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The Iligan City,Promotions Code of 1996

The Iligan City Investment, Incentives and Promotions Code of 1996

 

Republika ng Pilipinas

LUNSOD NG ILIGAN

Tanggapan ng Sangguniang Panlungsod

Regular Session Held on February 26, 2006

PRESENT:Hon. Henry C. Dy,Hon. Providencio P. Abragan, Sr.,  Hon. Vicente F. Belmonte, Jr.,Hon. Chonilo O. Ruiz,Hon. Alfredo R. Busico,

Hon. Moises G. Dalisay, Jr.,

Hon. Ruderic C. Marzo,

Hon. Bienvenido V. Badelles,

Hon. Orlando M. Maglinao,

Hon. Wilfredo R. Bacareza,

Hon. Voltaire I. Rovira,

Hon. Bernard Y. Pacaña,

Hon. Hannah M. Quijano, *

ABSENT:

(NONE)

* – Out during the deliberation

City Vice MayorPresiding OfficerMemberMemberMemberMember

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Member

Member

Member

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RESOLUTION NO. 06-192

WHEREAS, on December 2, 1996, the Sangguniang Panlungsod passed and approved City Ordinance No. 2916, s. 1996, otherwise known as the “Iligan City Investment Incentives and Promotions Code of 1996”, stipulating the incentives that can be availed of by new business ventures and expansion of existing business enterprises, within the jurisdiction of the City;

WHEREAS, the enactment of the City Ordinance No. 2916, offering fiscal incentives coupled with an aggressive marketing program, resulted in approximately P700 Million worth of new investments made by eleven (11) companies that registered and availed of the incentives;

WHEREAS, years after the passage of said ordinance, the investments flow to

IliganCity has been too few and too far between. The City’s investment sector performance remains disappointing and continues to lag behind its neighbors, which indicate that the City’s incentive system is ineffective for one reason or another;

WHEREAS, changes in the overall economic conditions also mean constant changes in our local investment incentives, promotions strategies and plans. And to a large extent, the level of economic development of a locality depends largely on the effectiveness and efficiency of the local investment promotions activities and programs;

WHEREAS, under this scenario, it has become imperative to enhance Iligan City’s competitiveness and promote rapid socio-economic development and generate employment through a vigorous and sustained image-building program, investment facilitation and generation program and a sustainable program for the development and promotion of small and medium enterprises;

(Page 2 of Res. No. 06-192)

WHEREFORE, on motion of Member Bienvenido V. Badelles, duly seconded by Members Ruderic C. Marzo, Orlando M. Maglinao, Wilfredo R. Bacareza, Vicente F. Belmonte, Jr. and Moises G. Dalisay, Jr.

BE IT RESOLVED, AS IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod of Iligan, to adopt and approve the following City Ordinance, to wit:

CITY ORDINANCE NO. 06- 4924

AN ORDINANCE REVISING CITY ORDINANCE NO. 2916, SERIES OF 1996, OTHERWISE KNOWN AS “THE ILIGAN CITY INVESTMENT, INCENTIVES AND PROMOTIONS CODE OF 1996

Be it ordained by the Sangguniang Panlungsod of the City of

Iligan in session assembled:

CHAPTER I

Title and Declaration of Policy

Section 1. Title. – This Ordinance shall be known and cited as “The Revised Investment Incentives Code of the City of  Iligan”.

Section 2. Declaration of Policy. – The City Government shall endeavor to promote rapid socio-economic development and generate employment by enhancing the City’s competitiveness to encourage domestic and foreign investments. Accordingly, the following are declared and adopted as policies of the City Government:

1.     The City Government shall encourage domestic and foreign capital to establish enterprises that would utilize appropriate and substantial amount of labor, raw materials and natural resources of the City.

2.     The City Government recognizes the role of the private sector in attaining the socio-economic development goals and shall work with the private sector as active partners in the promotion and development of small and medium enterprises as the main engine of economic growth.

3. The City Government shall create an environment conducive to business growth by ensuring that the administration of policies, regulations and procedures directly affecting the business shall be, simple, transparent, performance based and time bound.

4.     The City Government shall strongly promote investments in socio- economic support infrastructure such as, but not limited to, water, roads, land development for business parks, light manufacturing estates and housing, tourism-related projects, information and communication technology related projects and development of new and renewable sources of energy.

(Page 3 of Res. No. 06-192)

5.     The City Government recognizes that industrial peace is essential to attracting investments.

6.     The City Government recognizes that environment protection and conservation is necessary to enhance the competitiveness of the City.

7.     The City Government in cooperation with private sector shall undertake proactive and aggressive location marketing and investment promotion programs.

CHAPTER II

Organization and Functions

of the Iligan Investment Board and

the IliganInvestmentPromotionCenter

Section 3. The Iligan Investments Board (IIB). – The Iligan Investments Board hereinafter referred to as the “BOARD” shall implement the provisions of this Code except as otherwise provided herein.

Section 4. The Composition of the Board. – The Iligan Investment Board shall be composed of eleven (11) members: the City Mayor; three (3) members of the Sangguniang Panlungsod, the Provincial Director of the Department of Trade and Industry, the City Planning and Development Officer and five (5) representatives from the private sector, one of whom shall serve as ex officio Vice Chairman. The City Mayor shall be the Chairman of the Board and the Executive Director of the

IliganInvestmentPromotionCenter shall be the ex officio Board Secretary without voting rights.

The five (5) representatives from the private sector shall come from the nominees representing the manufacturing sector, trade and services sector, agricultural and agri-business sector, professional, and the tourism sector. The representatives from the private sector shall be appointed by the Mayor from the nominees submitted by the private business organizations for a term not exceeding two years: Provided, That the representatives from the private sector shall serve as such until their successors shall have been appointed and qualified.

The Members of the Board shall not receive compensation; Provided, That they shall be entitled to a reasonable honorarium in their attendance to Board meetings, to be determined by the Board, subject to government accounting and auditing rules and regulations.

Section 5. Qualifications of the Members of the Board. – The members of the Board shall be citizens of the

Philippines and are bonafide residents of the City of Iligan, at least twenty-five (25) years old, of good moral character and recognized competence in any of the following fields: law, economics, marketing, finance, banking, commerce, industry, agriculture, engineering, management or labor.

(Page 4 of Res. No. 06-192)

Section 6. Powers and Duties of the Board. – The Board shall be responsible for the local incentives regulation and administration as well as the promotion of investments. It shall meet regularly once a month in a place and time agreed upon by the members. A written notice of regular and special meetings shall be given to all members of the Board at least three (3) days before the meeting stating the agenda therein. The presence of majority of the members of the Board shall constitute a quorum and the affirmative vote of majority of members present and voting in a meeting shall be necessary to exercise its powers and perform its duties, which shall include but not be limited to the following:

1.     Promulgate rules and regulations to implement the purposes of this Code and such other ordinances as the Board is mandated to implement;

2.     Approve, deny, suspend, revoke applications for registration with the Board, imposing terms and conditions as it may deem necessary to promote the purposes of this Code, including the refund and forfeiture of incentives when appropriate, restricting availment of incentives not needed by the project as determined by the Board and payment of application, registration, publication and other fees when warranted;

3.     After due notice and hearing, cancel the registration or suspend the incentives of a registered enterprise and/or require refund of incentives including interests and monetary penalties of the errant registered enterprises;

4.     After due hearing, decide controversies arising from the implementation of this Code that may arise between Board-registered enterprises or investors therein and the barangays and other local government agencies, within thirty (30) working days after the controversy has been submitted for decision: Provided, That the investor or the registered enterprise may appeal the decision within thirty (30) working days from receipt thereof with the Sangguniang Panlungsod.

5.     Ascertain annually, by inspection or verified reports, the compliance by registered enterprises with the terms and conditions of its registration including but not limited to the proportion of the employment of local residents in a registered enterprise to ensure compliance with its qualification to retain its registration under this Code;

(Page 5 of Res. No. 06-192)

6.     Facilitate and provide assistance to locally registered enterprises in securing permits/authority for applicable fiscal and non-fiscal incentives provided by National Incentives Act from the Board of Investments (BOI); for the employment of foreign nationals from the Bureau of Immigration and Deportation (BID) through the BOI and for Environment Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR) and other requirements from appropriate regional and national government agencies;

7.     Formulate the Local Investment Priorities Plan (LIPP) and through the City Mayor endorse to the Sangguniang Panlungsod for concurrence and approval; Provided, That the LIPP shall be reviewed and evaluated every two (2) years, pursuant to Section 13, Chapter IV of this Code;

8.     The Board as the sole local authority on investments regulation and promotion shall exercise general supervision and monitoring functions over all the City Government’s promotion activities including tourism promotions, such as but not limited to production of promotion and marketing collaterals, image-building programs, investment servicing, facilitation and generation;

9.     Formulate and implement programs and projects in coordination with business support organizations, local, regional and national government agencies in the development and promotion of SMEs to accelerate local economic development;

10.   Enter into agreements with domestic and international organizations, regional and national government agencies involved in the economic development, promotion of trade and investments, development and promotion of SMEs, and other activities necessary for the effective implementation of this Code;

11.   The Board shall establish and maintain strong linkages and network with domestic and international business support organizations, regional and national government agencies involved in trade and investment regulation and promotion;

12.   Within two (2) months after the close of the fiscal year, submit through the City Mayor an annual report to the Sangguniang Panlungsod on the Board’s administration of this Code, including recommendations on investment policies;

(Page 6 of Res. No. 06-192)

13.   Enter into cooperative agreements with business support organizations for the simplification of systems and procedures in the administration of the local investments regulation and other policies, regulations and procedures necessary to create a conducive environment for business growth and development;

14. The Board shall approve the organizational structure and the appointments of the staff and other personnel of the

IliganInvestmentPromotionCenter and discipline or remove its personnel consistent with the provisions of civil service laws, rules and regulations and the Labor Code of the Philippines;

15. The Board shall fix and adjust the salaries, allowances and benefits of the IIPC personnel subject to the provisions of the Revised Salary Standardization Law as amended and other pertinent circulars, memorandum orders on compensation scheme applicable to local government units;

16.   The Board shall submit through the City Mayor the annual budget for its operations and maintenance including that of the Iligan Investment Promotion Center to be included in the annual budget of the City Government.; and

17.   Generally, exercise all powers necessary or incidental to attain the purposes of this Code and other laws vesting additional functions on the Board.

Section 7. Powers and Duties of the Chairman. – The Chairman shall have the following powers and duties:

1.     Preside over the meetings of the Board;

2.     Sign annual and special reports to the Sangguniang Panlungsod;

3.     Recommend to the Board policies and measures necessary to carry out the objectives and effective implementation of this Act;

4.     Exercise general supervision over the  IliganInvestmentPromotionCenter;

5. Generally exercise other powers and perform other duties as may be directed by the Board.

Section 8. Powers and Duties of the Vice Chairman. – The Vice Chairman shall have the following powers and duties:

1.     Act as liaison between the business support organizations for the simplification of systems and procedures involved in the investment regulation and promotion and other policy proposals and advocacy to make Iligan City more business friendly;

(Page 7 of Res. No. 06-192)

2.     Preside over the meetings of the Board in the absence of the Chairman;

3. Perform the other duties of the Chairman in his absence, and such other duties as may be assigned to him by the Board.

Section 9. Establishment of the

IliganInvestmentPromotionCenter. – The City Government shall establish the IliganInvestmentPromotionCenter that shall execute all acts and promulgation of the Board in relation to the regulation, promotion and generation of investments and other approved programs and projects that will make IliganCity an ideal business location. The IIPC shall perform the following duties and responsibilities:

1.     To serve as secretariat, records custodian and technical staff of the Iligan Investment Board;

2.     To act as one-stop action center for the accreditation and registration of enterprises; including providing assistance in:

a.     securing business permits or licenses of the registered enterprises and its other requirements to hasten their operations;

b. securing and facilitating the availment of registered enterprises of the national investment incentives program; and

c.      identifying ideal business locations and other requirements of applicant enterprises;

3.     Subject to the direction and approval of the Board, implement the following:

a) a vigorous and sustained image-building program including but not limited to regular tri-media releases, production of business publications and trade updates or innovative marketing collaterals,

b) vigorous and sustained investment facilitation and generation program including but not limited to sending and receiving trade and investment missions, organizing and participating in trade fairs and exhibitions

c) a sustainable program for the development and promotion of SMEs in coordination and consultation with the appropriate local, regional and national government agencies and business support organizations including but not limited to enterprise formation, technology transfers and licensing agreements and training;

(Page 8 of Res. No. 06-192)

4.     Provide business consultancy services including but not limited to pre-feasibility studies, government regulations, policies, procedures and incentives site selection, joint ventures, business acquisitions and accessing of financing or lending facilities especially for SMEs

5.     Conduct regular researches and policy studies to include, but not limited to, investment climate assessment, economic condition analysis, business opportunities identification, industry sector studies;

6.     Establish and maintain data bank on general business information including but not limited to investment incentives promotion, identification of businesses and potential partners.

7.     Perform such other functions and duties as may be assigned by the Board.

Section 10. Management of the

IliganInvestmentPromotionCenter. – The IIPC shall be managed and headed by an Executive Director who is a citizen of the Philippines and bonafide resident of the City of Iligan, at least twenty-five (25) years old, of good moral character and at least a degree in the field of marketing, economics, finance, commerce, or management from a recognized college or university or its equivalent. He must have acquired experience in investment planning and promotions or related field for at least three (3) years.

The term of the Executive Director is coterminous with that of his appointing authority.

The Executive Director shall take charge of the

IliganInvestmentPromotionCenter and shall perform the following duties and responsibilities:

1.     Shall plan, direct, organize and control the day to day operations of the Center and ensure the efficient and effective execution of all acts and policies of administration of the Board;

2.     Act as ex officio Board Secretary without voting rights as such will prepare the Agenda for the meetings of the Board and submit for its consideration and approval applications for registration, the policies and measures which the Chairman deems necessary and proper to carry out the provisions of this Code;

3.     Assist registered enterprises and prospective investors to have their application papers processed quickly by all government offices, agencies, instrumentalities and financial institutions;

(Page 9 of Res. No. 06-192)

4.     Prepare the Comprehensive Investment Promotion Strategy, the Local Investment Priorities Plan (LIPP) and industry and sectoral development programs, in coordination with and in consultation with the stakeholders and appropriate local and national government agencies for endorsement of the Board to the Sangguniang Panlungsod through the City Mayor and gather and compile data required for the effective implementation of this Code;

5.     Prepare feasibility and other pre-investment studies, on its own initiative, upon the direction of Board or upon the request of an investor under terms and conditions mutually agreed upon;

6.     Act as the official spokesman and public relations officer of the Board and represent the Board and the Center in all public functions; and

7.     Perform such other functions and duties as may be assigned by the Board.

CHAPTER III

Definition of Terms

Section 11.       Definition of Terms. – When used under this Code, the following terms and phrases shall mean:

Bonafide Residents – refers to a person who has made  IliganCity his/her permanent domicile proof of which shall be a Barangay Certification and his/her voter registration.

Business Parks – refers to a master planned mixed used tract of land that is suitable as a business location.

City Government – shall refer to the City of  Iligan covering all the areas within its territorial jurisdiction as provided for by law and its charter.

City Ordinance No. 2916, series of 1996 – shall refer to the existing Investment Incentives and Promotions Code enacted in

December 2, 1996.

Existing Enterprises – shall mean any individual, partnership, corporation, or other entity incorporated and/or organized and existing under Philippine laws whose businesses or base of operation is within the territorial jurisdiction of  IliganCity

IIB or “Board shall mean the Iligan Investments Board (IIB) created under this Code.

Iligan InvestmentPromotionCenter (IIPC)” or “Center -shall mean the Secretariat and Technical Staff created under Section 9 and 10 of this Code.

(Page 10 of Res. No. 06-192)

IT Related Projects or “Information Technology Related Projects – shall mean any business undertaking involving the development of IT products, services or businesses including but not limited to infrastructure and other support facilities required by IT or IT enabled enterprises.

Light Manufacturing Estate – refers master planned tract of land that is suitable for light manufacturing industries with provisions for basic infrastructure and utilities, with or without pre-built standard factory buildings and community facilities for the use of locator industries.

Local Investment Priorities Plan (LIPP) – shall refer to the list of industries, services and other economic activities, which will be eligible for incentives under this Code, prepared and determined as priority activities by the Board in consultation with appropriate local, regional and national government agencies and the private sector and concurred in writing by them in accordance with Chapter V of this Code.

New and Renewable Energy or “NRE – shall mean any business undertaking involving the development of alternative environmentally-friendly energy sources using indigenous and renewable natural resources such as but not limited to hydro and geothermal, wind, solar, biomass, etc.

New Enterprises/Investors – shall refer to any individual, partnership, corporation, or other entity incorporated and/or organized and existing under Philippine laws that intend to establish any kind or type of legitimate business in Iligan City or are interested in locating its operation or production in the City.

Registered

Enterprise – shall mean any individual, partnership, corporation, Philippine branch of a foreign corporation or other entity incorporated and/or organized and existing under Philippine laws engaged in any of the activities listed in the LIPP as hereinafter defined; and registered for such activity with the Board, in accordance with this Code. Provided, however, That the term “registered enterprise” shall not include business organizations whose principal purpose or principal source of income is to receive deposits, lend or borrow money, buy and sell or otherwise deal, trade or invest in common or preferred stocks, debentures, bonds or other marketable instruments generally recognized as securities, or discharge other similar intermediary, trust or fiduciary functions. The cessation or substantial reduction by the registered enterprise of the activity for which it was registered shall cause the loss of its registered status upon declaration of the Board.

(Page 11 of Res. No. 06-192)

Sangguniang Panlungsod – shall refer to the local legislative council

SMEs – shall small, medium enterprises as defined by the Small and Medium Enterprise Development Council (SMED) Resolution No. 01, Series 0f 2003 dated 16 January 2003.

Tourism Related Projects – shall mean any business undertaking involving the development of tourism related products, services or businesses including but not limited to tourist accommodations or hotels, integrated resort and leisure complex , sports and recreational centers, malls, etc.

CHAPTER IV

Investments with Incentives

and

Qualified Activities

Section 12.       Minimum Requirements for Investments With Incentives. – The enterprise must have a capitalization of at least Three Million Pesos but not more than Fifteen Million Pesos for small-scale enterprise; at least Fifteen Million Pesos but not more than One Hundred Million Pesos in case of a medium-scale enterprise; more than One Hundred Million Pesos in case of a large industry; Provided, That the amount of capitalization shall be based on the total project cost as stated in the investor’s project study submitted and verified by the Board; and

That the enterprise must provide employment of no less than ten (10) persons in case of a small-scale enterprise; at least one hundred (100) persons for a medium-scale enterprise; and at least two hundred (200) persons for a large industry who are bonafide residents of Iligan City; and

That the enterprise shall engage in or undertake business activities identified in the Local Investment Priorities Plan (LIPP).

Section 13. Local Investment Priorities Plan (LIPP). – The LIPP shall be prepared once every two (2) years by the Board after consultation with the private sector and the appropriate local, regional and national government agencies and concurred in writing by the stakeholders.

The Board not later than the end of January of every second year, shall submit to the Sangguniang Panlungsod through the City Mayor the LIPP for their approval:

The LIPP shall contain the industries, services or activities with high comparative advantage or significant competitive edge. It shall also include those that will engage in:

(i) the production or manufacture of new product / service or

(Page 12 of Res. No. 06-192)

(ii) the Export product/service or

(iii) the stimulation of both forward and backward linkages or

(iv) the creation of value added activities or

(v) socially – relevant and environment – friendly undertaking.

Upon approval of this Code, the LIPP shall be prepared within sixty (60) working days by the Board, in consultation with the private sector and other appropriate local, regional and national government agencies and certified in writing by them and in accordance with the criteria set by the Board for determining the list of industries eligible for incentives under this Code.

Section 14. Amendments. – Subject to publication requirements and the criteria for investment priority determination, the Board, in a recorded consultation with and certified in writing by the private sector and other appropriate local, regional and national government agencies may, at any time, recommend to the Sangguniang Panlungsod through the City Mayor to add additional areas in the LIPP, alter any of the terms of the declaration of an investment area or terminate the status of preference. In no case, however, shall any amendment of the LIPP impair the incentives conferred on a registered enterprise. The Board shall not accept applications in an area of investment prior to the approval of the same as a priority area nor after approval of its deletion as a priority area of investment.

Section 15.       Publication. – Upon approval of the LIPP, in whole or in part, or upon approval of an amendment thereof, the LIPP or the amendment, specifying and declaring the areas of investment shall be published in at least one newspaper of general circulation and all such areas shall be open for application until publication of an amendment or deletion thereof, or until the Board approves registration of enterprises.

CHAPTER V

Incentives to Registered Enterprises

Section 16.       National Investments Incentives Program. – The Board shall assist in the administration of the national investment incentives program under existing laws and the Local Government Code of 1991 as it will apply to the proposed activity/project of a locally registered enterprises.

Section 17. Local Investments Incentives Program. – In addition to those incentives granted by the national government under existing laws, subject to the legal limitation of the local government, a qualified new enterprise or existing enterprise registered with the Board shall enjoy the local tax incentives, subject to the provisions of Sections 22 and 23, Chapter VI of this Code, as follows:

(Page 13 of Res. No. 06-192)

1.     Exemption from Real Property Tax – A new enterprises shall be granted exemption from payment of the basic real property tax imposed under City Ordinance No. 2193, s. 1993 otherwise known as the Revenue Code of Iligan City for a period of three (3) years for existing enterprises and up to six (6) years for new enterprises from the date of approval of the registration.

The tax credits shall apply only to the basic share of the City Government excluding the Special Educational Fund (SEF).

2. Exemption from Business Tax on Gross Sales/Receipts. – A registered enterprise shall be granted exemptions from payment of business tax on gross sales /receipts for a period of three (3) for existing enterprises and up to six (6) years for new enterprises, starting from January of the following year after commercial operations.

Section 18. Other Fiscal Incentives. – In addition to the foregoing local tax incentives, an enterprise registered with the Board shall enjoy the additional incentives, as follows:

1.     Deduction of Wages Paid – Within the period of three (3) years from the start of commercial operation a duly registered enterprise shall be allowed to deduct fifty per cent (50 %) of the wages paid to employees/workers who are bonafide residents of Iligan City from the gross sales/receipts during the preceding year, subject to verification and endorsement of the Board.

2.     Deduction of Training Expenses. – Expenses incurred for local training given to employees/workers for the development of skills identified and certified necessary by the appropriate government agencies, concurred and verified by the Board, shall entitle the registered enterprise to a special deduction equivalent to fifty per cent (50 %) of the total expenses from taxable gross sales/receipts realized during the preceding calendar year within a period of three (3) years.

3.     Deduction of Research and Development Expenses. – Expenses incurred for research and development conducted related to the business of a registered enterprise, verified by the Board, and shall entitle the registered enterprise to a special deduction equivalent to fifty per cent (50 %) of the total expenses from taxable gross sales/receipts realized during the preceding calendar year within a period of three (3) years.

To raise the quality of the local basic education, a registered enterprise that provides quality educational materials for the local public elementary and secondary schools shall be entitled to the incentive herein provided, subject to verification and approval of the Board.

(Page 14 of Res. No. 06-192)

An existing enterprise embarking on new investments, either for expansion or diversification, that are listed in the current LIPP shall be entitled to the abovementioned incentives only to the extent new investments. Provided, That the existing enterprise is not in arrears in its tax liabilities with the City of Iligan, the National Government as well as government instrumentalities and agencies.

Section 19. Projects Not Listed in the LIPP. – New and existing enterprises engaged in activities or projects not listed under the LIPP shall be entitled to the incentives granted under this Code; Provided, That the applicant investor or enterprise shall have complied with the minimum requirements for registration pursuant to Section 22 and 23; Provided, further, That the a period availment shall not exceed three (3) years from the date of approval of the registration.

Section 20. Incentives for Cooperatives, Micro and Cottage Industries. Cooperatives, Micro and Cottage industries engaged in manufacturing and agri-business whose total assets, excluding land, is more than PhP 3,000,000 are qualified for the incentives; Provided, That the applicant enterprise shall have complied with the minimum requirements for registration pursuant to Sectione 22 and 23 of this Code.

Section 21.         Special Incentives. – The Board may grant additional incentives for a maximum of three (3) years, to activities that exhibit high social and economic impact, subject to the concurrence of the Sangguniang Panlungsod. In the exercise of this authority, the following criteria shall be taken into account: (1) large capital investments or sizeable employment generation such as but not limited to land development for business parks and light manufacturing estates, or (2) use of high level technology such as but not limited to IT related projects and new and renewable energy sources development.

CHAPTER VI

Registration of Enterprises

Section 22.       Qualifications of a New Enterprise. – A new enterprise is entitled to register to avail of the incentives under this Code; Provided, That an applicant investor or enterprise will satisfy the following conditions:

a.     That the business enterprise must have complied with all the requirements stipulated under applicable existing local and national laws and the Constitution, including the minimum requirements as stipulated in Section 12 of this Code;

b.     That the investment or enterprise shall be located within the territorial jurisdiction of  IliganCity;

(Page 15 of Res. No. 06-192)

Section 23. Qualifications of an Existing

Enterprise. – An existing enterprise may avail of incentives under this Code, Provided, That the applicant enterprise has no outstanding tax liabilities with the City of Iligan, the National Government as well as all other government instrumentalities and agencies; Provided, Further, That an applicant investor or enterprise must satisfy the following conditions:

a.     That the existing business enterprise must have complied with all the requirements stipulated under applicable existing local and national laws and the Constitution including the minimum requirements as stipulated in Section 12, Chapter IV of this Code;

b.     That the existing enterprise already located within the territorial jurisdiction of  IliganCity, but which will undertake any of the following activities:

(i) Diversify its operation or production to other activity or project that will create new products or services;

(ii)    Expand its existing production capacity or construct new buildings and other civil works for installation of new machinery and equipment or improvements thereof which will result in an increase in production capacity.

CHAPTER VII

Administration of Incentives

Section 24. Administration, Implementation and Monitoring of Incentives. – The Board shall be responsible for the administration and implementation of the incentives granted to registered enterprises:

For proper monitoring, the Board through the

IliganInvestmentPromotionCenter shall create a single database of all incentives provided by Board and all information thereto.

Section 25.       Tax Incentive Review Committee. – The Tax Incentive Review Committee (TIRC) is hereby established composed of the City Treasurer as Chairman, the City Assessor and the Executive Director of the IIPC as members. The TIRC is hereby mandated to review all applications for availment of incentives under this Code and endorse it for approval to the Board; Provided, That, the applications under review shall be acted upon by the TIRC within fifteen (15) working days upon submission. Failure of the TIRC to act within the aforementioned date shall mean the application for incentives is considered recommended.

Section. 26. Application, Registration and Approval Procedures. – The Board is authorized to adopt rules and regulations to facilitate action on applications filed with it; prescribe criteria for the evaluation of applications; devise standard forms for the use of applicants.

(Page 16 of Res. No. 06-192)

Applications shall be filed with the Board through the Iligan Investment Promotion Center, recorded in a registration book and the date appearing therein and stamped on the application shall be considered the date of official acceptance. In the event that ownership of a registered enterprise is transferred, sold or assigned to another individual or corporation, only the remaining unutilized incentives shall be enjoyed by the new owners of the registered enterprise.

Applications filed shall be considered automatically approved if not acted upon by the Board within thirty (30) working days from official acceptance thereof. Deferment by the Board shall be considered as an official action: Provided, however, That the Board may defer action to a specific application not more than twice and: Provided, finally, That the Board shall act upon the application within fifteen (15) working days from compliance with the cause of the last deferment.

All applications and their supporting documents filed under this Code shall be confidential and shall not be disclosed to any person except with the consent of the applicant or upon an order of a court of competent jurisdiction.

Section 27.       Criteria for Evaluation of an Application. – The following criteria will be considered in the evaluation of applications for registration under the preferred area of investment:

a.     Impact of the project on the local economy;

b.     Overall viability of the project;

c.      The extent of employment generation;

d.     The extent to which technological advances are applied and adopted to local conditions;

Section 28. Application Requirements for Registration. – The following documents shall be required to be submitted of enterprises that shall register and avail of the local investment incentives:

a.     Two (2) copies of completed application form to be provided by the Board in accordance with the provisions of this Code;

b.     A copy of the complete project study of the proposed investment showing that the project is economically, technically and financially feasible and viable;

c.      A certified true copy of its Certificate of Registration, Articles of Incorporation and By-laws as approved by appropriate government accreditation agencies;

(Page 17 of Res. No. 06-192)

d.     A certified true copy of its Certificate of Registration as approved by Board of Investments for enterprises that have availed of the national investment incentives program;

e.     An original copy of the Resolution of the applicant’s Board of Directors, in case of a corporation authorizing the filing of application;

f.      A certified true copy of its Audited Financial Statement, in case of an existing enterprise, which is expanding and/or diversifying;

The following non-refundable filing fee shall be paid upon submission of the application documents, as follows:

P 5,000      – for enterprises with a capitalization of least Three Million Pesos (PhP 3,000,000) but less than Fifteen Million Pesos (PhP 15,000,000)

P 10,000 – for enterprises with a capitalization of least Fifteen Million Pesos (PhP 15,000,000) but less than One Hundred Million Pesos (PhP 100,000,000)

P 25,000 – for enterprises with a capitalization of least One Hundred Million Pesos (PhP 100,000,000) up to One Billion Pesos (PhP 1,000,000,000)

P 50,000 – for enterprises with a capitalization of more than One Billion Pesos (PhP 1,000,000,000)

The non-refundable filing fees collected shall be plowed back and utilized solely for the operations and promotion activities undertaken by the Board and

IliganInvestmentPromotionCenter.

The Board will be may be allowed to receive only freely convertible foreign currencies as payment of application fees, fines and penalties, including refund of incentives.

Section 29.       Certificate of Registration. – A Board-registered enterprise under this Code shall be issued a Certificate of Registration under the seal of the Iligan Investment Board and the signature of its Chairman and / or such other officer of the Board or IIPC as it may empower and designate for the purpose. The certificate shall be in such form and style as the Board may determine and shall state, among other matters:

a.     The name of the registered enterprise;

b.     The area of investment in which the enterprise has been registered;

(Page 18 of Res. No. 06-192)

c.      The type of the activity it is undertaking or proposing to undertake; and

d.     The terms and conditions to be observed by the registered enterprise in compliance with this Code

Section 30.       Validity of IIB Registration. – An enterprise’ registered activity with the Board shall be valid for a minimum period of three (3) years up to a maximum of six (6) years from the start of commercial operation except on activities granted special incentives by the Board and duly concurred by the Sangguniang Panlungsod.

Section 31.       Extension of Period of Availment. – The availment period of the incentives provided herein may be extended by the Board, with the concurrence of the Sangguniang Panlungsod, in the event that the registered enterprise has suffered operational force majeure that has impaired its viability, equivalent thereto. Provided, That The affected enterprise shall inform the Board in writing of such occurrence stating among others the cause or causes of the impairment.

Section 32.       Suspension and Forfeiture of Incentives of Board-registered Enterprises; Refund and Penalties. – When there is probable cause to believe that the registered enterprise has violated its registration terms and conditions, the Board may suspend its availment of incentives, until proven otherwise.

That any willful commission of fraudulent misrepresentation in its application for registration or gross violation of this Code and its Implementing Rules and Regulations, the terms and conditions of its registration or any lawful directive of the Board, or in the availment of incentives, including all official reports required to be submitted to the Board, shall be subject to the imposable fines and penalties, without prejudice to the disapproval of its application for registration or cancellation of its registration and filing appropriate criminal and civil penalties imposable under the Revised Penal Code and applicable existing laws.

In case of cancellation of the Certificate granted under this Code, the Board may, in appropriate cases, require refund of incentives including interests.

Responsible officers of erring enterprises, including duly appointed external consultants-agents, who knowingly commit aid or abet the commission of any of the acts mentioned above, shall be liable to appropriate criminal and administrative penalties imposable under the Revised Penal Code and applicable existing laws.

Government officers and employees who participate directly or indirectly in the commission of the foregoing acts shall be liable to appropriate criminal and administrative penalties imposable under the Civil Service Law, Revised Penal Code, Republic Act No. 3019 (Anti-Graft And Corrupt Practices Act), Republic Act No. 6713 (Code Of Conduct And Ethical Standards For Public Officials) and other applicable laws.

(Page 19 of Res. No. 06-192)

If the offender is a foreign national, in addition to the imposable fines and penalties above, the foregoing acts shall be grounds recommendation to appropriate government agencies for his summary deportation.

Section 33.         Appeals from Board’s Decision. – All orders or decisions of the Board in cases involving the provisions of this Code shall immediately be executory; unless the party adversely affected will appeal the decision within thirty (30) working days from receipt thereof with the Sangguniang Panlungsod. Where an appeal has been filed, said order or decision shall be final and executory sixty (60) working days after the perfection of the appeal, unless reversed by the Sangguniang Panlungsod.

In cases involving the denial of an application for registration, the party adversely affected by such denial may appeal the same to the Sangguniang Panlungsod within thirty (30) working days from notice of the order denying the application for registration.

CHAPTER VIII

Basic Rights and Guarantees

of

Registered Enterprises

Section 34.         Protection of Investments. – All investors and registered enterprises are entitled to the basic rights and guarantees provided in applicable national laws and the Constitution. In addition to such rights and guarantees, and to enhance investor confidence in the local incentive program, the City Government, thru the Iligan Investment Board, shall:

a.   Provide timely and comprehensive information to prospective investors and registered enterprises on the economic priorities of the City Government, including target investment areas and general conditions applicable to private investments;

b.   Publicize the investment evaluation criteria and procedures to enhance transparency in the process of granting and administering local investment incentives;

c.    Protect the operational stability, growth and profitability of the investors or registered enterprises in the formulation and/or modification of investment policies and other local statutes affecting the private business sector and registered enterprises;

d.   No modification or revisions of the terms and conditions in the implementation of an investment project after it has been mutually agreed upon, accepted and approved, and the ownership and management structure of the registered enterprises has been determined unless an existing law provide otherwise;

(Page 20 of Res. No. 06-192)

e.   Ensure that the grant of special incentives, aimed at encouraging investments in the investment priority areas, will not cause market or competition distortion between and among enterprises operating with the City’s territorial jurisdiction, whether domestic or foreign.

f.    In accordance with law, where no local worker is capable and available, allow the employment of foreign nationals when it is necessary for the efficient operation of the registered enterprise and encourage technology transfer; and

g.   Resolve all disagreements or doubts concerning the benefits and incentives under this Code and other appropriate laws enacted for the purpose of encouraging investments, in favor of the investor or registered enterprise.

CHAPTER IX

Final Provisions

Section 35. Authority to Retain Funds. – Subject to government accounting and auditing procedures, rules and regulations enterprises registered with the Board are required to share in the special development fund of the Board for projects relevant to the attainment of the objectives of this Code, such as but not limited to the development and promotion of SMEs, equivalent to one tenth (1/10) of one percent (1%) of the incentives granted for every approved application.

The fund shall be deposited in a special account in a bank to be determined by the Board and utilized only for the purposes that it is intended for, subject to the usual government accounting and auditing rules and regulations.

Section 36. Authority to Loan Apparatus or Equipment and Detail of Personnel. – The heads of the offices of the city government are hereby authorized to loan or transfer, upon the request of the Executive Director concurred by the Board, such apparatus, equipment or supplies as may be needed by the Center, and to detail employees for duty therein when, in the judgment of the head of office, such apparatus, equipment, or services of such employees can be spared without serious detriment to the public service. The employees so detailed shall perform such duties as required of them by the Executive Director, and the time so employed shall be counted as part of their regular services.

Section 37. Universal Coverage. – One (1) year from the date this Code goes into effect, all existing registered enterprises enjoying the incentives under City Ordinance No. 2916, series of 1996, shall be governed exclusively by this Code; Provided, That existing enterprises may opt to register and be governed by the provisions of this Code.

(Page 21 of Res. No. 06-192)

Section 38. Protection of the Environment. – The Board, in coordination with the appropriate agencies, shall advocate and take concrete steps for the enactment of appropriate measures for the protection of the environment pursuant to paragraph 5, Section 2, of this Code.

Section 39. Effectivity of Implementing Rules and Regulations. – The Board in consultation with the appropriate local, regional and national government agencies and the private sector, shall promulgate rules and regulations to implement the intent and provisions of this Code. Such rules and regulations upon concurrence of the Sangguniang Panlungsod shall take effect fifteen (15) days following its publication in a newspaper of general circulation.

Section 40. Transitory Provision. – Until the Implementing Rules and Regulations of this Code take effect, the present rules and regulations to implement the provisions of City Ordinance No. 2916, series of 1996 shall apply.

Section 41. Appropriations. The amount needed to carry out the provisions of this Code shall be charged against the current year’s budgetary allocation of the Board and of the IliganInvestmentPromotionCenter. Thereafter, such sums as may be necessary for the continued operation and maintenance of the Board and the Center shall be included in the annual budget of the City Government.

Section 42.       Suppletory Application. All applicable national laws related to investment incentives regulations and promotion and other appropriate national laws shall be an integral part of this Code.

Section 43. Separability Clause. — If any provision of this Code or the application of such provision to any person or party is declared invalid, the remainder of the Code or the application of such provision to other persons or parties shall not be affected by such declaration of invalidity.

Section 44. Repealing Clause. — The City Ordinance No. 2916, series of 1996 is hereby repealed. All executive orders, rules and regulations and other issuances or parts thereof which are contrary to or inconsistent with this Code are hereby repealed or amended accordingly.

Section. 45. Effectivity. — This Code shall take effect fifteen (15) days from its publication in a local newspaper of general circulation.

(VOTING BY ROLL CALL: ABRAGAN “Yes”; BELMONTE, “Yes”; RUIZ, “Yes”; BUSICO, “Yes”; DALISAY, “Yes”; MARZO, “Yes”; BADELLES, “Yes”; MAGLINAO, “Yes”; ROVIRA, “Yes”; PACAÑA, “Yes” and QUIJANO, “Out”).

CARRIED unanimously by the members present.

——————————

(Page 22 of Res. No. 06-192)

The undersigned hereby attests to the adoption of the foregoing resolution as verified to by the member-author.

ATTY. ARTHUR LL. PADILLA
Secretary to the Sanggunian

VERIFIED:

BIENVENIDO V. BADELLES

Member-author

CERTIFIED:

HENRY C. DY

City Vice Mayor, Presiding Officer

APPROVED: ___________________

 

LAWRENCE LL. CRUZ

City Mayor