Sunday, April 4, 2010 [ sunstar.com.ph ]
By Carlo P. Mallo
ECONOMIC development is underway in the province of Maguindanao as the Bureau of Customs (BOC) has recently declared the Polloc Port as a "free port."
BOC-Port of Davao District Collector lawyer Anju Nereo Castigador told Sun.Star Davao that with the declaration of Polloc Port as a "free zone," it becomes a non-Customs territory.
"Goods that are unloaded in that port will no longer be subject to tariffs and this will encourage more investors to come to the area," said Castigador, who has also been assigned to oversee the operations of the free port.
Now dubbed as the "Polloc Free Port," the 130-hectare facility will augment the newly proclaimed Polloc economic zone, which places the whole barangay of Polloc in the Municipality of Parang, Maguindanao as an economic zone.
Given its free port status, the Polloc Free Port can now accord tax exemptions and duty free importations.
Under the laws, loads unloaded and shipped out of a free port are exempted from all local and national taxes such as ad-valorem and excise taxes.
Duty-free importation of raw materials, supplies, capital equipment and other items for consumption within the free port is also implemented.
Foreign investors are also allowed to invest up to 100 percent equity in almost any economic activity in the free port except for businesses where foreign ownership is limited by the Constitution.
There are no foreign exchange controls in the free port and full repatriation of profit is allowed.
"However, if you bring your goods outside the free port, then it will be subject to tax," Castigador said.
In most cases, raw materials are shipped from other countries into a free port where a manufacturing or processing company has put up industrial plants. The raw materials will be processed at the free port and shipped out also.
In the process, employment and other indirect forms of investments are generated in the surrounding area of the free port.
Published in the Sun.Star Davao newspaper on April 5, 2010.
__________________________________________________________________
