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| A Copy of the House Bill 8212 or the SpeDEZ Act |
The House Bill Number 8212 or the “Special Defense Economic Zone (SpeDEZ) Act” was passed by Congress on its third and final reading recently. The Bill seeks to establish a SpeDEZ Authority inside the Government Arsenal’s (GA) Defense Industrial Estate in Bataan.
- All Activities inside the Zone will be Tax-free
- All Raw Materials, Capital and Equipment inside the Zone will be exempt from Tax and Customs Duties
- All sale of Goods from the Zone to the Philippine Military and Police will also exempt from Taxes and Customs Duties
- A certain Percentage of Raw Materials used by the Companies inside the Zone should be sourced from local Companies (Percentage to be determined by the SpeDEZ Authority)
- A One-Stop Shop for Clearances, Permits, etc. should be established in the Zone for faster and easier processing
The Bill looks great, the removal of Taxes for Raw Materials, Equipment and Finished Goods I think will allow our Local Arms Companies to be very competitive in terms providing Products to our Military and Police.
I think it is important though that the local Companies partner first with foreign Arms Companies with established Track Records since they have the Expertise, Experience and Technology to make good Products.
Once we ourselves gain those Expertise, Experience and Technology, only then can we go out and develop designs on our own. This is what Countries with successful Arms Industries like South Korea did, they didn’t go out and make their own designs immediately, especially for more complicated Products.
They partnered first with Foreigners before embarking on their own Designs.
* Lower House OKs Bill boosting PH Arms Production, Exportation Capability {Archived Link}
* House Bill Number 8212 - Special Defense Economic Zone (SpeDEZ) Act {Archived Link}
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