quality manual including procedures and forms

PHIVIDEC INDUSTRIAL AUTHORITY

QUALITY MANUAL

including

Procedures and

Forms


TABLE OF CONTENTS

I. Introduction to the Manual………………………………………………………………………..…… 1

II. Definition of Terms …………………………………………………………………………..……………… 2 - 3

III. Introduction to PHIVIDEC-IA………………………………………………..……………………… 4 - 9

A. Overview of Organization………………………………………………………..……………… 4

B. Strategic Framework of the Organization ………………………….……………… 5 - 6

B.1. Vision ………………………………………………………………………………………….. 5

B.2. Mission …………………………………………………………………………..……………. 5

B.3. Purpose ………………………………………………………………………..……………….. 5

C. Legal Basis …………………………………………………………………………………...………………. 7

D. Scope …………………………………………………………………………………………….……………….. 8

E. Advantages in investing with PHIVIDEC-IA ………………………………………. 9

IV. The Quality Policy ………………………………………………………………………….……………….. 10

V. QSE: Organization ………………………………………………………………………….………………… 11 - 15

V.A. Offices and its Functions ……………………………………………………..……………… 11

V.A.1. Top Level ……………………………………………….………………………………... 11

V.A.2. Office Level …………………………………………..………………………………… 12 - 14

V.A.3. Organizational Chart …………………………………………………………… 15

VI. QSE: The Registration Process …………………………………………………………………… 16 - 33

V.I.A. Introduction ……………………………………………………………………….……………….. 16

V.I.A.1. Scope (New Locator Firms) …………………………………………….. 16

V.I.B.2. Procedures (New Locator Firms) ………………..……………….. 16 - 25

V.I.C.3. Scope (New Service Firms) …………………………………………….. 26

V.I.D.4. Procedures (New Service Firms) ……………….……………….. 26 - 31

V.I.E.5. Scope (Renewal of Service Firms) ……………….……………….. 32

V.I.F.6. Procedures (Renewal of Service Firms) …….……………….. 32 - 33


VII. QSE: Real Property Taxes……………………………………………………………………..…….. 34 - 38

V.II.A. Scope (Assessment)…………….…………………………………………….. 34

V.II.B. Procedures (Assessment) ……………..………………..……………….. 34 - 35

V.II.C. Scope (Collection) ……………..…………………………………………….. 35

V.II.D. Procedures (Collection) ………………..……………….……………….. 35 - 36

V.II.E. Legal Basis …………………………………………………………………………… 37 - 38

VIII. Accountability ……………………………………………………………………………….……………….. 38 - 49

IX.A. Management Commitment ……………………………….……………….. 38

IX.B. Policies and Procedures ……………………………………..……………….. 38 - 39

IX.B.1 Description of the PHIVIDEC-IA

Policies and procedures …………………………………….… 38 - 39

IX.B.2 Communication and Application of the

Policies and procedures …………………………………...… 38 - 39

IX.C. Purpose of Existence of PHIVIDEC-IA ………...………………. 39

IX.D. Management Responsibility …………………………….……………….. 39

IX. Flowcharts …………………………….……………………………………………………………………………. 40 - 44

The Registration Process

- New Locator Firms

- New Service Firms

- Renewal of Service Firms

Real Property Taxes

X. Forms …………………………….………………..…………………………….………………..…………………… 45 - 53


Real Property Taxes


I. Introduction

The Quality manual of PHIVIDEC Industrial Authority is outlined in a simplified

form that enables one to fully illustrate and understand the purpose and functions of the

Authority in the economic development sector. The procedures enumerated in this

handbook are systematized with an objective to streamline the business process in

registering an enterprise and the assessment of the real property of existing firms within

PIE-MO. With this, the Authority seeks to exhibit professionalism, transparency and

fairness to its clients and the community by providing essential information to its

stakeholders. Additional information can be integrated in this manual that may not be

stated after publication. Special mandates may not be stated in this operational process

but can be very significant in the registration process.

Prepared By:

EDWARD VON A. CABANES, MBA

Policy Planning and Evaluation Division, Corporate Planning and Business Development Department

Policy Planning and Evaluation Division, Corporate Planning and Business Development Department

1


II. Definition of Terms

For the purpose of this manual, the following terms are defined:

DECREE – refers to Presidential Decree No. 538

AUTHORITY – shall mean the PHIVIDEC INDUSTRIAL AUTHORITY

ESTATE – shall refer to the area or areas delimited by Presidential

Proclamation(s) a PHIVIDEC INDUSTRIAL AREAS.

ESTATE ENTERPRISE - shall refer to any individual, firm, association,

partnership or other forms of business organizations, which has been registered

and authorized to establish and operate a business, or engage in any economic

activity inside the estate.

EXCLUSIVE AREAS – shall refer to restricted area which has a security interest

of extreme importance and which requires the highest degree of protection.

PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA) -attached to the

Department of Trade and Industry - is the Philippine government agency tasked

to promote investments, extend assistance, register, grant incentives to and

facilitate the business operations of investors in export-oriented manufacturing

and service facilities inside selected areas throughout the country proclaimed by

the President of the Philippines as PEZA Special Economic Zones. It oversees and

administers incentives to developers/operators of and locators in world-class,

ready-to-occupy, environment-friendly secured and competitively priced Special

Economic Zones.(Source: peza.gov.ph)

PIA –shall refer to PHIVIDEC Industrial Authority.

BOARD – shall refer to the Authority’s Board of Directors.

MOA – Memorandum Of Agreement; Draft agreement that may establish the

scope of association and mutual responsibilities. See also memorandum of

understanding. (Source: www.businessdictionary.com)

MOU – Memorandum of Understanding; a document that expresses mutual

accord on an issue between two or more parties. (Source: www.businessdictionary.com)

FEASIBILITY STUDY – an analysis and evaluation of a proposed project to

determine if it is technically feasible, is feasible within the estimated cost, and will be

profitable. (Source: www.businessdictionary.com)

2

http://www.businessdictionary.com/definition/draft.html

http://www.businessdictionary.com/definition/agreement.html

http://www.businessdictionary.com/definition/establish.html

http://www.businessdictionary.com/definition/scope.html

http://www.businessdictionary.com/definition/association.html

http://www.businessdictionary.com/definition/mutual.html

http://www.businessdictionary.com/definition/responsibility.html

http://www.businessdictionary.com/definition/memorandum-of-understanding-MOU.html



http://www.businessdictionary.com/




PERMIT TO OPERATE – shall mean the permit issued by the Authority to a

Service firm upon registration. The date appearing thereon, unless otherwise

indicated, shall be conclusively deemed the date of registration.

CERTIFICATE OF REGISTRATION – shall mean the certificate issued by the

Authority to the Developer/Operator, Utilities, Facilities, Manufacturing-

Processing, Tourism or Information and Communication Technology Firm upon

registration. The date appearing thereon, unless otherwise indicated shall be

conclusively deemed the date of registration.

REGISTRATION AGREEMENT / PERMIT AGREEMENT – shall refer to the

final agreement executed by the Authority and the Estate Enterprise setting forth

the terms and conditions for the latter’s operation of business or engagement of

economic activity within the Estate.

SERVICE FIRM – refers to a business entity or concern within the Estate such

as but not limited to those engaged in customs brokerage, stevedoring and

arrastre services, trucking forwarding services, parcel, janitorial, security,

insurance and/or banking services, consultancy, restaurant services, or such other

services within the Estate as maybe determined by the Board, duly registered

and/or licensed by the Authority.

CONTRACT OF LEASE - outlining the terms under which one party agrees to

rent property owned by another party. (www.investopedia.com)

QMS – Quality Management System; a set of coordinated activities to direct and

control an organization in order to continuously improve the effectiveness and

efficiency of its performance.

QSE – Quality Systems Essential; set of activities that define the Quality

management system of an organization.

REAL PROPERTY TAX (RPT) - RPT is a property tax that is paid yearly. It is

imposed on all types of real properties including lands, buildings, improvements,

and machinery. To avoid excessive use of such authority, limitations were

established by setting specific percentages for the ceiling and base rates.

(www.hoppler.com.ph)

3


III. Introduction to PHIVIDEC-IA

A. Overview of the Organization

The PHIVIDEC Industrial Authority is a fully owned and controlled

corporation of the government of the Philippines. It was established on August

13, 1974 through Presidential Decree 538 as amended by Presidential Decree

1491.Being a catalyst of development, PHIVIDEC Industrial Estate Authority

(PIA) has the governmental and proprietary powers in providing incentives and

infrastructure needed by its investors. As a stimulant of change, its prime

responsibility is to provide industrial opportunities to capitalists to further

enhance their capabilities as contributor to economic and social balance.

Likewise, it created the PHIVIDEC Industrial areas which shall be

proclaimed, designated and specified by the Presidential Proclamations. The

3,000-hectare PHIVIDEC Industrial Estate in Misamis Oriental (PIE-MO)

covering 13 barangays in the Municipality of Tagoloan and Villanueva is the

first Industrial Area that is earmarked for the PIA.

With its strategic location, the Authority seeks to develop and provide

industrial areas and facilities to investors which open the opportunity to make

these exclusive areas into an estate enterprise. Locating these industries outside

the metropolis allows the decrease of congestion of infrastructures in highly

urbanized areas in the country and opens the employment opportunity in the

region. As such, this bolsters the exportation and importation activities in the

area.

The industrial estate is situated outside the typhoon path in Mindanao. It is

a large flat land with a wide source of river network that covers a 9km.

shoreline and estimated 25 meters deep harbors. The region is generally

peaceful amongst its nearby provinces. Proclamation 1495, signed on April 11,

2008, designates the 3,000-hectare PIE-MO estate as a Special Economic Zone of

PEZA. Locators and service firms do not only enjoy the incentives established

by PIA but also benefits of PEZA as part of the special economic enterprise.

Being declared as a PEZA zone, it serves as a gateway of entry and exit for people and

products to the South East Asian markets with estimated 600 million consumers.

4


B. Strategic Framework of the Organization

B.1. Vision

PIA shall be an excellent organization that contributes to the socio-economic

development of the country and promotes the welfare and well-being of the

veterans and retirees of the Armed Forces of the Philippines.

B.2. Mission

“PIA’s able management will continuously operate, administer and manage

attractive business locations in close collaboration with local governments and

communities in ways that will preserve and enhance the well-being of its

stakeholders, especially the veterans and retirees of the Armed Forces of the

Philippines, and keep the organization in the forefront of technological

developments and Estate management best practices”.

B.3. Purpose

B.3.1 To operate, administer and manage the PHIVIDEC Industrial Areas

and other areas which shall be proclaimed designated and specified in

subsequent Presidential Proclamation.

B.3.2. To engage in any commercial, industrial, agricultural and other

enterprises which may be necessary or contributory to the economic

development of the country, to the good of the national interest, and which

will promote the well-being of veterans and retirees of the Armed Forces of

the Philippines.

B.3.3. Core Values: Each member of the PIA family committed to internalize

and live by the following ideals and values, best described in the expression

of belief as PIA FIRST.

5


PIA: Professional, Innovativeness, Adaptability – Ideals that set forth the

norms of internal conduct and behavior that PIA family binds itself in the

performance of its mission.

FIRST Fairness, Integrity, Responsibility, Stewardship

(Accountability), Transparency – Ethics that set forth the norms of

conduct and behavior that governs the PIA family in relating to and

dealing with others.

B.3.4 Strategic Goals

To contribute in the socio-economic development of the country;

To promote the welfare and well-being of veterans and retirees of

the Armed Forces of the Philippines.

B.3.5 Strategic Themes

The potentials of PIA shall be harnessed and its challenges addressed

through the following four (4) development themes or high-level strategies.

Excellent organization with competent and dedicated personnel;

Balanced (Economic, Social and Ecological) Development PIEMO-

SEZ;

Collaboration and Partnership; and

Contribution to National Welfare and well-being.

B.3.6. Objectives

Maintain Able Management people

Accelerate Estate Development

Establish and Maintain Harmonious Collaboration with LGUs and

Communities

Improve Investor Servicing

Aggressive Investment Promotion

Increase Revenue Generation

6


C. Legal Basis

Established through Presidential Decree No. 538 created and established

the Phividec Industrial Authority and making it a subsidiary agency of the

Philippine Veterans Investment Development Corporation defining its

powers, functions and responsibilities, and for other purposes.

Approved the creation of the Phividec Industrial Authority by President

Ferdinand Marcos on June 11, 1985 by virtue of the powers vested by the

Constitution and by law, particularly Presidential Decree No. 1416.

*PD 1416: Granting continuity authority to the President of the

Philippines to reorganize the national government.

To perform all other functions in Section 2 of Presidential Decree 243

signed July 12, 1973, as amended by Presidential Decree 353 signed

December 26, 1973.

*PD 243: Creation and organization of a body corporate and politic to

be known as the PHILIPPINE VETERANS INVESTMENT

DEVELOPMENT COMPANY.

*Section 2 of PD 243. The Corporation shall have the following

purposes:

(a) To formulate, execute or operate such policies, programs,

projects or other activities as would allow the full and continued

employment of the productive capabilities of an investment of

the veterans and retirees of the Armed Forces of the Philippines;

(b) To direct, control, manage and operate all forms of

enterprises and investment ventures that shall be entered into by

such veterans and retirees or which will serve the preceding

purpose.

*Presidential Decree 353: Amended Presidential Decree 243 creating a

Philippine Veterans Investment Development Company.

7


D. Scope

The Quality Manual is applicable to all business transactions with

PHIVIDEC Industrial Authority. Incoming clients shall register with PIA before

doing business within the PHIVIDEC Industrial Estate in Tagoloan and Villanueva.

The procedures enumerated in this handbook are systematized with an objective to

streamline the business process in doing business with the agency. Additional

information can be integrated in this manual that may not be stated after

publication. Special mandates may not be stated in this operational process but can

be very significant in the registration process.

8


E. Advantages in investing with PHIVIDEC-IA.

Low land lease

rates.

Exemption from

customs duties and

taxes if goods are

50-70% for export.

Availment of the

BOI and PEZA

privileges if eligible

for registration.

Income Tax Holiday.

Exemption from Taxes and

Duties on Imported Spare

parts.

Exemption from Wharfage

Dues and Export Tax, Duty,

Import and Fees.

Tax Exemption on Breeding

Stocks and Genetic Materials.

Tax Credits.

Additional Deductions from

taxable income.

Income Tax

Holiday, 4-8

years

5% Special Tax

on gross

income, after

ITH in lieu of

all local and

national taxes.

Value Added

Tax zero-

rating.

9


IV. The Quality Policy

PHIVIDEC Industrial Authority is committed to provide excellent public service with

PROFESSIONALISM, INNOVATIVENESS, ADAPTABILITY, FAIRNESS,

INTEGRITY, RESPONSIBILITY, STEWARDSHIP and TRANSPARANCY.

As our pledge: We, the officials and employees of the

PHIVIDEC INDUSTRIAL AUTHORITY,

Commit to:

Serve you promptly, efficiently, and with utmost courtesy By authorized personnel with proper identification

from Mondays to Fridays, 8:00 a.m. to 5:00 p.m.

Ensure strict compliance service standards, with written explanation for any delays in frontline services;

Respond to your complaint about our services the

soonest or within the day through our complaint and assistance desk and take corrective measures;

Value every citizen’s comments, suggestions, and needs,

including those with special need such as the differently-abled, pregnant women, and senior citizens; and citizens; and

Empower the public through 24/7 access to information

On our policies, programs, activities and services through our website (www.pia.gov.ph ).

All these we pledge, because YOU deserve no less.

10

http://www.pia.gov.ph/


V. QSE : Organization V.A. Offices and its functions V.A.1. Top Level

PIA’S BOARD OF DIRECTORS OFFICE Makati Business and Liaison Office

3rd Floor DAO-1 Building, Salcedo Street, Legaspi Village,

Makati City, Philippines

Tel. No. (0632) 750-6787

Fax No. (0632) 818-1338

Chairman

Vice Chairman/Administrator

Director

Director

Director

Ex-Officio Director

Ex-Officio Director

Corporate Secretary

V.A.2. Office Level PIA ADMINISTRATION OFFICE Mindanao Container Terminal Complex,

Tagoloan, 9001 Misamis Oriental

Tel. No. (8822) 740-245

Fax No. (8822) 742-864

11


DEPARTMENT DIVISION FUNCTIONS

OBCD (Office of the Board Corporate Director)

o Promulgates policies & exercise all powers necessary to attain the purposes of PD 538.

o Acts as repository of all BOD records. o Coordinates with management on matters resolved by

the BOD for managerial action. OAPIA (Office of the Administrator)

o Directs & manages the affairs of PIA. o Recommends plans & programs to the BOD. o Implements the approved plans & programs of BOD.

LSD (Legal Services Division)

o Acts as general counsel of the authority. o Prepares/reviews contracts, MOA, MOU for approval

of the Board. o Lead Division in land acquisition, documentation &

filing. MISD (Management Information System Division)

o Takes charge of the systematized gathering & processing of data of PIA concerns.

o Takes charge in the conceptualization & development of systems and procedures.

o Information systems for cargo terminal operations.


CPBDD (Corporate Planning and Business

Development Department)

o Formulates plans & programs, rules & regulations & strategies of PIA.

o Business development & promotion concerns.

PPED (Policy Planning and Evaluation Division)

o Feasibility study – formulation of long range and annual plans and programs of PIA.

o Formulation of Corporate rules and regulations, programs & strategies.

o Evaluation of project proposals of prospective investors.

BDD (Business Development Division)

o Undertakes PIA promotions locally and abroad. o Implements promotions, programs & strategies. o Info dissemination to investors.

12



EMD (Estate Management Department)

o Implements industrial development programs inside PIE-MO.

o Implements the Rules & regulations of PD 538 on matters concerning PIE-MO locators.

o Generates revenues from estate operators. EEMD (Estate Engineering and Maintenance Department)

o Implements infra projects. o Land survey & preparation of Technical data & lot

plans. o Leads in the conduct of annual bldg., mechanical,

electrical inspection, machinery in PIE-MO. PUD (Public Utilities Division)

o Supervises operations & maintenance of public utilities (power & telecom, water supply).

o Ensures cost effectiveness of operation of public utilities.

o Maintenance of buildings, grounds, parking space, and gate within the port.

RAD (Revenue Assessment Division)

o Assessment of RPT, lease, and agro. o Projection/ preparation of over-all revenue sources of

PIA (short term). o Administration of lease rates.

EAD (Enterprise Assistance Division)

o Assist locators in registering with PIA. o Coordinates the manpower demands of enterprises. o Monitors the operations of PIEMO industries.


SSD (Support Services Department)

o Manages the financial, administrative, personnel & security affairs of the authority.

CBD (Cash and Budget Division)

o Cash management, collection, cash flow planning & projection.

o Certifies funds availability. o Budget preparation, monitoring and control.

AD (Accounting Division)

o Preparation of Account Analysis, Financial Statements, reports on financial transactions.

o Bookkeeping o Custody financial records and billing preparation.

RMD (Resource Management Division)

o Implementation of personnel policies, rules & regulations.

o Personnel recruitment, training and development. o Management of PIA physical assets and equipments.

ESS (Estate Security Staff)

o Gathering & analysis of intelligence information. o Effective coordination with PNP, AFP and PIEMO

industries. o Conducts investigation on matters concerning threats

& police security in PIE-MO.

13



PMD (Port Management Department)

o Administration of all Port in PIE-MO. o Management of the MCTP & all other PIE-owned

ports. o Formulation & implementation of port rules and

regulations. POD (Port Operations Division)

o Regulation, control of container, cargo loading/unloading, yard operations.

o Supervision of terminal operators and contractors. o Coordination with private port contractors.

PRD (Port Revenue Division)

o Import/export documentation. o Assessment of port charges.

-port dues -wharfage

-privilege fee o Issue cash invoice for wharfage and port dues and

charge for vessels. -

DEPARTMENT / DIVISION FUNCTIONS

ICD (Internal Control Department)

o Ascertains reliability/ integrity of financial & operational info; compliance w/ government policies, laws; safeguard of assets.

o Periodic & timely feedback to the APIA of the resulting results of findings.

o Formulates plans & programs relative to management problems of PIA & advises LRD.

14


V.A.3. Organizational Chart

Office of the Chairman & Directors (OBCD)

Office of the Administrator (OAPIA)

Corporate Planning & Business Development (CPBDD)

Internal Control Department (ICID)

MIS Division (MISD)

Legal Services Division (LSD)

Policy Planning & Evaluation Division (PPED)

Business Development Division (BDD)

Estate Management Department (EMD)

Port Management Department (PMD)

Support Service Department (SSD)

Estate Engineering & Maintenance Division (EEMD) Public Utilities Division (PUD)

Revenue Assessment Division (Non-Port) (RAD)

Enterprise Assistance Division (EAD)

Port Revenue Division (PRD)

Port Operations Division (POD)

Cash & Budget Division (CBD)

Accounting Division (AD)

Resource Management Division (RMD)

Estate Security Staff (ESS)

15


VI. QSE : The Registration Process

VI.A Introduction

The registration process shall be applicable to interested firms locating

within PIEMO-SEZ. There are two classifications of industries:

MANUFACTURING (NEW and RENEWING LOCATORS) and

SERVICE FIRMS (NEW AND RENEWING FIRMS).

VI.A.1. Scope

The procedures below shall only be applicable to

MANUFACTURING/PROCESSING FIRMS.

Who can apply: Manufacturing /Processing, Developer, Port Operators, Power Generator/ Distributor, Commercial/ Malls/ Hotels

VI.B.2. Procedures (Service Firms)

Step 1: Application for Registration with PIA.

Interested firms may visit or call the Business Development Division under

the Corporate Planning and Business Development Department (CPBDD)

to inquire and request for the requirements for registration. The office shall

provide guidelines and standard specifications for the plant/firm to be

established inside the special economic zone. The applicant firm has to refer

with the department of the recommended area for lease. These requirements

must be complied before submitting to the department for initial review

and processing.

PD 538 :Rule 15 (Transitory Provisions) Section 3: An applicant or Estate

Enterprise may apply or transact business with the Authority using

electronic documents in accordance with the appropriate guidelines that the

Board may prescribed pursuant to R.A. 8792, otherwise known as the

Electronic Commerce Act of 2000, and other pertinent laws.

16


An interested firm commences the registration process upon submission of

the Letter of Intent containing the following information below:

Company Name

Name of Project

Description of Project stating the raw materials and product description

Percentage of product to be exported (if applicable) Foreign Corporations – at least 70%

Domestic Corporations – at least 50%

Project Cost/ Funding Source

Area Required (Minimum and Maximum): ______ Ha.

Power Requirement; _______ Kw/mo.

Water Requirement; _______ cu. m/mo.

Employment

Time Table of the Project Implementation

17


PD 538 mandates PIA to levy, assess and collect real property taxes and

distribute the collection with the local government units (LGU). Since

PHIVIDEC-IA is a Special Economic Zone, various taxing powers in

PEZA registered export companies shall be withdrawn.

The Cost of Doing Business are as follows:

Escalation:

Fixed Rate of 5% per annum but to be applied after 3 years.

Step 2: Briefing and submission of the requirements.

Consultation and negotiation of the proposal shall be initiated between

the CPBDD and the prospect investor/s to discuss the details of the

project proposal. Once the round table discussion has concluded, an on-

site tour will be conducted to provide a physical inspection of the desired

area of lease. Vital information must be disclosed to be able to process the

proposal. Non-disclosure of operational and other related activities will

defer the application.

Note: The investors/firm has an option to request for a site visit

prior to the submission of the requirements. In this way, the

requesting party can make amendments and necessary alignment

in their decision-making prior to filing the actual registration.

18


The applicant firm will be required to submit the following supporting

documents below after the briefing, negotiation and on-site visit:

Feasibility or Project Study

Business Plan

Environmental Plan (at least 10% of the site shall be used as green area, if

applicable)

Process Description and Process Flow

Certificate of Registration of Business Name

In Case of a corporation, partnership, cooperative or entity,

certified copies of its articles of incorporation and by-laws,

constitution and by-laws or articles of partnership or association

and amendments thereof, duly registered with the Securities and

Exchange Commission for Corporations, Cooperative

Development Authority for Cooperatives, and other licensing or

registering government agency

Income Tax Returns for the last three (3) preceding years if

applicable. Otherwise, only income tax return during the

applicant has been operating and tax clearance certificate

Audited Financial Statements for the last three (3) years if

applicable, otherwise, only financial statements for the period the

applicant has been operating

In case of corporation, a list of Directors and Principal

Stockholders together with their respective bio-data. In case of a

single proprietorship, the name of its principal owner, and in case

of a partnership or other entities, a list of the major partner,

stockholder or controlling members together with their respective

bio-data

Development Plan and Proposed Activities for 2 year period

Resolution of the Board of Directors of a corporation or other

entity authorizing the filing of the application and nominating its

19


representative of the Authority. In case of a partnership or a single

proprietorship, an equivalent declaration under oath

When applicable, certified copies of its certificate of registration

with the Board of Investment under the Investment Incentives

Law, Republic Act No. 5186; or the export Incentives Law R.A. No.

6135; or under similar laws granting incentives to enterprise

Shall also comply with the following requirements:

Pro Forma Lease Contract

Pro Forma Registration Agreement

Deed of Undertaking that no building, structure or other facilities

shall be constructed and no improvements or buildings structures

or facilities shall be made in the Estate without previous written

approval of the Authority and consenting to demolition or

dismantle said building, structures or facilities or improvements

thereto upon order of the Authority or upon failure or refusal to do

so authorizing the Authority to undertake the demolition or

dismantling thereof, at the applicants or owner’s expense

A Resolution of the Board of Directors or a deed of undertaking,

whichever is applicable, formally accepting the terms and

conditions for registration

Anti-graft certificate

The project proposal will go through an evaluation process to be initiated

by the Policy Planning and Evaluation Division (PPED). All the

documents submitted will be assessed if the applicant firm is qualified to

register with the Authority. This is for the purpose to determine whether

the applicant firm has the capacity and legal measures to operate inside

the special economic zone.

20


PD 538: Rule 3 Section 2: Any material falsehood or

misinterpretation contained in the application for registration of

an Estate Enterprise or in any other document submitted to the

Authority in connection with said application shall render the

application null and void from the beginning.

The purpose of the evaluation process conducted by the PPED is listed

below:

1. To identify the area preferred by applicant firm.

2. To evaluate financial and technical aspects of the project.

3. To survey and delineation of preferred area by EMD.

4. To spot affected families within the preferred area.

After the evaluation, the Authority, through the PPED, will inform the

applicant firm of its decision as FAVORABLE or UNFAVORABLE.

If FAVORABLE, the applicant firm will be required to pay a filing fee to

the cashier under the Cash and Budget Division (CBD) as start of the

registration process. This means that all submitted documents are valid

and is permitted to be registered as a qualified ESTATE ENTERPRISE.

With this, the estate enterprise shall follow the law, mandates, policies

prescribed by PIA as the governing agency.

Below is the schedule of fees imposed by the Authority:

Filing Fee (To be imposed once upon filing of required documents)

CAPITALIZATION/PROJECT COST

(in PhP)

FEES

(in PhP)

FEES

(USD)

Below 1 Million 1,000.00 $21.37

Between 1 - 25 Million 1,500.00 $32.05

Between 25 - 100 Million 2,000.00 $42.74

Above 100 Million 3,000.00 $64.10 *conversion rate = 46.80

Registration Fee (To be imposed once upon issuance of the Certificate of

Registration):

21


*For Firms introducing improvement worth more than

P 750,000.00

(1/10 of the total project cost but shall not be less than P 2,000.00

or more than P 10,000.00)

*For all other registering firms – 1,000.00 Rule 2 Section 5: The schedule of fees shall be approved by the

Board, to be reviewed every three years.

Rule 2 Section 6: Forfeiture of Filing fee. – If, for any cause not

attributable to the Authority, the application is withdrawn,

the application fee shall be forfeited in favor of the Authority.

The same rule shall apply when at any time; the registration is

declared null and void.

Rule 2 Section 13: The Authority shall charge reasonable fees

for the acceptance, processing, issuance, and renewal of all

applications, permits, certificates and other similar documents

that may be required under these rules.

Note: If UNFAVORABLE, the applicant firm will be informed

about the decision. The firm will be advised to comply with the

lacking or additional requirement/s and resubmits for

reassessment and reprocessing.

After payment and filing, the proposal will be endorsed to the

Administrator and the Board of Directors for the approval of the project. If

it is APPROVED, qualified estate enterprise will be issued a Board

Resolution and shall proceed with the STEP 3 of the registration process.

If the application is DISAPPROVED, the firm shall be

required to resubmit additional or lacking requirements as

needed and shall repeat necessary processes.

22


Step 3: Compliance of Additional requirements from other

government agencies.

After all the documents and internal processes with PIA are completed,

the estate enterprise will be obliged to submit additional requirements

from other agencies as the Authority requires. This includes permits,

clearances, and certifications necessary based from the nature of the

business. The following requirements should be submitted:

S

e

c

t

i

o

n

PD 538 : Rule 3 (Provisions common to registration and permit

agreement) Section 4: An Estate Enterprise shall, when requested,

furnish the Authority with copies of the reports which by law or

regulation is required to submit to appropriate agencies.

The signing of the Registration of Agreement, Lease Contract & Issuance of

Certificate of Registration will be enacted between the estate enterprise and

PIA-IA. This will seal the partnership of the firm and the Authority and

makes the undertaking legal and binding.

The Permit Agreement should be NOTARIZED by the Legal Services

Division (LSD). All concerned department managers and division chiefs

must be provided with all the pertinent documents related to the project.

The payment of the REGISTRATION FEE, through the CBD, shall

follow after all necessary processes are completed.

1. Environmental Compliance

Certificate (ECC)

DENR

PIA to assist

2. Building and Occupancy Permit PIA to assist

3. Certificate of Compliance (For Power Generator / Distributor)

Energy Regulatory

Commission

4. Certification from the National Transmission Company

(For Power Generator / Distributor)

National Transmission

Company

23


Note: The filing fee upon application is different from the

registration fee upon approval of the board resolution making

the applicant firm a qualified estate enterprise of PIA-IA.

PD 538 :Rule 3 Section 11: No Estate Enterprise shall engage

in any undertaking or activity other than the

project/activity covered by its original registration. In the

event it does so, it shall register this new activity with the

Authority and give notice thereof to the Authority within

ten(10) days from the start of the said undertaking or

activity, install an accounting system adequate to indentify

investments, revenue, costs, profits or losses of the project

not covered by the original registration separately from

those of the old enterprise , and make available during

working hours for inspection and examination by the duly

authorized representatives of the Authority, and other

documents that may be required by the Authority. Non-

compliance of this requirement shall be a valid ground for

the Administrator to suspend the operations of the new

activity until a new Certificate of Registration is issued.

(Amended by PIA Board Resolution No. XIX 389, series of 1997)

After all the legal forms have been completed, the construction of the

facility shall commence and will be monitored by the Enterprise

Assistance Division (EAD) that there is compliance of the timetable,

terms and conditions stipulated in the MOA, Registration Agreement and

Lease Contract. Any violation of the stipulations shall demerit a penalty

and will be obliged to pay a fine to be determined by the Authority.

PD 538: Rule 4, Section 16: No buildings, structure or other facilities

shall be constructed, and no improvements on building, structures, or

facilities shall be made within the Estate without the written approval

of the Authority.

24


An Estate Enterprise desiring to introduce improvement or construct

any building, structure or other facilities within the Estate shall notify

the Authority through the Administrator of such intention. The

Authority shall inform the said enterprise in writing of such

approval/disapproval. Repairs may be made on existing structures

subject to the foregoing requirements of written notice and approval

from the Authority.

Violation of the above provision shall be sufficient ground for the

Authority to order the demolition or dismantling of the said building,

structures or facilities or any part thereof, with cost chargeable

against the owner thereof, or his duly authorized representative.

PD 538 :Rule 10, Section 1: An Estate Enterprise desiring to build

and/or construct any building, house, warehouse. Private road or

bridge and other similar structure and infrastructure inside the Estate

must submit their building and/or construction plan for approval by

the Authority. Failure to do so would entitle the Authority to order

stoppage of the construction.

For the violation of the above provision, an Estate Enterprise shall

pay a fine in an amount to be determined by the Authority plus

damages, without prejudice to any action which the Authority may

deem appropriate.

Step 4: Start of operations.

25


VI.C.3. Scope

The procedures below shall only be applicable for registration of NEW

SERVICE FIRMS

Who can apply: Manpower & Allied Services, Port-related and other Ancillary

Services, Engineering & Allied Services, Transportation Services, Storage &

Warehousing, Utilities, Consultancy groups.

VI.D.4. Procedures (Service Firms)

Step 1: Application for Registration with PIA.

Interested firms may visit or call the Corporate Planning and Business

Development Department (CPBDD) specifically the Business

Development Division to inquire and request for the requirements for

registration. The Department shall provide guidelines and standard

specifications for the plant/firm to be established inside the special

economic zone. The applicant firm has to refer with the department of the

recommended area for lease. These requirements must be complied before

submitting to the department for initial review and processing.

PD 538 :Rule 15 Section 3: An applicant or Estate Enterprise may apply or

transact business with the Authority using electronic documents in

accordance with the appropriate guidelines that the Board may prescribed

pursuant to R.A. 8792, otherwise known as the Electronic Commerce Act

of 2000, and other pertinent laws.

26


The application forms must be submitted to the Authority together with

the other pertinent documents must be accomplished as required. An

interested firm commences the registration process upon submission of

the Letter of Intent containing the following information below:

Step 2: Briefing and submission of the requirements.

Consultation and negotiation of the proposal shall be initiated between

the CPBDD and the prospect investor/s to discuss the details of the

project proposal. Once the round table discussion has concluded, an on-

site tour will be conducted to provide a physical inspection of the desired

area of lease. Vital information must be disclosed to be able to process the

proposal. Non-disclosure of operational and other related activities will

defer the application.

Note: The investors/firm has an option to request for a site tour

prior the submission of the requirements. In this way, the

requesting party can make amendments and necessary alignment

in their decision-making prior to filing the actual registration.

The applicant firm will be required to submit supporting documents after

the briefing, negotiation and on-site visit.

Feasibility or Project Study (if applicable)

Service Description and Process Flow

Certificate of Registration of Business Name

Company Name

Name of Project

Description of Project stating the raw materials and product description

Capitalization %

Employment

Time Table of the Project Implementation

27


In Case of a corporation, partnership, cooperative or entity,

certified copies of its articles of incorporation and by-laws,

constitution and by-laws or articles of partnership or association

and amendments thereof, duly registered with the Securities and

Exchange Commission, Cooperative Development Authority, and

other licensing or registering government agency

Income Tax Returns for the last three (3) preceding years if

applicable. Otherwise, only income tax return during the

applicant has been operating and tax clearance certificate

Audited Financial Statements for the last three (3) years if

applicable, otherwise, only financial statements for the period the

applicant has been operating

In case of corporation, a list of Directors and Principal

Stockholders together with their respective bio-data. In case of a

single proprietorship, the name of its principal owner, and in case

of a partnership or other entities, a list of the major partner,

stockholder or controlling members together with their respective

bio-data

Resolution of the Board of Directors of a corporation or other

entity authorizing the filing of the application and nominating its

representative of the Authority. In case of a partnership or a single

proprietorship, an equivalent declaration under oath

The following documents should be NOTARIZED:

Deed of Undertaking that no building, structure or other facilities

shall be constructed and no improvements or buildings structures

or facilities shall be made in the Estate without previous written

approval of the Authority and consenting to demolition or

dismantle said building, structures or facilities or improvements

thereto upon order of the Authority or upon failure or refusal to do

28


so authorizing the Authority to undertake the demolition or

dismantling thereof, at the applicants or owner’s expense

Anti-graft certificate

Pro Forma Permit Agreement

Such other documents that the Authority may require.

The project proposal will go through an evaluation process to be initiated

by the Policy Planning and Evaluation Division (PPED). All the

documents submitted will be assessed if the applicant firm is qualified to

register with the Authority. This is for the purpose to determine whether

the applicant firm has the capacity and legal measures to operate inside

the special economic zone.

PD 538: Rule 3 Section 2: Any material falsehood or misinterpretation

contained in the application for registration of an Estate Enterprise or in any

other document submitted to the Authority in connection with said application

shall render the application null and void from the beginning.

After the evaluation, the Authority, through the PPED, will inform the applicant firm of its decision as FAVORABLE or UNFAVORABLE.

If FAVORABLE, the applicant firm will be required to pay a filing fee to

the cashier under the Cash and Budget Division (CBD) as start of the

registration process. This means that all submitted documents are valid

and is permitted to be registered as a qualified ESTATE ENTERPRISE.

With this, the estate enterprise shall follow the law, mandates, policies

prescribed by PIA as the governing agency.

Below is the schedule of fees imposed by the Authority:

CAPITALIZATION/PROJECT COST (PhP)

FEES (PhP)

FEES (USD)

Below 500,000 750.00 $16.03

Above 500,000 1,000.00 $21.37 *conversion rate = 46.80

29


CLASSIFICATION FEES (PhP)

FEES (USD)

Contractors 10,000.00 $213.68

For all other registering firms 1,000.00 $21.37

PD 538 :Rule 2 Section 5: The schedule of fees shall be approved by the

Board, to be reviewed every three years.

PD 538 :Rule 2 Section 6: Forfeiture of Filing fee. – If, for any cause not

attributable to the Authority, the application is withdrawn, the

application fee shall be forfeited in favor of the Authority. The same rule

shall apply when at any time; the registration is declared null and void.

PD 538 :Rule 2 Section 13: The Authority shall charge reasonable fees for

the acceptance, processing, issuance, and renewal of all applications,

permits, certificates and other similar documents that may be required

under these rules.

Note: If UNFAVORABLE, the applicant firm will be informed

about the decision. The firm will be advised to comply with the

lacking or additional requirement/s and resubmits for

reassessment.

Step 3: Presentation of project proposal to APIA for approval

A. The process below shall only be applicable for SERVICE FIRMS

WITH AREA inside the PIE-MO SEZ:

The project proposal of a qualified service firm will be endorsed to

APIA. It will be assessed based from the recommendation of the

CPBDD that the service firm qualifies to be registered with the

Authority. After the evaluation and deliberation of the proposal, APIA

will approve or disapprove the application. APIA, as the final

approver, has the full jurisdiction for decision of the application of

services firms. Meanwhile, the preparation of the contracts will be

through the Legal Services Division.

30


B. The process below shall only be applicable for SERVICE FIRMS

WITHOUT AREA inside the PIE-MO SEZ:

If the application is APPROVED by APIA, the qualified service firm

will be issued a PERMIT AGREEMENT and PERMIT TO

OPERATE certificate. The permit to operate is valid only for ONE

(1) YEAR upon issuance and is renewable only every first quarter of

the calendar year upon payment of the prescribed fee, unless

terminated for a cause.

Note: If the proposal will be DISAPPROVED by APIA, the

applicant firm will be advised to resubmit lacking/additional

supporting documents through the PPED and will repeat

necessary processes as required.


31


VI.E.5. Scope

The policy below shall be applicable for RENEWAL of SERVICE FIRMS.

Who can apply: Manpower & Allied Services, Port-related and other

Ancillary Services, Engineering & Allied Services, Transportation

Services, Storage & Warehousing, Utilities, Consultancy groups.

VI.F.6. Procedures

Step 1: Application of Renewal of Permit to Operate

The Enterprise Assistance Department (EAD) monitors the actual

operations of the service firms.

A service firm that nears expiry of its permit to operate is required to

submit a Letter of Intent stating its intention to continue its service inside

the special economic zone. If EAD recommends the renewal of the firm, it

will be directed to the PPED for further assessment. If EAD opt not to

issue a recommendation for renewal, the project proposal will be re-

evaluated and the firm will be informed the renewing service firm and may

be requested to secure additional requirements as deemed necessary.

Firms for renewal shall pay the permit-to-operate (PTO) fee.

The BDD shall issue and invoice for payment to the cashier. The cashier

issues an official receipt after which the BDD processes the permit

agreement and PTO certificates. The permit agreement (PA) and permit-to-

operate (PTO) shall be endorsed to the Office of the Administrator (OAPIA)

for the Administrator’s signature. Once signed, the firm is given the

permit agreement in 3 copies for notarization. The firm will provide

PHIVIDEC-IA a copy of the notarized permit agreement which then

PHIVIDEC-IA issues a Permit-to-Operate certificate.

32


Step 2: Evaluation, Endorsement and Payment

The application will go through a re-evaluation process to be conducted

by the PPED.

If FAVORABLE upon review and evaluation, the PPED will endorse the

proposal to APIA for approval. If the application is APPROVED by APIA,

the qualified service firm will be issued a PERMIT TO OPERATE

certificate. The permit is valid only for ONE (1) YEAR upon issuance and

is renewable only every first month of the calendar year upon payment of

the prescribed fee, unless terminated for a cause. Meanwhile, the service

firm will be advised to proceed to the cashier for the payment of renewal

permit. All documents must be NOTARIZED by the firm’s lawyer. All

concerned department managers and division chiefs must be provided

with all the pertinent documents related to the project.

Step 3: Approval and Issuance of the Permit Agreement

If the application is APPROVED by APIA, the qualified service firm will

be re-issued a new PERMIT TO OPERATE certificate valid for ONE (1)

YEAR.

o Renewable only every first month of the calendar year

upon payment of the prescribed fee, unless terminated for

a cause.

o A grace period of three (3) months after the expiry date.

o After the grace period, the service firm shall apply as a

NEW REGISTRANT.

Note: This shall only apply to service firms with areas within

PIEMO-SEZ. If the proposal will be DISAPPROVED by the

Board, the applicant firm will be advised to resubmit

lacking/additional supporting documents through the PPED and

will repeat necessary processes as required.


33


VII. QSE : Real Property Taxes

VII.A. Scope

The procedures below shall apply to the ASSESSMENT of real property of

existing firms locating inside the PIE- SEZ Industrial Zone. The purpose of

assessing a real property is to determine the value to be taken by the government

through the form of taxes.

VII.B. Procedures

Step 1: Sending of Inspection/ Inventory Notice

PHIVIDEC Industrial Authority, through the Revenue Assessment Division

(RAD), shall forward a notice of inspection/ inventory to a locator firm indicating

the date of visit and other important details for the assessment.

Step 2: Field Inspection of area for assessment

The RAD personnel shall proceed to the locator firm to start the inspection

process. All information gathered shall be indicated in the Inspection Report

after the conducting inspection.

Step 3: Sworn Statement given to locator

The RAD personnel shall prepare a Sworn Statement of the True Market Value of

the inspected area and will be forwarded to the locator or the property owner.

Step 4: Preparation of the TMCR with PIN

The RAD personnel shall prepare the Tax Mapping Control Roll (TMCR) and a

unique PIN will be determined. This form is to identify the activity with its

proper coding.

Step 5: Preparation of the Assessment Sheet

An assessment sheet of all the inspected properties shall be provided to identify

the exact value of the real property tax to be paid.

34


Step 6: Data entry

Assessment details shall be encoded in the Real Property Tax System to identify

the exact tax declaration.

Step 7: Distribution of Tax Declaration report

A copy of the tax declaration shall be given to the following for review and

reference:

i. Records and Files Administration

ii. Provincial Assessor’s Office

iii. Property owner/ lessee

iv. Historical ownership of the Real Property Record

Step 8: Forwarding the tax due to the SSD

The RAD personnel shall forward the complete tax roll and RPT Order of Payment to

the Support Services Department to expedite the collection process. The

distribution of the said copies shall be provided to:

(1) Central Accounting (Record Billing) (3) Internal Control (Audit)

(2) Cash and Budget (Collection) (4) Property Owner/ Administrator

VII.C. Scope

The procedures below shall apply to the COLLECTION of real property of

existing firms locating inside the PIE- SEZ Industrial Zone.

VII.D. Procedures

Step 1: Inquiry of tax due

The locator taxpayer shall proceed to the Revenue Assessment Division to

inquire the real property tax to be paid. RAD shall prepare the bill/tax due which

can be accessed in the TD File. The distribution of the tax due is computed

quarterly.

35


In the verification of the tax due, the following details must be captured:

TD No.

PIN

Transaction Type

Owner

Owner’s Address

Administrator

Administrator’s

Address

Property Location

Boundaries

Title No.

Lot No.

Block No.

Land Area

Kind of Property

Tax Indicator

Valuations

Effectivity Date

Revision Date

Memoranda

Step 2: Payment of Tax Due

The locator taxpayer shall proceed to the cashier for the payment of the tax due.

The cashier will receive the payment, issue an official receipt and post the

collection under the locator’s account to confirm payment.

In the issuance of the Official Receipt, the following details must be recorded:

Number and date of

Official Receipt

Payee

Period of payment

covered

Name of Collector

TD Number

Type of Payment

(Basic or SEF)

Assessed Value

Type of property

Property Use

36


VII.E. Legal Basis

R.A. No. 7916: Philippine Economic Zone Authority (PEZA)

Sec. 24. Exemption from taxes under the National Internal Revenue Code.

– Any provisions of existing laws, rules and regulations to the contrary

notwithstanding, no taxes, local and national, shall be imposed on

business establishments operating within the ECOZONE. In lieu of

paying taxes and enterprise within the ECOZONE shall be paid and

remitted as follows:

(a) Three percent (3%) to the national government;

(b) Two percent (2%) which shall be directly remitted by the

business establishments to the treasurer’s office of the

municipality or city where the enterprise is located.

R.A. No. 8748 – An Act amending Republic Act No. 7916, otherwise

known as the “SPECIAL ECONOMIC ZONE ACT OF 1995”

Sec. 4. Chapter 3, Section 24 of Republic Act No. 7916 is hereby amended

to read as follows:

Sec. 24. Exemption from Taxes from the National and Local Taxes – Except

for property taxes on land owned by developers, no taxes, local or national shall be

imposed on the business establishments operating within the ECOZONE

shall be paid and remitted as follows:

(a) Three percent (3%) to the National Government;

(b) Two percent (2%) which shall be directly remitted by the business

establishments to the treasurer’s office of the municipality is city

where the enterprise is located.

DOF Revenue Regulations No. 1-00

“Sec. 4 – Nature of the 5% Tax and Extent of Tax Exemption: The Above

5% tax is imposed on gross income earned, hence, income tax in nature

and a national internal revenue law in character. Registered ECOZONE

enterprises shall be exempt from all other taxes, national and local,

EXCEPT THE REAL PROPERTY TAX ON LAND OWNED BY

37


DEVELOPERS, pursuant to Section 24 of R.A. No. 7916, as amended by

R.A. No. 8748.”

Proclamation No. 1485

10,722,222.00 sq. ms. Of land situated Phividec Industrial Estate at the

municipalities of Villanueva and Tagoloan Misamis Oriental as a special

economic zone, to be known as PHIVIDEC INDUSTRIAL ESTATE –

ECONOMIC ZONE.

Proclamation No. 2106 :

Amending Proclamation No. 1485 dated April 11, 2008, creating and

designating the entire Phividec Industrial Estate located at the

municipalities of Villanueva and Tagoloan province of Misamis Oriental

(30,000,000.00sq. ms.) as special economic zone pursuant to Republic

Act No. 7916 as amended by Republic Act No. 8748.

VIII. Accountability

IX.A. Management Commitment

The PHIVIDEC Industrial Authority is committed to provide

public service to its stakeholders by providing the optimum areas to be

developed as industrial zones. PHIVIDEC Industrial Authority, being the

governing agency over the 3,000 hectare industrial zone of Tagoloan and

Villanueva, seeks to encourage, promote and sustain the economic and

social growth of the country. With this, PIA management integrates best

practices into its daily operations in order to have a clear and transparent

sense of a true public service.

IX.B. Policies and procedures

IX.B.1 Description of the PIA Policies and procedures

The PIA policies and procedures define the intention and direction

of the organization when it comes to excellence on public service. It aims

to provide a macro view of the purpose of the existence of the agency.

IX.B.2. Communication and Application of the policies and procedures

38


The policies and procedures reflected on this manual shall be

applied to all its clients transacting business with the agency. Such

existence of the manual will be the foundation for legal concerns,

references, and other relative issues that may arise in the daily operations

of the agency.

IX.C. Purpose of Existence of PIA

IX.C.1. To encourage – the development of the land that allows the

Authority and its stakeholders to fully utilize the available resources

within its jurisdiction.

IX.C.2. To promote – full occupancy of the vacant areas by inviting

investors to locate and lease spaces

IX.C.3. To sustain – the economic growth of the region. income generation

of the Authority through the collection of Real property taxes that will be

used for the funding of various projects and obligations of the national

government in a progressive nation-building.

IX.D. Management Responsibility

The Board of Directors and the Administrator, being the approving

and appointing power, shall be responsible in the overall management of

the agency and its people. They will be responsible in the authoritative

decision making in all aspects of the agency’s function and existence.

The department managers, division chiefs and other support staff

shall be responsible in the formulation of plans, strategies and

issues/concerns that is deemed necessary in the daily operations of the

agency. They shall be the frontline in the development of the areas which

are aimed to be fully occupied to make the Tagoloan and Viilanueva areas

to be a globally competitive industrial zone.

IX. Flowcharts

Please refer to the next pages (pages 40 - 44).

X. Forms

Please refer to the next pages (pages 45 - 53). 39



- New Locator Firms

- New Service Firms

- Renewal of Service Firms

Real Property Taxes

40


REGISTRATION OF LOCATOR FIRMS

41


REGISTRATION OF SERVICE FIRMS

42


RENEWAL PROCESS FLOW FOR SERVICE FIRMS

START

Manpower & Allied Services, Port-related and other Ancillary Services, Engineering & Allied Services,

Transportation Services, Storage & Warehousing, Utilities, Consultancy groups

EAD monitors & reminds the actual operation of the service firm

Applies for Renewal

Submission of the Letter of Intent by the Service Firm

EAD recommends

Renewal

Re-evaluate project proposal and

provides the firm feedback and

completes necessary process

Evaluation by PPED

Endorses to APIA for Approval

APIA’s Approval of the Permit to Operate

Signing of the Permit Agreement (APIA-Service Firm)

Issuance of the Permit to Operate

Start of Service Operation

3rd Step

43


44



- Application for Registration as an Estate Enterprise

Real Property Taxes

45


ANTI-GRAFT CERTIFICATE

I, _____________________________, of legal age, President/General Manager of

________________________________________________________ with postal address at _________________________________________ after having been sworn, depose and say:

That pursuant to the provisions of Section 3 and 14 of R.A. 3019 (Anti-Graft Act), the applicant enterprise, ________________________________________________________ has not given or promise to give, and will not give, any gift to any officer or employee of the PHIVIDEC Industrial Authority in connection with filing and processing of this application, nor will it give such gift to any said officers or employees after approval of its application. That based on the records of the applicant, no Director or officer of the PHIVIDEC Industrial Authority has an investment or other financial interest, direct, or indirect, in the applicant; and That this certificate was made with the approval of the applicant's Board of Directors. ________________________ Affiant SUBSCRIBED AND SWORN to before me this ________ day of _________________, 20__ in the City/Province of ___________________. Affiant exhibited to me his/her Residence Certificate No. _____________ issued at __________ on _______________. Doc. No. ________; Page No. ________; Book No. ________; Series of 20__.

46


DEED OF UNDERTAKING

KNOW ALL MEN BY THESE PRESENT: This Deed made and executed by: _____________________________________ with principal office at______________________________________________________________________________________ represented herein by _______________________________ hereinafter referred to as the "APPLICANT."

In favor of

PHIVIDEC INDUSTRIAL AUTHORITY, created and operating pursuant to the provisions of Presidential Decree No. 538, as amended, with principal office at Administration Building, MCT Complex, Tagoloan, 9001 Misamis Oriental, Philippines, hereinafter referred to as the "AUTHORITY." WHEREAS, the APPLICANT has applied for registration as an estate enterprise with the AUTHORITY pursuant to the provisions of PD 538, as amended, and its implementing rules and regulations; WHEREAS, in support of its application, the APPLICANT is required to submit a deed of undertaking that no buildings, structures, facilities or improvements shall be constructed or made in the Estate without the previous written approval of the AUTHORITY. NOW THEREFORE, for and in consideration of the foregoing premises, the APPLICANT hereby agrees, undertakes and binds itself:

1. That the APPLICANT shall not construct any buildings, structures, or other facilities, nor make any improvements in the Estate, by itself or through its agents, employees or assigns, without the previous written approval of the AUTHORITY.

2. That the APPLICANT shall, upon order of the AUTHORITY, demolish or dismantle said

buildings, structures, facilities or improvements which have been constructed without the previous written approval of the AUTHORITY, and upon failure or refusal of the APPLICANT to do so, the AUTHORITY is hereby authorized to undertake the demolition or dismantling thereof, at the APPLICANT's or owner's expense.

3. That the APPLICANT shall not demolish or dismantle any buildings, structures or

improvements, whether or not constructed or introduced by the APPLICANT itself, without the previous approval of the AUTHORITY, and the APPLICANT shall answer for any damage or prejudice caused to the AUTHORITY or any third party by the said APPLICANT's

47


unauthorized demolition and dismantling of existing buildings, structures, and improvements as aforementioned.

IN WITNESS WHEREOF, the APPLICANT have hereunto affixed his/her signature this ____ day

of ___________, 20__ at ________________, Philippines.

_______________________ Applicant

By: ____________________

SIGNED IN THE PRESENCE OF:

___________________________ __________________________

ACKNOWLEDGMENT BEFORE ME, a Notary Public of ________________________, this ________ day of ________________, 20__ personally appeared: NAME CTC ISSUED ON/AT

_______________________ _____________________ __________________ _______________________ _____________________ __________________

Known to me and to me known to be the same persons who executed the foregoing Deed of Undertaking, consisting of two (2) pages including this page and acknowledged to me that the same is their free and voluntary act and deed, and the entities they represent.

WITNESS MY HAND AND SEAL on the date and at the place first above written. Doc. No. _____; Page No. _____; Book No. _____; Series of 20_

48


PERMIT AGREEMENT (Service Firm)

January – December 2016

KNOW ALL MEN BY THESE PRESENTS:

This Permit Agreement made and entered into by and between:

PHIVIDEC INDUSTRIAL AUTHORITY (PIA), a government-owned and controlled corporation created and existing by virtue of Presidential Decree No. 538 that is amended, with principal office address at Phividec Industrial Estate, Mindanao Container Terminal Complex, Municipality of Tagoloan, Province of Misamis Oriental, herein represented by its Administrator, LEO TERESO A. MAGNO hereinafter referred to as “PIA”;

-and -

Name of the Firm, an entity created and existing under the laws of the Republic of the Philippines, with principal office address at (address of the firm), herein represented by its (designation of the representative), Name of the Representative, hereinafter referred to as the “FIRM”;

WITNESSETH THAT:

WHEREAS, PIA is empowered to operate, administer and manage the PHIVIDEC Industrial Estate-Misamis Oriental (PIE-MO) and other areas as may be proclaimed, designated and specified by Presidential Proclamation;

WHEREAS, PIA is empowered to determine and regulate the enterprises to be established within the PIE-MO areas in order to ensure the proper implementation of its plans for the sound development and operation of the Areas;

WHEREAS, the FIRM is engaged in the business of providing Nature of Activity;

WHEREAS, the FIRM has applied for its Permit to Operate with PIA as a service enterprise to serve locators within the PIE-MO areas;

WHEREAS, PIA approved the application of the firm for its Permit to Operate;

NOW THEREFORE, for and in consideration of the foregoing premises, the parties hereto have agreed as follows:

49


I - PERMIT TO OPERATE - The FIRM is hereby authorized and permitted to operate and conduct its business activities and engagements within the PIE-MO areas subject to the terms and conditions as may be imposed by PIA.

II - TERM - The FIRM’s Permit to Operate shall be valid for a period of one (1) year effective upon the execution of this Permit Agreement and shall be renewable annually as may be mutually agreed by the parties. Failure of the Firm to renew its Permit to Operate within three (3) months after its expiry date shall mean re-application or considered as a new applicant.

III - GENERAL TERMS AND CONDITIONS - The following are the terms and conditions of this Permit Agreement, to wit;

1. That the FIRM shall comply with the following employment requirements, to wit;

a. To hire at least Fifty percent (50%) of unskilled and Thirty Percent (30%) of skilled labor from the unemployed bona fide and actual residents of the Municipality of Tagoloan and Villanueva, where the Firm undertakes its operation, and shall submit to PIA, thru its Office of the Estate Management Department/Enterprise Assistance Division, a list of hired laborers and status of its employment every two months.

b. Assures all its employees of their basic rights under the Constitution of the Philippines, which among others includes the right to security of tenure, humane conditions of work and the right to self-organization. Provided, however, that the right of the enterprises to reasonable returns of investments, and to expansion and growth shall be recognized.

c. Guarantees that the terms and conditions of employment of all its employees shall not be less than the standards provided under the Labor Code of the Philippines, its implementing rules and regulations and other applicable laws, orders, issuances and proclamation of the government.

2. That the FIRM shall comply with all the pertinent government regulatory issuances, permit and licenses, as well as the conditions attached thereto.

3. That the FIRM shall engage only in a business undertaking or activity for which it was permitted with PIA. New business undertaking or activities, which the FIRM may additionally engage into, should be approved by PIA.

4. That any enterprises under the supervision of the FIRM within the Estate must register first with PIA prior to its business operation. Likewise, the said enterprise must be registered with the Department of Labor and Employment.

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5. That the FIRM shall immediately inform and notify PIA in writing any vital information affecting its organizational structure, which among others include, change in its structure, administration, change of address of its main office, etc.

6. That the FIRM shall promptly pay its taxes so required by the Local Government Unit of Tagoloan and Villanueva, where the Firm undertakes its operation.

7. That the FIRM shall comply with all the provisions of all existing contracts

and those that it may thereafter enter into with PIA.

8. That the FIRM shall promptly comply with all the reportorial requirements of PIA.

9. That the violation or the non-compliance by the FIRM of any of the terms

and conditions provided in this Permit Agreement shall be a ground for PIA to motu propio cancel and revoke this Permit Agreement, as well as the Permit to Operate issued to the FIRM, without being liable for any criminal or civil liability.

10. That this Permit Agreement may not be modified, amended nor altered unilaterally by either parties except by an instrument mutually agreed and signed by both parties.

11. That the provisions of the following are deemed integrated and included by reference in this Permit Agreement, to wit;

a. Presidential Decree No. 538, as amended and its Implementing Rules and Regulations (IRR) ; and

b. Permit to Operate.

IN WITNESS WHEREOF, the parties hereto have signed this Permit Agreement this _____ day of __________, 2016 at PHIVIDEC Industrial Authority, MCT Complex, Administration Bldg., Tagoloan, Misamis Oriental.

PHIVIDEC INDUSTRIAL AUTHORITY NAME OF FIRM (PIA) (Firm) By: By LEO TERESO A. MAGNO NAME OF REPRESENTATIVE Administrator (Position)

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SIGNED IN THE PRESENCE OF:

_______________________________ ; _______________________________

4. ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES ) Province of Misamis Oriental ) s.s.Municipality of Tagoloan ) BEFORE ME, this ______ day of ________, 2016 personally appeared the following:

Name CTC No. Issued at / on

LEO TERESO A. MAGNO Name of representative

And to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free, intelligent and voluntary act and deed as well as that of the entities they represent.

Said instrument refers to a Permit Agreement, consisting of three (3) pages,

including this page whereon this acknowledgment is written, signed by the parties and their witnesses on each and every page thereof and sealed with my notarial seal.

Doc. No. ______; Page No. ______; Book No. ______; Series of 2016.

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SECRETARY'S CERTIFICATE

I,____________________________________________, of legal age, Filipino, with office address at ________________________________________, being the duly elected and qualified Corporate Secretary of __________________________(the "Corporation"), a Corporation duly organized and existing under Philippine laws, with principal offices at ___________________________________, under oath, hereby certify that at the joint special meeting of the Stockholders and the Board of Directors of the Corporation held on _____________________, at which meeting a quorum was present and acting throughout, the following resolutions were, on motion duly made and seconded, unanimously approved and adopted:

"RESOLVED, That the Board of Directors of ("the Corporation") be hereby authorized and empowered to enter into a contract with PHIVIDEC Industrial Authority for the lease of a parcel of land,

with an area of approximately ____________ hectares situated at the PHIVIDEC Industrial Estate in Misamis Oriental, under such price, terms and conditions as the proper officers of the Corporation shall

deem to be in the best interests of the Corporation;

"RESOLVED FURTHER, that the Corporation hereby authorizes its___________________ Mr/Ms_________________, to negotiate, sign, execute, deliver, receive and receipt for and on behalf of the Corporation, any and all documents and papers, including but not limited to

the Registration Agreement, Lease Agreement and such conveyance documents which may be required or necessary to carry out the

foregoing resolution." IN WITNESS WHEREOF, I have hereunto set my hand this ______day of _____________________20__ at ___________________________.

__________________________ Corporate Secretary

REPUBLIC OF THE PHILIPPINES) ___________________ ) S.S. SUBSCRIBED AND SWORN to before me this ________day of _______________________, affiant exhibiting to me his Community Tax Certificate No. __________________ issued on _______________at ____________________. Doc. No. _____; Page No. _____; Book No. _____; Series of 20___.

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