DECLARING A MORATORIUM ON THE ESTABLISHMENT OF DUTY-FREE STORES/OUTLETS IN THE PHILIPPINES

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WHEREAS, Republic Act No. 7227  established among others, the Subic Bay
Freeport Zone and Clark Special Economic Zone, to encourage, promote and
accelerate the industrial, economic and social development of Central Luzon in
particular and the country in general;

WHEREAS, pursuant to Executive Order Nos. 80, 97 and 97-A, business
enterprises operating inside the Special Economic and Freeport Zones (SEFZs) of
Subic and Clark have been granted tax and duty free incentives on their
importations of raw materials, capital goods and equipment brought into the
Subic and Clark SEFZs;

WHEREAS, pursuant to said policy, duty free stores/outlets have proliferated
and product lines have expanded, further broadening the entry of duty free
goods into the domestic economy;

WHEREAS, there is an urgent need to address the adverse effects on local
manufacturing and retailing enterprises of these duty free goods entering
through the duty free stores/outlets.

NOW, THEREFORE, I, FIDEL
V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. There shall be a moratorium/suspension on the issuance of
licenses/permits to operate new duty free stores/outlets in the SEFZs of Subic
and Clark, until such time that the control systems as certified by the Bureau
of Customs have been established. This moratorium shall cover all proposals for
the issuance of new permits, opening of new stores/outlets, and expansion of
existing duty free stores/outlets.

Section 2. All executive orders, letters of instructions, issuances, memoranda
and proclamations which are inconsistent with the provisions of this Order are
hereby repealed or amended accordingly.

Section 3. The provisions of this Order are hereby declared separable, and in
the event one or more of such provisions or part thereof are declared
unconstitutional, such declaration of unconstitutionality shall not affect the
validity of the other provisions thereof.

Section 4. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 16th day of June in the year of Our
Lord, Nineteen Hundred and Ninety-Seven.

(Sgd.) FIDEL
V. RAMOS
President of the Philippines

By the President:

(Sgd.) LUIS C. LIWANAG II
Acting Executive Secretary

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