PEZA Guidelines to Aid Registered Enterprises in Determining whether to Operate or Not

In guiding PEZA-registered entities to determine whether they shall continue to remain operating or not, the PEZA released the following Clarifications:

Clarification (on rules on shutdown) dated 20 March 2020

Clarification (on rules on shutdown) dated 21 March 2020

First Rule: Prerogative of companies to shutdown depending on issues like raw materials and importations due to closure of foreign suppliers.

Second Rule: Shortage of workers who cannot report to work and travel due to absence of mass transportation and banning of public utilities.

Third Rule: Costly housing facility provisions and scarcity of spaces near the zones.

Fourth Rule: Decision to transfer production quota, machine rise & equipment to other foreign branches to not delay production and delivery to global buyers/clients.

Fifth Rule: Full transfer of investment to other countries, but this will be a big investment and job loss for Filipinos.

Specific zones that aim to shutdown must consult first with locators, company-associations and PEZA.

First Rule: It is the prerogative/decision of each company to determine whether to continue operating or to shut down their operations depending on different grounds/reasons/problems such as:

  1. If there is lack of raw materials and importations due to closure or difficulty of receiving packages and logistics from foreign suppliers.
  2. If there is a shortage of workers (cannot report to work and cannot travel due to absence of mass transportation and/or banning of public utilities).
  3. If it would be costly or not feasible to provide housing facilities and there is scarcity of spaces near the zones to house workers.
  4. If the appropriate LGUs (i.e. where the registered-entities are located) are being inconsistent in issuing their own directive despite the IATF having approved the "unhampered movement of ecozone cargoes and ecozone company shuttle buses/vehicles carrying workers within the immediate vicinity of the ecozone”.

Second Rule: The registered-enterprise must consider if it is the whole ecozone where it is covered that aims to temporarily shut down on the ground that there is COVID-19 victim/s. The temporary shutdown of the whole ecozone must be with the consent or concurrence of the locators of the ecozone in the area, and that the temporary shutdown must be after consultation with said locators, company-associations and PEZA.

With regard to the Cavite Economic Zone (CEZ), PEZA advised in Memorandum Circular No. 2020 – 17 dated 22 March 2020[1]that CEZ companies that can comply with the guidelines of the government (i.e. Memorandum of Exec. Sec. dated 16 March 2020, DTI MC 20-06, DTI MC 20-08, and IATF Resolution No. 14) can decide to resume operations. Operating CEZ companies are advised to strictly follow rules and that there shall be no commute or pick up of employees from place of residence or pick up point to zone.

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[1] Amended PEZA Memorandum Circular No. 2020 – 13 dated 19 March 2020.

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