Automatic BOI registration eyed for Clark economic zone locators

The Department of Trade and Industry (DTI) and the Board of Investments (BOI) may be able to temporarily grant automatic BOI registration for Clark economic zone locators currently affected by the loss of incentives granted to them.

This was disclosed yesterday by Trade and Industry Secretary Peter B. Favila following a closed door meeting of various business chambers with President Arroyo at the Hotel Intercontinental where Mrs. Arroyo addressed the business community and held a dialogue to listen to the different business chambers’ various concerns.

The Makati Business Club was the lone business chamber which snubbed the meeting called by President Arroyo.

According to Favila, one of the concerns raised was the loss of incentives to Clark locators.

Pending a Supreme Court decision on the issue or a possible legislated solution, Favila said that the possibility of granting automatic BOI registration to current Clark ecozone locators was raised.

Favila assured that he has no objection to the grant of automatic BOI registration to existing Clark locators.

However, he admitted, that the matter still has to undergo legal study to make sure that there is no violation of existing rules and regulations or any legal complication.

BOI Managing Head Elmer Hernandez had previously revealed that the BOI was already studying the possibility of allowing Clark ecozone locators to apply for registration with the BOI so that they could enjoy incentives while a new law covering Clark locators is crafted by Congress.

Aside from the Clark locators, other concerns raised by the business sector included the need for further refinements to the Build-Operate-Tranfer (BOT) Law to be able to attract new investors.

The European Chamber of Commerce of the Philippines, Favila said, expressed their continuing concern over the Ninoy Aquino International Airport (NAIA) Terminal 3 issue and the need to fast-track its opening.

Favila updated the business community about the airport and assured that the matter is "moving along."

The Japanese Chamber of Commerce of the Philippines, for its part, expressed its concern about its perception of lack of adequate infrastructure development toward the South where most of the Japanese firms are located in the Calabarzon.

Particularly, they urged the construction of a spur road connecting Sto. Tomas to Batangas.

The Korean Chamber of Commerce of the Philippines, for its part, Favila said, expressed their desire to participate in the privatization of certain assets of the National Power Corp. (Napocor) without the need for transitional contracts.

The French business chamber, Favila added, expressed their interest in helping in the government’s rural electrification projects.

The Indian Chamber of Commerce, on the other hand, Favila said, requested assistance on their visa issues since Indian nationals are still restricted in acquiring Philippine visas.

Favila assured that he would coordinate with the Bureau of Immigration and the Department of Justice regarding their visa woes.

Aside from their concerns, Favila said, the joint foreign chambers were generally supportive of the Arroyo government and its implementation of the Reformed Value Added Tax Law.

The joint foreign chambers, Favila said, were optimistic that the Philippines would now be able to secure a credit ratings upgrade with the implementation of the RVAT and the expected improvement in the government’s fiscal position.