Database

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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
"SELECT DISTINCT(post_id) FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'PH')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
[{"post_id":"86445"},{"post_id":"86446"},{"post_id":"86447"}]
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'impact' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'PH')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.1') OR\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.2')\n\t\t\t\t\t\t\t\t)"
"SELECT meta_value FROM prj_12_postmeta WHERE meta_key = 'score' AND\n\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'country' AND meta_value = 'PH')\n\t\t\t\t\t\t\t\tAND (\n\t\t\t\t\t\t\t\t\tpost_id IN (SELECT post_id FROM prj_12_postmeta WHERE meta_key = 'subchapter' AND meta_value = '1.3')\n\t\t\t\t\t\t\t\t)"
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

PHILIPPINES

Since April 1997
Since December 2015

Pillar Tariffs and trade defence measures applied on ICT goods  |  Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)

ITA Expansion Agreement (ITA II)
The Philippines is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods

PHILIPPINES

Reported in February 2018

Pillar Public procurement of ICT goods and online services  |  Indicator Exclusion from public procurement
Exclusion of foreign providers from public procurement
Foreign bidders are only eligible to participate when: (i) allowed under any treaty or international or executive agreement; (ii) the foreign bidder is a citizen, corporation or association of a country whose laws or regulations grant reciprocal rights to citizens, corporations, or associations of the Philippines; (iii) the goods sought to be procured are not available from local suppliers; or (iv) there is a need to prevent situations that defeat competition or restrain trade.
Coverage Horizontal

PHILIPPINES

Since October 2003, 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
Under Section 4.4 of Annex B the 2016 Implementing Rules and Regulations (IRR), foreign consultants must transfer their technology and knowledge to be eligible for public procurement contracts. This requirement mandates that "technology and knowledge transfer to the procuring entity shall be required in the provision of consulting services, where applicable." This provision has been in effect since the introduction of the first IRR in 2003 in Section 24.5.4.
Coverage Horizontal

PHILIPPINES

Since October 2003, 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
Sections 23.5.1.1 and 24.3.1 of the 2016 Implementing Rules and Regulations of Republic Act No. 9184 provide that partnerships, corporations, and joint ventures with at least 60% Filipino ownership are considered eligible bidders for public procurement of goods and services. However, the procurement of infrastructure projects is more restrictive, which can discourage foreign contractors from participating in digital infrastructure, such as cloud services. Foreign contractors (those with less than 75% Filipino ownership) are allowed only when provided for under any treaty or international or executive agreement or if they form a joint venture with local contractors (Subsection 23.4.2). These provisions have been in force since the first Implementing Rules and Regulations of 2003.
Coverage Horizontal

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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