Republic of the Philippines

Province of Isabela
CITY OF CAUAYAN

Office of the Sangguniang Panlungsod

Ordinance Approved by the Sangguniang Panlungsod of the City of Cauayan, Isabela in its Regular
Session held on September 4, 2014 in lieu of September 5, 2014.

ORDINANCE NO. 2014-15

AN ORDINANCE APPROVING THE REVISED INVESTMENT INCENTIVE CODE OF 2014 OF THE CITY OF
CAUAYAN, ISABELA
(Sponsor: Hon. Alejandro Q. UY, III)

(EXPLANATORY NOT)

WHEREAS, the Vision of the City of Cauayan as an investment hub in Region 2, the melting pot
of rich and diverse culture, a fast-growing, competitive agro-industrial hub and center for economic
progress and sustainable development in the valley with an eco-friendly, innovative and God-centered
community under a citizen-oriented and honest government equally collaborating with the powered
people and the private sector, truly making in the deal City of North;

WHEREAS, its agenda is to prioritize investment that would stimulate and enhance economic
growth and development thereby generating employment, Inter Alia;

WHEREAS, forging of cooperative alliance between the government and the private sector (local
and foreign entities) will greatly help make Cauayan City to become the next business hub of Region 2;

WHEREAS, it is then imperative to come up with investment-friendly laws and policies to attract
and provide incentives to investors without compromising the welfare of the people of the City of
Cauayan;

WHEREAS, the enactment of a Investment Incentive Code is deemed necessary not only to serve
as a cutting edge for a sustainable-economic growth but also to provide instrument that will make the
City an effective link to global trade economy

WHEREAS, it is imperative to revitalize local economy and strengthen our custome-focused

service deliver that is basic in the generation of investment opportunities and to further strengthen our
edge as one of the regions most promising investment havens;

WHEREAS, with the influx of new investment such as SM CITY Cauayan, Robinsons and
Greenway Market, Camella Homes and other business investors create hundreds of new jobs
particularly livelihood opportunities and services sectors;

WHEREAS, there is a need to amend the existing Ordinance on the City Investment Incentive
Code to conform and complement with the Vision of the City of Cauayan to be the ideal City of the
North;

, on motion of Hon. Alejandro Q. UY, III, severally seconded by the members present

Be it Ordained by the Sangguniang Panlungsod, City of Cauayan, Isabela, that;

CHAPTHER I
TITLE AND DECLARATION OF POLICY

SECTION 1. Title. This Ordinance shall be known and cited as the REVISED INVESTMENT
INCENTIVE CODE OF 2014 OF THE CITY OF CAUAYAN, ISABELA.
 SECTION 2. Declaration of Policy.

To enhance a dynamic and peaceful City of Cauayan, Isabela, striving to establish a global
standard of excellence towards a progressive society and building a strong community deserving of
honor and dignity in accordance with the updated City Development Plan.

It is hereby declared that the policy of the City to encourage new investment of
expansion/diversification in agri-business , tourism, warehouses, garments and light manufacturing
activities and other property development such as establishments of private industrial state.

The City of Cauayan welcomes and encourage domestic and foreign capital to establish
enterprises that would utilize local labor, raw materials available in the City.

Finally, to promote and enhance NGOs private collaboration towards effective local
development and serve as active partner in achieving local autonomy.

CHAPTER II
DEFINITION OF TERMS

SECTION 3. Definition of Terms. When used under this Code, the following terms and phrases
shall mean as follow:

1. Board shall refer to Cauayan City Investment Incentive Board created under this Code.
2. City shall mean the City of Cauayan covering all the areas `within its territorial jurisdiction as
provided for law and its chapter
3. Code shall refer to the Cauayan City Investment Incentive Code of 2014
4. Existing Establishment/Enterprises shall refer to those establishment/enterprises whose
places of operation of production are located within the territorial jurisdiction of the City of
Cauayan.
5. Local Personnel/Worker shall refer to those workers or personnel who are bonafide the City of
Cauayan.
6. Investment is the total amount needed to make business operational.
7. New Investors /Enterprises shall refer to those prospective investors who have not engaged in
any kind or type of business and is interested in establishing its place of operation of production
in the City.
8. Preferred Areas of Investment shall mean the economic activities that the Board shall have
approved and declared as such after a thorough study and evaluation.
9. Registered Enterprises shall mean those enterprises/business registered in accordance with
the provisions of the Code.

CHAPTER III
CITY INVESTMENT INCENTIVE BOARD

SECTION 4. The Cauayan City Investment Incentive Board. Theres is hereby created a Cauayan
City Investment Incentive Board (CCIIB) to implement the provisions of the Code.

SECTION 5. Composition of the Board. The Board shall be composed of the following

Chairman - City Mayor

Vice Chairman - Vice Mayor
Member:
1. Chairman, Committee on Laws and Good Governance
2. Chairman, Committee on Labor, Trade, Industry and Economic Enterprise
3. Chairman, Committee on Cooperative and Livelihood
4. City Administrator
5. City Legal Officer
6. City Economic Enterprise, Management and Development Officer
7. City Budget Officer
8. City Planning and Development Coordinators
9. City Business Permit and Licensing Officer
10. President, Filipino-Chinese Chamber of Commerce
11. Two (2) NGO/Private Sector Representatives
12. Department of Trade and Industry (DTI) Representatives
 Provided that membership of the Board may be increased by the Sangguniang Panlungsod
through the recommendation of the Board as may be deemed necessary for the effective
implementation of the provisions of the Code;

Provide, further, that the representatives of the Department of Trade and Industry (DTI) and the
two (2) NGO/PSR representatives shall be appointed by the City of mayor upon recommendation of the
sector/s or entity they represent.

Provide, finally, that the term of office the NGO/PSR shall be three (3) years and coterminous
with that Appointing Authority.

SECTION 6. Meetings and Quorums of the Board. The Board shall meet at least once every
quarter or as often as may be necessary, on such a day and time as it may be. The presence of at least a
majority of its members shall constitute a quorum of a meeting, held, shall be required for the Board to
exercise its powers and perform its function.

SECTION 7. Powers and Function of the Board. The primary function of the Board shall be
establish a favorable and stable policy on business climate which will encourage and support private
sector investment and in the operation of business activities consistent with the development needs of
Cauayan, pursuant to this, the Board shall be vested with the following powers (functions):

1. To promulgate the governing Implementing Rules and Regulation in the implementation of

the provisions of this Code: Subject to the approval of the Sangguniang Panlungsod;

2. To commission economic and technical research for the purpose of identifying priority
investment areas and/or activities to be promoted as well as appropriate incentive and
support measure which should be extended to new investors, to attract investors into these
areas and/or activity;

3. To adopt a short and medium term investment promotion program, which shall specify the
list of priority investment areas and activities and corresponding incentives and support
measures to be used to attract targeted investors;

4. To designate the Cauayan City Investment Promotion Center to act as secretariat and to
consequently supervise the same in this operations specifically in the implementation of the
provisions of this Code;

5. To secure additional funding and other resources to supplement the budgetary support
provided by the Cauayan City Government for the operation of the secretariat in its
implementation of the Code;

6. To enter into any agreement with other government agencies and/or private sector
organization for the purpose of simplifying systems, procedures and requirements on
investments and business operation in Cauayan City;

7. In such other powers as may be authorized under the ordinance or necessary to its
existence.

SECTION 8. Cauayan City Investment Promotion Center.

Composition of Cauayan City Investment Promotion Center shall be as follows;

1. Legal Office
2. Information Office
3. Tourism Office
 SECTION 9. Powers and Function. The center shall serve as the technical secretariat of the
Board and shall implement its policies and guidelines as follows:

1. Accept, process and evaluate all applicants for registration for the availment of the local
incentives and submits its recommendation for action by the chairman within fifteen (15)
working days from the receipt of the application;

2. Provide the necessary support services to investors as guaranteed under the Code;

3. Establish and maintain networking relation with others offices and agencies whenever
appropriate and necessity;

4. Collate, analyze and compile pertinent data and information and studies concerning area
that have been or may be declared as preferred/priority areas of investment by the Board;

5. Recommend to the Board any modification/amendments to existing legislation and

procedures on local investment;

6. Prepare 6he Agenda for Meetings of the Board and submit for its consideration and
approval the policies and measure which are determined necessary to carry out the
provisions of the Code;

7. Submit Annual Reports to the Boards thru the Chairman, on the activities of the Center
relative to the implementation of the Code, within the Sexty (60) days after the close of the
calendar year;

CHAPTER IV
PRIORITY INVESTMENT AREAS/ACTIVITIES AND APPROPRIATE INCENTIVES AND SUPPORT MEASURES

SECTION 10. Priority Investment Areas. A list priority investment areas and activities to be
promoted to targeted investors shall drawn up by the Boar, based on findings and recommendations of
economic and technical research commissioned for the purpose, and in consultation with the Advisory
Committee and other government and private sector leaders of Cauayan City. The Board shall adopt the
list for implementation under the Cauayan City Investment Program upon the concurrence of the
Sangguniang Panlungsod.

SECTION 11. Appropriate Incentive and Support Measures. The Board shall identify and
recommend for the approval of Sangguniang Panlungsod appropriate incentives and support measures
which it shall be willing to extend targeted investors. To promote priority investment areas and
activities.

SECTION 12. Effectivity of Appropriate Incentive and Support Measures. The Board shall review
the package of appropriate incentive and support measures every two (2) years. Provided that the Board
may remove an area or activity from the list, at any point, when it deems that sufficient investment of
the areas or investment activity had been attained and where continued extension of incentives or
support measures for the expansion of said area or activity may place the interest of the City and the
public in adverse position. The Board may also remove an investment area or activity from the list where
it is convinced that investment in such areas or activity in the City cannot attract investors within
reasonable time and cost or may result in unfavorable business climate.

CHAPTER V
REGISTRATION OF ENTERPRISES

SECTION 13. Qualification of a New Enterprises. New investors who intend to avail of the incentive
provided in this Code must meet the following qualifications.

1. That the business enterprise must have complied with all the requirements mandated under
existing local and national laws and the constitution.
 2. That the prospective investors place of business operation or production be located within
the territorial jurisdiction of Cauayan City.
3. That the prospective must engage in activities referred areas of investment as may
hereafter be declared by the Board.

4. The new enterprise must have a capitalization of at least FIVE Million (5,000,000.00) Pesos
but nor more than Ten Million (10,000,000.00) Pesos in case of a small scale enterprises;
and more than Forty Million (40,000,000.00) Pesos in case of medium scale ; and more than
Forty Million (40,000,000.00) Pesos in case of large scale industry; provide, that the amount
of capitalization shall be based on the total project cost as stated in the investors study
submitted to and approved by the Board.

5. That the new enterprise will provide out of the labor force an employment of no less than
Ten (10) persons in case of small-scale enterprise; at least Twenty (20) persons in case of
medium-scale enterprise; and at least Fifty (50) persons in case of a large industry who are
at least benefice residents of Cauayan City.

Capital Investment Employment Registration Fee Incentives

From P5,000,000.00 5 to 10 persons P5,000.00 One(1) year
To P10,000,000.00
Classified as small-
Scale Industry
More than 11 to 12 persons P20,000.00 Three(3) years
P10,000,000.00 but
Classified as Medium-
Scale
More than 50 persons P30,000.00 Five(5) years
P40,000,000.00
Classified as Large-
Scale Industry

SECTION 14. Qualification of an Existing Enterprise. An existing enterprise may avail of the incentive
under this code provided that it meets the following qualification:

1. That the business enterprise must have complied with all the requirements mandated under
existing local and national laws and the Constitution.
2. That the expansion/diversification must engage in activities mentioned in section 2 hereof
or in other preffered areas of investments as may hereafter be declared by the Board.
3. That the existing enterprise whose place of business operation or production is already
located within the territorial jurisdiction of Cauayan City, Isabela, But which will undertake
any of the following activities/project:

a. Relocate its principal offices from other places in the Philippines to Cauayan City,
Isabela: or
b. Expand its existing production capacity or construct new building and other civil work
for the installation of new machinery and equipment or improvement thereof which will
result in an increase in production capacity.

4. That the expansion/diversification shall have a capitalization of at least Five Million

(P5,000,000.00) Pesos but less than Ten Million (P10,000,000.00) Pesos in case of a small-
scale enterprise; at least Ten Million (P10,000,000.00) Pesos but not more than Forty Million
(P40,000,000.00) Pesos in case of Medium-scale enterprise; and more than Forty million
(P10,000,000.00) in case of large-scale industry; Provide, that the amount of capitalization
shall be based on the total project cost of such expansion/diversification as stated in the
investors project study submitted to an approved by the Board.
5. That the expansion/diversification shall provide out of the labor force an employment of no
less than Ten (10) Persons in case of a small-scale enterprise; at least Twenty (20) Persons in
case of medium-scale enterprise; and at least Fifty (50) persons in case of large industry,
who are bonafide residents of Cauayan City, Isabela.

SECTION 15. Application Requirements. Applications shall be filed with the Board, recorded in a
registration book and the date appearing therein and stamped on the application shall be considered
the date appearing therein and stamped on the application shall be considered the date of official
receipt thereof

A non-refundable filing fees of One Thousand Pesos (P 1,000.00) shall be paid together with the
following documents or registration.

1. Three (3) copies of completed application from to be provided for the Board in accordance with
the provisions of this code;
2. A copy of the complete project study of the proposed investment showing that the project is
economically, technically, and financially feasible, viable and socially acceptable;
3. A copy of its Articles of incorporation and By-Laws as approved by the Securities and Exchange
Commission and Board of Investment, as the case maybe;
4. A certified true copy of its Certificate of Registration with the Securities and Exchange
Commission, the Board of Investment and Department of Trade and Industry, as the case
maybe; and
5. Resolution of the applicants Board of Directors, in case corporation, authorizing the filing of
application or letter request from the registered owner.

SECTION 16. Approval and Registration Procedures. The Board is authorized to adopt rules and
regulations to facilitate action on applications filed with it; prescribed criteria for the evaluation of
several application filed in preferred area; device standards forms or use of applicants.

SECTION 17. Certificate of Registration. A registered enterprise under this code shall be issued a
certificate of registration with the signature of its Chairman and/or such other Office of the Board as it
may empower and designate for the purpose. The certificate of registration shall be in such form and
style as the Board may determine.

CHAPTER VI
RIGHTS AND PRIVILEGES

SECTION 18. Rights and Privileges Guaranteed by the City Government. All investors and
registered enterprise are entitled to the right and guarantees provided by law and the Constitution. In
addition to such rights and guarantees, and to enhance confidence in the incentives program, the city
Government Investment Incentive Board shall:

Provide concise and comprehensive information to prospective investors on the economic

priorities of the City Government, Including target investment areas and the general conditions
applicable to incoming direct private investment;
Disseminate investment evaluation criteria and procedures to enhance transparency in the process of
granting government incentives;

1. Take the fullest possible account of the need of the investors for stability, growth and profit
in their operations in the formulation or modification of policies and Ordinance that affect
investment;
2. Not interfere or modify arrangement with the investors after the details of the
implementation of an investment project has been accepted and approved, and the
ownership and management structure of the enterprise has been established unless the law
provides otherwise
3. Avoid undue distortion of between or among enterprise operating within its territorial
jurisdiction, whether domestic or foreign, when granting any special exemption or
incentives aimed at encouraging investment in the identified target areas;
4. In accordance with law and where no local personnel or workers is capable and available,
allow the employment of qualified foreign personnel where this is necessary for the efficient
operation of the enterprises or for technology transfer; and
5. Resolve all doubts concerning the benefits and incentives granted under the Ordinances
enacted for the purpose of encouraging investment, in favor of the investor.

CHAPTER VII
INCENTIVES TO REGISTERED ENTERPRISES

SECTION 19. Tax Incentives to Registered Enterprises. In addition to the incentives provided by
law and by the Local Government Code of 1991, registered enterprise qualified under this code shall
enjoy the following tax incentives:
 1. Within a year from the start of official commercial operation, a registered enterprise under
this Code shall be fully exempt from the Mayors Permit, building permit fees, business sales
taxes, location clearance fee, annual inspection fee, zoning fee imposed under existing
ordinance but excluding garbage fee.
2. Exemption from the payment of basic real property tax only on properties directly used in
the business for a period of one (1) year from the date of the approval of the registration by
the Board. But the concerned enterprise shall pay the special educational fund as imposed
under the Tax Code of Cauayan City, Isabela.

CHAPTER VIII
APPROPRIATIONS

SECTION 20. Appropriations. An initial funding sourced-out from the 20% Development Fund
and subsequently included in the general appropriation ordinance yearly thereafter to defray the
expenses necessary for or incindental to the implementation of the provisions of this code and of the
Cauayan City investment Incentives Board shall be sourced from the City Government fund as contained
and hereby adopted. The City Government of Cauayan shall appropriate annually, based in budget
presented by the Board, the necessary funding requirements which is deemed necessary for the
continued implementation of the provisions of this Code, subject to the usually government accounting
and auditing rules and regulations

CHAPTER IX
FINAL PROVISIONS

SECTION 21. Penal Clause. Any violation of the provisions of this Code. Existing laws, Ordinance,
rules and regulations, shall be ground for the cancellation or revocationof the registration of the
business and the withdrawal of all incentives granted under this Code.

SECTION 22. Separability Clause. The provisions of this Code are hereby declared to be
separable and in the event that one or more of the other provisions are held illegal or unconstitutional,
the validity of other provisions shall not be affected.

SECTION 23. Repealing Clause. All Ordinances, executive orders and rules and regulations in
consistent or in conflict with the provisions of this Code are hereby repealed, amended or modified
accordingly.

SECTION 24. Effectivity. This Ordinance shall take effect immediately upon its approval.

ENACTED: September 4, 2014.

CERTIFIED CORRECT:

ROLANDO R. FORONDA, SR.

City Secretary to the Sangguniang

HON. FRANSISCO N. MALLILIN HON. BAGNOS A. MAXIMO

City Councilor City Councilor

HON. ALEJANDRO Q, UY, III HON. EDWIN G. LUCAS

City Councilor City Councilor

HON. MARCO PAOLO A. MERIS HON. GIL A. GUZMAN

City Councilor City Councilor
 HON. SACEDO T. FORONIDA HON. DANILO B. ASIRIT
City Councilor City Councilor

HON. EUGENIO B. ASIRIT, JR. HON. VICTOR H. DY, JR.

City Councilor City Councilor/LNB President

ATTESTED

HON. EDGAR M. DE LUNA

City Councilor/Presiding Officer Pro Tempore

APPROVED:

HON. BERNAND FAUSTINO M. DY

City Mayor
________________________
Date
 RULES AND REGULATIONS IMPLEMENTING THE CAUAYAN CITY INVESTMENT CODE.

RULE I
POLICY APPLICATION

ARTICLE 1. TITLE. These rules shall be known and cited as the Rules and Regulations
Implementing the REVISED INVESTMENT INCENTIVE CODE OF 2014 OF THE CITY OF CAUAYAN, ISABELA.

ARTICLE 2. PURPOSE. These Rules are promulgated to procedure and guidelines for the
implementation of the Revised Investment Incentive Code of the City of Cauayan in order to facilitate
compliance therewith and achieve the objectives thereof.

ARTICLE 3. DECLARATION OF POLICY. To enhance a dynamic and peaceful City of Cauayan,

Isabela, striving to establish a global standard of excellence towards a progressive society and building a
strong community deserving of honor and dignity in accordance with the updated City Department plan.

It is hereby declared the policy of the city to encourage new investments or

expansion/diversification in agri-business, eco-tourism, warehouse, garments and light manufacturing
activities and other property development such as establish of private industrial estate.

The City of Cauayan welcomes and encourage domestic and foreign capital to establish
enterprise that would utilize labor, raw materials available in the City.

Finally, to promote and enhance NGOs private collaboration towards effective local
development and serve as active partners achieving local autonomy.

ARTICLE 4. SCOPE OF APPLICATION. These Rules shall apply to all person, entities or enterprises,
government and non-government organizations and instrumentalities to be provided in Code.

ARTICLE 5. RULES OF INTERPRETATION. Any conflict or controversy arising under the Code shall
be resolved on the basis of applicable legal provisions or jurisprudence in the absence thereof, the
customs and traditions in so far as they applicable to the conflict of controversy may be restored to.

RULE II
DEFINITION OF TERMS

ARTICLE 6. DEFINITION OF TERMS. For the purpose of this Rules and Regulation:

1. Board shall refer to the Cauayan City Investment Incentive Board created under the Code;

2. Capitalization shall mean the total project cost;

3. Center shall meant the Cauayan City Investment Promotion Center, or in short the CCIPC<
which is the institution that will serve as the technical secretariat of the Board and the
implementing arm of the code;

4. City shall mean the City of Cauayan, Isabela, covering all the areas within its territorial
jurisdiction as provided for by law and its charter;

5. Code shall refer to the REVISED INVESTMENT INCENTIVE CODE OF 2014 OF THE CITY OF
CAUAYAN, ISABELA as promulgated pursuant to Sangguniang Panlungsod Ordinance;

6. Existing Establishment/Enterprises refer to those establishment/enterprises whose places of

operation or production are presently located within the territorial jurisdiction of Cauayan City,
Isabela;

7. Local Personnel/Worker refers to those workers or personnel who are residents of Cauayan
City, Isabela, for at least Six (6) months wherein proof of residency is the persentatiom of
Barangay Clearance where the Barangay where he/she resides;
 8. New Investor/Enterprises refers to those who intend to venture into new projects in the City
with interests in establishing their places of operation or production within the territorial
jurisdiction of Cauayan City, Isabela;

9. Project Study refers to a project which presents, among others, highlights of the financial and
socio-economic impact of the project;

10. Registered Enterprise refers to those enterprises/business registered in accordance with the
provision of the code.

RULE III
CREATION, COMPOSITION, MEETINGS, POWERS AND FUNCTIONS OF THE CAUAYAN CITY INVESTMENT
INCENTIVE BOARD

ARTICLE 7. THE CAUAYAN CITY INVESTMENT INCENTIVE BOARD. There is hereby created a City
Investment Incentive Board (CCIIB) to implement the provisions of the Code.

ARTICLE 8. COMPOSITION OF THE BOARD. The Board shall be composed of the following:

Chairman - City Mayor

Vice Chairman - City Vice Mayor
Members
1. Chairman, Committee on Laws and Good Governance
2. Chairman, Committee on Labor, Trade, Industry and Economic Enterprise
3. Chairman, Committee on Cooperative and Livelihood
4. City Administration
5. City Legal Officer
6. City Economic Enterprise, Management and Development Officer
7. City Budget Officer
8. City Planning and Development Coordinator
9. City Business Permit and Licensing Officer
10. President, Filipino-Chinese Chamber of Commerce
11. Two (2) NGOs/Private Sector Representatives
12. Department of Trade and Industry (DTI) Representative

The membership of the Board may be increased by the Sangguniang Panlungsod through the
recommendation of the Board, as it may deem necessary for the effective implementation of the
provisions of the Code.

ARITCLE 9. MEETINGS AND QOURUM OF THE BOARD. The board shall meet at least once every
quarter or as may be necessary, or such a days as it may fix. The presence of a least a majority of its
members shall constitute a quorum and in a meeting validity held shall be required for the Board to
exercise its powers and performing its functions.

ARTICLE 10. POWERS AND FUNCTION OF THE BOARD. The primary function of the Board shall
be to establish a favorable and stable policy on business climate which will encourage and support
private sector investment and in the operation of business activities consistent with the development
needs of Cauayan City, Isabela, Pursuant to this Board shall be versed the following powers/functions:

1. To promulgate the governing implementing Rules and Regulation in the Implementation of

the Incentive Code, subject to the approval of the Sangguniang Panlungsod;

2. To commission economic and technical research for the purpose of identifying priority
investment areas and/or activities to be promoted as well as appropriate incentive and
support measure which should be extended to new investors, to attract investors into these
areas and/or activity;
 3. To adopt a short and medium term investment promotion program, which shall specify the
list of priority investment areas and activities corresponding incentives and support
measures to be used to attract targeted investors;

4. To designate the Cauayan City Investment Promotion Center to act as secretariat and to
consequently supervise the same in this operations specifically in the implementation of the
provisions of the code;

5. To secure additional funding and other resources to supplement the budgetary support
provided by the Cauayan City Government for the operation of the secretariat in its
implementation of the Code;

6. To enter into any agreement with other government agencies and/or private sector
organizations for the purpose of simplifying systems, procedures and requirements on
investments and business operation in Cauayan City;

7. In such other powers as may be authorized under the Ordinance or Necessary to its
existence.

ARTICLE 11. POWERS NAD FUNCTION OF THE CHAIRMAN. The Chairman of the Board shall
have the following powers and duties:

1. Preside over the regular and special meeting of the Board:

2. To render annual reports to the people of Cauayan City and such special reports as may be
required;

3. To recommend to the Board such policies and measures he/she deem necessary to carry out
the objectives of the Code;

4. To approve application for the grant fiscal incentives to qualified applicant in accordance
with the policies set by the Boards;

5. Generally, to exercise such other powers and performing such other duties as may be
authorized by the Board from time to time.

ARTICLE 12. Powers and Function of the Vice-Chairman of the board shall have the following
powers and duties:

1. Preside over the regular and special meetings of the Board in the absence of the Chairman.

2. Performing other duties of the Chairman in the absence of the latter and such other duties
as may be assigned to him by the Board.

RULE IV

PREFERRED/PRIORITY INVESTMENT AREAS/ACTIVITIES AND APPROPRIATE INCENTIVES AND SUPPORT

MEASURES

ARTICLE 13. PREFERRED/PRIORITY INVESTMENT AREAS. Priority investment areas for new
expanded existing are the following:
 1. AGRICULTURE
a. Coffee & Cacao Plantation
b. Rice & Corn Plantation
c. Cassava/Sugarcane Plantation
d. Coconut
e. Fruit Farming Post Harvest Facilities
2. AQUA CULTURE
a. Prawn Culture
b. Tilapia, Hito Farming
c. Ice Plant and Cold Storage
d. Feed Mill
3. LIVESTOCK AND POULTRY
a. Contract Growing/farming on Livestock
b. Cattle Fattening
c. Duck Raising
d. Game Fowl Farming
e. Cold Storage for Fruit and Live Stocks
4. FOOD PROCESSING
a. Fruit Processing
b. Meat Processing
c. Fish Canning
d. Tomato Paste
e. Banana Catsup
5. FOREST BASED
a. Furniture and Furnishing
b. Lumber (Soft Wood)
6. COMMERCE AND TRADE
a. Convenient Store
b. Mails
c. Food Chain
d. Automotive Shop
e. Mineral Water Processing Plant
f. Call Centers

BASIC INDUSTRIES

1. LIGHT MANUFACTURING INDUSTRIES

a. Garments
b. Toy Manufacturing
c. Ceramics Manufacturing
d. Papers Mills

INFRASTRUCTURES AND SERVICES

1. PUBLIC UTILITIES
a. Buses
b. Telecommunications
c. Public Market
d. Power Generation
e. Food Terminal
f. Hospital

2. INFRASTRUCTURE PROJECTS
a. Private Industrial Estate (Subdivision)
b. Concrete Road
c. Drainage System/Food Control
d. Solid Waste Disposal

3. TOURISM
a. Tourism Accommodation Facilities
- Hotel
- Resort
- Restaurant
- Accommodation
 - Golf Courser
b. Tourism Transportation/Facilities
- Chartered Plane
- Buses

c. Tourist Site Development

- Parks
- Eco-tourism Project
- Golf Course

4. MANUFACTURING PLANTS

a. Hand Made Dcor

b. Christmas Dcor
c. Hand Made Paper
d. Novelty and Gift Tale Items
e. Bottling Plant
f. Agri-Equipment Manufacturing
g. Feed Mills
h. Other Business Establishments

ARTICLE 14. DETERMINATION OF ADDITIONAL INVESTMENT AREAS. Based on a result of a

study Conducted by an independent economic and technical research group commissioned for the
purpose and consultation with advisory Committee and other government and private sector leaders of
Cauayan City, Isabela, the Center may recommend to the board additional investment areas for
inclusion in the list of priority investment areas which upon due deliberation and approval shall be
adopted for implantation under the Cauayan City Investment Incentive Board.

Basis inclusion of Investment Areas are:

1. It must generate high level of employment:
2. It must featured a high degree of value-added;
3. It must create linkages with local industries; and
4. It must not have deleterious effect on the environment

ARTICLE 15. APPROPRIATE INCENTIVES AND SUPPORT MEASURE. The Board upon the
recommendation of the Center shall identify and recommend for the approval of the Sangguniang
Panlungsod appropriate incentive and support measures to promote priority investment areas and
activities, to targeted investors.

ARTICLE 16. EFFECTIVITY OF APPROPRIATE INCENTIVES AND SUPPORT MEASURES. The Center
shall review the package of appropriate incentives and support measures and the investment areas or
activity, every two (2) years, and recommend to the Board to remove an areas or activity from the list, at
any point, when it deems that the sufficient investment in the areas or activity have been attained and
where continued extension of incentives or support measures for the expansions of said areas or activity
may place the interest of the City and the public in adverse position.
The Center may also recommend to the Board to remove an investment areas or activity from
the list where such areas or activity in the City cannot attract investors within reasonable time and cost
may result in unfavorable business climate

ARTICLE 17. REMOVAL/DELETION OF A PREFERRED/PRIORITY INVESTMENT AREA. Upon the

recommendation of the Center, the Board may remove an area or activity from the list of
preferred/priority areas for investment. Basis for the removal of a preferred investment Area are as
follow:
1. Sufficient investment in the areas or activity have been attained;
2. The continued extension of incentives support for the specific investment areas no longe to
interest of Cauayan City; and
3. The investment area or activity cannot attract investors within reasonable time and cost or
may result in unfavorable business climate.

ARTICLE 18. SKILLS DEVELOPMENT PROGRAM. The Board shall coordinate with the Technical
and Skills Development Authority (TESDA) for the conduct of the skills training of local residents
who will form part of the manpower pool to be tapped for priority employment by
investors/enterprises: Provide, that no person shall be included in the manpower tool unless
she/he possesses an appropriate certificate issued by TESDA.
 RULES V
REGISTRATION OF ENTERPRISES

ARTICLE 19. QUALIFICATION OF A NEW ENTERPRISES. A new enterprises which intends

to avail of the incentives provided for in the Code must meet the following qualification:
1. The new business enterprise must have complied with all the requirements
mandated under existing local and national laws and Constitution by and through
presentation of certificates of registration issued by either the Securities and
Exchanges Commission (SEC), Department of Trade and industry (DTI) or
Cooperative Development Authority (CDA) and other national government
accrediting agencies, as the case may be;
2. The prospective investors place of operation or production must be located within
the territorial jurisdiction of Cauayan City;
3. The investment must be among the approved preferred/priority areas of
investment;
4. The investment must provide employment amongst bonafide residents of Cauayan
City;
5. The new enterprise must have a capitalization of :
a. At least Five Million (P5,000,000.00) Pesos but not more than Ten Million
(P10,000,000.00) Pesos, in case of a small-scale enterprise;
b. Over Ten Million (P10,000,000.00) Pesos but not more than Forty Million
(P40,000,000.00) Pesos, in case of a medium-case enterprise; and
c. And more than Forty Million (P40,000,000.00) Pesos in case of large-scale
industry.
6. The new enterprise must provide direct employment of:
a. Not less than Ten (10) Persons, in case of small-scale enterprise;
b. At least Twenty (20) Persons, in case of medium-scale enterprise; and
c. At least Fifty (50) Persons, in case of large-scale industry unless under
exceptional cases as may be determines by the Board.

ARTICLE 20. QUALIFICATION OF AN EXISTING ENTERPRISE. Existing enterprise which is

expanding and/or diversifying and wishes to avail of the incentives under the Code must meet
the following qualification:
1. It must have complied with all the requirements mandated existing local and national laws and
constitution, by and through the presentation of certificate of registration issued either the SEC,
DTI or CDA and other national government, accrediting agencies, as the case may be;
2. The expansion or diversification and must be among the approved preferred/priority areas of
investment;
3. The existing enterprise, whose place of operation of production is already located within the
territorial jurisdiction of the City, will undertake any of the following activities/projects;
a. Relocate its principal office from other places in the Philippines to Cauayan City, or
b. Expand its existing production capacity or construct new building and other civel
works for the installation of new machinery and equipment or improvements
thereof which will result in an increase in production capacity or for diversification
projects.
4. That the expansion/diversification shall have a capitalization of:
a. At least Five Million (P5,000,000.00) Pesos but not more than Ten Million
(P10,000,000.00) Pesos, in case of a small-scale enterprise;
b. Over Ten Million (P10,000,000.00) Pesos but not more than Forty Million
(P40,000,000.00) Pesos, in case of medium-case enterprise; and
c. And more than Forty Million (P40,000,000.00) Pesos in case of large-scale industry.
5. That the expansion/diversification shall provide out for the labor force unemployment of:
a. Not less than Ten (10) persons, in case of small-scale enterprise;
b. At least Twenty (20) persons, in case of large industry unless under exceptional cases
as may be determined by the Board.
c. At least Fifty (50) persons, in case of large industry unless under exceptional cases as
may be determined by the Board.

ARTCLE 21. APPLICATION REQUIREMENTS. Applications must be filed within the Board,
recorded in a registration book and the date appearing and stamped on the application shall be
considered the date official acceptable.

1. Venue of filling of applications. All applicants shall be filed with the Cauayan City Investment
Board through the Cauayan City Investment Promotion Center.
 2. Date of official acceptance. Applications shall be filed with the Cauayan City Investment
Incentive Code through the Cauayan City Investment Incentive Board
And recorded in a registration book; and the appearing therein and stamped on the
application shall be considered that the date of official acceptance.
3. Processing time. Application shall only be deemed officially accepted upon submission of
complete requirements to the Board within ten (10) working days from the official
acceptance thereof and by the chairman of the Board within an additional ten (10) of total
of twenty (20) dyas, the application is deemed approved.
4. Filing fee. A non-refundable of One Thousand (P1,000.00) Pesos for the availment of the
fiscal incentives shall be paid to the Center together with the required documents for
registration.
5. Required documents for registration:

FOR SINGLE PROPRIETORSHIP

a. Three (3) copies of completed application form of which can be secured form the
Center;
b. A copy of the project study of the proposed investment, indicating the financial and
social-economics impact of the project;
c. A certified true copy of its certificate of Business Name Registration from the
Department of Trade and Industry

FOR PATRNERSHIP AND CORPORATION

a. Three (3) copies of completed application form, the form of which can be secured
from the Center;
b. A copy of the project study of the proposed investment indicating financial and
socio-economic impact of the project;
c. A copy of the company Articles of Partnership/incorporation and By-laws as provide
by the Securities and Exchange Commission;
d. Authority from the Partners of the Board of Director, as the case may be to file the
application.

FOR COOPERATIVES

a. Three (3) copies of completed application form, the form of which can be secured
from the Center;
b. A copy of the project study of the proposed investment indicating financial and
socio-economic impact of the project;
c. A copy of the certificate of Registration from the CDA;
d. Authority from the Board of Directors to the application.

6. A certified true copy of the Certificate of Registration with SEC, DTI and CDA or other
accrediting agencies, as the case may be.

ARTICLE 22. REGISTRATION AND APPROVAL PROCEDURES

1. Registration Procedures

a. Application shall be submitted to the Center together with the required documents;

b. The applicants pays the non-refundable filing fee of One Thousand (P1,000.00) Pesos to form
part of the operating expenses of the Center;

c. Once all required documents are submitted, the project will be evaluated by the Center, if found
not qualified, the Center informs the applicant within fifteen (15) working days from receipt of
the application;

d. If found qualified, the Center forwards the application to the Chairman of the Board for
approval;
 e. Once approved by the chairman, the Center inform the applicant in writing and delivers the
Certificate of Registration;

f. The Center, then, informs all concerned agencies of such approval for their information,
guidance and appropriate action;

g. The applicant shall pay a registration fee of:

i. P5,000,000.00 for business with capital investment of P5,000,000.00 to P10,000,000.00
ii. P20,000,000.00 for business with capital investment of more than P10,000,000.00 to
P40,000,000.00.
iii. P30,000,000.00 for business with capital investment of more than P40,000,000.00

2. Evaluation Criteria

The following criteria will used for the evaluation of application for registration under the Code;

a. Capitalization for new enterprises or investment for expansion of diversification must be as

follows:

i. At least One Million (P1,000,000.00) Pesos but not more than Ten Million
(P10,000,000.00) Pesos, in case of small-scale enterprise;
ii. At least Ten Million (P10,000,000.00) Pesos but nor more than Forty Million
(P40,000,000.00) Pesos, in case of a medium-scale enterprise;
iii. And more than Forty Million (P40,000,000.00) Pesos in case of large-scale industry.
b. Direct employment generated for new enterprises or investment for expansion of diversification
must be as follows:

i. Not less than Ten (10) persons, in case of small-scale enterprises;

ii. At least Twenty (20) persons, in case of a medium-scale enterprises;
iii. At least Fifty (50) persons, in case of large-scale industry, unless under exceptional cases
as may be determined by the Board.
c. Plant Location and Business Address of either new expanded or diversified enterprise must be
within the territorial jurisdiction of Cauayan City, Isabela.

ARTICLE 24. POWER AND FUNCTIONS. The Center shall serve as the technical secretariat of the
Board and shall implement its policies and guidelines as follows:

1. Accept, process and evaluable all applications for registration for the availment of the local
incentives and submits its recommendation for action by the Chairman within the fifteen (15)
working days from the receipt of the applications;
2. Provide the necessary support services to investors as guaranteed under the Code;
3. Establish and maintain networking relations with other officers and agencies whenever
appropriate and necessity;
4. Collate, analyze and compile pertinent data and information and studies concerning areas that
have been or may be declared as preferred/priority areas of investment by the Board;
5. Recommend to the Board any modification/amendment to existing legislation and procedures
on local investments;
6. Prepare the Agenda for Meetings of the Board and submit for its consideration and approval the
policies and measures which are determined necessary to carry out the provisions of the Code;
7. Submit Annual Reports to the Board thru the Chairman, on the activities of the Center relative
to the implementation of the Code, within the Sixty (60) days after the close of the calendar
year.

RULES VIII
INCENTIVES PROVIDED TO REGISTRATION ENTERPRISES

ARTICLE 25. TAX INCENTIVE TO REGISTERED ENTERPRISES. In addition to then incentives

provided by law and the national government as well, an enterprise registered under the Code shall be
fully exempt from the payment of:
 1. Building Permit fees and other fees and charges within the first three (3) years of its
operation.

2. Mayors Permit fees and charges within:

a. One (1) year for business with capital investment of P5,000,000.00 to P10,000,000.00
b. Three (3) years for business with capital investment of more than P10,000,000.00 to
P40,000,000.00;
c. Five (5) years for business with capital investment of more than P40,000,000.00 from
the date of approval of registration by the Board.

RULE IX
APPROPRIATION

ARTICLE 26. APPROPRIATIONS. An initial funding of 2% from 20% development fund to defray
the expenses necessary for or incidental Code said sourced from the Cauayan City Government fund as
contained. The City Government shall appropriate annually, based on budget presented by the Board,
the necessary funding requirements which deemed necessary for the continued implementation of the
provisions of the Code subject to the usual government accounting and auditing rules and regulations.

RULES X
MISCELLANE PROVISIONS

ARTICLE 27. VICTORIA. Victoria Power of the Board. The Board or any duly authorized member
thereof is hereby empowered and authorized to conduct an ocular inspection of the premises or
examination of the business activity of any enterprise including the records and books of any enterprise
registered or applying for registration at any reasonable time of the day, during office hours, for
verification or ascertaining, the enterprises strict compliance with the provisions of the Code or of these
Rule, or when the Board deems necessary in or incidental to the effective exercise and performance of
the respective functions and powers.

ARTICLE 28. REPORTORIAL. Submission of Reports and Other Documents. Every registered
enterprise shall, for each prefer/priority areas of investments. Submit to the Board the following reports
and/or documents within the time herein prescribed:

RULES XI
FINAL PROVISIONS

ARTICLE 29, PENAL CLAUSE. Any violations of the provisions of the Code, existing laws,
ordinances, rules and regulations shall be ground for the cancellation or revocation of the registration of
the business and the withdrawal of all the incentives granted under the Code.

The certificate of registration of a Business Enterprises, as provided in the Code those Rules ,
maybe cancelled or revoked due to the following:

1. Violation of the provision of the Code and these rules;

2. Violation of existing local and national laws, ordinances, rules and regulations;
3. Failure to commence actual project development within one (1) year from approval of
registration;

Cancellation or revocation of this certificate of registration shall mean the withdrawal of all the
incentives granted under the Code; and all fees and charges previously exempted shall become due and
demandable.

Upon the recommendation of the Center, the Chairman of the Board may cancel or revoke the
Certificate of registration of the concern business enterprise through a formal within notice to that
effect, and shall become effective on the 16th day from the receipt thereof.

ARTICLE 30. APPEAL. The applicant adversely affected by any decision may within fifteen (15)
days from the receipt of such decision, appeal the same to the Board whose decision shall be final and
executor.

ARTICLE 31. SEPARABILITY CLAUSE. The provisions of these Rules are herby declared to be
separable, and in the event that one or more of the provisions shall not be affected thereby.
 ARTICLE 32. REPEALING CLAUSE. Except as otherwise provided in the Code, all ordinances,
executives orders and rules and regulations inconsistent or in conflict with the provisions of those Rules
are herby repealed, amended or modified accordingly.

ARTICLE 33. EFFECTIVITY. These implementation Rules and Regulations shall take effect upon
their publication in a newspaper of general circulation.

ENACTED: September 4, 2014.

CERTIFIED CORRECT:

ROLANDO R. FORONDA, SR.

City Secretary to the Sangguniang

HON. FRANSISCO N. MALLILIN HON. BAGNOS A. MAXIMO

City Councilor City Councilor

HON. ALEJANDRO Q, UY, III HON. EDWIN G. LUCAS

City Councilor City Councilor

HON. MARCO PAOLO A. MERIS HON. GIL A. GUZMAN

City Councilor City Councilor

HON. SACEDO T. FORONIDA HON. DANILO B. ASIRIT

City Councilor City Councilor

HON. EUGENIO B. ASIRIT, JR. HON. VICTOR H. DY, JR.

City Councilor City Councilor/LNB President

ATTESTED

HON. EDGAR M. DE LUNA

City Councilor/Presiding Officer Pro Tempore

APPROVED:

HON. BERNAND FAUSTINO M. DY

City Mayor
________________________
Date