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WHEREAS, in order to make export processing zones more competitive and attractive to potential investors, and to increase the capability and effectiveness of the Export Processing Zone Authority (EPZA) in the attainment of its objectives, it has become necessary to update and amend the incentive schemes for enterprises within the zone:

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the further amendment of Presidential Decree No 66 dated November 20, 1972, as amended, as follows:

SECTION 1. Gross receipts of registered zone enterprises shall be exempt from the contractor's tax under Section 205 of the Tax Code of 1977, as amended.

SECTION 2. A net operating loss incurred in any of the first ten years of operation as a registered zone enterprise may be carried over as a deduction from taxable income for the six years immediately following the year of such loss. The entire amount of the loss shall be carried over to the first of six taxable years following the loss, and any portion of such loss which exceeds the taxable income of such first year shall be deducted in like manner from the taxable income of the next remaining five years. The net operating loss shall be computed in accordance with the provisions of the National Internal Revenue Code, any provision of this Decree to the contrary notwithstanding, except that income not taxable either in whole or in part under this Decree or other laws shall be included in gross income.

SECTION 3. Utility companies, including the National Power Corporation, Philippine Long Distance Telephone Company, water supply and telex companies shall extend priority service to export processing zone, and shall extend to EPZA, and/or the registered zone enterprises the most preferred terms and rates possible. EPZA shall have the option, within any zone or area administered by it, to install, manage and operate facilities, utilities and systems necessary for its operation.

SECTION 4. The administration and enforcement of the provisions of Presidential Decree No. 1096, otherwise known as the National Building Code of the Philippines in all zones and areas owned or administered by the authority shall be vested in the Administrator or his duly authorized representative. He shall appoint EPZA qualified personnel as may be necessary to act as Building Officials who shall be charged with the duty of issuing Building Permits in the different zones. All fees and dues collected by the National Building Code shall accrue to the Authority.

SECTION 5. Foreign nationals employed under the provisions of Presidential Decree No. 66, their respective spouses, and unmarried children under twenty-one years of age shall be issued a multiple entry special visa, valid for a period of one year, to enter and leave the Philippines without further documentary requirements other than valid passports or other travel documents in the nature of passports. The validity of the multiple entry special visa shall be extendible yearly. Foreign nationals who have been issued multiple entry special visas under this provision, as well as their respective spouses and dependents, shall be exempt from obtaining alien certificates of registration and emigration clearance certificates and all types of clearances required, by any government department or agency. For this purpose, the Commission on Immigration and Deportation and the EPZA shall jointly issue the necessary implementing rules and regulations.

SECTION 6. Any provision of law to the contrary, notwithstanding, the EPZA, in consultation with the Bureau of Customs shall adopt procedures which would facilitate the rapid movement of raw materials, components, goods, commodities and finished products to and from export processing zones, taking into account the need to attain the objectives of customs and internal revenue regulations and the need to facilitate export activities within the zone.

SECTION 7. The EPZA, in the exercise of its sole police authority over export processing zones and areas owned or administered by the Authority, shall have the power to receive and investigate complaints relative to violation of penal laws committed inside the zones and areas owned or administered by the Authority, and when the evidence warrants, to file and be deputized herein to prosecute the corresponding criminal cases before the appropriate court or body.

SECTION 8. The authority, through its Board of Commissioners may segregate not more than twenty per cent (20%) of the land area of each zone to be sold, leased or otherwise disposed of primarily for housing and community purposes. The disposition and development of the area segregated shall be subject to such terms and conditions as may be prescribed by the authority.

SECTION 9. With respect to, and for expeditious implementation of EPZA infrastructure projects, the power to approved detailed engineering documents, awards and contracts executed as a result of competitive public biddings, negotiated contracts, assignment of contracts, adjustment of contract prices and change orders extend work orders now vested in the Ministry of Public Works, Transportation and Communication, the Minister of Public Highways or the Minister of Energy by Presidential Decree No. 1594 and its implementing rules and regulations, are hereby vested in the Minister of Industry.

SECTION 10. All laws, executive orders, rules and regulations or part thereof inconsistent with this Decree are hereby repealed and/or modified accordingly.

SECTION 11. This Decree shall take effect immediately

Done in the City of Manila, this 21st day of August, in the year of Our Lord, nineteen hundred and eighty.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JOAQUIN T. VENUS JR.
		Presidential Assistant