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PHILIPPINE FOREIGN INVESTMENT LAWS

This web page features the full text of
List B
of the
Fifth Regular Foreign Investment Negative List
of the
Foreign Investments Act of the Philippines.


 
 

FIFTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST 
[Executive Order No. 139 dated October 22, 2002]


LIST B:chanroblesvirtuallawlibrary
FOREIGN OWNERSHIP IS LIMITED
FOR REASONS OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALS
AND PROTECTION OF SMALL AND MEDIUM-SCALE ENTERPRISES

Up to Forty Percent (40%) Foreign Equity

    1.  Manufacture, repair, storage and/or distribution of products and/or ingredients requiring Philippine National Police (PNP) clearance:chanroblesvirtuallawlibrary
      a.  Firearms (handguns to shotguns), parts of firearms and ammunition therefor, instruments or implements used or intended to be used in the manufacture of firearms

      b.  Gunpowder

      c.  Dynamite

      d.  Blasting supplies

      e.  Ingredients used in making explosives:chanroblesvirtuallawlibrary

        i.  Chlorates of potassium and sodium

        ii.  Nitrates of ammonium, potassium, sodium barium, copper (11), lead (11), calcium and cuprite

        iii.  Nitric acid

        iv.  Nitrocellulose

        v.  Perchlorates of ammonium, potassium and sodium

        vi.  Dinitrocellulose

        vii.  Glycerol

        viii.  Amorphous phosphorus

        ix.  Hydrogen peroxide

        x.  Strontium nitrate powder

        xi.  Toluene

      f.  Telescopic sight, sniper scope and other similar devices
However, the manufacture or repair of these items may be authorized by the Chief of the PNP to non-Philippine nationals; Provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance (R.A. 7042 as amended by R.A. 8179)
    2. Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance;
     
      a.  Guns and ammunition for warfare
         
      b.  Military ordnance and parts thereof (e.g., torpedoes, depth charges, bombs, grenades, missiles)

      c.  Gunnery, bombing and fire control systems and components

      d.  Guided missiles/missile systems and components

      e.  Tactical aircraft (fixed and rotary -winged), parts and components thereof

      f.  Space vehicles and component systems

      g.  Combat vessels (air. land and naval) and auxiliaries

      h.  Weapons repair and maintenance equipment

      i.  Military communications equipment

      j.  Night vision equipment

      k.  Stimulated coherent radiation devices, components and accessories

      l.  Armament training devices

      m.  Others as may be determined by the Secretary of the DND

However, the manufacture or repair of these items may be authorized by the Secretary of National Defense to non-Philippine nationals; Provided that a substantial percentage of output, as determined by the said agency, is exported. Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance (R.A. 7042 as Amended by R.A. 8179).
    3  Manufacture and distribution of dangerous drugs (R.A. 7042 as amended by R.A. 8179)

    4.  Sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks posed to public health and morals (R.A. 7042 as amended by R.A. 8179)

    5.  All forms of gambling, e.g. race track operation (R.A. 7042 as amended by R.A. 8179)

    6.  Domestic market enterprises with paid-in equity capital of less than the equivalent of US$200,000 (R.A. 7042 as amended by R.A. 8179)

    7.  Domestic market enterprises which involve advanced technology or employ at least fifty (50) direct employees with paid-in-equity capital of less than the equivalent of US$100,000 (R.A. 7042 as amended by R.A. 8179)

Fifth Regular Foreign Investments Negative List (Executive Order No. 139)
ANNEX "A" - LIST A
ANNEX "B" - LIST B
 


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