spas; August 1, 2011:
3) Health Farms;
4) Counseling and Rehabilitation Services; and Schedule of Fees
5) Traditional Filipino Touch Therapy.
TEZ Filing Fee P200,000
(c) Eco-Tourism Zone - areas that will allow visitors Operator
to experience a form of suitable tourism within a
given natural and/or cultural area where Publicatio P100,000
community participation, conversation and n Fee
management of biodiversity, respect for culture
Registered RTE (New) 0.1% of
and indigenous knowledge systems and practices,
environmental education, and ethics as well as Tourism the
economic benefits are fostered and pursued for Enterprise Capital
the enrichment of host communities and Investme
satisfaction of visitors. The area may include, but nt but not
will not be limited to: to exceed
P200,000
(1) Sites of scenic or rural beauty;
(2) Areas for observing wildlife; RTE 0.1% of
(3) Areas for low impact activities such as (Existing) the
camping, trekking. climbing, spelunking, Capital
diving, surfing, and other similar activities; Investme
and nt but not
(4) Sites for observing and interacting with to exceed
traditional or indigenous practices in P100,000
relation to the environment.
Publicatio P10,000
(d) General Leisure Tourism Zone - areas that n Fee
may offer recreational facilities that will have high
visitor density. The area may include, but will not
be limited to: The detailed steps in applying for TEZ are as

(1) Golf Parks/Resorts;

Tourism Infrastructure and Enterprise Zo
(2) Theme Parks and Amusement Centers;
(TIEZA)
(3) Convention and Meeting Centers;
HOW TO APPLY FOR TOURISM ZONE DESIGNATIO
(4) Sports Complexes/Resorts;
(5) Event Centers/Resorts;
Where to get Application Forms:
(6) Department Stores/Restaurants/Shops; and
Download at http://www.tieza.com.ph.
(7) Zoos.
Get copy at Room 602 Office of the Corpora
(e) Mixed-use Tourism Zone - areas that will allow
a combination of some or all of the features of the follows:
aforementioned zones within one area. It is also good to know that the previous PTA had
the following general powers:

(a) To implement policies and programs of
the DOT pertaining to the
development, promotion, and
supervision of tourism projects in the
Philippines;
(b) To promote the development into
integrated resort complexes of selected
and well-defined geographic areas with
potential tourism value. Known
otherwise as "tourist zones";
(c) To extend all forms of assistance to
private enterprise in undertaking
tourism projects;
(d) To undertake for its own account or in
joint venture with the private sector the
operation and maintenance of essential
tourist facilities which private
enterprise alone is not prepared or
willing to undertake;
(e) To assure availability of land at
reasonable prices or rental rates for
private investors in hotels and other
tourist facilities; and
(f) To coordinate, assist and implement
tourism-related plans or operations of
local governments, governmental
agencies, public corporation, and
where clearly necessary and feasible,
those of private entities so as to make
possible the accelerated and balanced
growth and development of tourism in
the Philippines which is responsive to
the needs of targeted travel markets
here and abroad.
By virtue of R.A. No. 11262 which was signed
into law on April 10, 2019, the TIEZA will have the
sole and exclusive jurisdiction to grant incentives
to tourism enterprise zone (TEZs) until December
31, 2029, 159 Some of these incentives include the
following:
1. Fiscal incentives
a) Income tax holiday
b) Exempted from payment of all national and
local taxes
c) 5% on gross income
d) Exemption from customs duties
2. Non-fiscal incentives
a) Employment of foreign nationals for the
following positions: executive, supervisor,
technical and adviser/consultant positions
b) Special Investor's Resident Visa (SIRV) and
Working Visas
c) Buildings and lands in a TEZ may be leased
to foreign investors for 50 years and
renewable of no more than 25 years. 10 This
is also known as the Investor's Lease Act of
R.A. No. 7652.
Application of the Law
Case: The heirs of Juancho Ardona are challenging
the constitutionality of Presidential Decree No.
564, the Revised Charter of the Philippine Tourism
Authority, and Proclamation No. 2052 declaring
the barangays of Sibugay, Malubog, Bagbag, and
Sirao including he proposed Lusaran Dam in Cebu
City and in the municipalities of Argao and
Dalaguete in the province of Cebu as tourist zones.
The heirs of Mr. Ardona are also seeking relief in
order to restrain the PTA from enforcing the
expropriation of their lands which have been
declared as tourist zone under Proclamation No.
2052. The heirs of Mr. Ardona are claiming that the
property in question has been previously declared
a land reform area, hence the implementation of
the social justice provision of the Constitution on
agrarian reform is paramount to the right of the
State to expropriate the lands. Is the claim of the
heirs of Juancho Ardona valid?
Legal Opinion: No. It has been ruled that
expropriating 282 hectares of land to establish a
resort complex and declaring certain
municipalities in the province in Cebu as tourist
zones is a valid exercise of eminent domain by the
PTA notwithstanding the claim that certificates of
land transfer and emancipation had already been
issued. The Constitution does not preclude nor
limit the exercise of the power of eminent domain
for such purposes like tourism and other
development programs. Tourism is also part of the
declared national objectives of the framers of the
Constitution as it is covered in general terms such
as social justice, local autonomy, conversation and
development of the national patrimony, public
interest, and general welfare, among others.
The Law
Intramuros Administration
For four hundred years, Intramuros has
been a priceless heritage of the past for the City of
Manila and a major historical landmark of the
Philippines. In order to preserve and enhance the
historical value of Intramuros, a national historical
consciousness program demands its restoration,
development, and maintenance, and for this
purpose. Hence, Presidential Decree No. 1616 (April
10, 1979) created the Intramuros Administration to
be charged with such vital role and responsibility.
Intramuros Administration (IA) shall be
responsible for the orderly restoration and
development of Intramuros as a monument to the
Hispanic period of the Philippine history. It shall
also ensure that the general appearance of
Intramuros shall conform to 19th century,
Philippine-Spanish architecture of the 16th to the
19th century.
The IA has the following functions:
a. Formulates, coordinates, and/or executes
policies on the implementation of all
programs, projects and activities of the
government affecting or relating to
Intramuros.
b. Enters into contracts with any private
persons or entity or any government
agency, either domestic or foreign,
whenever necessary for the effective
discharge of its functions and
responsibilities under such terms and
conditions as it may deem proper and
reasonable;
c. Acquires through sale, expropriation, or
other means, holds real and personal
property as it may deem necessary or
convenient in the successful prosecution
of its work, and leases, mortgages, sells,
alienates, or otherwise disposes of such
personal and real property;
d. Receives, takes, and holds by bequest,
device, donation, gift, purchase or lease,
from foreign or domestic sources, either
absolutely or in trust for any of its
purposes, any asset, grant or property,
real or personal, subject to such
limitations as are provided in existing
laws and regulations; to convey such
assets, grant or property; invest and
reinvest the same and deal with and
expand its assets and income in such
manner as will best promote its
objectives;
e. Initiates, plans, undertakes, and
supervises the restoration, upkeep, and
maintenance of the Intramuros Walls,
including the ravelins, moat, Sunken
Garden and public places or areas,
plazas, streets and other government-
owned or managed properties situated
within Intramuros; and
f. Prepares, adopts, revises, and enforce
such rules and regulations,
implementing guidelines and standards
as are necessary for the effective
regulation of the land use and
development activities in Intramuros of
both the government and private
entities and for the implementation of
the Intramuros Plan, including, but not
limited to development rules and
regulations pertaining to the following:
(1) Land use allocation, use of
buildings, their height,
dimensions, architectural style
and designs and other
specification of the building
construction to be undertaken
therein;
(2) Traffic management, street usage
and other related matters;
(3) Size and character of display
signs, advertising billboards, and
other external signs and
advertisements in buildings, in
open spaces lots or roads, and
(4) Supervision and control of all
activities involving archaeological
diggings, excavations and
exploration within Intramuros
including the use, disposition,
registration and maintenance of
archaeological findings and
discoveries.
g. Expropriates properties within
Intramuros;
h. Sponsors, conducts, or otherwise assists
and support festivals and cultural
activities in Intramuros, and charges and
collects admission fees to the restored
gates and other attractions operated by
the Administration;
i. Gives grants, contributions, and
donations for the restoration, repair or
maintenance of historic structures in
Intramuros, including San Agustin
Church, and lot of structures outside of
Intramuros which are of similar nature
and character as those which existed in
Intramuros, for the conduct of historical,
architectural, archaeological and other
research, and for the other purpose in
furtherance of its objectives; and
j. Prescribes and collects reasonable
amounts to be charged as filing fees,
inspection fees, permit fees, and other
administrative or service fees necessary
for the effective enforcement of its laws
and regulatory measures to be used and
disbursed by it in the manner
determined by it to promote its
objectives.
Discussion of the Law
 The Intramuros Administration has been
one government agency that has been in the news
on many occasions due to the call for development
and the need to preserve a historical place which is
the entire Intramuros itself. A number of business
enterprises have attempted to provide a more
modern look to Intramuros, increase business
activities which added to the pollution of
Intramuros, and demolish some old structures. But
Intramuros Administration has been quite strict at
times especially when civil society exerts the
needed pressure.
Application of the Law
Case: Mr. Robert San Jose wishes to put up an P85-
million sports complex within the vicinity of the
Intramuros area. What advice will you give?
Legal Opinion: Mr. San Jose must first secure an
approval at the Intramuros Administration for the
architectural design of the building of which he is
about to erect before he plans to put up his
building within the Intramuros Area Otherwise, Mr.
San Jose cannot be allowed to erect his building
within the Intramuros.
Other Government Agencies
National Parks Development Committee (NPDC)
The National Parks Development
Committee was created originally as an Executive
Committee on January 14, 1963, for the
development of the Quezon Memorial, Luneta, and
other national parks. It was later designated as the
National Parks Development Committee (NPDC).
Despite an attempt to transfer it to the Bureau of
Forest Development, Department of Natural
Resources, the NPDC has remained under the
Office of the President.
National Historical Institute (NHI)
Presidential Decree No. 260 dated August 1,
1973, has declared certain sites, churches and
places as national shrines, monuments, and/or
landmarks, and place their preservation,
restoration and/or reconstruction under the
supervision and control of the National Historical
Institute (NHI) in collaboration with the DOT.
Hence, the NHI was given the right to declare
historical and cultural sites and edifices as national
shrines, monuments and/or landmarks. By virtue
of Presidential Decree No. 1 dated September 24,
1972, the NHI has been given the authority for the
preservation, restoration, and/or reconstruction of
several historic sites and buildings. All monetary
contributions and donations to the archives of the
NHI are tax exempt and deductible from the
taxable income of the donor.
Today, the NHI continues to be the lead
government agency where matters of history and
culture are concerned. It continues to conceive
programs and projects for the public's
appreciation of history, educating the Filipino
masses on the lessons of the past and
perpetuating the memory of our illustrious heroes.
Aside from commemorating historical events and
personages, conducting research and publishing
scholarly works, the Institute also maintains
historical sites all over the country and is engaged
in the presentation of these sites as well as the
relics and memorabilia found in these places. It
maintains a conversation center manned by
personnel well-trained for the job and also
provides training services and technical assistance
to both government and private sectors.
National Commission for Culture and the Arts
(NCCA)
R.A. No.7356 has been enacted in order to
create the mandate of the National Commission
for Culture and the Arts. Its functions are as follows:
a) Formulates policies for the development of
culture and the arts;
b) Coordinates and implements the overall
policies and program of attached agencies
on the development of culture and arts as
stated under Executive Order No. 80;
c) Administers the National Endowment Fund
for Culture and the Arts;
d) Encourages artistic creation within of
artistic freedom;
e) Develops and promotes the Filipino
national culture and arts; and
f) Preserves Filipino cultural heritage.
By virtue of the R.A. No.8492, the National
Museum has now been detached from the
National Commission for Culture and the Arts and
has now been placed solely for budgetary
purposes under the Office of the President. The
primary purpose of the National Museum is to
acquire documents, preserve, exhibit, and foster
scholarly study and appreciation of works of art
specimen and cultural and historical artifacts.
Tourism Promotions Board (TPB)
The Tourism Promotions Board (TPB) is an
agency attached to the DOT, tasked with
promoting the country as an ideal tourism,
convention and incentive travel destination. It
provides comprehensive information, assistance
and guidance to meeting planners and incentives
travel organizers who seek an idea venue for their
meetings and incentives groups.
Bangko Sentral ng Pilipinas (BSP)
Presidential Decree No. 520 issued on July
23, 1974 empowers the Bangko Sentral ng Pilipinas
(formerly Central Bank of the Philippines) to
organize a corporation which will manage and
administer the Philippine International Convention
Center. National Economic Development Authority
(NEDA)
The National Economic Development
Authority (NEDA) is the country's independent
economic development and planning agency. It is
headed by the President as chairman of the NEDA
board with the secretary of Socioeconomic
Planning, concurrently NEDA Director-General, as
vice-chairman. All Cabinet members, as well as the
Central Bank governor, are members of the NEDA
Board. The NEDA was created in pursuance of the
goals of promoting the economic and social
development and stability of the country. The
NEDA may, in the discharge of its duties and
functions, call upon any private person or
representative of the private sector for such views
or advice as may be pertinent to any matter under
its consideration.
Anti-Money Laundering Council
The Anti-Money Laundering Council (AMLC)
is the agency of the Government of the Philippines
that is tasked to implement the provisions of R.A.
No. 9160, also known as the "Anti-Money
Laundering Act of 2001" (AMLA), as amended, and
R.A. No.10168, also known as the "Terrorism
Financing Prevention and Suppression Act of 2012"
(TFPSA). It serves as the Philippines' central anti-
money laundering/counter- terrorism financing
(AML/CTF) authority. As such, it functions as the
AML/CTF regulator and supervisor, financial
intelligence unit, and primary law enforcement
agency of the Philippines against money
laundering and terrorist financing.
Philippine Amusement and Gaming Corporation
(PAGCOR)
PAGCOR is a government-owned and
controlled corporation existing under Presidential
Decree No. 1869 issued on July 11, 1983 by President
Ferdinand Marcos. Pertinent provisions of said
enabling law read:
Section 1. Declaration of Policy. It is hereby
declared to be the policy of the State to centralize
and integrate all games of chance not heretofore
authorized by existing franchises or permitted by
law in order to attain the following objectives:
(b) To establish and operate clubs and
casinos, for amusement and recreation, including
sports gaming pools (basketball, football, lotteries,
etc.) and such forms of amusement and creation
including games of chance, which may be allowed
by law within the territorial jurisdiction of the
Philippines and which will: x x x (3) minimize, if not
totally eradicate, the evils, malpractices and
corruptions that are normally prevalent in the
conduct and operation of gambling clubs and
casinos without direct government involvement.
PAGCOR is granted for a period of twenty-
five (25) years, renewable for another twenty-five
(25) years, the rights privileges and authority to
operate and maintain gambling casinos, clubs, and
other recreation or amusement places, sports,
gaming pools (i.e., basketball, football, lotteries,
etc.) whether on land or sea, within the territorial
jurisdiction of the Republic of the Philippines.
Department of Environment and Natural
Resources (DENR)
As provided under Section 4 of Executive
Order 192, the DENR is mandated to be the
primary government agency responsible for the
conversation, management, development, and
proper use of the country's environment and
natural resources, including those in reservations,
watershed areas and lands of the public domain,
as well as the licensing, utilization, and regulation
of all natural resources as may be provided by law
in order to ensure equitable sharing of the benefits
derived therefrom for the welfare of the present
and future generations of Filipinos.
The DENR's mission is to be the dynamic
force behind people's initiatives in the protection,
conversation, development, and management of
the environment through strategic alliance and
partnership relevant policies and programs, and
appropriate information technology toward
sustainable development.
The powers and functions of the DENR, per
Section of 5 of E.O. 192, are as follows:
a) Advises the President on the enactment of
laws relative to the develop- ment, use,
regulation, and conservation of the
country's natural resources and the control
of pollution;
b) Formulates, implements, and supervises
the government's policies, plans and
 programs pertaining to the management,
conservation, development, use and (1) Accelerate cadastral and emancipation
replenishment of the country's natural patent surveys, land use planning and
resources; public land titling;
c) Promulgates rules and regulations in (2) Harness forest-resources in a
accordance with law governing the sustainable manner, to assist rural
exploration, development, conversation, development, support forest-based
extraction, disposition, use and such other industries, and provide raw materials to
commercial activities tending to cause the meet increasing demands, at the same
depletion and degradation of our natural time keeping adequate reserves for
resources; environmental stability; and
d) Exercises supervision and control over (3) Expedite mineral resources surveys,
forest lands, alienable and disposable lands, promote the production of metallic and
and mineral resources and impose non-metallic minerals, and encourage
appropriate payments, fees, charges, mineral marketing.
rentals and any such form of levy and
collect such revenues for the exploration, j) Regulates the development, disposition,
development, utilization or gathering of extraction, exploration and use of the
such resources; country's forestland and mineral resources;
e) Undertakes exploration, assessment, k) Assumes responsibility for the assessment,
classification and inventory of the country's development, protection, conservation,
natural resources using ground surveys, licensing and regulation as provided for by
remote sensing and complementary the law, where applicable, of all natural
technologies; resources; the regulation and monitoring of
f) Promotes proper and mutual consultation service contractors, licensees, lessees, and
with the private sector involving natural permittees for the extraction, exploration,
resources development, use and development and utilization of natural
conservation; resource products; the implementation of
g) Undertakes geological surveys of the whole programs and measures with the end in
country including its territorial waters; view of promoting close collaboration
h) Establishes policies and implements between the government and the private
programs for the: sector, the effective and efficient
classification and sub-classification and
(1) Accelerated inventory, surveys and lands of the public domain; and the
classification of lands, forest and enforcement of natural resources laws,
mineral resources using appropriate rules and regulations;
technology, to be able to come up with l) Promulgates rules, regulations and
a more accurate assessment of resource guidelines on the issuance of co-
quality and quantity; production, joint venture or production
(2) Equitable distribution of natural sharing agreements, license, permits,
resources through the judicious concessions, leases and such other
administration, regulation, utilization, privileges and arrangement concerning the
development and expansion of natural development, exploration and utilization of
resource-based industries; country's natural resources and shall
(3) Promotion, development and expansion continue to oversee, supervise and police
of natural resource-based industries; our natural resources; to cancel or cause to
(4) Preservation of cultural and natural cancel such privileges and arrangements
heritage through wildlife conservation upon failure, non-compliance or violations
and segregation of national parks and of any regulations, orders, and for all other
other protected areas; causes which are in furtherance of the
(5) Maintenance of a wholesome natural conversation of natural resources and
environment by enforcing supportive if the national interest.
environmental protection laws; and m) Exercises exclusive jurisdiction on the
(6) Encouragement of greater people's management and disposition of all lands of
participation and private initiative in the public domain and shall continue to be
natural resource management. the sole agency responsible for the
classification, sub-classification, surveying
i) Promulgates rules and regulations and titling of lands in consultation with
necessary to: appropriate agencies;
 n) Implements measures for the regulations
and supervision of the processing of forest
products, grading and inspection of lumber
and other forest products and monitoring
of the movement of timber and other forest
products;
o) Promulgates rules and regulations for the
control of water, air and land pollution;
promulgate ambient and effluent
standards for water and air quality
including the allowable levels of other
pollutants and radiations;
p) Promulgates policies, rules and regulations
for the conservation of the country's
genetic resources and biological diversity,
and endangered habitats which will be
presented to the Cabinet for the President's
approval.
q) Promulgates an integrated, multi-sectoral,
and multi-disciplinary National
Conservation Strategy, which will be
presented to the Cabinet for President's
approval; and
r) Exercises other powers and functions and
perform such other acts as may be
necessary, proper, or incidental to the
attainment of its mandates and objectives.
Under R.A. No.9147 or known as the Wildlife
Resources Conservation and Production Act (July
30, 2001), the DENR shall have jurisdiction over all
terrestrial plant and animal species, all turtles and
tortoise and wetland species, including but not
limited to crocodiles, waterbirds, and all
amphibians and dugong. The Department of
Agriculture (DA), on the other hand, shall have
jurisdiction over all declared aquatic critical
habitats, all aquatic resources including but not
limited to all fishes, aquatic plants, invertebrates,
and all marine mammals, except dugong. For the
implementation of international agreement on
international trade in endangered species of wild
fauna and fora, the management authorities for
terrestrial and aquatic resources shall be the
Protected Areas and Wildlife Bureau (PAWB) of
the DENR and the Bureau of Fisheries and Aquatic
Resources (BFAR) of the DA, respectively.
Department of Labor and Employment (DOLE)
The following are the functions of the
Department of Labor and Employment (DOLE):
a) Enforces social and labors legislation to
protect the working class and regulate the
relations between the worker and his
employers;
b) Formulates and recommends policies,
plans, and programs for manpower
development, training, allocation, and
utilization;
c) Recommends legislation to enhance the
material, social and intellectual
improvement of the nation's labor force;
d) Protects and promotes the interest of every
citizen desiring to work locally or overseas
by securing for him the most equitable
terms and conditions of employment, and
by providing social and welfare services;
e) Regulates the employment of aliens,
including the enforcement of registration
or work permit system for such aliens.
f) Formulates general guidelines concerning
wage income policy;
g) Recommends necessary adjustments in
wage structures with the view to
developing a wage system that is
consistent with national economic and
social development plans;
h) Provides for safe, decent, humane, and
improved working conditions and
environment for all workers, particularly
women and young workers;
i) Maintains a harmonious, equitable, and
stable labor relations system that is
supportive of the national economic
policies and programs.
j) Upholds the rights of workers and
employers to organize and promote free
collective bargaining as the foundation of
the labor relations system; and
k) Provides and ensures the fair and
expeditious settlement and disposition of
labor and industrial disputes through
collective bargaining, grievance machinery,
conciliation, mediation, voluntary
arbitration, compulsory arbitration as may
be provided by law, and other modes that
may be voluntarily agreed upon by the
parties concerned.
Department of Public Works and Highways
(DPWH)
The DPWH functions as the engineering
and construction arm of the government tasked to
continuously develop its technology for the
purpose of ensuring the safety of all infrastructure
facilities and securing for all public works and
highways the highest efficiency and quality in
construction. The DPWH is currently responsible
for the planning, design, construction, and
maintenance of infrastructure, especially the
national highways, flood control and water
resources development system, and other public
works in accordance with the national
development objectives. The work of the DPWH is
very important especially in providing land access
to tourist destinations, sites, and service facilities.
Department of Transportation and
Communication (DOTC)
The DOTC is the primary policy, planning,
programming, coordinating, implementing,
regulating, and administrative entity of the
executive branch of the government in the
promotion, development and regulation of
dependable and coordinated networks of
transportation and communications systems, as
well as the fast, safe, efficient and reliable postal,
transportation and communications services.
The following are the attached agencies of
the DOTC:
Land Transportation Office (LTO). The LTO is the
proper agency which controls the registration and
operation of motor vehicles and the licensing of
owners, dealers, conductors, drivers, and similar
matters.
Land Transportation Franchising and Regulatory
Board (LTFRB). The LTFRB is the agency which
issues, amends, revises, suspends or cancels
Certificates of Public Convenience or permits
authorizing the operation of public land
transportation services provided by motorized
vehicles, and to prescribe the appropriate terms
and conditions.
Maritime Industry Authority (MARINA). The
MARINA integrates the development, promotion,
and regulation of the maritime industry in the
country. It was originally placed under the Office of
the President.
Air Transportation Office (ATO). The ATO is
primarily charged with the technical and
operational phases of civil aviation matters. Its
primary function is to establish and enforce rules
and regulations for the inspections and
registration of all aircraft owned and operated in
the Philippines and all air facilities. It also in charge
in the operation and maintenance of national
airports, air navigation, and other similar facilities.
Civil Aeronautics Board (CAB). The CAB regulates
the economic aspect of air transportation and has
general supervision and regulation of and
jurisdiction and control over air carriers as well as
their property, property rights, equipment,
facilities, and franchise. It also has the power to
issue, deny, amend, revise, alter, modify, cancel,
suspend, or revoke any temporary permit or
Certificate of Public Convenience and Necessity.
Light Rail Transit Authority (LRTA). This is a
corporate body which shall be primarily
responsible for the construction, operation,
maintenance, and/or lease of light rail transit
system in the Philippines, giving due regard to the
reasonable requirements of the public
transportation system of the country.
Metro Rail Transit Corporation (MRTC). The MRTC
undertook to build MRT 3 which it shall own for 25
years, after which, ownership shall be transferred
to the Philippine government in accordance with
R.A. No.6957 or the Build, Operate and Transfer
Law. This allows MRTC, either by itself or through
any estate developers, to develop commercial
premises in the MRT 3 structure or to obtain
advertising income therefrom.
Philippine National Railways (PNR). It is a
corporation to serve as the instrumentality of the
Government of the Philippines in providing a
nationwide railroad transportation system. The
PNR shall not be subject to the authority and
supervision of the Public Service Commission.
Department of Trade and Industry (DTI).
Under Executive Order 133 which remains
effective up to the present time, the DTI serves as
the primary coordinative, promotive, and facilities
arm for trade, industry and investment activities. It
acts as the catalyst for intensified private sector
activity to accelerate and sustain economic growth
through:
a) A comprehensive industrial growth
strategy;
b) A progressive and socially responsible
liberalization and deregulation program;
and
c) Policies designed for the expansion and
diversification of both domestic and foreign
trade.
The end goal is to grow and expand
Philippine trade and industry as the means to
generate jobs and raise incomes, so that Filipinos
may enjoy continuing improvements in their
quality of life.
The DTI shall be empowered and
authorized to issue rules and regulations and
adopt measures as to:
a) Consolidate and/or coordinate all functions
and efforts in domestic trade and
development of foreign trade in general;
 b) Maintain reasonable allocation/distribution
as between domestic and export market
through export retention, expert allocation,
export subsidy, pricing, export ban and
other schemes and measure to ensure
price stability and supply availabilities of
essential commodities in the local market;
c) Regulate the import of essential consumers
and producers' items with a view of
enhancing availability at fair and
competitive prices to end-users; and
d) Promote and regulate domestic trade,
marketing and distribution to ensure the
rational, economic and steady flow of
commodities from producing and/or
marketing centers to area in short-supply
through the support of centralized buying
operations, terminal markets and large
scale and economical distribution systems
organized by the public or private sector.
Board of Investments (BOI)
Under the Omnibus Investment Code of
198712, the Board of Investments (BOI) shall be
responsible for the regulation and promotion of
investments in the Philippines.
The BOI shall exercise the following powers
and duties:
(1) Prepare annually the Investment Priorities Plan,
which shall contain a listing of specific activities
that can qualify for incentives, duly supported by
the studies of existing and prospective demands
for such products and services in the light of the
level and structure of income, production, trade,
prices and relevant economic and technical factors
of the regions as well as existing facilities;
(2) Promulgate such rules and regulations as may
be necessary to implement the intent and
provisions of the code relevant to the Board;
(3) Process and approve applications for
registration with the Board, imposing such terms
and conditions as it may deem necessary to
promote the objectives of the Code, including
refund of incentives when appropriate, restricting
availment of certain incentives not needed by the
project in the determination of the Board,
requiring performance bonds and other
guarantees, and payment of application,
registration, publication and other necessary fees
and when warranted may limit the availment of
the tax holiday incentive to the extent that the
investor's country law or treaties with the
Philippines allows a credit for taxes paid in the
Philippines;
(4) After due hearing, decide controversies
concerning the implementation of the relevant
books of the Code that may arise between
registered enterprises or investors therein and
government agencies, within (30) days after the
controversy has been submitted for decision:
Provide, That the investor or the registered
enterprise may appeal the decision of the Board
within thirty (30) days from receipt thereof of the
President;
(5) Recommend to the Commissioner of and
Immigration and Deportation the entry into the
Philippines for employment of the foreign
nationals under the code;
(6) Periodically check and verify, either by
inspection of the books or by requiring regular
reports, the proportion of the participation of the
Philippine nationals in a registered enterprise to
ascertain compliance with its qualification to retain
registration under the Code;
(7) Periodically check and verify the compliance by
registered enterprises with the relevant provisions
of the Code, with the rules and regulations
promulgated therein and with the terms and
conditions of registration;
(8) After due notice, cancel the registration or
suspend the enjoyment of incentives/benefits of
any registered enterprise and/or require refund of
incentives enjoyed by such enterprise including
interest and monetary penalties, for (a) failure to
maintain the qualifications required by the Code
for registration with Board or (b) for violation of any
provisions of the Code of the rules and regulations
issued thereof, of the terms and conditions of
registration, or of laws for the protection of labor or
of the consuming public: Provided that the
registration of an enterprise whose project
timetable, as set by the Board is delayed by one
year, shall be considered automatically canceled
unless otherwise reinstated as a registered
enterprise by the Board;
(9) Determine the organizational structure,
appoint, discipline and remove its personal
consistent with the provisions of the Civil Service
Law and Rules;
(10) Prepare or contact for the preparation of
feasibility and other pre-investment studies for
pioneer areas either upon its own initiative; or
upon the request of Philippine nationals who
commit themselves to invest therein and show the
capability of doing so, Provided, That if the venture
is implemented, then the amount advanced by the
Board shall be repaid within five (5) years from the
date the commercial operation of said enterprise
starts;

(11) When feasible and considered desirable by the
Board, require registered enterprises to list their
shares of stock in any accredited stock exchange
or directly offer a portion of their capital stock to
the public and/or their employees;
(12) Formulate and implement rationalization
programs for certain industries whose operation
may result in dislocation, overcrowding or
inefficient use of resources, thus impending
economic growth. For this purpose, the Board may
formulate guidelines for progressive
manufacturing programs, local content programs,
mandatory sourcing requirements and dispersal of
industries. In appropriate case and upon approval
of the President, the Board may restrict, either
totally or partially, the importation of any
equipment or raw materials or finished products
involved in the rationalization program;
(13) In appropriate cases, subject to the conditions
which the Board deems necessary, suspend the
nationality requirement provided for in the Code
or any other nationalization statue in cases of
ASEAN projects or investments by ASEAN
nationals in preferred projects, and with the
approval of the President, extend said suspension
to other international complementation
arrangements for the manufacture of a particular
product on a regional basis to take advantage of
economies of scale;
(14) Extend the period of availment of incentives by
any registered enterprise; Provided, That the total
period of availment shall not exceed ten (10) years,
subject to any of the following criteria:
a. The registered enterprise has suffered
operational force majeure that has
impaired its viability;
b. The registered enterprise has not fully
enjoyed the incentives granted to it for
reasons beyond its control;
c. The project of the registered enterprise
has a gestation period which goes beyond
the period of availment of needed
incentives; and
d. The operation of the registered enterprise
has been subjected to unforeseen
changes in government policies,
particularly, protectionalism policies of
importing countries, and such other
supervening factors which would affect
the competitiveness of the registered firm.
(15) Regulate the making of investments and the
doing of business with the Philippines by
foreigners or business organization owned in
whole or in part by foreigners;
(16) Prepare on contract for the preparation of
industry and sectoral development programs and
gathered and compile statistical, marketing,
financial and other data required for the effective
implementation of the Code;
(17) Within (4) months after the close of the fiscal
year, submit annual reports
to the President which shall cover is activities in
the administration of this Code, including
recommendations on investment policies;
(18) Provide, directly or through Philippine
Diplomatic Missions, such information as may be
of interest to prospective foreign investors.
(19) Collate, analyze and complete pertinent
information and studies concerning areas that
have been or may be declared preferred areas of
investments;
(20) Enter into agreements with other agencies of
government for the simplifications and facilitation
of systems and procedures involved in the
promotion of investments, operation of registered
enterprises and other activities necessary for the
effective implementation of the Code; and
(21) Generally, exercise all the powers necessary or
incidental to attain the purposes of the Code and
other laws vesting additional functions on the
Board.
Philippine Economic Zone Authority (PEZA)
R.A. No.7916 creating the Philippine
Economic Zone Authority (PEZA) was enacted only
July 25, 1994 with the following objectives:
a. To establish the legal framework and
mechanism for the integration, coordination,
planning and monitoring of special
economic zones, industrial estates/parks,
export processing zones and other economic
zones;
b. To transform selected areas in the country
into highly developed agro- industrial,
industrial, commercial, tourist, banking,
investment, and financial centers, where
highly trained workers and efficient services
will be available to commercial enterprises;
c. To promote the flow of investors, both
foreign and local, into special economic
zones which would generate employment
opportunities and establish backward and
 forward linkages among industries in and
around the economic zones;
d. To stimulate the repatriation of Filipino
capital by providing attractive climate and
incentives for business activity;
e. To promote financial and industrial
corporation between the Philippines and
industrialized countries through technology-
intensive industries that will modernize the
country's industrial sector and improve
productivity levels by utilizing new
technological and managerial know-how;
and
i. To vest the special economic zones on
certain areas thereof with the status of a
separate customs territory within the
framework of the Constitution and the
national sovereignty and territorial integrity
of the Philippines,
PEZA grants fiscal and non-fiscal incentives
to developers of economic zones, export
procedures, and I.T. service exporters. PEZA offers
ready-to-occupy locations to foreign investors who
are export producers or IT service exporters in
world-class and environment-friendly Economic
Zones and I.T. Parks/Buildings.
For PEZA-registered enterprises under
Section 23 of Rep. Act. No. 7916, there are two
options with respect to its tax burden. It could avail
of an income tax holiday pursuant to provisions of
E.O. No. 226, thus exempt it from income taxes for
a number of years but not from other internal
revenue taxes such as VAT; or it could avail of the
tax exemptions on all taxes, including VAT under
P.D. No. 66 and pay only the preferential tax rate of
5% under Rep. Act No. 7916. Once the PEZA-
registered enterprise avails of the income tax
holiday under E.O. 226, it is not exempt VAT and it
must register itself as a VAT taxpayer. In fine, it is
engaged in taxable rather than exempt
transactions. However, the Supreme Court already
pronounced that business companies registered in
and operating from the Special Economic Zone are
entities exempt from all internal revenue taxes and
the implementing rules relevant thereto, including
the value-added taxes or VAT. Although export
sales are not deemed exempt transactions, they
are nonetheless zero-rated. Hence, the distinction
between exempt entities and exempt transactions
has little significance, because the net result is that
the taxpayers are not liable for the VAT.
The term "Special Economic Zones (SEZs),"
hereinafter referred to as the ecozones, are
selected areas with highly developed or which
have the potential to be developed into agro-
industrial, industrial tourist/recreational,
commercial, banking, investment and financial
centers. An ecozone may contain any or all of the
following: Industrial Estates (IEs), Export
Processing Zones (EPZs), Free Trade Zone, and
Tourist/Recreational Centers.
The PEZA is a body corporate attached to
the DTI. The Board shall have a director general
with the rank of department undersecretary who
shall be appointed by the President. The director
general shall be at least forty (40) years of age, of
proven probity and integrity, and a degree holder
in any of the following fields: economics, business,
public administration, law, management or their
equivalent, and with at least ten (10) years relevant
working experience preferably in the field of
management or public administration.
The director general shall be assisted by
three (3) deputy directors general each for policy
and planning administration and operation, who
shall be appointed by the PEZA Board, upon the
recommendation of the director general. The
deputy directors general shall be at least thirty-five
(35) years old, with proven probity and integrity,
and degree holders in any of the following fields:
economics, business, public administration, law,
management, or their equivalent.
The Board shall be composed of thirteen
(13) members as follows: the secretary of the DTI as
chairman the director general of the Philippine
Economic Zone Authority as vice-chairman, the
undersecretaries of the Department of Finance,
the Department of Labor and Employment, the
Department of Interior and Local Government, the
Department of Environment and Natural
Resources, the Department of Agriculture, the
Department of Public Works and Highways, the
Department of Science and Technology, the
Department of Energy, the Deputy Director
General of the National Economic and Develop
Authority, one (1) representative from the
investors/business sector in the ecozone. In case of
the unavailability of the secretary of the DTI to
attend a particular board meeting, the director
general of PEZA shall act as Chairman.
The PEZA Board shall have the following
functions and powers:
a. To operate, administer, manage and
develop the ecozone according to the
principles and provisions set forth in this
Act;
b. To register, regulate and supervise the
enterprises in the ecozone in an efficient
and decentralized manner;
 c. To coordinate with local government
units and exercise general supervision
over the development, plans, activities
and operations of the ecozones,
industrial estates, export processing
zones, free trade zones, and the like;
d. In coordination with local government
units concerned and appropriate
agencies, to construct, acquire, own,
lease, operate and maintain on its own or
through contract, franchise, license, bulk
purchase from the private sector and
build-operate-transfer scheme or joint
venture, adequate facilities and
infrastructure, such as light and power
systems, water supply and distribution
systems, telecommunication and
transportation, buildings, structures,
warehouse, roads, bridges, ports and
other facilities for the operation and
development of the ecozone;
e. To create, operate and/or contract to
operate such agencies and functional
units or offices of the authority as it may
deem necessary;
f. To adopt, alter and use a corporate seal;
make contracts, lease, own or otherwise
dispose of personal or real property; sue
and be sued; and otherwise carry out its
duties and functions as provided for in
this Act;
g. To coordinate the formulation and
preparation of the development plans of
the different entities mentioned above;
h. To coordinate with the National
Economic Development Authority
(NEDA), the Department of Trade and
Industry (DTI), the Department of
Science and Technology (DOST), and the
local government units and appropriate
government agencies for policy and
program formulation and
implementation; and
i. To monitor and evaluate the
development and requirements of
entities in subsection (a) and
recommend to the local government
units or other appropriate authorities the
location, incentives, basic services,
utilities and infrastructure required or to
be made available for said entities.
Department of Foreign Affairs (DFA)
The DFA is the prime agency of the
government responsible for the pursuit of the
State's foreign policy and the nerve center for the
Foreign Service worthy of the trust and pride of
every Filipino.
Throughout the 1970s, the DFA pursued the
promotion the trade and investments, played an
active role in hosting international meetings, and
participated in the meetings of the Non-Aligned
Movement. The Foreign Service Institute was
created in 1976 to provide in-house training to
Foreign Service personnel.
The EDSA Revolution 1986 saw the
reestablishment of a democratic government
under President Corazon Aquino. During this
period, the DFA once again pursued development
policy in the active pursuit of opportunities abroad
in the vital areas of trade, investment, finance,
technology and aid. The DFA also revived its efforts
to boost the Philippines' role in the Asia-Pacific
region. The Philippines became one of the
founding members of the Asia-Pacific Economic
Cooperation or APEC in November 1989, and an
active player in regional efforts to establish the
ASEAN Free Trade Area. In 1990, the DFA proposed
the establishment of more diplomatic missions in
the Middle East to improve existing ties with the
Arab states and to respond to the growing needs
of overseas Filipino workers in the region.
In 1991, the Philippine Senate, heeding the
growing nationalist sentiments among the public,
vote against the extension of the Military Bases
Agreement. This symbolized the severance of the
political and ideological ties which had long linked
the country to the United States. Also, in 1991,
President Aquino signed into law R.A. 7157, the
new Foreign Service Law, which reorganized and
strengthened the Foreign Service.
The Ramos administration, from July 1992,
defined four core areas of Philippine foreign policy
the enhancement of national security, promotion
of economic diplomacy, protecting Overseas
Filipino Workers and Filipino nationals abroad, and
the projection of a good image out of the country
abroad. President Ramos boosted foreign trade,
investments, and official development assistance
to the Philippines through his state visit and
summit meetings.
The Estrada administration upheld the
foreign policy thrusts of the previous
administration, focusing on national security,
economic diplomacy, assistance to nationals, and
image-building. The Philippines continued to be at
the forefront of the regional and multilateral arena.
It successfully hosted the ASEAN Ministerial
Meeting in July 1998 undertook confidence-
building measures with China over the South
China Sea issue through a meeting in March 1999.
President Estrada strengthened bilateral ties, with
neighboring countries with visits to Vietnam,
Thailand, Malaysia, Singapore, Hong Kong, Japan,
and South Korea.
The DFA played a major role in the forging
of a Visiting Forces Agreement with the United
States, which was concurred in the Senate. The
country also sent a delegation of 108 observers to
the Indonesian parliamentary elections, and
engaged in cooperative activities in the areas of
security, defense, combating transnational crimes,
culture, and the protection of OFWs and Filipinos
abroad.
As the DFA enters yet another year in its
existence, it sets its right toward the new
millennium, and welcomes the challenges and
opportunities it faces in an increasingly globalized
world.
Department of Interior and Local Government
(DILG)
The Department of Interior and Local
Government (DILG) has the following functions:
a. Assists the President in the exercise of
general supervision over local
governments;
b. Advises the President in the promulgation
of policies, rules, regulations, and other
issuances on the general supervision over
local governments and on public order
and safety.
c. Establishes and prescribes rules,
regulations and other issuances
implementing laws on public order and
safety, the general supervision over local
governments and the promotion of local
autonomy and community
empowerment and monitor compliance
thereof,
d. Provides assistance toward legislation
regarding local governments, law
enforcement and public safety;
e. Establishes and prescribes plans, policies,
programs and projects to promote peace
and order, ensure public safety and
further strengthen the administrative,
technical and fiscal capabilities of local
government officers and personnel;
f. Formulates plans, policies and programs
which will meet local emergencies arising
from natural and man-made disaster;
g. Establishes a system of coordination and
cooperation among the citizenry, local
executives, and the Department, to ensure
effective and efficient delivery of basic
services to the public; and
h. Organizes, trains, and equips primarily for
the performance of police functions, a
police force that is national in scope and
civilian in character.
Under R.A. No. 6975 or known as the
Department of the Interior and Local Government
Act of 1990, the DILG consists of the Department
Proper, the existing bureaus and offices of the
Department of Local Government, the National
Police Commission, the Philippine Public Safety
College, and the following bureaus: the Philippine
National Police, the Bureau of Fire Protection, and
the Bureau of Jail Management and Penology.
Bureau of Food and Drugs (BFAD)
The BFAD is an attached agency under the
Department of Health in charge of the registration
of processed foods, drugs, medical devices, in vitro
diagnostic reagents, cosmetics, and household
hazardous substance products. In case these
products will have to be hand-carried for
professionals abroad, consumers may go directly
to the BCFAD Policy, Planning, and Advocacy
Division - Public Assistance and Compliance
Division (PPAD-PACD). Consumers are advised to
bring for verification, product samples, and the
doctor's prescription drug products.
Establishments involved in the
manufacture, packaging, repacking, importation,
exportation, distribution, and retailing of processed
foods, drugs, medical devices, in vitro diagnostic
reagents, cosmetics, and household hazardous
substance products must secure a license to
operate from BFAD. As a precaution, consumers
are advised to verify the existence of the license to
operate of the establishment/outlet which should
be conspicuously displayed and the existence of
the applicable BFAD Product Registration Number
on the label of the products intended to be
bought. The absence of such information on
possible illegal source/product.
Furthermore, consumers must ask for
receipts of payment of purchased products
reflecting the business name and address, Tax
Identification Number (TIN), and name of printer
(BIR Permit No.) with exclusive serial number of
booklets and date of issuance of receipts and the
description of the goods bought.
Bureau of Immigration
The main functions of the Bureau of
Immigration are:

● Acts as the primary enforcement arm of the
Department of Justice and the President of
the Philippines in ensuring that all
foreigners within its territorial jurisdiction
comply with existing laws;
● Assists local and international law
enforcement agencies in securing the
tranquility of the state against foreigners
whose presence or stay may be deemed
threats to national security, public safety,
public morals and public health and;
● Acts as chief repository of all immigration
records pertaining to entry, temporary
sojourn, admission, residence, and
departure of all foreigners in the country.
Bureau of Internal Revenue (BIR)
The BIR shall be under the supervision and
control of the Department of Finance and its
powers and duties shall comprehend the
assessment and collection of all national internal
revenue taxes, fees, and charges, and the
enforcement of all forfeitures, penalties, and fines
connected therewith, including the execution of
judgments in all cases decided in its favor by the
Court of Tax Appeals and the ordinary courts.
Bureau of Customs (BoC)
Under R.A. No. 1937 (June 22, 1957) titled:
Revising the Tariff and Customs Laws, the general
duties, as amended by R.A. No. 9135 dated April 27,
2001, the powers and jurisdiction of the bureau
shall include:
1) Assess and collect lawful revenues;
2) Prevent smuggling and other frauds;
3) Control vessels/aircrafts doing foreign
trade;
4) Enforce tariff and customs laws;
5) Control the handling of foreign mails
revenues and prevention purposes;
6) Control import and export cargoes; and
7) Jurisdiction over forfeiture and seizure
cases.
The revised Charter of the Philippine Ports
Authority which took effect on December 23, 1975,
195 transferred the powers, duties and jurisdiction
of the BoC with regard to arrastre and stevedoring
operations of the PPA. [Pernito Arrastre Services,
Inc. v. Mendoza, 146 SCRA 430, 434 (1986).]19%
When a vessel becomes subject to seizure
by reason of an act done in Philippine waters in
violation of the tariff and customs laws, a pursuit of
such vessel begins within the jurisdictional waters
and may continue beyond the maritime zone, in
such case, the vessel may be seized on the high
seas. Imported articles which may be subject to
seizure for violation of the tariff and customs laws
may be pursued in their transportation in the
Philippines by land, water or air and such
jurisdiction exerted over it at any place therein as
may be necessary for the due enforcement of the
law, 197
The BoC shall, for customs purposes, have
exclusive control, direction and management of
custom houses, warehouse, offices, wharves, and
other premises in the respective ports of entry, in
all cases without prejudice to the general police
powers of the city or municipality wherein such
premises are situated. 198
When any public wharf, landing place,
street or land, not previously under the jurisdiction
of the BoC, in any port of entry, is necessary or
desirable for any proper customs purpose, the
President of the Philippines may, by executive
order, declare such premises to be under the
jurisdiction of the BoC, and thereafter the authority
of such Bureau in respect thereto shall be fully
effective. 199
However, in the case of Hon. Executive
Secretary et al. v. South Wing Heavy Industries, et
al., G.R. Nos. 164171, 164172, and 1687841, February 21,
2006, the Supreme Court declared as
constitutionally invalid provision, President
Arroyo's Executive Order 156 which prohibits the
importation of used motor vehicles at the Subic
Bay Freeport.
The Philippine Coast Guard
By virtue of R.A. No. 5173, the Philippine
Coast Guard has been created as an attached
agency of the Department of Transportation and
Communication with the following objectives:
a. To enforce or assist in the enforcement
of all applicable laws upon the high seas
and waters subject to the jurisdiction of
the Republic of the Philippines.
b. To enforce law, promulgate, and
administer regulations for the promotion
of safety of life and property within the
maritime jurisdiction of the Philippines;
and
c. To develop, establish, maintain, and
operate, with due regard to the
requirements of national defense, aids to
 maritime navigation and rescue facilities
for the promotion of safety on and over
the high seas and waters, subject to the
jurisdiction of the Philippines.
Professional Regulatory Board for Customs
Brokers
Pursuant to the national policy, the
government shall provide a program to set up a
climate conducive to the practice of the profession
and maximize the capability and potential of our
Filipino customs brokers. Hence, R.A. No.9280
(March 30, 2004) was enacted regulating the
practice of customs brokers profession in the
Philippines, and creating the Professional
Regulatory Board for Customs Brokers. This Act
provides for and shall govern:
(a) The standardization and regulation of
customs administration education;
(b) The examination and registration of
customs brokers; and
(c) The supervision, control, and regulation
of the practice and the customs broker
profession.
Nayong Pilipino Foundation (NPF)
The NPF was created under P.D. No. 37 on
November 16, 1972 with the intention of promoting,
encouraging, and initiating research and
development projects and activities in social
sciences, humanities, social; and amelioration and
allied fields. The Foundation is non-stock, non-
profit corporation, organized, established, and
operated in the public interest and no portion of its
funds and income shall inure to the benefit of any
of its member. The policymaking body of the
Nayong Pilipino shall be the Board of Trustees
composed of a chairman and eight members to be
appointed by the President for a term of one year.
The chairman and members shall be persons
genuinely interested in the promotion of the
purposes and objectives of the Foundation.
Philippine Sports Commission
The primary mandate of the Philippine
Sports Commission is to serve as the prime
catalyst and advocate for the propagation and
development of Philippine sports by helping shape
policies and setting priorities through the
following:
● Coordinating and implementing a national
sports program;
● Creating equitable opportunities for
participation in sports by all sectors;
● Providing assistance to stakeholders and
partners;
● Supporting the especially talented athletes
for high-level competitions; and
● Promoting the development of physical
qualities and moral values which is the
basis of sports.
Philippine National Police (PNP)
The PNP is the armed, civilian national
police force in the Philippines headquartered at
Camp Crame in Quezon City. It is administered
and controlled by the National Police Commission
and is part of the Department of the Interior and
Local Government (DILG). Local police officers are
operationally controlled by municipal mayors.
DILG, on the other hand, organizes, trains and
equips the PNP for the performance of police
functions as a police force that is national in scope
and civilian in character. The PNP was formed on
January 29, 1991 when the Philippine Constabulary
and Integrated National Police were merged
pursuant to R.A. No.6975 of 1990.
Anti-Graft and Corruption Law in Government
R.A. No. 10910 or "An Act Increasing the
Prescriptive Period for Violations of R.A. No. 3019,
Otherwise Known as the 'Anti-Graft and Corrupt
Practices Act' from Fifteen (15) Years to Twenty (20)
Years, Amending Section 11 Thereof" amended the
prescription of offenses, also known as the statute
of limitations, from 15 to 20 years. This means it is
still possible to carry out judgment on individuals
guilty of graft and corruption within 20 years.