Section 2Sec./Art. 2

Section 4 of Republic Act No. 9728 is hereby amended to read as follows:

"Sec. 4. Governing Principles. The FAB shall be managed and operated under the following principles:

"(a) Within the framework and limitations of the Constitution and applicable provisions of the Local Government Code, the FAE) shall be developed into and operated as a decentralized self-reliant and self-sustaining industrial, commercial-trading, research and development, engineering, medical, education, information and communications technology including emerging and future technologies such as artificial technology, blockchain, business process outsourcing, cloud computing, cybersecurity, distributed ledger technology, financial technology solutions, internet of things, and virtual reality, retirement, and healthcare services, agro-industrial, tourism, banking, financial, multinational trading and investment center with provision for suitable residential areas;

"(b) Notwithstanding the autonomy provided in Section 4(a) of this Act, the FAB shall continue to be provided by the National Government and/or local government with transportation, telecommunications and other facilities needed to attract legitimate and productive investments, generate linkage with industries and employment opportunities for the people of the Province of Bataan and its neighboring towns and cities.

The FAB shall also have priority and preferential access to such National Government and/or local government transportation and telecommunications infrastructure and other facilities, and access to the FAB shall be incorporated in the planning, construction, and operation of such infrastructure or expansions: Provided, That the autonomy and self-reliance of the AFAB shall not be a hindrance to assistance and/or partnerships with other units and instrumentalities of the government: Provided, further, That no assistance or partnership be construed as a waiver of the autonomy of the AFAB;

"(c) x x x

"(d) Foreign citizens and companies owned by non-Filipinos in whatever proportion may set up enterprises in the FAB, either by themselves or in joint venture with Filipinos in any sector of industry, international trade, and commerce within the territorial jurisdiction of the FAB as provided in Section 3 of this Act: Provided, That the AFAB may require a minimum investment in freely convertible currencies from any enterprise seeking registration as a FAB enterprise;

"(e) The FAB shall be managed and operated as a separate customs territory ensuring free flow or movement of goods and capital within, into and out of its territory: Provided, That in accordance with Sections 301 and 817 of Republic Act No. 10863, the Bureau of Customs (BOC) shall continue to exercise border protection and customs control authority over the customs territory adjacent to the FAB: Provided, further, That the AFAB shall allow patrol or other law enforcement arrangements by the BOC and other government agencies within the municipal waters covered by the other FAB zones subject to coordination with the AFAB to enhance its protection and control capacity and ensure compliance with customs, fisheries and other laws and regulations;

"(f) x x x

"(g) The areas comprising the FAB may be expanded or reduced when necessary.

For this purpose, the AFAB, with the concurrence of the appropriate and affected local government units (LGUs) and the agreement of appropriate national government agencies, government-owned and -controlled corporations and instrumentalities, and the approval of the AFAB Board in accordance and in compliance with existing laws and local ordinances shall have the power to acquire, procure, and/or expand either by purchase, negotiation, condemnation proceedings, or any other arrangement, any private or alienable and disposable public lands and/or their respective water territories within the territorial jurisdiction of the Province of Bataan, if any, for the following purposes: (1) consolidation of lands for FAB development and establishment of new industrial estates and economic zones under the FAB; (2) acquisition of right-of-way to the FAB; and (3) the protection, and safeguard of watershed areas and the maintenance and improvement of its water yield and natural assets valuable to the prosperity of the FAB, the LGU, and the National Government, the effective management of solid and water waste in compliance with existing national laws and local ordinances, and its impact to adjacent areas within the local government concerned: Provided, That any expansion shall be aligned with the comprehensive land use plan of the affected LGUs: Provided, further, That the expansion outside the Municipality of Mariveles may be revoked by the President of the Philippines: Provided, finally, That the AFAB and the relevant LGUs and national government agencies shall provide for immediate and responsive mechanisms, best management practices and suitable environmental protection programs for land and coastal management to address any abuse and/or exploitation of the natural environment within the territorial jurisdiction of the FAB as provided in Section 3 of this Act;

"(h) Goods manufactured by FAB enterprises shall be made available for immediate retail sale in the domestic market, subject to the payment of corresponding taxes on raw materials and other regulations that may be formulated by the AFAB, together with the Philippine Economic Zone Authority (PEZA), the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the BOC and the Department of Trade and Industry (DTI) in accordance with the National Internal Revenue Code (NIRC) of 1997, as amended, and the Tariff and Customs Code of the Philippines, as amended: Provided, That the value of the goods at the time of the importation shall be the basis in determining the appropriate duties and taxes: Provided, further, That in cooperation with the AFAB, the foregoing agencies shall provide and implement measures to support the improvement of ease and cost of doing business within the FAB and the enhancement of the investment promotion capacity of the AFAB.

In order to protect the domestic industries, a negative list of industries shall be drawm up and regularly updated by the AFAB. Enterprises engaged in industries included in such negative list shall not be allowed to sell their products locally notwithstanding the registration of such enterprises in the FAB; and

"(i) The defense of the FAB and the security of its perimeter fence shall be the responsibility of the National Government in coordination with the AFAB and the LGUs. The AFAB shall provide its own internal security and firefighting forces."