The Philippine Economic Zone Authority (“PEZA”) is the Philippine government agency tasked to promote investments, extend assistance, register, grant incentives to and facilitate the business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country proclaimed by the President of the Philippines as PEZA Special Economic Zones.
What are the activities eligible for PEZA registration and what are the incentives?
- Export Manufacturing – manufacturing, assembly or processing activity resulting in the exportation of at least 70% of production.
- IT (Information Technology) Service Export – IT service activities, of which 70% of total revenues is derived from clients abroad.
- Tourism – establishment and operation within PEZA Tourism Special Economic Zones of sports and recreation centers, accommodation, convention, and cultural facilities and their special interest attraction activities / establishments, with foreign tourists as primary clientele.
- Medical Tourism – medical health services, endorsed by the Department of Health, with foreign patients as primary clientele.
- Agro-industrial Export Manufacturing – processing and or manufacturing of agricultural products resulting in the exportation of its production.
- Agro-industrial Bio-Fuel Manufacturing – specialized manufacturing of agricultural crops and eventual commercial processing which shall result in the production of clean energy such as bio-fuels and the like.
- Logistics and Warehousing Services – (a) operation of a warehouse facility for the storage, deposit, safekeeping of goods for PEZA-registered Economic Zone Export Manufacturing Enterprises, and or (b) importation or local sourcing of raw materials, semi-finished goods for resale to – or for packing / covering (including marking / labeling) cutting or altering to customers’ specification, mounting and/ or packaging into kits or marketable lots for subsequent sale to – PEZA-registered Export Manufacturing Enterprises for use in their export manufacturing activities, or for direct export, or for consignment to PEZA-registered Export Manufacturing Enterprises and eventual export.
How many economic zones are presently in the country?
As of 30 June 2013, the following is the distribution of operating economic zones in the Philippines*:
|Agro-Industrial Economic Zone||
|Manufacturing Economic Zone||
|Medical Tourism Parks/Centers||
|Tourism Economic Zone||