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PHILIPPINES

Since October 2003, as amended in 2009, last amended in October 2016

Pillar Public procurement of ICT goods and online services  |  Indicator Other limitations on foreign participation in public procurement
Implementing Rules and Regulations of Republic Act No. 9184
Section 24.3.2 of the Implementing Rules and Regulations (IRR) of Republic Act No. 9184 specifies that, in cases where consulting services involve regulated professions, the individuals actually performing these services must be Filipino citizens and registered professionals, authorised by the appropriate regulatory body to practice the relevant professions and their associated fields. Although this provision was initially introduced in the 2003 IRR, it previously applied only to partnerships, corporations, and joint ventures. Under the 2009 IRR, however, the provision effectively prohibits foreign consultants from directly providing their professional services in these regulated areas.
Coverage Horizontal

PHILIPPINES

N/A

Pillar Public procurement of ICT goods and online services  |  Indicator Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC 752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
The Philippines is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA). However, the country has been an observer of the WTO GPA since 2019.
Coverage Horizontal

PHILIPPINES

Since February 1987

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
The Constitution of the Republic of the Philippines
Section 11 of Article XVI of the Constitution of the Republic of the Philippines mandates that the ownership and management of mass media must be restricted to Filipino citizens or corporations entirely owned and managed by Filipinos. In 2018, it was reported that the Philippine government revoked the operating licence of Rappler, one of the country’s leading news websites, alleging that the organisation had violated the constitutional provision restricting media ownership to Philippine citizens. As of September 2023, the appeal against this decision remained pending before the Court of Appeals.
Coverage Mass media

PHILIPPINES

Since June 2022
Since March 2000, as amended in December 2021
Since March 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List

Retail Trade Liberalization Act of 2000

Implementing Rules and Regulations of the Retail Trade Liberalization Act of 2000 as amended by Republic Act No. 11595
According to List A of the Twelfth Regular Foreign Investment Negative List and Section 5 of the Retail Trade Liberalisation Act, as amended by Republic Act No. 11595, foreign investment in small retail enterprises is restricted to Philippine nationals. Retail trade businesses with capital below USD 500,000 are exclusively reserved for Filipino citizens. In addition, Section 3 of Rule III of the Implementing Rules and Regulations of the Retail Trade Liberalisation Act explicitly stipulates that this limitation extends to foreign retailers operating solely through online platforms.
Coverage E-commerce sector
Sources

PHILIPPINES

Since June 1991, last amended in March 2022
Since June 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Foreign Investment Act of 1991 - Republic Act No. 7042

Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List
The Foreign Investment Act requires the publication of the Foreign Investment Negative List (FINL) every two years, which outlines sectors in which foreign investment is restricted. According to List B of the 2022 FINL, up to 40% foreign equity is allowed in micro and small domestic market enterprises with paid-in equity capital of less than the equivalent of USD 200,000 and micro and small domestic market enterprises that involve advanced technology or are endorsed as startup or startup enablers by state agencies; or those whose majority of direct employees are Filipinos provided that their Filipino employees should not be less than 15, and with a paid-in equity capital of less than the equivalent of USD 100,000.
Coverage Horizontal
Sources

PHILIPPINES

Since June 1991, last amended in March 2022
Since June 2022

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Maximum foreign equity share
Foreign Investment Act of 1991 - Republic Act No. 7042

Executive Order No. 175 Promulgating the Twelfth Regular Foreign Investment Negative List
The Foreign Investment Act requires the publication of the Foreign Investment Negative List (FINL) every two years, which outlines sectors in which foreign investment is restricted. According to List A of the 2022 FINL, advertising is limited to 30% foreign equity.
Coverage Advertising sector
Sources

PHILIPPINES

Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Nationality/residency requirement for directors or managers
Revised Corporation Code of the Philipines - Republic Act No. 11232
Section 4 of the Revised Corporation Code of the Philippines (RA 11232) mandates a residency requirement for select corporate officers, namely the treasurer and the secretary.
Coverage Horizontal

PHILIPPINES

Since February 2019

Pillar Foreign Direct Investment (FDI) in sectors relevant to digital trade  |  Indicator Commercial presence requirement for digital services providers
Revised Corporation Code of the Philipines - Republic Act No. 11232
Section 142 of the Corporations Act establishes that a foreign corporation applying for a license to transact business in the Philippines shall submit to the Commission the address, including the street number, of the principal office of the corporation in the country or State of incorporation; the name and address of its resident agent authorised to accept summons and process in all legal proceedings and all notices affecting the corporation, pending the establishment of a local office; and the place in the Philippines where the corporation intends to operate.
Coverage Horizontal

PHILIPPINES

Since June 1997

Pillar Intellectual Property Rights (IPRs)  |  Indicator Practical or legal restrictions related to the application process for patents
Republic Act No. 8293, prescribing the intellectual property code and establishing the intellectual property office, providing for its powers and functions, and for other purposes
According to Section 33 of the Republic Act No. 8293, an applicant who is not a resident of the Philippines must appoint and maintain a resident agent or representative in the Philippines upon whom notice or process for judicial or administrative procedure relating to the application for patent or the patent may be served.
Coverage Horizontal
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ITA: [{"meta_value":"0.00"}]

PHILIPPINES

ITA signatory? I II

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.51%
Coverage rate of zero-tariffs on ICT goods (%)
62.86%
Coverage: ICT goods

PAKISTAN

Reported in 2020

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Ban on online payments for the subscription of electronic media content
It is reported that in November 2020, the Pakistan government banned online payments from India for the subscription of electronic media content as part of the capabilities offered by the Pakistan Electronic Media Regulatory Authority Ordinance 2002. In practice, this restriction impacts the provision of electronic media content.
Coverage Indian online payments

PAKISTAN

Reported in 2023

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Low de minimis threshold
It is reported that the de minimis threshold, that is the minimum value of goods below which customs do not charge duties, is PKR 5,000 (approx. USD 20), below the 200 USD threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal

PAKISTAN

Since November 2020, as amended in October 2021

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Removal and Blocking of Unlawful Online Content (Procedure, Oversight and Safeguards) Rules 2021
According to Art. 7.6 of the Removal and Blocking of Unlawful Online Content (Procedure, Oversight and Safeguards) Rules 2021, "Significant Social Media Companies" shall: (i) appoint a grievance officer based in Pakistan; (ii) appoint a compliance officer (iii) establish an office in Pakistan with physical address preferably located in Islamabad. According to Art. 2 of the law, a Significant Social Media Company means and includes a Social Media Company with more than half a million users in Pakistan or is on the list specially notified by the Authority for this purpose from time to time
Coverage Internet intermediaries

PAKISTAN

N/A

Pillar Online sales and transactions  |  Indicator Framework for consumer protection applicable to online commerce
Lack of comprehensive consumer protection framework
Pakistan lacks a comprehesive framework for consumer protection that applies to online transactions. Nevertheless, several regional laws apply, including the Islamabad Consumer Protection Act (1995), the Khyber Pakhtunkhwa Consumer Protection Act (1997), the Balochistan Consumer Protection Act (2003), and the Punjab Consumers Protection Act (2005).
Coverage Horizontal

PAKISTAN

N/A

Pillar Online sales and transactions  |  Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Pakistan has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal

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