SECOND REGULAR INVESTMENT NEGATIVE
LIST [Pursuant
to Executive Order No. 362]
[Effective October 24, 1996]
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 Order 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. 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]
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 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]
Harvard
Computer Systems, Inc.