SBMA bares guidelines to expand free-port area for investors

SUBIC BAY FREE PORT—The Subic Bay Metropolitan Authority (SBMA) has released the guidelines for the creation of additional secured areas in communities near the free-port zone, as Subic authorities prepare to accommodate spillover investments this year.

According to SBMA Administrator Armand Arreza, the agency is now preparing to execute its expansion plan after completing the Implementing Rules and Regulations (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Free Port.

The IRR, which was jointly drafted by the SBMA, the Bureau of Customs (BOC) and local government units within the Subic Special Economic and Free Port Zone (SSEFPZ) prescribes guidelines on what may be declared as additional secured areas, or additional areas, as provided under Executive Order 675.

The qualified areas contiguous to the Subic free port include Olongapo City; the municipalities of Subic and San Antonio in Zambales; and the towns of Morong, Dinalupihan and Hermosa in Bataan.

In a statement, Arreza said that under EO 675, parts of these communities “may be developed through local government or private-sector initiative and become part of the SSEFPZ.”

Consequently, these developed areas “may then avail [themselves] of appropriate tax, duty-free and fiscal-investment incentives and privileges, upon application and after approval by the SBMA,” Arreza added.

Arreza also explained that expanding into areas beyond the traditional secured areas of SSEFPZ “is necessary in order to address the shortage of space for lease to investors.”

This will also help “guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” he added.

With the newly released guidelines, areas contiguous to the Subic Bay Free Port may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

The IRR also allows businesses to operate privately owned additional secured areas, provided these are approved by the SBMA for inclusion within the SSEFPZ.

Applicants for privately owned additional secured or additional area are required to submit pertinent documents, clearances and registration certificates.

Arreza also clarified that lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises. These leases should also be submitted for the approval or ratification of the SBMA board of directors.

Once declared as additional secured areas by the SBMA, the areas concerned will be subject to classification either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

Arreza said these areas shall be organized, administered, managed and operated directly by the SBMA through an area manager appointed by the SBMA administrator.

Aside from these, the IRR also provided that privately owned areas shall be managed by a Property Management Board, composed of the president of the association of investors, representative of the municipality concerned, two independent private-sector representatives chosen by the SBMA and the local government unit, and an official of the SBMA.

Meanwhile, to prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

Duty-free shop operators shall then be allowed within the additional secured areas as long as they establish their own control system in coordination with the SBMA and BOC, Arreza added. Written by Henry Empeño / businessmirror.com.ph Correspondent

SBMA sets expansion outside secured areas

By FRANCO G. REGALA - mb.com.ph

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) is now ready to implement its expansion program, following the release of the Implementing Rules and Regulation (IRR) covering the extension of the boundaries of secured areas of the Subic Bay Freeport.

The IRR was drafted after a series of consultations between the SBMA, Bureau of Customs (BoC) and local government units within the Subic Special Economic and Freeport Zone (SSEFPZ), which may be declared as additional secured areas, or additional areas, as provided under Executive Order No. 675.

These areas include the municipalities of Subic and San Antonio in Zambales; Morong, Dinalupihan and Hermosa in Bataan; and Olongapo City.

Under EO 675, areas within the LGUs may be developed through local government or private sector initiative and become part of the SSEFPZ. These may then avail of appropriate tax, duty-free, and fiscal investment incentives and privileges, upon application and after approval by the SBMA.

SBMA administrator Armand Arreza said that the expansion of the secured areas of SSEFPZ is necessary in order to address the shortage of space for lease to investors.

“This is necessary to push development into communities outside Subic’s ‘secured area,’ and also to guarantee the realization of the Subic-Clark economic corridor as a world-class logistics and service hub,” Arreza said.

Under the IRR, areas contiguous to the Subic Bay Freeport may be declared by the SBMA for inclusion as additional secured area after proper consultation with local officials and approval of a resolution by the concerned city or town council.

In addition, any business individual or organization may also apply with the SBMA for inclusion within the SSEFPZ as privately-owned additional secured area or additional area, provided that they submit pertinent documents, clearances and registration certificates.

Meanwhile, lands and buildings in the additional secured areas, whether privately owned or not, may only be leased to SBMA-registered enterprises, subject to the approval or ratification of the SBMA Board of Directors.

Once declared as additional secured areas by SBMA, the areas concerned will be classified either as industrial, tourism, recreational, investment or financial center, or a mix of these developments.

These areas shall be organized, administered, managed and operated directly by the SBMA through an area manager, appointed by the SBMA administrator.

The IRR also provides that privately owned areas shall be managed by a Property Management Board composed of the president of the association of investors, representative of the municipality concerned, two independent private sector representatives chosen by SBMA and LGU, and an official of SBMA.

To prevent smuggling and abuse of duty-free privileges, the SBMA shall establish secured fence-in perimeters for the additional areas within which tax- and duty-free articles and merchandise shall be limited.

New bridge project set in Subic

SUBIC BAY FREEPORT — The Subic Bay Metropolitan Authority (SBMA) announced the start of a bridge project this month to replace the Kalaklan Bridge that was built by the United States (US) Navy in the early ‘60s.

The bridge, one of the existing four bridges linking this free port to nearby Olongapo City, will be replaced by a new two-lane concrete bridge with covered walkway and a security plaza.

Other facilities to be constructed in the immediate area include a parking lot and an administration building that will also house satellite offices of the SBMA Treasury, SBMA Seaport Department, and the Bureau of Customs.

SBMA Administrator Armand Arreza said the bridge project is part of the agency’s efforts to prepare necessary infrastructures for the eventual expansion of the Subic Bay Freeport into nearby areas like Olongapo.

“This is part of the SBMA program to push beyond Subic’s secured area,” Arreza said, referring to the fenced portion of the free port that previously housed the Subic Naval Base.

He added that two bridges leading to Olongapo are actually set for replacement after SBMA engineers, after they have been analyzed as “structurally weakened.”

The bridge leading to Subic’s main gate has also been closed to vehicle traffic since last year, he added.

Joselito Bakuteza, head of the SBMA project management office, said that “all necessary preparations to minimize the effect of the project to various stakeholders, as well as motorists and commuters, were discussed.”

Bakuteza said the Kalaklan Bridge will be closed to all vehicles and pedestrians starting February 15 and March 1, respectively.

The contractor, RD Policarpio and Company, Inc., will close the old span and cordon it off during full-blast construction to fast-track the project and ensure the safety of passersby, he added. By FRANCO G. REGALA - Manila Bulletin

For more information and to participate in the on-line discussion regarding this article, please join the SBFCC discussion board by following these links.

General information about the Kalaklan bridge closure and construction

Update Resulting from Multi-Sector Meeting

The next meeting will be hosted by Metro Olongapo Chamber of Commerce at Kong's Restaurant on Monday 2pm

http://www.youtube.com/watch?v=Y1tvmXNwG6Y

Video report on bridge closure

BCDA to open new interchange at Subic-Clark-Tarlac tollway

SUBIC FREE PORT -- The Bases Conversion and Development Authority (BCDA) will open the Floridablanca interchange of the Subic-Clark-Tarlac Expressway (SCTEx) today.

At 94 kilometers, the Subic-Clark-Tarlac Expressway is the country’s longest tollway.

The state agency said this will be the eleventh interchange of the tollway, making it more accessible to motorists in Central Luzon.

In a statement, Robert C. Gervacio, BCDA program manager for operational support services and SCTEx spokesman, said the opening of the interchange would provide Floridablanca, the second-largest rice-producing town of Pampanga that is also noted for its sugar farms, with a more efficient way of transporting produce through the new interchange.

Motorists, meanwhile, will now have the option of passing through the traffic-free SCTEx instead of the old Porac-Floridablanca-Dinalupihan local road.

“Even residents of Angeles and Mabalacat should find the new interchange highly convenient,” Mr. Gervacio said.

The opening of the interchange is expected to further boost business growth and employment opportunities in the Central Luzon logistics hub, he added. Access to and from Floridablanca and its neighbo-ring municipalities, will now be faster and easier, he pointed out.

To prepare for the interchange’s opening and ensure that traffic will run smoothly, system tests with the assigned tellers were conducted, the SCTEx spokesman added.

Floridablanca, which is Spanish for “white flower,” also hosts the Basa Air Base of the Philippine Air Force.

The town is thickly populated and, thus, easing the movement of people and produce though the new interchange should be considered a boon for the locals, Mr. Gervacio said.

The Floridablanca interchange is a 96-hectare tollway facility located a little more than 33 kilometers from Subic’s Tipo Junction.

The state-owned SCTEx is a 94-kilometer tollway built to interconnect the Subic Bay Freeport Zone, the Clark Freeport Zone in Pampanga, and Central Technopark in Tarlac.

It is the longest expressway in the country with 11 interchanges, four major bridges, 29 minor bridges, 44 underpasses and 303 drainage culverts. -- R. Garcia

National Press Congress set in Subic Dec. 10-12

The 14th National Press Congress has been set on Dec. 10-12, 2009 at the Subic Bay International Exhibition and Convention Center, Subic Bay Metropolitan Authority (SBMA) Free port Zone.

The Annual media events enjoy the mandate of presidential Proclamation 1187 which declares December as "National Press Congress Month and the Month of the Community Press in the Service of the Nation."

The same proclamation designates the Publishers Association of the Philippines, Inc. (PAPI) as lead agency for the annual observance.

The press congress will have "The Challenges of the Information-Driven Age" for its theme, around which the various topics of discussion will revolve.

Aside from its regular participants that usually include publishers, editors, reporters, broadcasters, corporate public affairs officer and executives, government information officers, campus writers, mass communication instructors and students, foreign-based Filipino journalists are also expected to attend the event, which has some foreign experts invited as resource speakers.

Parties interested to participate in this year’s strategic convergence in Subic may contact the PAPI Secretariat at Unit 206 Cityland Condominium8, No.98, Sen. Gil Puyat Ave., Makati City, Telephones (02) 892-9278; (02) 501-3118; Cellphone Numbers 0920-9094379 and 0917-8498730 or e-mail inquiries to papi_secretariat@yahoo.com

‘Balikbayan box’ distribution center opened in Subic free port

SUBIC FREE PORT — Atlas Shippers International, a Filipino-owned freight forwarding service provider yesterday opened its distribution center here with the launching of its maiden shipment.

Atlas Shippers President and Chief Operating Officer Joel P. Longares said Subic will now be its distribution hub of ’balikbayan’ boxes.

Mr. Longares said Subic, which has modern seaport facilities and highly skilled workers, is an excellent location for freight forwarding services.

"We decided to change port destination from Manila to Subic because of several advantages that the free port has to offer," Mr. Longares told reporters here.

He added that his firm would also be banking on the free port status of Subic that ensures fast movement of cargo.

Mr. Longares said tax incentives enjoyed by free port companies will allow his firm to "save more" from its operational expenses.

He also pointed to the strategic location of the Subic free port in serving clients from Northern and Central Luzon, citing the newly built Subic-Clark-Tarlac Expressway.

Subic Bay Metropolitan Administration chief Armand C. Arreza said the setting up of business of Atlas in Subic free port was an off-shoot of a recent government trade mission to US.

The agreement with Atlas Shippers was signed on June 24.

"This is part of our efforts to develop Subic into a major logistic and distribution hub," Mr. Arreza said.

Trade and Industry regional director Blesila Lantayona told the BusinessWorld the government is encouraging local exporters from the region to use Subic to ship their products.

She noted that all cargo containers of Atlas Shippers would be empty after the shipment of balikbayan boxes in Subic, and said it would be a great opportunity to use Philippine-made export products as "back load" for cheaper freight charges.

"We are conceptualizing a business plan for Filipino exporters to have a tie-up with Atlas Shippers, for them to use those empty cargo containers for outbound shipment of local products abroad," Ms. Lantayona added.

Mr. Longares also said the company is preparing to operate a warehouse for its sorting facilities.

He said he was expecting more Filipino freight forwarding service companies to also use the Subic free port as its distribution hub.

"The international freight forwarding industry is so big that’s why I am encouraging them to come and also do business in Subic," Mr. Longares said.

The inaugural shipment of cargo container consisting of more than 400 balikbayan boxes was held at the Subic Port Container Terminal I, which is being operated by the Subic Bay International Terminal Corp., a subsidiary of the Enrique K. Razon, Jr.-led International Container Terminal Services, Inc.

Atlas Shippers started in January 1993 in Covina, California providing door-to-door cargo services to Filipinos in United States.

Five years after, the company took advantage of an opportunity to expand all over the US midwest, the East Coast, Alaska, and Hawaii.

On 2001, Atlas Shippers opened its doors to the international market by putting up branches in Hong Kong, Italy and Singapore to serve Filipino communities in Asia and Europe.

Other services offered by the firm are travel and tour services, air cargo service, and remittances. — Rey M. Garcia - Business World

NEW PLDT SUBIC SERVICE

PLDT Subic Telecommunications Co. Inc., a subsidiary of Philippine Long Distance Company has launched its pre-paid wireless landline service at the Subic Bay Freeport Zone targeting about 100,000 residents in the area.

The new service, called PLDT Landline Plus, is a wireless and portable landline service that allows PLDT subscribers to bring their phones anywhere within their local area.

With PLDT Landline Plus, subscribers can make the same call types as a regular fixed landline service such as incoming and outgoing calls, NDD/IDD, plus SMS.

PLDT Subictel general manager Henry Abes said Subic Freeport area has now become more accessible to the surrounding provinces aside from affording its workers and residents a direct line to their loved ones.

“We would like to cater to the workforce and residents who frequently navigate the provinces of Zambales and Bataan,” said Abes.

He added the PLDT SubicTel’s PLP offering would make communication easier and more affordable.

--By. Roderick T. dela Cruz – Manila Standard

HARMONIZATION

HARMONIZATION. Officials of the Clark and Subic Freeports and Bureau of Customs signify solidarity during the signing of Joint Memorandum Order on Automated Transit, Admission and Declaration Cargo at the OTS Conference Room of the Clark Development Corp. (CDC). From left are CDC president Benigno Ricafort, BOC commissioner Napoleon Morales, SCADC chairman Edgardo Pamintuan, and SBMA administrator Armand Arreza.

--Manila Bulletin

DENR: No tree cutting in Subic

MANILA, Philippines – No trees will be cut for any project inside the Subic Freeport, the Department of Environment and Natural Resources (DENR) said Thursday.

In a press conference, Environment Secretary Joselito Atienza also said his agency is taking control of environment concerns in Subic.

“There will be no tree cutting in Subic. We need environmental accountability there and we are committed to protecting the trees,” Atienza said.

Atienza said the controversies “have put into question the ability of the Subic Bay Metropolitan Authority (SBMA) to enforce environmental laws” inside the former US naval facility.

In a statement, SBMA chief Armand Arreza said he respects the DENR decision to take over environmental concerns at the freeport.

“We also wish to reiterate that the SBMA remains committed to the protection of the environment and will seek the DENR’s reconsideration,” said Arreza.

He said he welcomed the DENR’s intervention in the wake of reports about plans to cut trees for a hotel-casino project in Subic.

“This will also be an opportunity for us to clear ourselves of the negative insinuations leveled against us,” said Arreza.

“At the same time, we wish to assure the public that all 366 trees at the project site remain intact to this day.”

Atienza said he was not opposed to the entry of foreign investors in Subic “but they have to follow our rules when it comes to the environment.”

He said the project should either be transferred to another site or should incorporate the trees.

On existing environmental compliance certificates, Atienza said the DENR would review all ECCs already issued by the SBMA.

A memorandum of agreement was signed in 2006 between the DENR and the SBMA granting powers to the SBMA to issue their own ECCs.

Last year, the Korean-owned Hanjin Heavy Industries and Construction Corp., a shipbuilder, was assailed after it cut down trees in an islet it had leased to build one of its facilities.

In November, the Korean-owned firm that planned to build a $120-million casino hotel came under fire after its plan to cut down more than 300 trees was exposed.

The trees in both cases were part of areas in the former US naval facility considered as old-growth forests.

By Alcuin Papa - Philippine Daily Inquirer

Top 10 Subic Freeport workers known

First, the Mt. Pinatubo eruption in 1991, then the subsequent pullout of the US Navy. Then after that came the Asian economic crisis.

What enabled this free port to triumph over these adversities and rise to economic heights cannot be credited primarily to the US$8 billion worth of infrastructure left by the Americans, but rather, to Subic ’s “greatest investment” — its exceptional workforce.

To highlight the crucial role of workers in the transformation of this former US military base into a premier investment and commercial hub, the Subic Bay Metropolitan Authority (SBMA) and the Subic Bay Workforce Development Foundation Inc. (SBWDFI) honored this year’s batch of the “10 Outstanding Freeport Workers” during the 16th anniversary celebration of the free port.

The workers awards, which is now on its seventh year, aims to promote among the entire Subic workforce the culture of excellence displayed by volunteers who are credited for rebuilding Subic from the ashes of Mt. Pinatubo , said SBMA Administrator Armand Arreza.

Arreza, who joined some 8,000 Subic volunteers in 1993, recalled that investors started to do business here primarily because of the volunteers’ exceptional display of nationalism and concern for the community.

“They saw that the facilities left by the Americans were intact, and operations of vital installations like the airport and power supply facilities were not halted because people lent their time and skills for free,” said Arreza.

He added that the recipients of the award “are of the same caliber as those of the SBMA pioneers.”

SBMA labor manager Severo Pastor, who is also chairman of the SBWDFI, said that this year, SBMA employees qualified for the awards for the first time, along with nominees from locator companies in Subic .

The awards body also acknowledged for the first time companies that made significant impact on the free port’s development through the “Administrator’s Corporate Award”.

The awardees in this category, Federal Express (FedEx) and the Subic Power Corporation, received the award for exemplifying good human resource practices by consistently keeping the balance between business interests and employees’ welfare, providing equitable work environments, as well as opportunities for professional growth, Arreza said.

Of the 51 nominees in the outstanding workers category, only 20 finalists were chosen, said Pastor. The finalists then underwent a tougher second screening by the board of judges composed of Aurelio Pineda, executive vice-president of the Olongapo Business Club; Capt. Areston Limos, of the Philippine National Police School of Values and Leadership; and former Philippine ambassador to Saudi Arabia Jonathan dela Cruz, who served as chairman.

Pastor identified the 10 outstanding workers of the Subic Bay Freeport as: Ma. Adoracion Celeste, a technical assistant at the SBMA Human Resource Department; Levi Dalida, special investigator at the SBMA Intelligence and Investigation Office; Arleen Dulay, housekeeping attendant at the Lighthouse Marina Resort; Diosdado Ednave, security officer at the SBMA Law Enforcement Department; Severino Jovero, marine mammal training supervisor at the Subic Bay Marine Exploratorium’s Ocean Adventure; Elizier Martin, foreman at the SBMA Maintenance and Transportation Department; Vicente Salvador, welder/pipe fitter at the Philippine Coastal Storage and Pipeline Corp.; Bernard Sanchez, production department head at Nicera Philippines Inc.; Paquito Torres, division chief at the SBMA Intelligence and Investigation Office; and Jaime Villafuerte, Jr., failure analysis engineering supervisor at Wistron Infocomm. (Phils.).

SBMA Chairman Feliciano Salonga, meanwhile, praised Subic ’s top workers, adding that Filipino workers “always belong to the cream of the crop.”

“Anywhere in the world, Filipino workers stand out,” said Salonga, citing Filipino engineers in Dubai who were commended for building excellent roads, and in Pearl Harbor, where the top three workers at one time were Filipina welders. (SBMA Corporate Communications)

--Philippine Daily Inquirer

PASG’s FEAT

By: Egay Serrano - People's Journal

The Presidential Anti-Smuggling Group headed by Undersecretary Antonio Villar pulled off an incredible feat with the P15-billion drug bust at the Subic Freeport, by far the biggest drug haul in the country to date.

The ineffectiveness of the Bureau of Customs in controlling smuggling nationwide proved to be a lucky break for the multi-billion-peso drug bust with the assignment of Usec. Villar’s men, headed by Edmund Arugay, to guard the Freeport against the activities of smuggling syndicates.

Note that a Subic custom boarding officer identified as Romulo Labrusca cleared FB Shun Fa Xing, the alleged vessel that brought the shabu shipment to the Freeport with the customs documents declaring that there are “no dangerous cargo on board.” The document was signed by both Jou Jonq Rong, the ship captain, and Labrusca.

Had this regular custom’s officer done his job properly, he would have been the first to discover the attempt to smuggle in billions of drugs via SBMA. Usec. Villar said the drug bust was only triggered when task force agents observed a vehicle suspiciously roaming in the vicinity of a Taiwanese vessel, FB Shun Fa Xing, which had arrived from Vietnam.

This only confirms our view that the anti-smuggling group is a better alternative in preventing rampant smuggling in the country than that group headed by Customs Commissioner Napoleon Morales.

Meanwhile, SBMA Administrator Armand Arreza said that Subic Bay Freeport is not a transshipment point of illegal drugs, reacting to a statement from an obviously sour graping Philippine Drug Enforcement Agency Director Dionisio Santiago. For the record, PDEA seized about 330 kilos of shabu last year as compared to PASG’s 745 kilos in a single operation.

True to his form, Usec .Villar says he is not really satisfied with their historic drug bust, knowing that there may be more illegal drugs being smuggled into the country through hundreds of big and small ports dotting the country.

And this early, he is now training his eyes on an even more sinister group of smugglers -- those involved in human trafficking.

Foreign group lauds campaign vs smuggling

The Joint Foreign Chambers in the Philippines on Wednesday lauded government efforts against smuggling of used motor vehicles and fuels at the Subic Bay Freeport, northwest of Manila, but called for expanded enforcement.

The JFC groups the American, Australia-New Zealand, Canadian, European, Japanese and Korean Chambers of Commerce and the Philippine Association of Multinational Companies Regional Headquarters, which together represent about 1,700 multinational companies that have substantial investment in the Philippines.

In a statement, the JFC welcomed an announcement of the Subic Bay Metropolitan Authority (SBMA) that importation of used passenger vehicles had been suspended for six months until April 2008, during which the SBMA, Bureau of Customs, Department of Finance and Department of Trade and Industry would conduct an audit.

The audit is aimed at determining the extent of smuggling in Subic and recover unpaid excise taxes for the government, the SBMA said.

The JFC also praised a moratorium the SBMA imposed on issuance of import permits to two oil trading companies until payment of correct value-added tax, duties and excise taxes on past shipments.

The JFC said it expected the SBMA to release to the public the results of these audits when completed, and to carry out necessary legal actions against those that would be shown to have violated the law.

“The measure of success of the anti-smuggling efforts against used vehicles will be whether the official statistic on the formal automotive industry as a percentage of total new registrations for vehicles increases,” it said.

“Preliminary data in recent months indicates positive trends, which they hope points to the initial success of the anti-smuggling efforts of the government,” it added.

The JFC had previously spoken against used-vehicle importation, saying it hampered the growth of the automotive industry, deprived government of substantial tax revenues, and threatened the jobs of thousands of skilled workers.

It said that the matter, if unresolved, would bring to fore allegations of corruption and political influence, questions on policy consistency and lack of political will, while overall eroding investor confidence. By Ronnel Domingo - Inquirer

Freeport expansion welcomed in Subic

SBMA, local govt to jointly develop economic zone


SUBIC BAY Free Port: Officials of the Subic Bay Metropolitan Authority and local government units around the Free Port have agreed to work closer to pursue opportunities and development of this economic zone.

This was the result of a meeting after President Gloria Arroyo issued Executive Order No. 675 effectively expanding the area where tax and duty-free privileges in the Free Port zone would apply.

Arreza met last week with Bataan Gov. Enrique Garcia, Olongapo Mayor James Gordon Jr., Olongapo Vice-Mayor Cynthia Cajudo, Castillejos Mayor Wilma Billman, and San Marcelino Mayor Joker Rodriguez during a program honoring Subic’s LGU stakeholders.

“It’s a short, but very productive meeting,” described Arreza, who briefed the officials on the $1.45-billion investment commitments generated by the agency in the last nine months.

“We all saw that the best course for us is to coordinate and cooperate for the common good,” explained Arreza, referring to his recent meeting with LGU officials from Olongapo City, Bataan and Zambales.

“We acknowledged both the challenges and opportunities that EO 675 brings us, and we concluded that we should synergize, lest we all stagnate—which is, of course, not a valid option as far as everyone is concerned,” he added.

He further elaborated that it would be easier for SBMA to bring out investment and employment opportunities from the Free Port to the nearby communities now that the President has issued EO 675.

The executive order, signed by President Arroyo on November 5, amended EO 97-A, which provides that the tax- and duty-free incentives under Republic Act 7227 were limited to businesses and residents within the secured area of the Subic Special Economic and Free Port Zone.

Arreza said the expansion of coverage would benefit the nearby communities more as they could catch business spillover from Subic Free Port, which has a limited area for expansion.

Under EO 675, the SBMA, as manager of the Subic Free Port, was given the authority to identify, fence, and secure additional “secured areas” where tax- and duty-free perks may be allowed.

In the meeting both SBMA and the affected LGUs, would identify the areas to be developed early next year.

In the same meeting, the local government officials expressed their satisfaction over SBMA’s economic performance in the past 15 years, and recalled how Subic transformed itself from a US Naval Station till 1992 into one of the most if not the most successful free port in the country today.

“If it seemed the end of the world for many when the Philippine Senate did not ratify the RP-US military agreement, many could see today that those fears were really unfounded,” said Gov. Enrique Garcia of Bataan.

To this concern, Arreza said the development plan for additional secured areas would consider all possible impacts to the community, including residents and the environment.

“We are also preparing a plan for the construction of access roads going to some tourist and investment sites in Zambales, so that more opportunities would open up in the countryside,” Arreza said.

He added that the development plan would involve the construction of new power plants inside the Free Port zone to bring down power rates, attract more business locators, and further stimulate the local economy.
--Anthony Bayarong -- Manila Times

Quake bogs down Digitel cable, disrupts Internet services

By Tonette Orejas - Inquirer
The telephone company Digitel reported experiencing an "international cable break," which disrupted Internet services on Tuesday, but was validating if this was related to the 3.2 magnitude earthquake that shook Central Luzon and Metro Manila at 11:24 a.m.

Digitel field personnel are doing restoration work in the meantime, according to the company's customer service unit.

Officials of the Office of Civil Defense and Regional Disaster Coordinating Council said they have not received reports of injuries or property damage because of the earthquake.

The quake's epicenter was 22 kilometers northeast of Olongapo City at a depth of 13 kilometers, a report from the Philippine Institute of Volcanology and Seismology said.

The earthquake was felt at Intensity 4 in Subic, Zambales; Intensity 3 in the City of San Fernando, Pampanga; cities of Makati, Pasig and Manila; and Subic Bay Freeport outside Olongapo City.

It was Intensity 2 at the Clark Freeport in Pampanga and Cabuyao in Laguna and Intensity 1 in Quezon City.

The magnitude measures the level of seismic energy released by the earthquake while intensity refers to the observable effects of the earthquake on the ground.

A 3.2 magnitude earthquake is considered minor -- it is felt but it causes minimal damage. According to the Modified Mercalli Intensity Scale, Intensity 1 means people hardly feel the movement. Intensity 2 means people feel the movement if they are at rest or on the upper floors of a building. Intensity 3 means people indoors feel movement and hanging objects would swing back and forth, but people outdoors would hardly feel any movement.

Dr. Renato Solidum, Phivolcs chief, said the earthquake was not volcanic in origin.

Mahigit 400 'hot cars' posibleng isubasta na lamang-- Apostol

IPINAGTANGGOL ng Palasyo ng Malacañang ang desisyon ng Pangulong Arroyo na sirain na lamang ang ilang smuggled luxury vehicles.

Sa report ng dzRH, sinabi ni Presidential Legal Counsel Sergio Apostol na hindi labag sa batas ang gagawing pagwasak sa tinatayang 18 smuggled vehicles mamaya.

Base aniya sa Tariff and Customs Code ay maituturing na kontrabando ang mga ipinuslit na kagamitan kaya’t maaaring sirain ang mga ito.

Nilinaw naman ni Apostol na bukas ang Pangulo sa rekomendasyon na isubasta na lamang ang mga ipinuslit na sasakyan.

Nabatid na may mahigit 400 “hot cars” pa ang nasa Subic na posibleng isubasta na lamang.

Kaugnay nito, inirekomenda ng Gawad Kalinga na kung isusubasta ang mga smuggled vehicle ay magkaroon sana ng kinatawan doon ang simbahan at non-government organizations upang personal na makita kung maayos bang isinasagawa ang auction.

Don’t destroy luxury cars, lawmakers urge GMA

By Maricel V. Cruz Manila Times Reporter

THE House of Representatives disagree with President Arroyo’s decision to burn and destroy all seized smuggled luxury cars, saying that an auction of the hot cars could raise additional revenues for the government.

Rep. Exequiel Javier of Antique, chairman of the House Committee on Ways and Means, on Monday called on the President to reconsider her decision to destroy those vehicles and proposed the immediate auction of Porches, BMWs, Ferraris and other luxury vehicles in the custody of the Bureau of Customs.

The President ordered that all seized smuggled luxury cars must immediately be crushed into pieces on national television so smugglers cannot benefit from these vehicles anymore.

“The auction money will definitely be a bigger take than the kilos of scrap metal and spare parts out of these crushed vehicles,” said Javier.

But the administration’s critics doubted the President’s efforts, saying that crushing these seized luxury vehicles would not be the effective way to address the problem.

Party-list Rep. Crispin Beltran of Anakpawis said that if President Arroyo is indeed serious in her campaign to run after smugglers, then she should have done it from the first day she assumed into office.

“Destroying the luxury vehicles on a national television may not be the sincere move to address the problem,” Beltran said.

Javier believed that the government could make good money out of the luxury vehicles instead of depreciating their value in warehouses or destroying them.

But he said an auction should not stop the government from filing the necessary charges against the smugglers of the luxury cars.

He said the auction should be conducted in a transparent manner.

“The previous owner should not be allowed to participate, otherwise, they will just take advantage of the process to circumvent the law,” Javier said. “The Customs and other government agencies in charge of the auction should discharge their duties honestly and competently since their performance is closely being watched by the President in light of the need to enhance revenue generation and tax collection.”

GMA to PASTF: Stop smuggling

By: Efren Montano - Journal
PRESIDENT Gloria Macapagal-Arroyo yesterday ordered the destruction of all smuggled luxury cars in her bid to stop smuggling in the country.

The President issued the marching order to the Presidential Anti-Smuggling Task Force headed Antonio “Bebot” Villar during the command conference of the Bureau of Customs at the Port of Manila Bldg., Port Area, Manila, according to Presidential Management Staff (PMS) chief Cerge Remonde.

Remonde said that the President is determined to deliver a strong message, pointing out the Arroyo regime means serious business nipping the bud of rampant smuggling in the country.

Remonde said the President wants the seized smuggled luxury cars notably sports cars crushed to pieces on national television instead of offer them in an auction to bidders since it would only benefit the smugglers in the end if they would not be destroyed.

“Konti lang naman ang kikitain ng gobyerno kung ibibid pa,” Remonde quoted the President as saying.

The President also junked proposals to auction off such smuggled luxury cars to owners of film companies for use of their film production especially on action car chasing scenes.

“Nadala na ang Presidente sa iba’t ibang palusot na ginagawa ng mga smugglers,” the Palace official said.

He said that the President is set to visit Clark to inspect the extent of the smuggling drive of the government.

Also, Remonde said that the President is set to visit on Monday the Bureau of Internal Revenue (BIR) to assess the tax collection efforts of the said agency in the wake of the government revenue enhancement measure up to December this year.

The President is dead serious in imposing the reward and punishment system in sacking and promoting her economic managers including those at the helm of the Bureau of Customs (BoC), Bureau of Internal Revenue (BIR) and the Department of Finance (DoF).

The BoC has so far exceeded by P1.2 billion its target for July of P19.9 billion.

But the President asked the BoC to further intensify its tax collections to recover its lackluster performance in the first six months from January to June this year.

Finance chief Margarito Teves is confident that the BoC would attain its overall target of P228 this year.

‘Destroy 5 seized luxury vehicles’

No deal.

The government is set to destroy five sports cars that were among 25 luxury vehicles smuggled into the country, Presidential Management Staff head Cerge Remonde said Saturday.

The five vehicles include a Lamborghini, a BMW, a Ferrari and two Porsches, all with an estimated value of P100 million.

Remonde said the five sports cars would not be auctioned off as earlier planned since President Arroyo wanted to set an example by destroying the vehicles – live on national television.

They were among the 25 smuggled luxury vehicles seized by the Presidential Anti-Smuggling Group headed by Antonio Villar Jr. at the Subic Bay Freeport.

Remonde said Mrs. Arroyo is against auctioning the seized vehicles because they could end up in the hands of the smugglers themselves.

“To show that we are very serious about this campaign, destroy these luxury cars on nationwide television,” Remonde said, quoting the President.

He said the President wanted the vehicles destroyed during her visit to Subic within the week.

The discovery of the 25 smuggled vehicles further ignited what has become an apparent turf war between the PASG and the Bureau of Customs (BOC).

Villar claimed some Customs employees were trying to facilitate the release of the vehicles from Subic.

The PASG was created recently by the President to curb smuggling activities across the country.

Villar lamented that the BOC has somewhat ignored the PASG’s authority to go after smugglers. Marvin Sy - PhilStar

10,000 new jobs soon to be available at Subic Freeport

By Anthony Bayarong - Manila Times
SUBIC BAY Freeport: Some 10,000 new jobs will soon be available in Subic Bay Freeport when 10 of its new investors for the first half of this year start its operation.

In its mid year report, Subic Bay Metropolitan Authority said that a total of 9,853 job will soon be available for the second half of the year.

Among the top projected employers are Hanjin Heavy Industries and Construction (HHIC) with a total of 8,800, Orient Peal Entertainment and Mgt. Ltd. with a total of 400, Kt Global Subic, Inc. and Subic Bay International Terminal Corp. both with 200, Baypointe Hospital and Medical Center Inc. with 132, Shin Young's Corp. with 55, Carag and Cook C4 Solutions, Inc. with 30 Pacific Pearl Airways Commercial Corp. with a total of 25 and Philip Morris Philippines Manufacturing, Inc. with a total of 20.

These new projected jobs according to SBMA are directly attributed to new investments from January to June this year.

The report also said that for the 1st half of 2007 Subic has already employed 4,685.

It added that a total of 68,170 are now in Subic's active workforce that is 7 percent higher than last years figure of 63,485.

A total of 47.93 percent were employed by the service sector, while manufacturing and construction 25.82 percent and 25.45 percent, respectively, while the other 0.80 came from the domestic helpers and caretakers.

Government war against drugs

The PDEA is also investigating reports that the Subic Bay Freeport is now being used by drug syndicates as transshipment point for drugs in Asia

Philippines Drug Enforcement Agency (PDEA) chair Ret. Gen. Dionisio Santiago on Friday claimed the government is winning its war against illegal drugs, touted to be a P300 billion industry.

Santiago said that data gathered by his office proves that PDEA's operations to curb the illegal drugs are having a lot of success during the weekly "Friday Balitaan sa Hotel Rembrandt" forum in Quezon City.

"To date, the PDEA had dismantled seven big shabu laboratories capable of producing billions of pesos of the illegal drug, confiscated more than 100,000 kilos of prohibited substances and arrested 57 people including foreigners who either manufacture or sold illegal drugs," he said.

The latest string of successes enjoyed by the agency is the recent conviction of former Panulukan, Quezon mayor Ronnie Mitra who was caught transporting 500 kilos of 'shabu' (methamphetamine hydrochloride), and the dismantling of 'shabu' laboratories in Mindoro that are capable of producing a hundred kilo of the illegal substance daily.

Santiago said that one of the clearest indicators of their successful campaign is the reported high street price of shabu showing that the supply of shabu in the market is on the decline.

He noted that a gram of shabu now cost PhP 6,000, a 600 percent increase from its former price of P1,000 to 1,200 per gram.

"Syndicates in the distribution and manufacture of shabu have now resorted to importing the illegal substance," Santiago said as he admitted that the country was once deemed as Asia's drug manufacturing center.

The PDEA is also investigating reports that the Subic Bay Freeport is now being used by drug syndicates as transshipment point for drugs in Asia.

"Right now, we are keeping track of the activities of almost a hundred local and 7 foreign drug syndicates involved in the drug trade and there will be no letup in our efforts to neutralize them," Santiago said.

But the country's top drugbuster admitted that the agency could not do it alone.

He said that it is quite impossible for PDEA to field agents in all communities throughout the country stressing that the agency is an intelligence-based body like the Bureau of National Investigation (NBI).

"Most of our operations were successful because of the information provided by brave and civic-minded individuals," Santiago noted.

This is the reason why PDEA is working closely with other government agencies to strengthen programs that encourage people to report illegal drug activities in their neighborhood.

"Drugs must be considered as a national security problem and I urge the public to work closely with the government to rid their communities of illegal drugs," Santiago said. (PNA)

Auto smuggling still rampant, threatens vehicle industry

By Daxim Lucas - Inquirer

The Philippine automotive industry continues to suffer the effects of rampant vehicle smuggling, which is hampering its development despite a recent increase in legitimate sales.

In a recent interview, Ford Group Philippines president Henry Co said smuggling of vehicles continued to pose a serious threat to the viability of the automobile industry, which in turn, threatens the livelihood of the thousands of workers employed by it.

“Vehicles are highly regulated products, but smuggling continues,” he said, describing the smuggling activities in the Subic Bay Freeport in recent months as “still significant.”

“Motor vehicle smuggling is an indication of how bad governance could be,” Co added.

The Philippine industry remains hard-pressed to surpass the 100,000-mark in annual sales since falling to the 80,000-level in the wake of the 1997 East Asian financial crisis. The Ford Philippines chief said that the inability of the industry to recover from the post-crisis sales slump was due, to a large degree, to the sharp increase in smuggling activities in Subic and other ports in recent years.

In particular, he said smuggling of used vehicles “has grown substantially over the last 10 years” and continues despite last year’s Supreme Court decision affirming the illegality of the practice.

Co said the local automobile industry had an annual capacity of 200,000 vehicles, but estimated that the utilization rate stood at only 25 percent of this, due to the prevalence of cheaper, smuggled vehicles.

The Chamber of Automotive Manufacturers of the Philippines Inc. sees auto sales to top 100,000 this year, partly due to rising affluence, brought about by the strong economy.

Co believes, however, that this level would be even higher if not for the availability of smuggled vehicles, which drain the industry of legitimate sales.

More importantly, the Ford Philippines chief believes that vehicle smuggling has the potential to bring down the local automobile industry, given that legitimate sales remained relatively weak even as vehicle registrations had been increasing yearly—the difference being made up of smuggled vehicles.

Already, he said several automotive parts makers have closed shop or moved to other countries because of weak sales.

“Over the long term, something has to be done,” Co said. “Can a country like the Philippines with over 80 million people afford to be without an auto industry?”

He said the government only has to have the resolve to implement last year’s Supreme Court decision.

“It’s illegal,” he said. “It should be easy and simple enough.”