Article 5Supplement v1, p. 5

COMMERCIAL LAWS SUPPLEMENT

including

refund

of

incentives

when

appropriate,

restricting availment of certain incentives not needed by

the project in the determination of the Board, requiring

performance bonds and other guarantees, and payment

of

application,

registration,

publication

and

other

necessary

fees

and

when

warranted, may limit the

availment of the tax holiday incentive to the extent that

the investor's country law or treaties with the Philippines

allows a credit for taxes paid in the Philippines;

(4) After due hearing, decide controversies concerning

the implementation of the relevant books of this Code

that

may

arise

between

registered

enterprises

or

investors therein and government agencies, within thirty

(30) days after the controversy has been submitted for

decision: Provided, That the investor or the registered

enterprise may appeal the decision of the Board within

thirty (30) days from receipt thereof to the President;

(5) Recommend to the Commissioner of Immigration and

Deportation

the

entry

into

the

Philippines

for

employment of foreign nationals under this Code;

(6) Periodically check and verify, either by inspection of

the books or by requiring regular reports, the proportion

of the participation of Philippine nationals in a registered

enterprise to ascertain compliance with its qualification

to retain registration under this Code;

(7)

Periodically

check and verify the compliance by

registered enterprises with the relevant provisions of this

Code, with the rules and regulations promulgated under

this

Code

and

with

the

terms

and

conditions

of

registration;

(8) After due notice, cancel the registration or suspend

the enjoyment of incentives benefits of any registered

enterprise and/or require refund of incentives enjoyed by

such

enterprise

including

interests

and

monetary

penalties, for (a) failure to maintain the qualifications

required by this Code for registration with the Board of (b)

for violation of any provisions of this Code, of the rules and

regulations issued under this Code, of the terms and

conditions of registration, or of laws for the protection of

labor or of the consuming public: Provided, That the

registration of an enterprise whose project timetable, as

set

by

the

Board is delayed by one year, shall be

considered

automatically

cancelled

unless

otherwise

reinstated as a registered enterprise by the Board;

(9) Determine the organizational structure taking into

account Article 6 of this Code; appoint, discipline and

remove its personnel consistent with the provisions of the

Civil Service Law and Rules;

(10) Prepare or contract for the preparation of feasibility

and other pre-investment studies for pioneer areas either

upon its own initiative; or upon the request of Philippine

nationals who commit themselves to invest therein and

show the capability of doing so; Provided, That if the

venture is implemented, then the amount advanced by

the Board shall be repaid within five (5) years from the

date the commercial operation of said enterprise starts;

(11) When feasible and considered desirable by the Board,

require registered enterprises to list their shares of stock

in any accredited stock exchange or directly offer a

portion of their capital stock to the public and/or their

employees;

(12) Formulate and implement rationalization programs

for certain industries whose operation may result in

dislocation, overcrowding or inefficient use of resources,

thus impeding economic growth. For this purpose, the

Board

may

formulate

guidelines

for

progressive

manufacturing

programs,

local

content

programs,

mandatory

sourcing

requirements

and

dispersal

of

industries. In appropriate cases and upon approval of the

President,

the

Board

may

restrict,

either

totally

or

partially,

the

importation

of

any

equipment or raw

materials

or

finished

products

involved

in

the

rationalization program;

(13)

To the extent that such activities are allowed by the

Constitution and relevant laws, to recommend to the

President

of

the

Philippines,

the suspension of the

nationality requirement provided in this Code in cases of

ASEAN projects, or investments by ASEAN nationals,

regional

ASEAN

or

multilateral

financial

institutions

including their subsidiaries in preferred projects and/or

projects allowed through either financial or technical

assistance agreements entered into by the President, and

in

the

case

of

regional

complementation

for

the

manufacture of a particular product which seeks to take

advantage of economies of scale. For the purpose of this

Act, a multilateral financial institution shall refer to a

financial agency or entity, and its affiliates which satisfy

the following qualifications:

(1)

The

institution

is

either owned or controlled by

member countries but does not possess any national

identity;

(2) The institution sources its funds from capital stock

subscriptions and contributions by member countries;

and

(3) The primary responsibility of the institution is to

provide

funds

for

developmental

purposes

and

international economic stability. (as amended by RA No

7888)

(14) Extend the period of availment of incentives by any

registered enterprise; Provided, That the total period of

availment shall not exceed ten (10) years, subject to any of

the following criteria:

(a) The registered enterprise has suffered operational

force majeure that has impaired its viability;

(b) The registered enterprise has not fully enjoyed the

incentives granted to it for reasons beyond its control;

(c) The project of the registered enterprise has a gestation

period which goes beyond the period of availment of

needed incentives; and

(d) The operation of the registered enterprise has been

subjected to unforeseen changes in government policies,

particularly, protectionism policies of importing countries,

and such other supervening factors which would affect

the competitiveness of the registered firm;

(15) Regulate the making of investments and the doing of

business within the Philippines by foreigners or business

organizations owned in whole or in part by foreigners;

(16) Prepare or contract for the preparation of industry

and sectoral development programs and gather and

compile statistical, technical, marketing, financial and

other data required for the effective implementation of

this Code;

(17) Within four (4) months after the close of the fiscal

year, submit annual reports to the President which shall

cover its activities in the administration of this Code,

including recommendations on investment policies;

(18) Provide, directly or through Philippine Diplomatic

Missions, such information as may be of interest to

prospective foreign investors;

(19) Collate, analyze and compile pertinent information

and studies concerning areas that have been or may be

declared preferred areas of investments;

(20)

Enter

into

agreements

with

other

agencies of

government

for the simplification and facilitation of

systems and procedures involved in the promotion of

investments,

operation

of

registered enterprises and

other

activities

necessary

for

the

effective

implementation of this Code; and

(21)

Generally,

exercise

all

the

powers

necessary

or

incidental to attain the purposes of this Code and other

laws vesting additional functions on the Board.

ARTICLE 8. Powers and Duties of the Chairman . — The

Chairman shall have the following powers and duties:

(1) To preside over the meetings of the Board;

(2) To render annual reports to the President and such

special reports as may be requested;

© Compiled by RGL

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