SECOND
REGULAR INVESTMENT
NEGATIVE
LIST
[Pursuant
to Executive Order No. 362]
[Effective October 24, 1996]
LIST A:chanroblesvirtuallawlibraryFOREIGN
OWNERSHIP
IS LIMITEDBY MANDATE
OF
THE CONSTITUTION AND SPECIFIC LAWSNo Foreign
Equity
1. Mass
Media
except recording [Article XVI, Section 11 of the Constitution;
Presidential
Memorandum Order dated 04 May 1994].chanrobles virtual law library
2. Services
involving the practice of licensed professions save in cases prescribed
by law.chanrobles virtual law library
a.
Engineering
i.
Aeronautical Engineering
ii.
Agricultural Engineering
iii.
Chemical Engineering
iv. Civil
Engineering
v.
Electrical
Engineering
vi.
Electronics
and Communication Engineering
vii.
Geodetic
Engineering
viii. Mechanical
Engineering
ix.
Metallurgical
Engineering
x.
Mining
Engineering
xi. Naval
Architecture and Marine Engineering
xii.
Sanitary
Engineering
b. Medical
and
Allied Professions
i.
Dentistry
ii.
Medical Technology
iii.
Midwifery
iv. Nursing
v.
Nutrition
and Dietetics
vi.
Optometry
vii.
Pharmacy
viii. Physical
and
Occupational Therapy
ix.
Radiologic and X-ray Technology
x.
Veterinary
Medicine
c.
Accountancy
d.
Architecture
e.
Criminology
f.
Chemistry
g. Customs
Broker
h.
Environmental
Planning
i.
Forestry
j.
Geology
k. Interior
Design
l.
Landscape
Architecture
m. Law
n.
Librarianship
o. Marine
Deck Officer
p. Marine
Engine Officer
q. Master
Plumbing
r.
Sugar
Technology
s. Social
Work
t. Teaching
[Article XIV, Section 14 of the Constitution; Section 1 of R. A. No.
5181] 3. Retail
Trade
[Republic Act No. 1180]
4.
Cooperatives
[Chapter III, Article 26 of R. A. No. 6938]
5. Private
Security Agencies [Section 4 of R. A. No. 5487]
6.
Small-scale
Mining [Section 3 of R. A. No. 7076]
7.
Utilization
of marine resources in archipelagic waters, territorial sea, and
exclusive
economic zone [Article XII, Section 2 of the Constitution]
8.
Ownership,
operation and management of cockpits [Section 5 of Presidential Decree
No. 449]
9.
Manufacture,
repair, stockpiling and/or distribution of nuclear weapons [Article II,
Section 8 of the Constitution]
10.
Manufacture,
repair, stockpiling and/or distribution of biological, chemical and
radiological
weapons [Various treaties to which the Philippines is a signatory and
conventions
supported by the Philippines)1
_______________________
[1/
Domestic investments are also prohibited (Article II, Section 8 of the
Constitution; Convention/Treaties to which the Philippines is a
signatory)]
_______________________ Up to
Twenty-Five
Percent (25%) Foreign Equity
11. Private
recruitment, whether for local or overseas employment [Articles 27 of
Presidential
Decree No. 442]
12.
Contracts
for the construction and repair of locally-funded works except:
a.
Infrastructure/development
projects covered in Republic Act No. 7718, also known as the Expanded
BOT
Law; and
b.
Projects
which are foreign-funded or assisted and required to undergo
international
competitive bidding [Commonwealth Act 541 as amended by Presidential
Decree
No. 1594; Letter of Instructions No. 630; Republic Act No. 7718]
Up to Thirty
Percent (30%) Foreign Equity
13.
Advertising
[Article XVI, Section 11 of the Constitution]
Up to Forty
Percent (40%) Foreign Equity
14.
Exploration,
development and utilization of natural resources (Article XII, Section
2 of the Constitution)2
_____________
[2/
Full foreign participation is allowed through financial or technical
assistance
agreement with the President (Article XII, Section 2 of the
Constitution)]
___________________
15. Ownership
of private lands [Article XII, Section 7 of the Constitution; Chapter
5,
Section 22 of Commonwealth Act No. 141]
16. Operation
and management of public utilities [Article XII, Section 11 of the
Constitution;
Section 16 of Commonwealth Act No. 146]
17. Ownership/establishment
and administration of educational institutions [Article XIV, Section 2
of the Constitution]
18. Engaging
in the rice and corn administration [Presidential Decree No. 194]
19. Financing
companies regulated by the Securities and Exchange Commission [SEC]
[Section
6, Republic Act No. 5980]
20. Contracts
for the supply of materials, goods and commodities to government-owned
or controlled corporation, company, agency or municipal corporation
[Republic
Act No. 5183]
21. Contracts
for the construction of defense-related structure [e.g., land,
air,
sea and coastal defense, arsenals, barracks, depots, hangars, landing
fields,
quarters, hospitals] [Commonwealth Act No. 541]
22. Project
proponent and facility operator of a BOT project requiring a public
utility
franchise [Article XII, Section 11 of the Constitution; Section 2(a) of
R. A. No. 7718]
23. Private
domestic and overseas construction contracts [Republic Act No. 4566;
Section
14 of the Constitution]
LIST B:chanroblesvirtuallawlibraryFOREIGN
OWNERSHIP
IS LIMITEDFOR REASONS
OF SECURITY, DEFENSE, RISK TO HEALTH AND MORALSAND
PROTECTION
OF SMALL AND MEDIUM-SCALE ENTERPRISESUp to Forty
Percent (40%) Foreign Equity
1.
Manufacture,
repair, storage, and/or distribution of products and ingredients used
in
the manufacture thereof requiring Philippine National Police [PNP]
clearance:
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:
i.
Chlorate of potassium and sodium
ii.
Nitrates of ammonium 4vxc & 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
sights, sniperscope and other similar devices [Republic Act No. 7042] 2.
Manufacture,
repair, storage and/or distribution of products requiring Department of
National Defense [DND] clearance:
a. Guns and
ammunition for warfare
b. Nuclear
weapons and ordnance
c. Military
ordnance and parts thereof [e.g., torpedoes, mines,
depthcharger,
bombs, grenades, missiles]
d. Gunnery,
bombing and fire control systems and components
e. Guided
missiles/missile systems and components
f.
Tactical
aircraft (fixed and rotary-winged), components and parts thereof
g. Space
vehicles
and component system
h. Combat
vessels (air, land, naval) and auxiliaries
i.
Weapons
repair and maintenance equipment
j.
Military
communications equipment
k. Night
vision
equipment
l.
Stimulated
coherent radiation devices, components and accessories
m. Biological
warfare
components
n. Armament
training devices
[Republic Act No.
7042, as amended by R. A. No. 8179]
3. Manufacture
and distribution of dangerous drugs [Republic Act No. 7042, as amended
by R. A. No. 8179]
4. Sauna and
steam bathhouses, massage clinics and other like activities regulated
by
law because of risks they may impose to public health and morals
[Republic
Act No. 7042, as amended by R. A. No. 8179]
5. Other forms
of gambling, e.g., race track operation; racehorse
ownership/importation
[Republic Act No. 7042, as amended by R. A. No. 8179]
6. Domestic
market enterprises with paid-in equity of less than the equivalent of
US$200,000.00
unless they involve advance technology or they employ at least fifty
[50]
direct employees, the minimum paid-in capital will be reduced to US $
100,000.00.
[R. A. 7042, as amended by R.A. 8179]
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