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PHILIPPINES

Mode 1) Cross Border Supply Mode 2) Consumption abroad Mode 3) Commercial Presence Mode 4) Presence of Natural Persons Sector/ Sub-Sectors

GATS commitment AFAS commitment Explicit Regulation

TELECOMMUNICATION SERVICES Voice telephone services, Packet-switched data transmission services, Circuit-switched data transmission services, Telex services, Telegraph services, Facsimile services, and Cellular mobile telephone services

Market Access Modes 1 and 2: Unbound Mode 3: Entry is subject to the following requirements and conditions: a. Franchise from Congress of the Philippines b. Certificate of Public Convenience and Necessity (CPCN) from the National Telecommunications Commission c. Foreign equity is permitted up to 40% d. Resale of private leased lines is not allowed e. Call back, dial back and other similar schemes which result in the same operation are not authorized f. Subject to the availability and efficient utilization of radio frequencies. Mode 4: Unbound

Market Access Modes 1: subject to commercial arrangement with licensed operators

Mode 2: No limitations

Mode 3: Entry is subject to the following requirements and conditions: a. Franchise from Congress of the Philippines b. Certificate of Public Convenience and Necessity (CPCN) from the National Telecommunications Commission c. Foreign equity is permitted up to 40% d. Resale of private leased lines is not allowed e. Call back, dial back and other similar schemes which result in the same operation are not authorized f. Subject to the availability and efficient utilization of radio frequencies.

Mode 4: Unbound.

Market Access: Under Republic Act No. 7925, telecommunications is considered a public utility. As required under the Philippine Constitution, the provision of telecommunication services was limited to Filipino citizens or to corporations, associations or entities which were owned at least 60 percent by Filipino citizens. The remaining 40 percent may be owned by foreigners.

The Philippine Constitution provides that broadcast media shall be owned, operated and maintained by Filipino citizens. CATV services have been placed under broadcast services and also require 100 percent Filipino entity.

To qualify an applicant to be a public telecommunication service provider, the following must be complied with: • applicant must be a Filipino citizen or a 60 percent

Filipino corporation, association or entity duly incorporated in accordance with Philippine laws;

• applicant must be financially capable and the service economically viable;

• applicant must be technically capable and the service is technically feasible;

• applicant must have a legislative franchise; and the service applied for shall be in the public interest and serve public convenience and necessity.

All the above requirements shall be proven in quasi-judicial proceedings before the National Telecommunications Commission after due notice and hearing to all affected parties EO 139 allows up to 20% foreign equity for private radio communications networks pursuant to RA 3836 which

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National Treatment Modes 1 and 2: No limitations Mode 3: i) The number of non-Filipino citizens in the Board of Directors of an entity shall be proportionate to the aggregate share of foreign capital of that entity. (ii) All executives and managers must be citizens of the Philippines

Mode 4: Unbound

National Treatment Modes 1 and 2: No limitations Mode 3: The number of non-Filipino citizens in the Board of Directors of an entity shall be proportionate to the aggregate share of foreign capital of that entity. - All executives and managers must be citizens of the Philippines Mode 4: Unbound.

regulates radio stations and radio communications in the country. National Treatment: All domestic service providers are governed under the same laws, rules and regulations provided for a particular service. National treatment is provided, subject to constitutional, legislated and administrative limitations and/or regulations. All areas are open to foreign investment, except those restricted under negative lists: (a) by legal and/or constitutional constraints; and (b) for reasons of security, defense, risk to health and morals and to protect SMEs.

Paging Services

Unlisted

Market Access Modes 1 and 2: Unbound

Mode 3: Entry is subject to the following requirements and conditions:

• franchise from Congress

• foreign equity is limited to 40 %

• subject to the availability and efficient utilization of radio frequencies

Mode 4: Unbound

National Treatment Modes 1 and 2: No limitations Mode 3: • The number of non-Filipino

Radio Paging Service is no longer regulated except in terms of radio frequencies, which are issued by NTC on an open tender basis, where the demand exceeds availability. Republic Act 7925 Sec. 13. provides that duly enfranchised radio paging services involving either voice data messages, shall be allowed to compete freely in such number of operators, or variety of operating modalities, subject only to the norms on radio frequency spectrum utilization.

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citizens in the Board of Directors of an entity shall be proportionate to the aggregate share of foreign capital to that entity.

• All executives and managers must be citizens of the Philippines

Mode 4: Unbound

Courier services

Market Access Mode 1: Commercial presence is required. Modes 2-4: No limitations National Treatment Modes 1-4: No limitations

Unlisted

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CONSTRUCTION SERVICES Private construction projects CPC 511-517

Unlisted

Market Access Mode 1: Unbound due to lack of technical feasibility. Mode 2: No limitations Mode 3: a. 40% Foreign Equity for construction of locally funded private projects b. 100% foreign equity for foreign-funded/assisted internationally-bid construction projects Mode 4: Unbound subject to WTO GATS horizontal commitment (see Note) National Treatment Mode 1: Unbound due to lack of technical feasibility. Mode 2: No limitations Mode 3: a. Unbound b. Foreign Contractors are required to secure a Special Contractor�s License form the Philippine Contractors Accreditation Board on a per project basis �Foreign Contractors are required to employ qualified Filipino Sustaining Technical Employees (STE) who meet the minimum requirements for the category and classifications applied for �Foreign Contractors are required to have a Resident Alien Representative (RAR) in the Philippines who is a holder of an Alien Certificate of Registration (ACR) and a working visa to receive summons and act for and

In general, all foreign companies intending to undertake construction activities in the Philippines must register with the Securities and Exchange Commission (SEC) and conform with certain provisions of Republic Act Nos 7042 (Foreign Investment Act) and 4566 (Construction Licensing Law). Those intending to avail of the Build-Operate-Transfer (BOT) scheme must conform to RA 6957, amended by RA 7718. RA 7042 sets limits on foreign equity participation for construction and related engineering services. For construction and repair of locally-funded public works, foreign equity participation is limited to 25%. For public sector projects financed by multilateral financial institutions, 100% foreign equity participation may be allowed. Market Access RA 7042 as amended by RA8179 provides up to 25% foreign equity on contracts for the construction and repair of locally-funded public works.(Sec 1 of CA 541, LOI 630) Except: (a) infrastructure/ development projects covered in RA7718 and (b) projects which are foreign funded or assisted and required to undergo international competitive bidding (Sec 2 a of RA7718); Uo to 25% foreign equity for constracts for construction of defense-related structures(sec 1 of CA 541)

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in behalf of the company Mode 4: Foreign engineers or architects to be involved in undertaking construction and related activities must register/secure the necessary permit from the Philippine Regulation Commission (PRC), the Bureau of Immigration and Deportation (BID) and the Department of Labor and Employment (DOLE)

Renting services related to equipment for const. or demolition of building or civil engineering works, with operator (CPC 518)

Unlisted

Market Access Modes 1 and 2: No limitations. Mode 3: Maximum 40% foreign equity. Mode 4: Unbound subject to WTO GATS horizontal commitments (see note) National Treatment Modes 1 and 2: No limitations. Mode 3: All executives and managing officers must be Filipino citizens. Mode 4: Unbound.

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TRANSPORT SERVICES All subsectors

Market Access Mode 3: No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least 60 per cent of whose capital is owned by such citizens. Mode 4: Only aliens qualified to hold technical positions may be employed within the first five years of operation of the enterprise, their stay not to exceed five (5) years upon entry. Each employed alien should have at least two (2) Filipino understudies.

Mode 3 & 4: Limitations listed in the horizontal section shall also apply

Under the Philippine Constitution, franchises, or any other authority for the operation of a public utility shall be given only to Philippine citizens or to corporations organized in the Philippines (and registered with the Securities and Exchange Commission), at least 60 percent of whose capital is owned by such citizens. The Foreign Investment Act (RA 7042) restricts foreign equity to a maximum of 40% in areas of economic activities reserved for Filipinos by mandate of the Constitution and specific laws. The participation of foreign investors in the governing body of any public utility enterprise shall be limited to their proportionate share in its capital, and all the executive and managing officers of such corporation or association must be citizens of the Philippines.

AIR TRANSPORT Selling and Marketing

Unlisted

Market Access Mode 1. No limitations, except for on-line carriers and its agents subject to: a. Minimum capital requirements b. Maximum 40% equity ownership; and c. Surety bond requirement Mode 2: No limitations. Modes 3 and 4: Unbound National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

R.A. 776 Sec. 34. Eligibility for registration. � Except as otherwise provided in the Constitution and existing treaty or treaties, no aircraft shall be eligible for registration unless it is owned by or leased to a citizen or citizens of the Philippines and is not registered under the laws of any foreign country Executive Order No. 219 (1995) On international air transportation, carrier designation, At least two (2) international carriers shall be designated official carrier(s) for the Philippines. However, if the designated carrier(s) do not service the total frequency entitlement of the Philippines under existing Air Services Agreements or other arrangements, then additional carrier(s) may be designated to operate such unused frequencies.

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Issuance of a permit for foreign air carriers requires compliance with CAB Economic Regulation No. 1. The exchange of traffic rights and routes with other countries shall be based on (a) the National Interest which shall include value for the Philippines in terms of promoting international trade, foreign investments and tourism, among others; and on (b) the reciprocity between the Philippines and other countries. Reciprocity shall be interpreted to mean the exchange of rights, freedoms, and opportunities of equal or equivalent value. The Civil Aeronautics Board (CAB) shall determine "national interest" taking into consideration the larger interest of the country, especially the users of air services Part I, Chapter A, Section 121.3 (ATO Administrative Order No. 121): No person may engage in scheduled and non-scheduled international and domestic passenger or cargo, on both operations in air commerce without or in violation of the air carrier operating certificate issued under this Administrative Order. Foreign entry is allowed under Bilateral Agreements (Air Services Agreements), regional and other arrangements, e.g., BIMP-EAGA.

Maintenance and repair of aircraft

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound National Treatment Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound

Open to foreigners as long as the repair stations are accredited by the Air transportation Office (ATO).

Computer and reservation system services

Unlisted

Market Access Modes 1 and 2: No limitations

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Mode 3 and 4: Unbound National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

MARITIME TRANSPORT International Transport (passenger and freight), except a) cabotage transport, and b) government-owned cargoes (Subject to the Cargo Reservation Law which requires that cargoes owned by government-owned or controlled corporations shall be shipped on board Philippine flag vessels)

Market Access Modes 1-3: No limitations Mode 4: For specialized vessels, aliens may be employed as supernumeraries only for a period of six months. National Treatment Mode 1-4: No limitations

Market Access Modes 1-3: No limitations Mode 4: For specialized vessels, aliens may be employed as supernumeraries only for a period of six months.1 National Treatment Mode 1-4: No limitations

Foreign-owned/registered vessels and Philippine-registered overseas vessels are allowed to be temporarily utilized in the domestic trade subject to the issuance of a Special Permit by the MARINA. Filipinos must man all Philippine-registered ships. A foreigner holding a Certificate of Competency issued by his national administration in accordance with the requirements of STCW "78 Convention, as amended, shall be issued special dispensation to serve on board a Philippine-registered vessel engaged in the international trade, provided that the Philippine Certificate of Competency issued and endorsed by the Board shall be reciprocally recognized by the said foreign national administration to allow the Filipino merchant marine to practice his profession on board the foreigner's flag vessel. Market access In general, the Philippines has liberalized the domestic shipping industry by providing for the entry of new operators and investors to enhance the level of competition and bring about reasonable rates and improved quality of service. Executive Order Nos. 185 and 213 were mandated to enhance competition, which would, in turn, result in greater efficiency, improved safety, better quality of service, and increased profitability. EO No. 185, issued on 28 June 1994, opening the

1 The following services at the port are made available to international maritime transport suppliers on reasonable and non-discriminatory terms and conditions: pilotage; towing and tug assistance; provisioning, fuelling and watering; garbage collection and ballast waste disposal; port captain’s services; navigational aids; shore-based operational services essential to ship operations including communications, water and electrical supplies; emergency repair facilities; and anchorage, berth and berthing services.

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domestic water transport industry to new Operators and investors and minimizing government intervention and control over the domestic shipping industry to attract more control over the domestic shipping industry to attract more investments under an environment of free-market competition. EO No. 185 liberalize only the entry of vessels into liner routes but has not covered the regulation of domestic shipping rates; National Treatment Cabotage Law. Foreign shipping lines are not allowed to ply the country�s interisland routes. The Maritime Industry Authority prohibits foreign flagged vessels from engaging in the provision of domestic carriage services. The country�s bareboat chartering laws stipulate that Philippine flagged vessels should be manned by a Filipino crew and disallows foreign crew/officers, except as supernumeraries. The general requirements for registration and accreditation of shipping companies which shall operate ships in domestic trade says that the applicant must be a citizen and permanent resident of the Philippines, or a corporation or co-partnership, association or joint-stock company constituted and organized under the laws of the Philippines, with at least 60 percent of the subscribed capital belonging entirely to citizens of the Philippines. on management competence, for corporations and partnerships, at least two of the company's principal officers (e.g., President, Vice-President for Operations or General Manager, or their equivalents) shall have a minimum of two years experience in ship management, shipping operations and/ or chartering. In the case of corporations, the Chief Executive Officer (CEO) and the Chief Operating Officer (COO) or their equivalents, shall be citizens and permanent residents of the Philippines. For single proprietorships, the owner/operator or a principal officer shall have a minimum of two years experience in ship management, shipping operations and/or chartering.

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Executive Order No. 185 (1994) routes were de-monopolized. Executive Order No. 213 (1994) deregulated domestic shipping rates. The reciprocity right is used as the basis of the entry of the foreign nationals into the Philippines for purposes of trade, investment and related activities.

Maintenance and repair of vessels

Market Access Mode 1: No limitation due to lack of technical feasibility Mode 2: Any repairs, conversion or drydocking of Philippine-owned or registered vessels are required to be done at domestic ship repair yards registered with the Maritime Industry Authority (MARINA) Mode 3-4: No limitations National Treatment Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound

Any repairs, improvement, alteration, reconditioning, conversion or dry-docking of Philippine-owned or registered ships are required to be done at domestic ship repair yards registered with the MARINA. Exemptions from this requirement may be granted by MARINA in any of the following cases: a) When as a result of collision, grounding, heavy weather, breakdowns and other perils of the sea occurring abroad, the vessel suffers damages necessitating emergency and/or extraordinary repairs, and it is impracticable that such vessel be brought to the Philippines for the needed repairs; b) When on account of existing prior commitments or due to inadequacy or lack of service facilities or MARINA-registered ship repair yards, as determined by the MARINA; and c) When the Philippines is not one of the vessels' ports of call, in which case a waiver from the said requirement must be obtained from the MARINA.

RAIL TRANSPORT Passenger and freight transport

Market Access Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations National Treatment Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations

No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least 60 per cent of whose capital is owned by such citizens. Only aliens qualified to hold technical positions may be employed within the first five years of operation of the enterprise, their stay not to exceed five (5) years upon entry. Each employed alien should have at least two (2) Filipino understudies.

Maintenance and

Market Access

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repair of rail transport equipment

Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations National Treatment Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations

ROAD TRANSPORT Passenger and freight transport

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2: No limitation Mode 3: Provisional authority/certificate of public convenience must be secured from the Land Transportation Franchising and Regulatory Board (LTFRB) . New entrants are subject to economic needs test, as follows: a) the need to provide protection to investments of operators in unserved areas/developmental routes; and

b) the route measured capacity test for number of vehicles. Mode 4: No limitations National Treatment Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations

For passenger transport, a determination of the actual seat requirement is first done before any franchise can be made. This is to determine the saturation of the line. If it is seen as over saturated, then the route is not open for foreigners.

Maintenance and repair of road

Market Access

Projects are open to foreigners for bidding.

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transport equipment

Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound National Treatment Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound

SERVICES AUXILIARY TO ALL MODES OF TRANSPORT Cargo handling services Storage and warehousing services Container yard and depot services

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound National Treatment Mode 1: Unbound due to lack of technical feasibility Mode 2-4: Unbound

The company has to be partly owned by a Philippine national (49% foreign, 51%domestic)

General sales and cargo sales agency

Market Access Mode 1: Commercial presence required Modes 2-4: No limitations National Treatment Modes 1-4: No limitations

The company has to be partly owned by a Philippine national (49% foreign, 51%domestic)

Freight forwarding services

Market Access Modes 1-4: No limitations National Treatment Modes 1-4: No limitations

The company has to be partly owned by a Philippine national (49% foreign, 51%domestic)

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FINANCIAL SERVICES

All sub-sectors

Market Access Mode 3: The appropriate regulatory authority in the Philippines shall determine whether public interest and economic conditions justify authorization for the establishment of commercial presence or expansion of existing operations in banking and other financial services in the Philippines. For foreign financial institutions with internationally recognized standing, such determination shall include a demonstrated capacity to contribute to the attainment of Philippine development objectives particularly in the promotion of trade, investments and appropriate technology transfer; and the country of incorporation has strategic trade and investment relations with the Philippines. In banking, the Monetary Board shall ensure that at all times seventy per cent (70%) of the resources or assets of the Philippine banking system is held by domestic banks which are at least majority-owned by Filipinos. Mode 3 & 4: Limitations in horizontal section shall also apply

RA 7721 allows foreign participation in the Philippine banking and financial system to create a more competitive environment. It encourages greater foreign participation through increase in ownership in domestic banks by foreign banks and the entry of new foreign bank branches. However, in allowing increased foreign participation in the financial system, it shall be the policy of the State that the financial system shall remain effectively controlled by Filipinos.

Commercial Banking • Acceptance of

deposits and other repayable funds from the public

Market Access Mode 1: Commercial presence is required. Mode 2: No limitation Mode 3: Foreign equity in existing or new domestic commercial banks subject to a maximum 30 per cent of

Market Access Mode 1: Commercial presence is required. Mode 2: No limitation Mode 3: Forms of commercial presences:

Market Access RA 7721 (1994) liberalizes the entry of foreign banks limited to ten new foreign banks that could open full-service branches in the Philippines. All ten licenses were issued. These foreign banks are limited to putting up six branches each, although the four foreign banks operating in the Philippines prior to 1948 were allowed

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• Lending of all types, including consumer credit, mortgage credit, and financing of commercial transaction

• All payment and money transmission services, including credit, charge and debit cards, travellers cheques and bankers drafts

• Guarantees and commitments

• Trading for own account or for account of customers, whether on an exchange, in an over-the-counter market or otherwise, the following:

- money market - instrument (including cheques, bills, certificates of deposits);

- foreign exchange

derivative products

voting stock or 40 per cent upon approval by the President of the Philippines Deposit taking authority extends only to domestic commercial banks and to the four grandfathered foreign bank branches Participation of aliens in the Board of Directors of domestic banks is limited to one-third of the Board's total membership Equity ownership ceiling for domestic banks: individual - 20 per cent; corporation - 30 per cent Prior authority is required for the following: • Acceptance of deposit

substitutes and other repayable funds from the public,

• Guarantees and commitments; and

• Performance of trust, investment management and other fiduciary business.

• Underwriting (firm and best efforts basis) may be performed only by commercial banks with expanded commercial banking authority

Mode 4: No limitation Note: MFN exemption � authorization of financial service suppliers of another Member to establish commercial presence or expand existing operations in commercial banking in the Philippines shall be subject to a reciprocity test.

A foreign bank, widely-owned and publicly listed, may avail of itself only of one form of commercial presence at a time. However, this shall not preclude secondary investment in the equity of a locally incorporated bank not exceeding 30% of voting stock or 40% upon approval of the President of the Philippines. Establishment of foreign bank branches a). Bound for 10 new licenses for the period 1995-2000. Full banking authority to new and existing foreign bank branches. Each foreign bank shall be allowed to establish a maximum of 6 branches, with the first 3 of these branches at locations of its choice and the remaining 3 branches at locations designated by the Monetary Board. The prescribed capital ratio shall consist of the permanently assigned capital and �net due to� account not exceeding the equivalent of 4 times the amount of permanently assigned capital. The permanently assigned capital and 15% of the required �net due to� account shall be inwardly remitted and converted into Philippine currency. b). Acquisition of up to 60% of the voting stock of an existing bank. c). Investing in up to 60% of the voting stock of a new banking subsidiary incorporated under the laws of the Philippines.

to open up to six additional branches. While a relaxation from the previous 40 percent ceiling, R.A. 7721 limits foreign ownership in locally-incorporated banks to 60 percent. Foreign investors that do not meet the criteria stipulated in R.A. 7721 and its implementing regulations are limited to 40 percent ownership. RA 8791 (General Banking Law of 2000) provides, inter alia, for a seven-year window during which foreign banks may own up to 100 percent of one locally-incorporated commercial or thrift bank (with no obligation to divest later). This represents a temporary relaxation from the 60 percent foreign ownership cap that would otherwise apply. However, R.A. 8791 imposed a three-year freeze on new bank licenses (i.e., investments must be made in existing banking institutions), reflecting the government's current emphasis on consolidation. A "macro" limitation on foreign ownership requires that majority Filipino-owned banks should, at all times, control at least 70 percent of total banking system resources. Rural banking remains completely closed to foreigners. Other reforms that have been implemented are: - Further reduction of the reserve requirement - Lower capital requirement for bank branching,

particularly as regards thrift banks - Expanded use of ATMs - Liberalization of accreditation guidelines for

securities dealership of Treasury bills - Simplification of reportorial procedures of banks - Lifting of restrictions on repatriation of foreign

investments - Increasing the ceiling on outward foreign

investments - Reduction of requirements against deposit and

deposit substitutes of banks and non-banks - Removing restrictions on automatic conversion into

pesos of a certain portion of foreign loans, limiting foreign loan approvals

- Extension of foreign currency denominated loans to indirect exporters

- Lowering of BSP rediscount rate to increase utilization thereof, and

- Creation of an exporters� dollar facility funded by

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including, but not limited to, futures and options

! exchange rate and interest rate instruments, including products such as swaps, forward rate agreements; and other allowable negotiable instruments and financial assets Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues.

• Asset

management, such as cash or portfolio management, all forms of collective investment management, custodial,

subject to a reciprocity test. National Treatment Modes 1-3: No limitation Mode 4: Foreign service suppliers shall perform technical functions only, with Filipino understudy

Non-Filipino citizens may become members of the Board of Directors of a bank to the extent of the foreign participation in the equity of said bank. Scope of Operations Prior authorization is required for the following: • acceptance of deposit

substitutes and other repayable funds from the public;

• guarantees and commitments; • performance of trust,

investment management and other fiduciary functions;

• foreign currency deposit unit operations;

• derivative activities; Underwriting may be performed only by commercial banks with expanded commercial banking authority Mode 4: Unbound except as provided in the horizontal section. National Treatment Modes 1-3: No limitation Mode 4: A non-Filipino citizen employed as officer or assigned to do technical functions shall have two Filipino understudies.

BSP National treatment Under the law, one of the guidelines for foreign bank entry is to see to it that reciprocity rights are enjoyed by Philippine banks in the applicant bank's country (Sec. 3, RA 7721).

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depository and trust services.

Financial advisory services as follows: • underwriting • guarantees and

commitments • credit reference

and analysis • investment and

portfolio research and advise

Market Access Modes 1 and 2: No limitation Mode 3: Required to be organized as a commercial bank or a non-bank financial intermediary For commercial banks, all other limitations mentioned under mode 3 above for commercial banks shall apply Foreign equity bound at 40 per cent for non-bank financial intermediary Mode 4: No limitation National Treatment Modes 1-3: No limitation Mode 4: Foreign service suppliers shall perform technical functions only, with Filipino understudy

Non Banking Market access: RA 8366 (1997 Investment Houses Law) increases foreign equity participation to 60% of the voting stock of an investment house. RA8366 It further allows foreign nationals to become members of the Board of Directors to the extent of their participation in the equity of the enterprise. RA 8556 (1998 Financing Company Act) increased foreign equity participation to 60% of the voting stock of a financing company Enacted RA 8799 (Securities Regulation Code of 2000) which aims to encourage the widest participation of ownership in enterprises and promote the development of the capital market, among others.

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Factoring

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Must be performed by a financing company only, organized either as a corporation or general partnership Subject to foreign equity limitation of 40 per cent Membership of aliens in the Board of Directors is limited to one-third of the Board's total membership in the case of a corporation; no foreign managing partners in the case of a general partnership Mode 4: No limitation National Treatment Modes 1-3: No limitation Mode 4: Foreign service suppliers shall perform technical functions only, with Filipino understudy

Foreign equity is limited to 40%. Nonresidents are also required a proof of inward remittances and a bank certificate from the bank connected (deposited of money).

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Financial leasing

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Must be performed by a financing company only, organized either as a corporation or general partnership Subject to foreign equity limitation of 40 per cent Membership of aliens in the Board of Directors is limited to one-third of the Board's total membership in the case of a corporation no foreign managing partners in the case of a general partnershipi Mode 4: No limitation National Treatment Modes 1-3: No limitation Mode 4: Foreign service suppliers shall perform technical functions only, with Filipino understudy

Up to 60% foreign equity. Representation to the board must be in proportion to the stock holding. Foreigners can be elected to management position as long as foreign equity is more than 40% (as long as not cover3d by the Anti-Dummy Law). Foreigners cannot be elected in a wholly/partially nationalized business. Financing is also covered by the Reciprocity Rule (RA8556) which provides that no foreign national may be allowed to own stock in a financing company unless the country accords the same rights to Filipinos. On the extension of DOSRI loans, the amount of loan should not exceed 15% of the financing company likewise single borrow limit. Foreigners also have a limitation of 30% on the extension of loans.

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Money broking and foreign exchange broking

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Required to be organized as a commercial bank or a non-bank financial intermediary For commercial banks, all other limitations mentioned under mode 3 above for commercial banks shall apply Foreign equity bound at 40 per cent for non-bank financial intermediary Mode 4: No limitation National Treatment Modes 1-3: No limitation Mode 4: Foreign service suppliers shall perform technical functions only, with Filipino understudy

Allowed 100% in foreign equity under the foreign investment act

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Credit card services

Market Access Mode 1: Commercial presence required Mode 2: No limitation Mode 3: Required to be organized as a commercial bank or a non-bank financial intermediary For commercial banks, all other limitations mentioned under mode 3 above for commercial banks shall apply Foreign equity bound at 40 per cent for non-bank financial intermediary Mode 4: No limitation National Treatment Modes 1-4: No limitation

Must follow the basic requirements of SEC. 40% foreign equity limitations.

Promotion and provision of information about the services/products offered by a foreign bank

Market Access Mode 1: Commercial presence is required Mode 2-4: No limitation National Treatment Modes 1-4: No limitation

Subject to 40% foreign equity limitations.

Securities Dealership/ Brokerage • Trading for own

account or for account of customers, whether in an

Market Access Mode 1: Commercial presence required Mode 2: No limitation Mode 3: Must be organized as a securities broker/dealer corporation or partnership. Must be a member of the stock

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exchange, in an over-the-counter market or otherwise, the following:

• Equities and its

derivative products such as warrants and options

• Transferable

securities

exchange. Membership is limited to 200. Underwriting is allowed only on best-efforts basis. Mode 4: No limitation National Treatment Modes 1-4: No limitation

Participation in issues of all kinds of securities, including underwriting and placement as agent (whether publicly or privately) and provision of services related to such issues

Market Access Mode 1: Commercial presence required Mode 2: No limitation Mode 3: Must be organized as a securities broker/dealer corporation or partnership. Must be a member of the stock exchange. Membership is limited to 200. Underwriting is allowed only on best-efforts basis. Mode 4: No limitation National Treatment Modes 1-4: No limitation

Performance of the functions of stock transfer agent such as but not limited to

Market Access Mode 1: Commercial presence is required

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monitoring the issuance and transfer of stock certificates

Mode 2: No limitation Mode 3: Must be organized either as a corporation or partnership with at least one certified public accountant duly licensed in the Philippines Mode 4: No limitation National Treatment Modes 1-4: No limitation

Transactions of an issuer primarily engaged in the business of investing, reinvesting or trading in securities

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Foreign equity bound at 40 per cent All members of the Board of Directors must be citizens of the Philippines Mode 4: No limitation National Treatment Modes 1-4: No limitation

Sale of contracts for the payment of benefits or performance of future services such as life, education, pension and internment plans

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Foreign equity bound at 40 percent Mode 4: No limitation National Treatment Modes 1-4: No limitation

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INSURANCE All sectors

Market Access Mode 3: The establishment of new insurance companies is subject to the approval of the Insurance Commission which determines whether public interest and economic conditions justify such establishment. Mode 4: Only aliens qualified to hold technical positions may be employed within the first five (5) years of operation of the enterprise, their stay not to exceed five (5) years upon entry. Each employed alien should have at least two (2) Filipino understudies Mode 3 and 4: Limitations listed in horizontal section shall also apply.

Market access: In 1994, maximum percentage of foreign ownership was increased to 100 percent with the issuance of Department of Finance Order 100-94 and 100-94A. Entry is allowed under any of the following modes:

• ownership of the voting stock of an existing domestic insurance or reinsurance company or intermediary;

• investment in a new insurance or reinsurance company or intermediary incorporated in the Philippines; or establishment of a branch. Entry under (c) is not available to an intermediary. An applicant may avail itself of only one mode of entry.

• Capital requirements vary depending on the line of business, degree of foreign ownership and mode of entry.

• Minimum capital requirements increase with the degree of foreign ownership.

Department of Finance Order Nos. 100-94 and 100-94A allowed the entry of foreign insurance or reinsurance companies to operate as a branch or where foreign equity in said company or intermediary was more than 40 percent within two years from the effectivity of the Orders. As a general rule, only the state-owned government insurance system may provide coverage for government-funded projects. A 1994 administrative order extended this policy to public and private build-operate-transfer (BOT) projects. Current regulations require all insurance/professional reinsurance companies operating in the Philippines to cede to the industry-owned National Reinsurance Corporation of the Philippines (NRCP) at least 10 percent of outward reinsurance placements. Qualified Non-Filipino citizens may be employed for

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technical positions only within the first five (5) years of operation of the enterprise, their stay not to exceed five (5) years upon entry. Non-resident aliens may be admitted to the Philippines for the supply of a service after a determination of the non-availability of a person in the Philippines who is competent, able and willing, at the time of application, to perform the services for which the alien is desired Foreign participation in the boards of insurance companies is also limited to a third of the seats, while foreigners are allowed to establish a commercial presence only as companies, and not as associations of underwriters. National Treatment The participation of foreign investors in the governing body of any corporation engaged in activities expressly reserved to citizens of the Philippines by law shall be limited to the proportionate share of foreign capital of such entities. Each employed non-Filipino citizen shall have at least two (2) Filipino understudies. All executive and managing officers must be citizens of the Philippines.

Life insurance as follows: • Ordinary • Group • Industrial • Health and

accident

Market Access Mode 1: Risks located in the Philippines should be insured with the companies authorized* to transact business in the Philippines Mode 2: Same as (1) above

Existing foreign companies are similarly situated with local companies except for land ownership. Foreign companies may not own land in the Philippines. New licenses to set up subsidiaries for foreign life insurance companies may be obtained from the IC subject to the usual satisfactory completion of required documents and appropriate capital. Capital requirements vary depending on foreign equity participation as shown below:

* Authorized means the company has been issued a license by the Insurance Commission to transact business in the Philippines.

25

• Annuities Mode 3: Subject to foreign equity limitation of 40 per cent Membership of aliens in the Board of Directors is limited to the extent of foreign equity participation Mode 4: No limitation National Treatment Modes 1 and 2: Unbound Mode 3-4: No limitations

Foreign Equity Paid-up capital Contributed Surplus Total at least 60% P250 mil P 50 mil P300 mil >40% - < 60% P150 mil P 50 mil P200 mil <= 40% P 75 mil P25 mil P100 mil

General Non-life, as follows: • Fire and allied

risks/earthquakes/shock/typhoon/floods/tidal wave

• Marine Ocean marine/inland marine/ marine hull/aviation

• Casualty motor car/ health and accident/ burglary/engineering miscellaneous

• Suretyship • Fidelity/surety

bonds

Market Access Mode 1: Risks located in the Philippines should be insured with the companies authorized* to transact business in the Philippines Mode 2: Same as (1) above Mode 3: Subject to foreign equity limitation of 40 per cent Membership of aliens in the Board of Directors is limited to the extent of foreign equity participation Mode 4: No limitation National Treatment Modes 1 and 2: Unbound Mode 3-4: No limitations

DEPARTMENT ORDER No. 31-01 Capital Requirements For an insurance company, a minimum paid-up capital of: a. P250 million and a contributed surplus fund of P50 million, where foreign equity is sixty percent (60%) or more; b. P150 million and a contributed surplus of P50 million, where foreign equity is more than forty percent (40%) but less than sixty percent (60%); c. P75 million and a contributed surplus fund of 25 million, where foreign equity is forty percent (40%) or less. For a reinsurance company, minimum paid-up capital of: a. P500 million, where foreign equity is sixty percent (60%) or more; b. P300 million, where foreign equity is more than forty percent (40%) but below sixty percent (60%) c. P150 million, where foreign equity in a new company

* Authorized means the company has been issued a license by the Insurance Commission to transact business in the Philippines.

26

incorporated in the Philippines is forty percent (40%) or less

Insurance auxiliary services as follows: • Actuarial

consultancies • Average

adjustors

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Subject to foreign equity limitation of 40 percent Membership of aliens in the Board of Directors is limited to the extent of foreign equity participation Mode 4: No limitation National Treatment Mode 1: Unbound Modes 2-4: No limitations

DEPARTMENT ORDER No. 31-01 Capital Requirements For an insurance company, a minimum paid-up capital of: a. P250 million and a contributed surplus fund of P50 million, where foreign equity is sixty percent (60%) or more; b. P150 million and a contributed surplus of P50 million, where foreign equity is more than forty percent (40%) but less than sixty percent (60%); c. P75 million and a contributed surplus fund of 25 million, where foreign equity is forty percent (40%) or less. For a reinsurance company, minimum paid-up capital of: a. P500 million, where foreign equity is sixty percent (60%) or more; b. P300 million, where foreign equity is more than forty percent (40%) but below sixty percent (60%) c. P150 million, where foreign equity in a new company incorporated in the Philippines is forty percent (40%) or less

Reinsurance/ Retrocession

Market Access Mode 1: Priority cessions to authorized insurance/reinsurance companies Foreign unauthorized reinsurers

DEPARTMENT ORDER No. 31-01 Capital Requirements For an insurance company, a minimum paid-up capital of: a. P250 million and a contributed surplus fund of P50 million, where foreign equity is sixty percent (60%) or

27

should be represented by resident agents duly registered with the Insurance Commission 10 per cent of total insurance cessions to foreign unauthorized reinsurers should be ceded to the National Reinsurance Corporation of the Philippines Mode 2: Same as (1) above Mode 3: Subject to foreign equity limitation of 40 percent Membership of aliens in the Board of Directors is limited to the extent of foreign equity participation Mode 4: No limitation National Treatment Modes 1-4: No limitations

more; b. P150 million and a contributed surplus of P50 million, where foreign equity is more than forty percent (40%) but less than sixty percent (60%); c. P75 million and a contributed surplus fund of 25 million, where foreign equity is forty percent (40%) or less. For a reinsurance company, minimum paid-up capital of: a. P500 million, where foreign equity is sixty percent (60%) or more; b. P300 million, where foreign equity is more than forty percent (40%) but below sixty percent (60%) c. P150 million, where foreign equity in a new company incorporated in the Philippines is forty percent (40%) or less

28

TOURISM AND TRAVEL RELATED SERVICES All subsectors

Foreigners can invest as much as 100% in almost all tourism activities pursuant to RA 7042 (Foreign Investments Act of 1991) as amended by RA 8179, except for restaurants and tourist transport which was limited to Philippine nationals pursuant to RA 1180 and the Philippine Constitution, respectively. A foreign corporation must first secure the necessary licenses or registrations from the appropriate government bodies. In the case of corporations or partnerships, the necessary incorporation papers from the Securities and Exchange Commission must first be obtained. In the case of single proprietorships, registration from the Department of Trade and Industry must be secured. While acquisition of land is limited to a maximum of 40% foreign ownership, foreigners can now lease land for as long as 75 years. Based on Republic Act 7652, lease agreements may be entered into with Filipino landowners. Lease period is 25 years, renewable for another 25 years. For tourism projects with project cost of $5 M or more, lease period can be 50 years, renewable for another 25 years Executive Order No. 63 grants the foreign investor a Special Investor�s Resident Visa (SIRV) for as long as the investment subsists. The E.O. also recognizes the right of the investor to remit earnings from his investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance. In case of liquidation, the investor is also allowed to repatriate the entire proceeds of the liquidation of the investment. Lastly, the right of succession is also recognized.

Tourism accommodation facilities

• Hotel

Market Access Mode 1: Unbound due to lack of technical feasibility

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2: No limitations

Omnibus Investments Code (Executive Order No. 226) authorizes the BOI to grant fiscal incentives to tourism enterprises engaged in the:

Development of Tourism Estates � a tourism estate is a

29

• Resort

• Pension house

• Tourist inn

• Apartel

Mode 2: No limitations Mode 3: Subject to foreign equity limitation of 40 per cent for pension house, tourist inn and apartel Mode 4: As a general rule, only citizens of the Philippines can be employed in tourism-oriented establishments. However, for hotels and resorts, aliens may be employed subject to the pertinent provisions of the Tripartite Agreement among the Department of Tourism, Department of Labor and Employment and the Bureau of Immigration, as follows:

i) Only hotels/resorts duly accredited by the Department of Tourism shall be allowed to engage the services of aliens

ii) Aliens may occupy a maximum of four (4) managerial positions in a hotel or resort establishment

iii) For new hotels or resorts, aliens required during the pre-operation stage and up to six (6) months after opening of the hotel/resort to the public may be employed

iv) The services of aliens may be engaged during special occasions/events such as food festivals, provided the service contract shall be limited to a period of three (3) months renewable for a maximum period of another three (3) months National Treatment Mode 1: Unbound due to lack of

Mode 3: Foreign equity of 60% is allowed for pension house, tourist inn, and apartels. Mode 4: As a general rule, only citizens of the Philippines can be employed in tourism-oriented establishments. However, for hotels and resorts, aliens may be employed subject to the provisions of the Tripartite Agreement among the Dept. of Tourism, Dept. of Labor and Employment, and Bureau of Immigration, as follows: i) Only hotels/resorts duly accredited by the Department of Tourism shall be allowed to engage the services of aliens

ii) Aliens may occupy a maximum of four (4) managerial positions in a hotel or resort establishment

iii) For new hotels or resorts, aliens required during the pre-operation stage and up to six (6) months after opening of the hotel/resort to the public may be employed

iv) The services of aliens may be engaged during special occasions/events such as food festivals, provided the service contract shall be limited to a period of three (3) months renewable for a maximum period of another three (3) months

National Treatment Mode 1: Unbound due to lack of technical feasibility

large tract of land with defined boundaries in any of the destinations identified in the Philippine Tourism Master Plan. The land should be suitable for the development of an integrated resort complex including accommodations, food and beverage outlets, convention, sports, and recreational centers, commercial outlets, among others. It must be provided with roads, water supply facilities, power supply, drainage and sewerage systems, and other necessary infrastructure. The estate must be located outside Metro Manila, at least 50 hectares, and under a unified continuous management.

Establishment of Tourist Accommodation Facilities � tourist accommodation facilities include hotels, resorts, inns, pensionnes, and special interest resorts outside Metro Manila. New projects can qualify for a pioneer status if they satisfy the following: Type of facility minimum project cost Less Developed Area Elsewhere (excluding Metro Manila) De Luxe/First Class Hotels US$50,000/room US$100,000/room Class AAA Resort US$5 M per resort US$10 M per resort

Projects not meeting the aforementioned prescribed minimum project cost may only be classified under a non-pioneer status.

Operation of Tourist Transport Facilities (Tourist Buses) � Application for registration should be accompanied by a proof of filing an application with the Land Transportation Franchising Regulatory Board (LTFRB). Buses must be brand new and suited to local conditions.

Expansion of Existing Tourist Accommodation Facilities � expansion projects shall be eligible for registration if they involve the addition of guestrooms exceeding 25% of existing facilities of a tourist accommodation facility and located outside Metro Manila.

Modernization/Rehabilitation of Tourist Accommodation

30

technical feasibility Modes 2-4: No limitation

Modes 2-4: No limitation Facilities � a modernization/rehabilitation program involves the upgrading/modification and/or restoration to the original condition of the facilities/structures/amenities of tourist accommodation facilities outside Metro Manila to conform with the classification requirements of the Department of Tourism. A project must entail a cost of at least Php 300,000.00 per room to qualify for a pioneer status

Speciality restaurants

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2: No limitation Mode 3: No foreign equity is allowed if the specialty restaurant is not part of the facilities of a hotel. Mode 4: Aliens may be employed in specialty restaurants subject to pertinent provisions of the Tripartite Agreement among the Department of Tourism, Department of Labor and Employment and the Bureau of Immigration, as follows: i) Only specialty restaurarants duly accredited with the Department of Tourism as well as those forming part of the integrated operation of accredited hotels/resorts may be allowed to engage the services of aliens;

ii) A specialty restaurant with a minimum of 75-seat capacity shall be allowed to employ one (1) alien Specialty Chef or Sous Chef. In the initial stage of operation of a specialty restaurant and for a maximum period of two (2) years, three (3) more alien specialty chefs or sous chefs may be

100% foreign equity is allowed for enterprise with paid-up capital above US $7.5 mil in the supply of meal serving services with full restaurant services, beverage serving services without entertainment and specialty restaurants

31

employed; and

iii) A specialty restaurant with a seating capacity of 500 or more may be allowed to employ three (3) additional aliens in any of the following positions: specialty chef, sous chef, food service manager or a combination of the above. National Treatment Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitation

Travel Agencies

Market Access Mode 1: Commercial presence is required Mode 2: No limitation Mode 3: Subject to foreign equity limitation of 40 percent Mode 4: Managers and executives must be resident Filipino citizens National Treatment Modes 1-4 No limitations

According to the Office of Tourism Standards, Office of Accreditation Division, Foreign investors are only allowed 40% equity, and the 60% must be shared with Filipinos. Full ownership is allowed provided that the capital needed in $200,000 and above.

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PROFESSIONAL SERVICES All sub-sectors

Market Access The State recognizes the important role of professionals in nation-building and, towards this end, promotes the sustained development of a reservoir of professionals whose competence has been determined by honest and credible licensure examinations and whose standards of professional service and practice are internationally recognized and considered world-class brought about by regulatory measures, programs and activities that foster professional growth and development.

Article XII, Sec. 14. of the Philippine Constitution provides that the practice of profession in the Philippines shall be limited to Filipino citizens save in cases prescribed by law. Fifth Regular Foreign Investment Negative List (E.O. 139, 2000) List A restricts foreign investment in certain sectors because of constitutional or legal constraints. For example, the practice of licensed professions in engineering, medicine and allied professions, accountancy, architecture, environmental planning, criminology, chemistry, customs brokerage, forestry, geology, interior design, landscape architecture, law, librarianship, marine deck officers, marine engine officers, master plumbing, sugar technology, social work, teaching, agriculture, and fisheries is fully reserved for Filipino citizens. Non-resident aliens may be admitted to the Philippines for the supply of a service after a determination of the non-availability of a person in the Philippines who is competent, able and willing, at the time of application, to perform the services for which the alien is desired. In activities expressly reserved by law to citizens of the Philippines (i.e., foreign equity is limited to a minority share), the participation of foreign investors in the governing body of any corporation engaged in activities expressly reserved to citizens of the Philippines by law shall be limited to the proportionate share of foreign capital of such entities.

33

Only aliens qualified to hold technical positions will be allowed to be employed within the first five years of operation of the enterprise, their stay not to exceed five years upon entry. National Treatment R.A. 8182 requires that preference be given to Philippine citizens in the hiring of consultants and other professionals necessary for the implementation of projects funded by foreign assistance. R.A. 8555 gives the president of the Philippines the authority to waive this and other preferences applicable to the procurement of goods and services funded with foreign assistance. Article 40 of the Labor Code, as amended, provides that: "Any alien seeking admission to the Philippines for employment purposes and any domestic or foreign employer who desires to engage an alien for employment in the Philippines shall obtain an employment permit from the Department of Labor and Employment. The employment permit may be issued to a non-resident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired." Republic Act No, 5181 requires three (3) years of residence in the Philippines before a foreigner can practice his profession

Legal Services

Unlisted

Unlisted

Market Access Foreign law firms are prohibited from opening branch offices. No foreign ownership or control of a local partnership engaged in practice of profession. Conditions for Firm Name Use: Firm name should be those of Filipino lawyers Foreign lawyers in the Philippines prohibited from practicing local law; may act as international counsel in local deals. Foreign legal consultants restricted to advising on, foreign law.

34

National treatment Bar Membership is not granted to foreigners

Engineering • Civil

Engineering • Electrical

Engineering • Geodetic

Engineering • Mechanical

Engineering • Mining

Engineering • Sanitary

Engineering

Unlisted

Market Access Mode 1 & 2. None Mode 3. For corporations: • No corporate practice is

allowed • For partnership, firm or

association: • All partners/members must be

licensed/registered with the • respective Board/PRC Mode 4. Registration of foreign professionals may be authorized by the Professional Regulatory Board (Concerned public/private agencies, organizations/ individuals who secure services of foreign professionals authorized by law shall be responsible for securing special permit from the PRC and the DOLE) under the following conditions: • Registration/licensing

requirements in the foreigners state/country are the same as those in the Philippines

• Filipino professionals are allowed to practice in and are granted the same privileges as those enjoyed by subjects/citizens of the foreigners country

• Under reciprocity provisions and other international agreements

• Under consultancy services in foreign-funded, joint venture or foreign-assisted projects of

In general no foreign engineer shall be admitted to take a board examination, be given a certificate of Registration, or be entitled to any of the rights and privileges under this Act unless the country of which he is a subject or a citizen specifically permits Filipino engineers to practice within its territorial limits on the same basis as the subjects or citizens of such country. (Section 38, RA No. 7920) Civil Engineering: No person who is not a citizen of the Philippines at the time he applies to take the examination shall be allowed to take it unless he can prove in the manner provided by the Rules of Court that, by specific provision of law, the country of which he is a citizen, subject or national either admits citizens of the Philippines to the practice of the same profession without restriction or allows them to practice it after an examination on terms of strict and absolute equality with citizens, subjects or nationals of the country concerned, including the unconditional recognition of degrees issued by institutions of learning duly recognized for the purpose by the Government of the Philippines: Provided, That if he is not a citizen of the Philippines, and was admitted to the practice of a profession in the Philippines after December 8, 1941, his active practice in that profession, either in the Philippines or in the state or country where he was practicing his profession, shall not have been interrupted for a period of two years or more prior to July 4,1946, and that the country or state from which he comes allows the citizens of the Philippines by specific provision of law, to practice the same profession without restriction or on terms of strict and absolute equality with citizens, subjects or nationals of the country or state concerned.(Section 25, RA No. 1582)

Registration shall not be required of the following persons:

35

government • Employees of

Philippine/foreign private firms/institutions pursuant to law

National Treatment Modes 1-4: Unbound

a. Officers or enlisted men of the United States and Philippine Armed Forces, and civilian employees of the Government of the United States stationed in the Philippines while rendering civil engineering services for the United States and/or Philippines.

b. Civil engineers or experts called in by the Philippine Government for consultation, or specific design and construction of fixed structures as defined under this Act, provided that their practice shall be limited to such work

Exemption from Examination and Registration

Examination and registration shall not be required of foreign electrical engineers, erection/commissioning/guarantee engineers employed as technical consultants by the Philippine government or by private firms, for which the pertinent professional society certifies that no qualified Filipino professional is available, or foreign electrical installers for the erection and installation of a special project or for any other specialized work, subject to the following conditions:

i. That the above-mentioned foreign professionals are legally qualified to practice their profession in their own country in which the requirements are qualifications of obtaining a license or certificate of registration are not lower than those specified in this Act;

ii. That the scope of work to be performed by said foreign professionals shall be limited only to the particular work for which they were contracted;

iii. That prior to commencing work, the foreign professional shall secure a special permit from the PRC;

iv. That said foreign professional shall not engage in private practice on their own account;

v. That for every foreign professional contracted pursuant to this section, one Filipino understudy

36

who is registered under the provisions of this Act shall be employed by the private firm utilizing the services of such foreign professional for at least the duration of the alien expert�s tenure with said firm: and

vi. That the exemption herein granted shall be good only for six(6) months; renewable for another six(6) months at the discretion of the Board: Provided, That in case the foreign professional ceases to be employed in accordance with this section and engages in an occupation requiring registration as electrical engineer, such professional must be registered under the provisions of this Act.

Electrical Engineering: RA 7920. New Electrical Law, Sec 14. a. Examination and registration shall not be required of foreign electrical engineers, erection/commissioning guarantee engineers employed as technical consultants by the Philippine government or by private firms, for which the pertinent professional society certifies that no qualified Filipino professional is available, or of foreign electrical installers for the erection and installation of a special project or for any other specialized work, subject to the following conditions: i. � foreign professionals are legally qualified to practice their profession in their own country in which the requirements� are not lower than those specified in this Act; ii. That the scope of work to be performed by said foreign professionals shall be limited only to the particular work for which they were contracted; iii. That prior to commencing work, the foreign professional shall secure a special permit from the PRC; iv. The foreign professional shall not engage in private practice on their own account; v. That for every foreign professional contracted pursuant to this section, one Filipino understudy who is registered under the provisions of this act shall be employed by the private firm utilizing the services of such foreign professional for at least the duration of the alien expert�s tenure with said firm; and

37

vi. That the exemption herein granted shall be good only for six months; renewable for another six months at the discretion of the Board� Sec. 35. Practice Not Allowed for Firms and Corporations The practice of electrical engineering is a professional service admission to which is based on individual or personal qualifications. Hence no firm or corporation may be registered or licensed as such for the practice of electrical engineering. However, persons properly qualified and licensed as professional electrical engineers may, among themselves, form a partnership association and collectively render electrical engineering service. Individual members of such partnerships or associations shall be responsible for their own respective acts. Sec. 38. Foreign Reciprocity No foreign engineer shall be admitted to take a board examination, be given a certificate of registration, or be entitled to any of the rights and privileges under this act unless the country of which he is a subject or citizen specifically permits Filipino engineers to practice within its territorial limits on the same bases as the subjects or citizens of such country.

Geodetic engineering: No foreigner shall be admitted to examination or registration as geodetic engineer under this Act unless he proves in the manner provided for by the Rules of Court that, by specific provisions of law, the country of which he is a citizen, subject or national, admit Filipino citizens to the practice of geodetic engineering after an examination on terms of strict and absolute equality with the citizens, subjects or national of said country, including the unconditional recognition or prerequisite degrees issued by institutions of learning duly recognized by the Government of the Philippines. (Section 31, RA No. 4374) Mechanical Engineering R.A. 8495. An Act Regulating the Practice of Mechanical Engineering in the Philippines

38

Sec. 14. Qualifications of Applicants for Professional Mechanical Engineer; and Sec. 15 Qualifications of Applicants for Mechanical Engineer; �Any applicant must be a citizen of the Philippines� (this provision is not included in the qualifications of applicants for certified plant mechanic) Sec. 31. Coverage of Temporary/Special Permits The following shall be required to secure a temporary/special permit from the board� a) Mechanical engineers, installation, commission or graduate engineers from other countries called in for consultation or for a specific design or installation project not requiring more than three months residence in the Philippines in a twelve month period: provided, that such engineers are legally qualified to practice mechanical engineering in their own country� b) Foreigners employed as technical officers, training officers or consultants in such special branches of mechanical engineering who, in the judgment of the Board, are necessary and advantageous for the country particularly in the aspects of technology transfer, may be issued temporary permits: provided� 1) Non-availability of a mechanical engineer and/or mechanic in the country who is competent, able and willing at the time of engagement to perform the service for which the foreigner is desired for; 2) The foreigner must have been in the prior employ of the engaging firm, or its foreign business partner, outside of the Philippines for a period of less than one year immediately preceding the date of his engagement� Sec. 39. Foreign Reciprocity No foreign mechanical engineer or mechanic shall be allowed to practice� unless he can prove� that the country of which he is a subject or citizen, in the spirit of reciprocity, permits Filipino mechanical engineers and/or mechanics to practice within its territorial limits on the same basis�

Electronics and Communications Engineering

Unlisted Market Access

Mode 1: None Mode 2: None

The mechanism to take account of qualifications, experience, expertise acquired by foreign professionals in another economy is the provision on reciprocity. Under R.A. No. 5734, "The Electronics and Communications Engineering Act of the Philippines"

39

Mode 3: For corporations: • No corporate practice is

allowed • For partnership, firm or

association: • All partners/members must be

licensed/registered with the respective Board/PRC

Mode 4: Registration of foreign professionals may be authorized by the Board of Electronics and Communications Engineering (Concerned Public/private agencies, organizations/individuals who secure Services of foreign professionals authorized by law shall be responsible for securing special permit from the PRC and the DOLE) under the following conditions: • Registration/licensing

requirements in the foreigners state/country are the same as those in the Philippines

• Filipino professionals are allowed to practice in and are granted the same privileges as those enjoyed by subjects/citizens of the foreigners country

• Under reciprocity provisions and other international agreements

• Under consultancy services in foreign-funded, joint venture or foreign-assisted projects of government

• Employees of Philippine/foreign private firms/institutions pursuant to law

National Treatment

Communications Engineering Act of the Philippines" specifically Section 23 on Foreign Reciprocity provides: "No foreigner shall be admitted to an examination or registration as electronics and communications engineer under this Act unless he proves in the manner as provided by the Board that, by specific provisions of law, the country, state or province of which he is a citizen, subject, or national admits Filipino citizens to the practice of electronics and communications engineering after an examination on terms of strict and absolute equality with the citizens, subjects, or national of said country, including the unconditional recognition of pre-requisite degrees issued by institutions of learning duly recognized by the Government of the Philippines.

40

Mode 1& 2: None Mode 3 & 4: Unbound

Interior Design Services

Unlisted Market Access

Mode 1 & 2: None Mode 3. For corporations: • No corporate practice is

allowed • For partnership, firm or

association: • Partners/members must be

registered/licensed professionals and firm should be registered with the Securities and Exchange Commission (SEC)

Mode 4: Special temporary permit is given to consultants in foreign funded/assisted projects of government or employed by Filipino/foreign contractors under the following conditions: • Citizens of countries which

permit Filipino professionals legally qualified to practice in their own countries and expertise is necessary

• Required to work with a reputable Filipino counterpart or firm that has been practicing interior design for ten years or more with corresponding sharing of fees/services/documentation/liabilities/taxes

National treatment Mode 1-4:Unbound

Under Republic Act No. 8534, an interior designer is a natural person who has been issued a certificate of registration and a valid professional license by the Board of Interior Design. Section 13. Qualifications of Applicant for Examination. - Every applicant for examination shall, prior to admission to the examination, establish to the satisfaction of the Board that: (a) He is a citizen of the Philippines; (b) He has not been convicted of any crime involving moral turpitude; and (c) He is a Bachelor of Interior Design or Master of Interior Design degree holder in a school, academy, institute, or college duly recognized by the government.

Section 29. Foreign Reciprocity.- No foreign interior designer shall be issued a temporary license to practice the interior design profession or consultancy thereof or be entitled to any of the rights and privileges under this Act unless the country of which he is a subject or citizen specifically permits Filipino interior designers to practice within its territorial limits on the same basis as the subjects or citizens of such foreign state or country.

Section 30. Coverage of Temporary/Special Permits.- Foreign nationals who have gained entry in the Philippines to perform professional services as interior designers or consultants in foreign-funded or assisted projects of the government, or employed or engaged by Filipino or foreign contractors or private firms, shall, before assuming his duties, functions and responsibilities as interior designer or consultant, secure a special temporary permit from the Professional Regulation Commission through the Board of Interior Design, to practice his profession in connection with the project to which he was commissioned: Provided, That certain conditions are satisfied as follows:

41

(a) That he is a citizen or subject of a country

which specifically permits Filipino professionals to practice his profession within their territorial limits, on the same basis as the subjects or citizens of such foreign state or country;

(b) That he is legally qualified to practice interior

design in his own country, and that his expertise is necessary and advantageous to our country particularly in the aspects of technology transfer and specialization; and

(c) Foreign nationals shall be required to work

with a Filipino counterpart and professional fees and services, and expenses of documentation pertaining to the project shall be shared by both foreign and Filipino interior designers, including liabilities and taxes due to the Philippine government, if any, according to their participation in, or professional services rendered to, the project.

Accounting

Unlisted

Market Access Modes 1 and 2: No limitations Mode 3: For corporations: • No corporate practice of

accountancy is allowed • For partnerships or firms

(individuals) • Must be registered with the

Board of Accountancy/Professional Regulation Commission (PRC)

• All partners and staff members must be Certified Public Accountants (CPAs) registered with the Board of Accountancy/PRC

Mode 4: Upon recommendation of the Board of Accountancy, PRC shall approve registration with or without examination of a foreigner

Market Access: The practice of accountancy shall be limited to the Filipinos citizens. No foreign accountant shall be admitted to examination, be given a certificate of registration or be entitled to any of the rights or privileges under the Board of Accountancy law unless the country of which he is a citizen specifically permits Filipino accountants to practice within its territorial limits on the same basis or citizens of such country. Article 40 of the Labor Code: �The employment permit may be issued to a non-resident alien or to the applicant employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired." There are no automatic recognition or mutual recognition agreements between the professional bodies and their counterparts in other economies.

42

without examination of a foreigner registered under laws of his country and whose certificate of registration issued by the foreign country has not been suspended or revoked; provided that requirements for registration or licensing in the country of the foreigner are substantially the same as those of the Philippines, and laws of such country allow Filipino citizens to practice the profession on the same basis and enjoy the same privileges as its citizens. Upon recommendation of the Board of Accountancy, PRC may authorize the issuance of certificate of registration or special temporary permit to: • A consultant in foreign-funded,

joint venture, or foreign-assisted projects of the government, or

• An employee of Philippine or foreign firms pursuant to law.

• Agencies organizations, or professionals whether public or private, who secure the services of the foreigner shall be responsible for obtaining a special permit from PRC and the Department of Labor and Employment (DOLE).

National Treatment Modes 1-4: Unbound

National Treatment The entry and stay of professionals are subject to the labor market tests and other restrictions. Republic Act No. 5181 requires three (3) years of residence in the Philippines before a foreigner can practice his profession.

Architectural services

Unlisted

Market Access Mode 1-2:No limitations Mode 3: For corporations: • No corporate practice is

ll d f t hi fi

No person who is not a citizen of the Philippines at the time he applies to take the examination to qualify as Registered Architects shall be allowed to take it unless he can prove in a manner provided by the Rules of Court that, by specific provision of law, the country of which he is a citizen, subject, or national either admits

43

allowed for partnership, firm or association:

• Partners/members must be registered with/licensed by the Board of Architecture/ PRC

Mode 4: Registration of foreign professionals may be authorized by the Professional Regulatory Board under the following conditions: • Registration/licensing

requirements in the foreigners state/country are the same as those in the Philippines

• Filipino professionals are allowed to practice in and are granted the same privileges as those enjoyed by subjects/citizens of the foreigners country

• Under reciprocity provisions and other international agreements

• Under consultancy services in foreign-funded, joint venture or foreign-assisted projects of government

• Employees of Philippine/foreign private firms/institutions pursuant to law

• Concerned public/private agencies, organizations/individuals who secure services of foreign professionals authorized by law shall be responsible for securing special permit from the PRC and the DOLE.

National treatment Mode 1-2: No limitations Mode 3-4:Unbound

citizens of the Philippines to the practice of the same profession without restriction or allows them to practice it after an examination on terms of strict and absolute equality with citizens, subjects, or nationals of the country concerned including the unconditional recognition of degrees issued by institution of learning duly recognized for the purpose by the Government of the Philippines: Provided, That if he is not a citizen of the Philippines, and was admitted to the practice of the profession in the Philippines after December 8,1941, his active practice in that profession either in the Philippines or in the state or country where he was practicing his profession, shall not have been interrupted for a period of two years or more prior to July 4,1946, and that the country or state from which he comes allows the citizens of the Philippines by specific provision of law, to practice the same profession without restriction or on terms of strict and absolute equality with citizens, subjects or nationals of the country or state concerned. (Section 35, RA No. 545) No architect shall be admitted to examination, be given a certificate of registration or be entitled to any of the rights or privileges under the Architecture Law unless the country of which he is a citizen specifically permits Filipino architects to practice within its territorial limits on the same basis or citizens of such country (Section 42 CA 294 on Foreign Reciprocity ).

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Landscape Architectural Services

Unlisted

Market Access Mode 1-2: No limitations Mode 3: For corporations: • No corporate practice is

allowed • For partnerships: • 80% of professionals

(architects, planners, engineers) should be registered/licensed by PRC and registered with the Securities and Exchange Commission

Mode 4: Registration of foreign professionals may be authorized by the Professional Regulatory Board under the following conditions: • Registration/licensing

requirements in the foreigners state/country are same as those in the Philippines

• Filipino professionals are allowed to practice in and are granted the same privileges as those enjoyed by subjects/citizens of the foreigners country

• Under reciprocity provisions and other international agreements

• Under consultancy services in foreign-funded, joint venture or foreign-assisted projects of government

• Employees of Philippine/foreign private firms/institutions pursuant to law

• Concerned public/private agencies,

Under REPUBLIC ACT NO. 9053, “Landscape Architect" is a natural person qualified to practice Landscape Architecture and who has been issued a valid certificate of registration/professional license and a valid professional identification card as such by the Board of Landscape Architecture created under this Act and the Professional Regulation Commission. All applicants for registration for the practice of Landscape Architecture shall be required to undergo and pass a written technical examination, part of the qualifications of Applicant for Examination is that Every applicant for examination shall, prior to admission, be a citizen of the Philippines or a citizen of a foreign country/state with which the Philippines has reciprocity in the practice of Landscape Architecture; Sec. 29. Foreign Reciprocity. - No foreign Landscape Architect shall be registered and issued a certificate of registration/professional license to practice the Landscape Architecture profession or consultancy thereof or be entitled to any of the rights and privileges under this Act unless the country of which he/she is a subject or citizen specifically permits Filipino Landscape Architects to practice within its territorial limits on the same basis as the subjects or citizens of such foreign state or country. Sec. 30. Coverage of Temporary/Special Permits. - Foreign nationals who have gained entry in the Philippines to perform professional services as Landscape Architects or consultants in foreign-funded joint venture or assisted projects of the government, or employed or engaged by Philippine or foreign contractors or private firms shall, before assuming his duties, functions and responsibilities, secure a special/temporary permit from the Board, subject to the approval by the Commission, and the Department of Labor and Employment (DOLE) to practice his/her profession in connection with the project to which he/she was commissioned, provided that certain conditions are satisfied as follows:

(a) That he/she is a citizen or subject of a country which specifically permits Filipino professionals to practice his/her profession within its territorial

45

organizations/individuals who secure services of foreign professionals authorized by law shall be responsible for securing special permit from the PRC and the DOLE.

National Treatment Modes1-2: No limitations Modes 3-4: Unbound

to practice his/her profession within its territorial limits on the same basis as the subjects or citizens of such foreign country or state;

(b) That he/she is legally qualified to practice Landscape Architecture in his/her own country, and that his/her expertise is necessary and advantageous to our own country particularly in the aspects of technology transfer and specialization;

(c) Foreign nationals shall be required to work with a Filipino counterpart, and professional fees, services, and expenses of documentation pertaining to the project shall be shared by both. Foreign and Filipino Landscape Architects shall jointly and severally bear all liabilities and taxes due the Philippine Government. if any, according to their participation in, or professional services rendered to the project; and

(d) That he/she shall obtain an employment permit from the Department of Labor and Employment: Provided, That the employment permit may be issued to a non-resident alien or to the applicant-employer after a determination of the non-availability of a person in the Philippines who is competent, able and willing at the time of application to perform the services for which the alien is desired: Provided, further, That the applicant's country of nationality observes reciprocal conditions for Filipino nationals

Environmental (Urban Planning) Planning Services

Market Access Modes 1 and 2: No limitations. Mode 3: Partnerships/corporations practice are allowed provided 75% of partners/directors are registered Environmental Planners with the Board of Environmental Planning and the Professional Regulation Commission. Mode 4: Registration of foreign professionals may be authorized

Under Presidential Decree No. 1308, No person shall practice or offer to practice environmental planning in the Philippines without having obtained the proper certificate of registration from the Board. Qualifications include that he must be at least twenty-one (21) years of age and he must be a Filipino citizen. P.D. 1308. Sec. 16. Qualification for Examination Any person applying for admission to the environmental planning examination� must be a citizen of the Philippines. Sec 20. Consulting Firms and Corporations Engaged in

46

by BEP (concerned public/private agencies, organizations/individuals who secure services of foreign professionals authorized by law, to be responsible for securing special permit from PRC and Department of Labor and Employment (DOLE) under the following conditions : • Registration/licensing

requirements in foreign state/country are the same as those in the Philippines

• Filipino professionals are allowed to practice and are granted same privileges as

those enjoyed by subject/citizens of such foreign country • Under reciprocity provisions

and other international agreements

• Under consultancy services in foreign-funded, joint venture

National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

Environmental Planning Practice A consulting firm, partnership, company corporation, or association may engage in the active of environmental planning I the Philippines, provided: a) the consulting firm is registered with the board and approved by the PRC, and that at least 75% of the board membership of the board shall be registered environmental planners and at least 75% of total capitalization is owned by them.

Rental/Leasing services without operators • Relating to

ships

Market Access Modes 1-2: No limitations Mode 3: Bareboat charter or lease contract subject to approval by the Maritime Industry Authority (MARINA) Mode 4: No limitation National Treatment Modes 1-4: No limitations

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• Relating to

aircraft

Market Access Modes 1-2: No limitations Mode 3: Lease contract subject to approval by the Civil Aeronautics Board Mode 4: No limitation National Treatment Modes 1-4: No limitations

Convention services

Market Access Mode 1: Unbound due to lack of technical feasibility Mode 2: No limitation Mode 3: Subject to foreign equity limitation of 40 per cent Mode 4: No limitation National Treatment Mode 1: Unbound due to lack of technical feasibility Modes 2-4: No limitations

Up to 40% equity is allowed, convention services still based on the Philippine Foreign Investment Act.

Consultancy services related to the installation of computer hardware

Unlisted

Market Access Modes 1 and 2: No limitations. Mode 3: Subject to 40% foreign equity limitation. Mode 4: Unbound. National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

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Software implementation service

Unlisted

Market Access Modes 1 and 2: No limitations. Mode 3: Subject to 40% foreign equity limitation. Mode 4: Unbound. National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

Data base services

Unlisted

Market Access Mode 1: Subject to commercial arrangements with licensed telecommunications companies Mode 2: No limitation. Mode 3: Subject to 40% foreign equity limitation. Mode 4: Unbound. National Treatment Modes 1 and 2: No limitations Mode 3 and 4: Unbound

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DISTRIBUTION SERVICES Retail Trade

Unlisted

Unlisted

Market Access: RA 8762 (Retail Trade Liberalization Act of 2000) opened up the Philippine retail industry to encourage Filipino and foreign investors to forge an efficient and competitive retail trade sector in the interest of empowering the Filipino consumer through lower prices, higher quality if goods, better services and wider choices. It provides for four major qualifications for a foreign retailer before being allowed to do business in the country. These include:

a. A minimum of US$200 million net worth in its parent corporation for Categories B and C, and $50 million net worth in its parent corporation for Category D;

b. Five retailing branches or franchises in operation anywhere around the world unless such retailer has at least one (1) store capitalized at a minimum of $25 million;

c. Five (5) year track record in retailing; and

d. Only nationals from, or juridical entities formed or incorporated in countries which allow the entry of Filipino retailers, shall be allowed to engage in retail trade in the Philippines.

It allows the entry of foreign investments in the retail trade sector subject to the following categories:

A � Enterprises with paid-up capital of less than US$2.5 million shall be reserved exclusively for Filipino citizens and corporations wholly owned by such;

B � Enterprises with a minimum paid-up capital of US$2.5 million but less than US$7.5 million may be wholly owned by foreigners except for the first two years after the effectivity of the law wherein foreign participation shall be limited to not more than 60%. On the third year, 100% ownership will be allowed;

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C � Enterprises with a paid-up capital of US$7.5 million or more may be wholly owned by foreigners, provided that in no case shall the investments for establishing a store in Categories B and C be less than US$830,000; and

D � Enterprises specializing in high-end or luxury products with a paid-up capital of US$250,000 per store may be wholly owned by foreigners.

Qualified foreign retailers shall not be allowed to engage in certain retailing activities outside their accredited stores through the use of mobile or rolling stores or carts, the use of sales representatives, door-to-door selling, restaurants and sari-sari stores and such other similar retailing activities. The opening of branches/stores by the registered foreign retailer shall be allowed, provided that the investments for each branch/store established by registered foreign retailers falling under Categories B and C must be no less than US$830,000. National Treatment: RA 8762 requires that only nationals from, or juridical entities formed or incorporated in countries that allow the entry of Filipino retailers shall be allowed to engage in retail trade in the Philippines. Reciprocity Rights is practiced in the Philippine retail trade, a relation between two states when each of them, by their respective laws or by treaty, gives the citizens or nationals of the other certain privileges, as in the undertaking of retail trade activities, on condition that its own citizens or nationals shall enjoy similar privileges in the latter state.

Wholesale trade

Unlisted

Unlisted

Under the Foreign Investment Act of 2002, 100% market access is allowed as long as there is a minimum paid up capital of $200,000. Foreign companies have to file an application with the Securities Exchange Commission (SEC).

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HEALTH SERVICES Medicine and Allied Professions • Medicine • Medical

Technology • Dentistry • Midwifery • Nursing • Nutrition and

Dietetics • Optometry • Pharmacy • Physical and

Occupational Therapy

• Radiologic and X-ray Technology

• Veterinary Medicine

Unlisted

Unlisted

RA 7042 as amended by RA8179: No foreign equity under List A of Foreign Investments negative List Section 7(j) of RA8981 allows foreign nationals to work in the country provided that they are health professionals engaged in humanitarian mission for a limited period of time. Foreigners are allowed to provide medical services only if they are in consultation with the Philippine government, if they have a special project with the Philippine government, they are on a medical mission, they are covered by an international agreement of if their country accords the same rights to Filipinos. Under Republic Act No. 2382 or the Medical Act of 1959 Art III, Section 8. Prerequisite to the Practice of Medicine.- No person shall engage in the practice of medicine in the Philippines unless he is at least twenty-one years of age, has satisfactorily passed the corresponding Board of Examination and is a holder of a valid Certificate of Registration duly issued to him by the Board of Medical Examiners. And Section 9. Candidates for Board Examinations.- Candidates for Board examinations shall have the following qualifications, among others: He shall be a citizen of the Philippines or a citizen of any foreign country who has submitted competent and conclusive documentary evidence, confirmed by the Department of Foreign Affairs,9 showing that his country�s existing laws permit citizens of the Philippines to practice medicine under the same rules and regulations governing citizens thereof. Art III, Section 12, c, Certificates of registration shall not be required of foreign physicians employed as exchange professors in special branches of medicine or surgery whose service may, upon previous authorization of the Board of Medical Examiners.13 Medical students who have completed the first four year of medical course, graduates of medicine and registered nurses who may be given limited and special authorization by the Secretary of Health14 to render services during epidemics or national emergencies

52

whenever the services of duly registered physicians are not available. Such authorization shall automatically cease when the epidemic or national emergency is declared terminated by the Secretary of Health. For Medical Technology : Under Republic Act No. 5527Section 14. Inhibition Against the Practice of Medical Technology.- No person shall practice or offer to practice medical technology as defined in this Act without having previously obtained a valid certificate of registration from the Board provided that registration shall not be required of the following: a. Duly registered physicians. b. Medical technologist from other countries called in for consultation or as visiting or exchange professors to colleges or universities: Provided, they are only practicing the said function. c. Medical technologists in the service of the United States Armed Forces stationed in the Philippines rendering services as such for members of the said forces only. Section 27. Foreign Reciprocity.- No foreigner shall be admitted to examination, or be given a certificate of registration or be entitled to any of the rights and privileges under this Act, unless the country or state of which he is a subject or citizen permits Filipino Medical Technologist to practice within its territorial limits on the same as the subject or citizens of said country or state. For Dentistry: Under Republic Act No. 4419 Section 17. Qualifications for Admission to Examination. - In order to be admitted to the licensure examination for dentists, an applicant must, at the time of filing his application thereof, establish to the satisfaction of the Board that: he is a citizen of the Philippines; For Midwifery : Republic Act No. 7392Section 13. Prerequisite and Qualifications of Applicants for Examination.- In order to be admitted to the midwifery examination, an applicant shall, at the time of filing of his/ her application therefor, establish to the satisfaction to the Board that he/she: (a) is in good health and of good moral character; and (b) is a graduate of midwifery in a government recognized and duly accredited institution. At the time of the issuance of a certificate of registration, the applicant shall be a citizen of the Philippines and at least eighteen (18) years of age.

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Section 22. Foreign Reciprocity.- No midwife who is a citizen, subject or national of a foreign country shall be granted any of the rights and privileges under this Act unless he or she shows to the satisfaction of the Board that the country of which he or she is a citizen, subject of national, permits within its territorial limits on the same basis as the citizen, subject or national of such country: Provided, That, the requisites for admission to midwifery school and for graduation in said country are substantially the same as those in this country. For Nursing : Republic Act No. 7164: A person occupying supervisory or managerial positions requiring knowledge of nursing must be a Filipino or a former Filipino citizen who has officially declared his/ her intention to reacquire Filipino citizenship For Nutrition and Dietetics : Republic Act No. 2674 Section 18. Qualifications for Admission.- In order to be admitted to the examinations for nutritionist-dietitians, an applicant must, at the time of filing his or her application, establish to the satisfaction of the Board that: He or she is a citizen of the Philippines; For Optometry : Republic Act No. 8050Section 34. Foreign Reciprocity.- No foreigner shall be admitted to the optometric Board examinations unless he proves in the manner prescribed by the rules of Court that by specific provision of law, the country of which he is a citizen, subject or national, either admits Filipino citizens to the practice of optometry without restriction, or allows them to practice optometry after an examination on terms of strict and absolute equality with citizens, subjects or nationals of said country, including the unconditional recognition of prerequisite degrees prescribed by the Commission on Higher Education: Provided, however, That the Board, upon approval by the PRC, may grant a special permit to a foreign optometrist to practice the profession in this country whether or not reciprocity exists between his country and the Philippines and under such conditions as may be determined by the Board, if such foreigner is internationally known to be an outstanding expert in the profession or a well-known specialist in any of its branches, and that his services will promote the

54

advancement of the profession in the Philippines. The Board is also hereby authorized to prescribe, upon approval by the PRC, additional requirements or grant certain privileges to foreigners seeking registration in the Philippines if the same privileges are granted to or some additional requirements are required of citizens of the Philippines in acquiring the same certificate in his country. For Pharmacy : Republic Act No. 5921 Section 24. Prerequisite for the Practice of Pharmacy.- No person shall engage in the practice of pharmacy in the Philippines unless: (1) he is at least twenty-one years of age ; (2) has satisfactorily passed the corresponding examination given by the Board of Pharmacy ; (3) is a holder of a valid certificate for registration duly issued to him by said Board. For Physical and Occupational Therapy : Republic Act No. 5680Section 15. Qualifications of Applicants.- In order to be admitted to the physical therapists� examination or the occupational therapists� examination, as the case may be, an applicant must, at the time of the filing of his or her application, establish to the satisfaction of the Board that: a. He is a citizen of the Philippines, or if a foreigner, must prove that the country of which he is a subject or citizen permits Filipino physical therapists and occupational therapists to practice within its territorial jurisdiction on the same basis as the subjects or citizens of such country; For Radiologic and X-ray Technology : Republic Act No. 7431 For Veterinary Medicine: Republic Act No. 382 Section 5. A person is qualified to receive a license (1) who is over twenty-one years of age; (2) who is of good moral character and temperate habits; (3) who is graduated from a four-year high school or secondary school approved by the Department of Education3; (4) who has graduated from an accredited veterinary college; (5) who has passed an examination conducted by the Veterinary Examining Board4 to determine his fitness to receive a license; and (6) who is a citizen of the Philippines or who has made a declaration of

55

intention to become a citizen and has filed a petition for naturalization within thirty days after becoming eligible to do so.

EDUCATION SERVICES Teaching ! Primary

Education Services

! Secondary Education Services

! Higher Education Services

! Adult Education Services

! Other Education Services

Unlisted

Unlisted

RA 7042 as amended by RA8179: Up to 40% equity allowed for the ownership/ establishment and administration of educational institutions. (Art XIV sec 4 of the Constitution.) No foreign equity for the teaching profession under List A of Foreign Investments negative List Foreigners are allowed to provide education services only if they are in consultation with the Philippine government, if they have a special project with the Philippine government, they are on a mission, if they are covered by an international agreement of if their country accords the same rights to Filipinos. Under Republic Act No. 7836 Section 15. Qualification Requirements of Applicants.- No applicant shall be admitted to take the examination unless, on the date of filing of the application, he shall have complied with the following requirements: A citizen of the Philippines or an alien whose country has reciprocity with the Philippines in the practice of the teaching profession; Section 24. Registration by Reciprocity.- No teacher of a foreign nationality shall be admitted to the examination, or be given a certificate of registration or be entitled to any of the rights and privileges provided under this Act, unless the country or state of which he is a subject permits Filipino professional teachers to practice within its territorial limits on the same basis as subjects or citizens of said country or state: Provided, That the requirements of certification of teachers with the said foreign state or country are substantially the same as those required and contemplated under this Act: Provided, further, That the laws of such state or country grant the same privilege to Filipino professional teachers on the same basis as the subject or citizens of such foreign country or state.

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Note: 1. Horizontal commitments on Market Access (for all sectors) Mode 3: In Activities Expressly Reserved by Law to Citizens of the Philippines (i.e., foreign equity is limited to a minority share): The participation of foreign investors in the governing body of any corporation engaged in activities expressly reserved to citizens of the Philippines by law shall be limited to the proportionate share of foreign capital of such entities. All executive and managing officers must be citizens of the Philippines. All lands of the public domain are owned by the State. Only citizens of the Philippines or corporations or associations at least 60 per cent of whose capital is owned by such citizens may own land other than public lands and acquire public lands through lease. Foreign investors may lease only private-owned lands. Mode 4: Non-resident aliens may be admitted to the Philippines for the supply of a service after a determination of the non-availability of a person in the Philippines who is competent, able and willing, at the time of application, to perform the services for which the alien is desired. Only aliens qualified to hold technical positions were allowed to be employed within the first five years of operation of the enterprise, their stay not to exceed five years upon entry. 2. Horizontal commitments on National Treatment (for all sectors) Mode 3: Access to Domestic Credit - A foreign firm, engaged in non-manufacturing activities availing itself of peso borrowings, shall observe, at the time of borrowing, the prescribed 50:50 debt-to-equity ratio. Foreign firms covered are: a) partnerships, more than 40 per cent of whose capital is owned by non-Filipino citizens; and b) corporations, more than 40 per cent of whose total subscribed capital stock is owned by non-Filipino citizens. This requirement does not apply to banks and non-bank financial intermediaries. 3. MFN Exemptions for entry and temporary stay of natural persons supplying services (for all sectors) � a special visa category is provided for traders and investors of countries with which the Philippines has concluded treaties on entry rights for traders and investors. Under this special category, the labor market test is waived and simplified entry procedures are provided.