Clark Freeport Zone
The Clark Freeport Zone (CFZ), formerly the Clark Special Economic Zone, continues to make waves as "Asia's Most Affordable Gateway." Last April 4, 2008, President Arroyo, inaugurated the expansion of DMIA’s Terminal 1 which will facilitate the accommodation of two million passengers up from its current one million capacity. As of 2008, the zone has employed close to 58,000 workers and attributes this to an increase in export and import receipts which have reached $949.95 million and $927.61 million, respectively.
The zone's strategic location makes it ideal for various investment opportunities from aviation-related enterprises to tourism infrastructure development. It is one and a half to four hours away from all major destinations in the region. It is accessible by air through the Diosdado Macapagal International Airport, by sea through the Subic seaport and by land, through the North Luzon Expressway (NLEX) and the SCTEX.
Through the issuance of Presidential Proclamation No. 1035, in March 2006, the Zone was declared as a special economic zone under Republic Act No. 7916 (Special Economic Zone Act of 1995). CFZ locators have the following incentives: a) Tax and duty-free importation of equipment and materials; b) Preferential income tax rate of 5% of Gross Income Earned; c) 100% foreign equity allowed for many industries; d) special customs territory allowing free flow of items; and, e) unlimited duty-free goods consumption.