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Established and prospective Clark and Subic locators today are doing business in a more comfortable environment, thanks to recent moves that have allowed the harmonization of policies between the two Freeport and economic zones, as well as the streamlining of procedures that have resulted in cutting bureaucratic red tape, reducing the cost of transactions and shortening processing times.
REDUCING REGISTRATION RED TAPE
Recently, top authorities of Subic and Clark Freeport and Economic Zones, together with the heads of the Subic-Clark Alliance for Development Council (SCADC) and the Clark International Airport Corporation (CIAC) promulgated the Implementing Rules and Regulations (IRR) that will govern a new business permit system designed to ensure a faster procedure for the establishment of enterprises.
The IRR gives life to the Memorandum of Agreement (MOA) signed last July 21, 2009 adopting a simplified and harmonized set of rules and procedures governing the Business Registration System in Clark and Subic.
According to SCADC Chairman Edgardo Pamintuan, the IRR “is another achievement in the harmonization efforts of SCADC, eventually promoting Subic and Clark as an alternative business and investment destination.” He added that “this will move the two Freeports closer to realizing a world-class logistics hub at par with those in the Asia-Pacific region.”
FEATURES AND SCOPE
One outstanding feature of the IRR is the mandated issuance of a business permit within 14 days immediately after the submission of complete initial documentary requirements. This shortens the process from the previous average of 30 days, which, according to Subic Bay Metropolitan Authority (SBMA) Administrator Armand Arreza, “has been mentioned by locators as one of the main reasons that discourage investors from considering Clark and Subic, given that the benchmark time frame of other investment areas in the region is significantly narrower.”
Also, a standard form for the procedures, including a harmonized lease agreement shall be adopted for both Freeports. This additional measure will allow a locator in Clark to facilitate the opening of business in Subic, and vice versa. “By adopting investor-friendly measures such as this IRR, we would like to ensure the ease of doing business, thereby attracting more investors from within and outside the Economic Zones,” Clark Development Corporation (CDC) President Benigno Ricafort said.
Third, the process will be automated, and many of the steps can be performed online. This will lead to less face to face transactions, thereby greatly reducing the possibility of graft and corruption.
Initially, the harmonized Business Permits to be issued are the Certificate of Registration and Tax Exemption (for locators who can avail tax incentives) and the Registration Certificate.
The scope of the IRR covers the application, processing, approval, issuance and renewal of business permits, as well as the processing and approval of new projects. It directs the Freeport authorities to establish their respective Accounts Evaluation Committees which shall evaluate submitted documents together with their particular Business Development Offices within 4 working days. Thereafter, a recommendation is forwarded to the Freeport Chief Executive Officer for approval.
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