EXECUTIVE ORDER NO. 362
EXECUTIVE ORDER NO. 362 - SECOND
REGULAR FOREIGN INVESTMENT NEGATIVE LIST
WHEREAS, Republic Act (RA) 8179,
which amends RA 7042 also known as the Foreign Investments Act (FIA) of
1991, provides that the Regular Foreign Investment Negative List
(RFINL) shall consist only of Lists A and B;
WHEREAS, Sec. 5, Rule VIII of the amended Implementing Rules and
Regulations (IRR) of the FIA as amended, provides that each RFINL shall
remain in force only for two years;
WHEREAS, the first RFINL which took effect on 24 October 1994 shall
expire on 23 October 1996;
WHEREAS, there is a need to formulate a second RFINL to reflect
amendments made by RA 8179 and changes to Lists A and B as recommended
by concerned government agencies;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by the FIA of 1991 as
amended, do hereby order:
Section 1. Only investment areas/activities listed in
“Annex A” hereof, also known as the second Regular Foreign Investment
Negative List, shall be reserved to Philippine Nationals. The extent of
foreign equity participation in these areas shall be limited to the
percentages indicated in the List.
Sec. 2. Any amendment to List A may be made at any
time to reflect changes instituted in specific laws while amendments to
List B shall not be made more often than once every two years, pursuant
to Sec. 8 of the FIA as amended and Rule VIII of its amended IRR.
Sec. 3. All orders, issuances, rules and
regulations or parts thereof, which are inconsistent with this
Executive Order are hereby revoked or modified accordingly.
Sec. 4. This Executive Order shall take effect
immediately after the end of the effectivity of the first RFINL on 24
October 1996.
DONE in the City of Manila,
this 20th day of August in the year of Our Lord Nineteen Hundred and
Ninety Six.
“ANNEX A”
SECOND REGULAR FOREIGN INVESTMENT NEGATIVE LIST
LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND
SPECIFIC LAWS
No Foreign Equity
1.
Mass Media except recording (Article XVI, Section 11 of the
Constitution; Presidential Memorandum dated 04 May 1994)
2. Services
involving the practice of licensed professions save in cases prescribed
by law
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) Medicine
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) Custom
Brokerage
h)
Environmental Planning
i) Forestry
j) Geology
k) Interior
Design
l) Landscape
Architecture
m) Law
n)
Librarianship
o) Marine Deck
Officers
p) Marine
Engine Officers
q) Master
Plumbing
r) Sugar
Technology
s) Social Work
t) Teaching
(Article XIV, Section 14 of the
Constitution; Section 1 of RA No. 5181)
3. Retail
Trade (Section 1 of RA No. 1180)
4.
Cooperatives (Chapter III, Article 26 of RA No. 6938)
5. Private
Security Agencies (Sec. 4 of RA No. 5487)
6. Small-scale
Mining (Sec. 3 of RA No. 7076)
7. Utilization
of Marine Resources in archipelagic waters, territorial sea, and
exclusive economic zone (Article XII, Sec. 2 of the Constitution)
8. Ownership,
operation and management of cockpits (Sec. 5 of Presidential Decree
No. 449)
9.
Manufacture, repair, stockpiling and/or distribution of nuclear weapons
(Article II, Sec. 8 of the Constitution) 1
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
Up to Twenty-Five Percent (25%)
Foreign Equity
11. Private
recruitment, whether for local or overseas employment (Article 27 of
Presidential Decree No. 442)
12. Contracts
for the construction and repair of locally-funded public works except:
a)
infrastructure/development projects covered in RA No. 7718; and
b) projects
which are foreign funded or assisted and required to undergo
international competitive bidding (Commonwealth Act No. 541;
Presidential Decree 1594; Letter of Instruction 630; Sec. 2a of RA
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, Sec. 2 of the Constitution) 2
15. Ownership
of private lands (Article XII, Sec. 7 of the Constitution; Chapter
5, Sec. 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, Sec. 2 of the Constitution)
18. Engaging
in the rice and corn industry (Presidential Decree No. 194)
19. Financing
companies regulated by the Securities and Exchange Commission (SEC)
Sec. 6 of RA No. 5980)
20. Contracts
for the supply of materials, goods and commodities to government-owned
or controlled corporation, company, agency or municipal corporation
(Section 1 of RA No. 5183)
21. Contracts
for the construction of defense-related structures (e.g., land, air,
sea and coastal defenses, arsenals, barracks, depots, hangars, landing
fields, quarters and hospitals) (Commonwealth Act No. 541)
22. Project
proponent and facility operator of a BOT project requiring a public
utilities franchise (Article XII, Section 11 of the Constitution;
Sec. 2a of RA No. 7718)
23. Private
domestic construction contracts (Republic Act 4566; Article XIV,
Section 14 of the Constitution)
LIST B: 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 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.
Cholorates of potassium and sodium
ii. Nitrates of ammonium, potassium, sodium barrium,
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 (RA No. 7042 as amended
by RA No. 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, mines, depthcharges,
bombs, grenades, missiles)
c) Gunnery,
bombing and firecontrol 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
(RA No. 7042 as amended by RA
No. 8179)
3.
Manufacture and distribution of dangerous drugs (RA No. 7042 as amended
by RA No. 8179)
Footnotes
1. Domestic investments are also prohibited
(Article II, Sec. 8 of the Constitution; Conventions/Treaties to
which the Philippines is a signatory)
2. Full foreign participation is allowed
through financial or technical assistance agreement with the President
(Article XII, Section 11 of the Constitution)
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