Which act is intended to invigorate economic growth by granting incentives and exemptions to registered export producers, export traders and service exporters?

• A. RA 1655
• B. RA 166
• C. RA 5455
• D. RA 6136

Answer: (D)

Export-oriented growth is fostered by laws that create zones where exporters receive financial and procedural benefits. Republic Act 6136 established the Export Processing Zone Authority and set up export processing zones that grant incentives and exemptions to registered export producers, export traders, and service exporters. These incentives typically include tax holidays, import duties and taxes relief on raw materials, equipment, and capital goods, plus streamlined customs and regulatory procedures. The idea is to lower costs and make exporting more attractive, which spurs investment, creates jobs, and increases foreign exchange earnings—precisely the aim of this act. The other acts don’t center on creating export processing zones or offering the same broad export-focused incentives, so they don’t fit the described purpose.