Republic of the Philippines PHILIPPINE ECONOMIC ZONE AUTHORITY Roxas Boulevard corner San Luis Street Pasay City

CERTIFICATE OF BOARD RESOLUTION This is to certify that at the Board Meeting of the Philippine Economic one !uthority "PE !# held on 16 May 2007, during $hich a %uorum $as present& the follo$ing resolution $as approved' RESOLUTION NO. 07-232 RES(L)E*& That the PE ! Board hereby APPRO ES the herein proposed +uidelines for the Registration and !dministration of ,ncentives to !gro-,ndustrial Economic one *evelopers.(perators and Locators under Republic !ct /o0 1234& as amended& as follo$s' I. POLICY ,t is the policy of the government to accelerate agro-industrial development by establishing& among others& agro-industrial estates.5ones in selected areas in the countryside $ith the active participation of the private sector0 To$ard this end& the private sector shall play a ma6or role in the establishment of agro-industrial economic 5ones by providing and developing such areas to spur agro-industrial development0 II. OB!ECTI ES ,t shall be the ob6ective of the agro-industrial economic 5ones to' 30 80 :0 ;0 <0 40 10 Serve as locations for agro-industrial enterprises for their operations in order to accelerate the gro$th and development of the Philippine agroindustrial sector7 Promote lin9ages thru the production of high value-added and better %uality agricultural and marine products geared primarily for the export mar9et7 ,ncrease the agricultural share in export earnings and employment7 Encourage the private sector to participate more actively in agroindustrial development7 !ccelerate agri-business development in the countryside7 Promote and support the national biofuels program of the government to lessen the country=s dependence on imported fuels7 and To help increase the income of farmers resulting from the activities of registered agro-industrial eco5one export enterprises and agroindustrial eco5one enterprises0

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,n this connection& PE ! shall implement the follo$ing guidelines on the registration of !gro-,ndustrial Enterprises and !gro-,ndustrial Economic ones& for availment of incentives provided under Republic !ct /o0 1234 "The Special Economic one !ct of 322<#& as amended by Republic !ct /o0 ?1;?0 III. DEFINITION OF TERMS ,n connection $ith the PE ! registration of !gro-,ndustrial Enterprises and !gro-,ndustrial Economic ones& for availment of incentives provided under R0!0 /o0 1234& as amended by R0!0 /o0 ?1;?& the follo$ing definitions shall apply' "A#$%-I&'()*$+a, -)*a*-" refers to a tract of land developed according to a comprehensive plan under a unified continuous management and $ith provisions for basic infrastructure& utilities and facilities that $ould include $aste $ater treatment for the use of agro-based industries0 "A#$%-I&'()*$+a, E.%&%/+. Z%&-" shall refer to a selected area $ith highly developed or $hich have the potential to be developed into agro-industrial estate $hose metes and bounds are fixed or delimited by Presidential Proclamation0 The agroindustrial economic 5one shall be planned and designed to have support facilities and services re%uired for processing and agro-based manufacturing activities& utili5ing local agricultural and marine products as basic ra$ materials "e0g0& post-harvest treatment& pac9aging& printing& cold storage& blast free5ing& by-product and $aste management and other facilities and services#0 Similar agricultural products may be brought into the 5one to be stored& sold& exhibited& bro9en up& repac9ed& distributed& sorted& graded& cleaned& mixed $ith foreign or domestic merchandise& or other$ise manipulated or manufactured and exported0 "A#$%-I&'()*$+a, E.%0%&D-1-,%2-$3O2-$a*%$" refers to a business entity or concern duly registered $ith PE ! to develop& operate and maintain an agroindustrial economic 5one and provide the re%uired infrastructure facilities and utilities such as po$er and $ater supply and distribution system& se$erage and drainage system& $aste management system& pollution control devices& communication facilities and other facilities as may be re%uired for an agro-industrial economic 5one0

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"A#$%-I&'()*$+a, E.%0%&E42%$* E&*-$2$+)-" refers to an individual& association& partnership& corporation or other form of business organi5ation $hich has been registered $ith PE ! to engage in the processing and.or manufacturing activity of agricultural products and resulting in the exportation of its production0 "A#$%-I&'()*$+a, E.%0%&- E&*-$2$+)-" refers to an individual& association& partnership& corporation or other form of business organi5ation $hich has been registered $ith PE ! to engage in speciali5ed manufacturing activity of agricultural crops and eventual commercial processing $hich shall result in the production of clean energy such as bio-fuels and the li9e0 "B+%5(-," shall refer to bioethanol and biodeisel and other fuels made from biomass and primarily used for automotive& thermal and po$er generation $ith %uality specifications in accordance $ith the Philippine /ational standards0 "P$%.-))+&#" shall mean the conversion of any agricultural and marine products from its ra$ state into intermediate or final product $hich undergo physical and.or chemical change through mechanical and.or chemical processes0

I .

CO ERA6E These +uidelines shall cover the PE ! registration and the grant of fiscal and non-fiscal incentives to !gro-,ndustrial Economic one *eveloper.(perators and !gro-,ndustrial Economic one Enterprises& as provided under R0!0 /o0 1234& as amended0 1. L%.a*+%& PE !-registered !gro-,ndustrial Economic ones shall be located in priority areas outside of the /ational Capital Region "/CR#& identified by the *epartment of !griculture "*!# and.or the Bureau of @isheries and !%uatic Resources "B@!R#& $hich are suitable for the processing of agricultural and a%uatic products& consistent $ith the !griculture and @isheries Moderni5ation !ct0

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2. La&'7%,'+&# R+#7*) ! PE !-registered !gro-,ndustrial Economic one *eveloper.(perator shall have proof of o$nership or right.authority to use the land sub6ect of the !gro-,ndustrial Economic one and shall be responsible for the management and operation of such !gro-,ndustrial Economic one0 !n !gro-,ndustrial Economic one may serve as location for @ilipino& foreign and.or 6oint venture enterprises engaged in !gro-processing and related activities& registered or given locational clearance by PE !0 Location of an enterprise.establishment in an !gro-,ndustrial Economic one& therefore& shall not automatically entitle the enterprise to availment of incentives provided under R0!0 /o0 1234& as amended0 3. A$-a !gro-,ndustrial Estate to be developed into an !gro-,ndustrial Economic one shall have a minimum area of five "<# hectares0 8. R-#+)*$a9,- A.*+1+*+-) a&' F+).a, I&.-&*+1-) The A/ational listA of the 8>>4 ,nvestment Priorities Plan "lPP# on activities registrable $ith the Board of ,nvestments for availment of incentives includes commercial production and commercial processing of agricultural and fishery products including their by-products and $astes& under the category of APreferred !ctivitiesA0 The follo$ing enterprises& activities and facilities& may be considered for PE !-registration for availment of fiscal and non-fiscal incentives provided under R0!0 /o0 1234& as amended' a0 !gro-,ndustrial Eco5one *eveloper.(perator shall be entitled to the special <B tax on gross income earned& in lieu of all national and local taxes& except real property taxes on land o$ned by the developer.operator "<B +,T incentive#0 The PE !-registered !gro-,ndustrial Eco5one Export Enterprises and !gro-,ndustrial Eco5one Enterprises shall be engaged in any of the follo$ing types of activities' 30 ,mport-substituting commercial production and processing of agricultural crops for bio-fuel "such as but not limited to coconut& 6athropha& sugarcane& cassava& corn and s$eet

b0

sorghum#0
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80 Processing.Manufacturing for export of agricultural and marine products "livestoc9 and poultry& fruits and vegetables& a%uaculture products#0 :0 ,ntegrated livestoc9& poultry and related pro6ects involving primary production up to processing and export of final product0 ;0 Production of agricultural inputs such as feeds& veterinary drugs and vaccines& fertili5ers& and agri-chemicals for export0 <0 Pro6ects involving the processing of agricultural $aste materials into a commercially valuable product for export0 40 Bio-technology products using agricultural products as inputs or to be used as inputs for agricultural production0 Support services such as cold storages and $arehouses& and other facilities that shall service primarily PE !-registered !gro,ndustrial Export Enterprises may be registered as Economic one @acilities Enterprise0 PE !-registered !gro-,ndustrial Eco5one Export Enterprises and !gro-,ndustrial Eco5one Enterprises shall be entitled to the follo$ing incentives' 30 @our ";# years ,ncome Tax Coliday7 80 Special <B tax on gross income in lieu of all national and local taxes after the ,TC period7 :0 Tax and duty free importation of production e%uipment and machineries& breeding stoc9s& farm implements including spare parts and supplies of the e%uipment and machineries7 ;0 Exemption from export taxes& $harfage dues& impost and fees7 <0 Exemption of payment of local government fees such as Mayor=s Permit& Business Permit& Permit on the Exercise of Profession.(ccupation.Calling& Cealth Certificate @ee& Sanitary ,nspection @ee& and +arbage @ee7 40 ero )alue !dded Tax ")!T# rate on local purchases to include telecommunications& po$er& and $ater bills7 10 Special ,nvestor=s visa7 ?0 Employment of foreign nationals7 and

20 Simplified import and export procedures0

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!ll PE !-registered !gro-,ndustrial Eco5one *evelopers.(perators and locator enterprises shall conform to the development guidelines and operating standards of the *epartment of !griculture "*!#& Bureau of @isheries and !%uatic Resources "B@!R#& the *epartment of Environment and /atural Resources "*E/R#& Land Dse and oning regulations& as $ell as the policies and guidelines of other concerned government agencies0 . DOCUMENTARY RE:UIREMENTS FOR PEZA-RE6ISTRATION OF PROPOSED A6RO-INDUSTRIAL ECONOMIC ZONES AND LOCATOR ENTERPRISES !pplications for PE !-registration of proposed !gro-,ndustrial Economic 5one shall be submitted $ith the follo$ing documentary re%uirements' 30 @avorable endorsement from the *epartment of !griculture7 80 /otari5ed PE ! !pplication @orm and !nti-graft Certificate7 :0 Board Resolution authori5ing the filing of the application $ith PE ! and designating representative"s# authori5ed to transact registration $ith PE !7 ;0 <0 40 10 Securities and Exchange Commission "SEC# Registration including !rticles of ,ncorporation and By-La$s7 Proof of o$nership of or right to use the land sub6ect of the proposed !gro-,ndustrial Economic one7 @oreshore Lease !greement from the *epartment of Environment and /atural Resources "*E/R#& if applicable7 Certification from the Cousing and Land Dse Regulatory Board "CLDRB# specifying that the proposed land use is in accordance $ith the land use plan duly approved by the Legislative Council "Sanggunian# of the host City.Municipality7 Environmental Compliance Certificate "ECC# issued by the Environmental Management Bureau.*epartment of Environment and /atural Resources "EMB-*E/R#7 /ational Eater Resource Board "/ERB# Certification that the

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identified source of $ater shall not cause $ater supply problem for the ad6acent communities7

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3>0 Endorsement by the concerned Local +overnment Dnits "L+Ds#7 330 Site *evelopment Plan7 and 380 Technical *escription of the area"s# sought to be proclaimed as an !gro-,ndustrial Economic one including survey returns duly approved and verified by the Land Management Bureau of the *E/R0

!pplications for PE !-registration of !gro-,ndustrial Eco5one Export.Eco5one Enterprises shall be submitted $ith the follo$ing documentary re%uirements' 30 80 :0 @avorable endorsement from the *epartment of !griculture7 *uly accomplished PE ! !pplication @orm7 Board Resolution authori5ing the filing of the application $ith PE ! and designating representative"s# authori5ed to transact registration $ith PE !7 Securities and Exchange Commission "SEC# Registration including !rticles of ,ncorporation and By-La$s7 Corporate Profile "including that of the parent company& if applicable#7 a0 b0 c0 d0 Brief history of the company7 Principal (fficers and Bio-*ata7 List of affiliated companies in the Philippines7 !udited @inancial Statements "for the latest three years for existing companies#7 and e0 Existing business activities and pro6ects0 40 Environmental Compliance Certificate "ECC# issued by the Environmental Management Bureau.*epartment of Environment and /atural Resources "EMB-*E/R#7

;0 <0

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Endorsement by the concerned Local +overnment Dnits "L+Ds#& if existing pro6ect7 Proof of land o$nership or any document confirming the applicantFs authority to use the land sub6ect of this application7 and )icinity map sho$ing the location of operation $ithin the economic 5one0

RES(L)E* @DRTCER& That the +uidelines shall ta9e effect fifteen "3<# days follo$ing the publication once in a ne$spaper of general circulation0

!ENNY !UNE 6. ROMERO !cting Corporate Secretary