Zones of Joint Cooperation

Section 18. Zones of Joint Cooperation

This law creates Zones of Joint Cooperation in the Sulu Sea and the Moro Gulf.

Its coordinates shall be defined by an ad hoc joint body composed of representatives.<!– from:

• the Department of Environment Natural Resources (DENR)
• the National Mapping and Resource Information Authority (NAMRIA)
• appropriate agencies of the Bangsamoro Government, of equal number. –>

The Joint Body:

• shall be convened within 30 days after the ratification of this Basic Law
• ceases to exist after it has established the coordinates of the Bangsamoro territory, including the Bangsamoro Waters and the Zones of Joint Cooperation.
• shall be reconvened within 30 days after the plebiscite for the inclusion of other territories.

Section 19. Joint Body for the Zones of Joint Cooperation

A Joint Body for the Zones of Joint Cooperation will be created, composed of:

• a Bangsamoro Minister as Chair
• at least 1 representative of a constituent local government unit of the Bangsamoro adjacent to the Sulu Sea
• at least 1 representative of a constituent local government unit of the Bangsamoro adjacent to the Moro Gulf
• the Secretary of Environment and Natural Resources
• the Secretary of Agriculture
• the Secretary of Transportation and Communication of the Central Government, or their authorized representatives, and their counterpart officials from the appropriate Bangsamoro offices and/or agencies.
• at least 1 representative from an adjoining81 local government unit that is not part of the Bangsamoro, and adjacent to the Sulu Sea
• at least 1 representative from an adjoining local government unit that is not part of the Bangsamoro, and adjacent to the Moro Gulf.

They:

• shall make policies mentioned in the preceding Section, as well as those necessarily related thereto.
• may invite private sector representatives from the fishing and transportation industries whenever necessary.

The Central and the Bangsamoro Governments shall work together to regulate the waters that comprise the Zones of Joint Cooperation in the Sulu Sea and the Moro Gulf.

Policies shall be jointly drawn up for the following purposes:

• a. protection of the traditional fishing grounds
• b. benefitting from the resources therein
• c. ensuring the interconnectivity of the islands and mainland parts of the Bangsamoro so that they are parts of a cohesive Bangsamoro political entity
• d. ensuring the exercise of the preferential rights of the Bangsamoro people, other indigenous peoples in the adjoining provinces, and the resident fishers in the Bangsamoro over fishery, aquamarine, and other living resources in the Zones of Joint Cooperation. The Joint Body shall promulgate rules and regulations as to the exercise of these preferential rights.

The preferential rights granted to the Bangsamoro people under this section shall extend only to those who can establish that they are Bangsamoro as defined in this Basic Law or descendants of a Bangsamoro as of February 2, 1987.

The Bangsamoro Government and the Central Governments shall ensure that there shall be free movement of vessels, goods, and people in these Zones of Joint Cooperation.82

Section 20. Exploration, Development and Utilization of Non-living Resources in the Zones of Joint Cooperation.

The Joint Body for the Zones of Joint Cooperation shall ensure the cooperation and coordination between the Central Government and the Bangsamoro Government on the exploration, development and utilization of non-living resources in the Zones of Joint Cooperation and determine the sharing of income and revenues derived therefrom.

Section 21. Transportation in the Zones of Joint Cooperation.

Transportation plying direct routes connecting the islands in Sulu, Basilan, Tawi-Tawi and/or the mainland parts of the Bangsamoro and passing through the Zones of Joint Cooperation shall be considered intra-regional routes.

Section 22. Inland Waters

The Bangsamoro Government shall have exclusive powers over inland waters, including, but not limited to lakes, marshes, rivers and tributaries. The Bangsamoro Parliament shall enact laws on the regulation, management and protection of these resources. It may create a Bangsamoro office and authorities for specific inland bodies of water that shall exercise management powers over these bodies of water.

The Bangsamoro Government shall ensure that the utilization of these waters shall primarily be for the benefit of the people in the Bangsamoro and shall ensure that communities in the Bangsamoro in whose territory these waters are found are given an equitable share from the revenues generated from such utilization.

Section 23. Agriculture, Fisheries, and Aquatic Resources

The Bangsamoro Government’s policies and laws on agriculture, fisheries, and aquatic resources shall advance agriculture as a key development strategy, promote productivity measures, and provide support for farmers and fishers especially small landholders and marginal fishers.

Trade and Industry

Section 24. Trade and Industry in the Bangsamoro

The Bangsamoro Government recognizes the private sector as a mover of trade, commerce, and industry. It shall encourage and support the building up of entrepreneurial capability in the Bangsamoro and shall recognize, promote, and protect cooperatives.

The Bangsamoro Government shall promote trade and industry in the Bangsamoro by providing avenues through which other countries can learn about its unique industries, economic opportunities and culture through participation in trade missions, trade fairs, and other promotional activities.

It can also organize trade missions to other countries observing the necessary coordination with the relevant government agencies.

The Bangsamoro Government shall also promote domestic trade preference for goods produced and materials sourced from within the Bangsamoro and adopt measures to increase their competitiveness.

The Bangsamoro Government shall also ensure that Bangsamoro products and services gain considerable access to the markets of its trading partners, and particular attention should also be given to the markets of its trading partners who have historic and cultural ties to the Bangsamoro.

The Bangsamoro Government shall provide technical and skills training programs, create livelihood and job opportunities, and allocate equitable preferential rights to its inhabitants. In this regard, the Bangsamoro Parliament may adopt laws that will safeguard the rights of workers.

Section 25. Barter Trade and Countertrade with ASEAN Countries

The Bangsamoro Government shall regulate traditional barter trade and counter-trade with ASEAN countries.

The goods or items that are traded with the said countries shall not be sold elsewhere in the country without payment of appropriate customs or import duties.

Traditional barter trade and counter-trade refer to all cross-border trade of all goods not otherwise considered illicit since time immemorial between the Bangsamoro areas with ASEAN countries.

The Bangsamoro Government shall ensure compliance with national standards and safety product standards requirements. Any dispute in relation to compliance or non-compliance shall be brought to the intergovernmental relations mechanism.

Section 26. Economic Zones, Industrial Estates and Free Ports

The Bangsamoro Government may establish economic zones, industrial estates and free ports in the Bangsamoro. Through the intergovernmental relations mechanism, the Bangsamoro Government and the Central Government shall cooperate on customs, immigration, quarantine service including the attendant international commitments thereto, to implement and make fully operational such economic zones, industrial estates, and free ports within one (1) year from their establishment.

Business and other enterprises operating within the Bangsamoro economic zones, industrial estates and free ports shall be entitled to the fiscal incentives and other benefits provided by the Central Government to special economic zones.

The Bangsamoro Government shall implement the fiscal incentives and other benefits to investors in economic zones, industrial estates and free ports. Bangsamoro free ports shall be contiguous/adjacent to a seaport or airport.

The area of coverage of a free port may be so much as may be necessary of that portion of the constituent local government unit/s of the Bangsamoro, subject to such criteria as the Bangsamoro Parliament may provide in law for that purpose. Existing free ports in the ARMM are hereby transferred to the Bangsamoro Government.

Section 27. Prohibition Against Toxic or Hazardous Substances

The Bangsamoro Government shall regulate, restrict or prohibit the use, importation, transit, transport, deposit, disposal, and dumping of toxic or hazardous substances within the Bangsamoro. It shall, in the same manner, regulate activities that may adversely impact the environment and may be harmful to health, safety and welfare of the Bangsamoro.

Section 28. Halal-Certifying Bodies; Halal Campaign Program

The Bangsamoro Government shall have the power to accredit halal-certifying bodies in the Bangsamoro. It shall promote awareness through the development and implementation of a halal campaign program.

Banking and Finance

Section 29. Banks and Financial Institutions

The Bangsamoro Government shall encourage the establishment of:

• banks and financial institutions and their branches
• off-shore banking units of foreign banks within the Bangsamoro, and principles of the Islamic banking system.

Section 30. Islamic Banking and Finance

The Bangsamoro Government, the Bangko Sentral ng Pilipinas (BSP), the Department of Finance (DOF), and the National Commission on Muslim Filipinos (NCMF) shall jointly promote the development of an Islamic banking and finance system, to include among others the establishment of a Shari’ah Supervisory Board.

To facilitate the establishment of an Islamic banking and finance system, the Central and the Bangsamoro Governments shall review existing market environment and policies and adopt measures to enhance the competitiveness of Islamic finance products and that Islamic financial players are not inhibited from introducing Islamic finance products. It shall further promote investor awareness and acceptance in order to build a broader customer and asset base.

Transportation and Communications

Section 31. Transportation and Communications

The Bangsamoro Government shall exercise such powers, functions and responsibilities that have been devolved or decentralized to the ARMM.

The intergovernmental relations body shall convene the:

• Department of Transportation and Communication
• Civil Aviation Authority of the Philippines
• Civil Aeronautics Board
• Maritime Industry Authority
• Philippine Ports Authority
• Land Transportation Franchising Regulatory Board
• Land Transportation Office
• National Telecommunications Commission
• other concerned agencies of the Central Government and the Bangsamoro Government.

The body shall perform the following functions:

• (a) Determine the exercise of additional powers, functions and responsibilities relating to transportation and communications in the Bangsamoro based on the principles of subsidiarity, technical and financial viability, harmonization (uniform system concept), compliance with international standards, treaties, and conventions, and mutual respect and recognition, and in recognition of the Bangsamoro’s aspiration to assume further powers as may be practically operationalized as it capacity develops;
• (b) Issue rules and regulation to implement the additional powers, functions and responsibilities over transportation and communication in the Bangsamoro
• (c) Harmonize policies, programs, regulations and standards
• (d) Resolve problems of implementation between the Central Government and the Bangsamoro Government.

All revenues derived by the Bangsamoro Government from the exercise of its powers, functions and responsibilities shall pertain to the Bangsamoro Government.