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Tuna Processor Converts Property Into Tax Free Zone Philippines, March 27, 13

Philippine Tuna canner Alliance Select Foods International, Inc. has converted its eight-hectare property in General Santos City into a government-registered economic zone that will allow it as well as future locators to enjoy fiscal incentives.

In a disclosure yesterday, Alliance Select said its 40%-owned unit, Alliance MHI Properties, Inc. (AMHI), inked a registration agreement with the Philippine Economic Zone Authority (PEZA) turning AMHI’s two lots measuring a total of 82,016 square meters in Barangay Tambler, General Santos City into an agro-industrial economic zone dubbed “Foodport Processing Zone” (FPZ).
The agreement was based on Presidential Proclamation No. 564 dated March 14, 2013 that designated the eight-hectare area as an agro-industrial economic zone upon the recommendation of PEZA.
Locators in the FPZ will enjoy, among others, a 5% tax on gross income in perpetuity, exemption from all local and national taxes, tax free importation of machinery, exemption from export taxes and zero-rated value-added tax on local purchases.
Alliance Select’s tuna cannery, as well as its can manufacturer FDCP, Inc. and smoked salmon subsidiary, Glory Bay Salmon & Seafood, Inc., are presently inside the FPZ and will apply to PEZA as locators.
“The incentives provided by the government will allow Alliance Select to continue making investments in the processing facilities and further cement its place as a preferred vendor to some of the globe’s leading supermarket chains. Furthermore, it will allow the company to offer more competitively-priced products and have a positive effect on the company’s profitability and returns,” Alliance said in the disclosure.
“This will result in increased employment opportunities for the region and contribute to the nation’s economic prosperity,” Alliance Select added.
Company shares gained one centavo or 0.49% to P2.07 each yesterday from P2.06 last Monday.
Alliance Select added that idle land within FPZ may be leased to new locators.
“This will give AMHI an additional revenue stream, the benefits of which will also accrue to Alliance Select,” Alliance added.
Alliance Select, formerly Alliance Tuna International, Inc., was incorporated in 2003 and began commercial operations in General Santos City in 2004, engaging in tuna processing, canning, and the export of canned tuna products to Europe and North America.
The company swung to a net income of USD 1.57 million in January to October last year versus a net loss of USD 1.14 million in the same period in 2011 due to higher tuna sales.