Section 4Sec./Art. 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 FAB shall be developed into and operated as a decentralized, self - reliant and self - sustaining industrial, commercial - trading, agro - Industrial, tourist, banking, financial and investment center with suitable residential areas:

(b) The FAB shall continue to be provided with transportation, telecommunications and other facilities needed to attract legitimate and productive investments, generate linkage industries and employment opportunities for the people of the Province of Bataan and its neighboring towns and cities;

(c) The FAB may establish mutually beneficial economic relations with other entities or enterprises within the country or with foreign entities or enterprises;

(d) Foreign citizens and companies owned by non - Filipinos m 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 FAB;

(e) The F AB 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;

(f) The FAB shall provide incentives such as tax and duty - free importations of raw materials, capital and equipment to registered enterprises located therein, However, exportation or removal of goods from the territory of the F AB to the other parts of the Philippine territory' shall be subject to customs duties and taxes under the Tariff and Customs Code of the Philippines, as amended, and the National Internal Revenue Code (NIRC) of 1997, as amended;

(g) The areas comprising the FAB may be expanded or reduced when necessary, For this purpose, the F AB Authority which will be created under this Act, with the concurrence of the local government units (LGUs), in accordance with existing laws and local ordinances shall have the power to acquire either by purchase, negotiation or condemnation proceedings, any private lands within or adjacent to the FAB for the following purposes: (1) consolidation of lands for FAB development; (2) acquisition of right of way to the F AB; and (3) the protection of watershed areas and the maintenance and improvement of its water Yield and natural assets valuable to the prosperity of the FAB, the management of solid and water waste and its impact to adjacent areas within the local government concerned.

The LGU and the FAB shall provide for a mechanism to address inappropriate exploitation of the natural environment and disruptive land use within the jurisdiction of the FAB;

(h) Goods manufactured by the FAB enterprise 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 FAB Authority, together with the Philippine Economic Zone Authority (PEZA), the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), the Bureau of Customs (BOC) and the Department of Trade and Industry (DTI) in accordance with the NIRC of 1997, as amended, and the Tariff and Customs Code of the Philippines, as amended, However, in order to protect the domestic Industries, a negative list of industries shall be drawn up and regularly updated by the PEZA. Enterprises engaged m industries included in such negative list shall not be allowed to sell their products locally; and

(i) The defense of the FAB and the security of its perimeter fence shall be the responsibility of the National Government m coordination with the FAB Authority and the LGUs.