Conflicts Laws Compilation

7/23/2019 Conflicts Laws Compilation

http://slidepdf.com/reader/full/conflicts-laws-compilation 1/147

LABOR LAWS

LABOR CODE

ART. 12. Statement of objectives

It is the policy of the State:a) To promote and maintain a state of full employmentthrough improved manpower training, allocation and

utilization;b) To protect every citizen desiring to work locally oroverseas by securing for him the best possible termsand conditions of employment;c) To facilitate a free choice of available employment bypersons seeking work in conformity with the nationalinterest;d) To facilitate and regulate the movement of workersin conformity with the national interest; e) To regulatethe employment of aliens, including the establishmentof a registration and/or work permit system;f) To strengthen the network of public employmentoffices and rationalize the participation of the private

sector in the recruitment and placement of workers,locally and overseas, to serve national developmentobjectives;g) To insure careful selection of Filipino workers foroverseas employment in order to protect the goodname of the Philippines abroad.

ART. 17. Overseas Employment DevelopmentBoard.

An Overseas Employment Development Board ishereby created to undertake, in cooperation withrelevant entities and agencies, a systematic program foroverseas employment of Filipino workers in excess ofdomestic needs and to protect their rights to fair andequitable employment practices. It shall have the powerand duty:

1. To promote the overseas employment of Filipino workers through a comprehensive market promotionand development program;2. To secure the best possible terms and conditions ofemployment of Filipino contract workers on agovernment-to-government basis and to ensurecompliance therewith;3. To recruit and place workers for overseasemployment on a government-to-government ar-rangement and in such other sectors as policy maydictate; and4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for Overseas Workers.

ART. 18. Ban on direct-hiring

No employer may hire a Filipino worker for overseasemployment except through the Boards and entitiesauthorized by the Secretary of Labor. Direct-hiring bymembers of the diplomatic corps, internationalorganizations and such other employers as may beallowed by the Secretary of Labor is exempted fromthis provision.

ART. 21. Foreign service role and participation. To provide ample protection to Filipino workers



abroad, the labor attaches, the labor reporting officersduly designated by the Secretary ofLabor and thePhilippine diplomatic or consular officials concernedshall, even without prior instruction or advice from thehome office, exercise the power and duty:(a) To provide all Filipino workers within their

jurisdiction assistance on all matters arising out ofemployment;(b) To insure that Filipino workers are not exploited ordiscriminated against;(c) To verify and certify as requisite to authenticationthat the terms and conditions of employment incontracts involving Filipino workers are in accordance with the Labor Code and rules and regulations of theOverseas Employment Development Board andNational Seamen Board; (d) To make continuingstudies or researches and recommendations on the various aspects of the employment market within theirjurisdiction;

(e) To gather and analyze information on theemployment situation and its probable trends, and tomake such information available; and(f) To perform such other duties as may be required ofthem from time to time.

ART. 40. Employment permit of non-resident

aliens.

Any alien seeking admission to the Philippines foremployment purposes and any domestic or foreignemployer who desires to engage an alien foremployment in the Philippines shall obtain anemployment permit from the Department of Labor. The employment permit may be issued to a non-resident alien or to the applicant employer after a deter-mination of the non-availability of a person in the

Philippines who is competent, able and willing at thetime of application to perform the services for whichthe alien is desired.For an enterprise registered in preferred areas ofinvestments, said employment permit may be issuedupon recommendation of the government agencycharged with the supervision of said registered enter-prise.

ART. 41. Prohibition against transfer ofemployment.

(a) Afterthe issuance of an employment permit, thealien shall not transfer to another job or change hisemployer without prior approval of the Secretary ofLabor.(b) Any non-resident alien who shall take up

employment in violation of the provision of this Titleand its implementing rules and regulations shall bepunished in accordance with the provisions of Articles289 and 290 of the Labor Code.In addition, the alien worker shall be subject todeportation after service of his sentence.

ART. 42. Submission of list. Any employer employing non-resident foreign nationalson the effective date of this Code shall submit a list ofsuch nationals to the Secretary of Labor within thirty



(30) days after such date indicating their names,citizenship, foreign and local addresses, nature ofemployment and status of stay in the country. TheSecretary of Labor shall then determine if they areentitled to an employment permit.

ART. 169. Foreign employment

The Commission shall ensure adequate coverage of

Filipino employees employed abroad, subject toregulations as it may prescribe.

Article. 269. Prohibition against aliens;exceptions.

All aliens, natural or juridical, as well as foreign or-ganizations are strictly prohibited from engagingdirectly or indirectly in all forms of trade union activi-ties without prejudice to normal contacts betweenPhilippine labor unions and recognized internationallabor centers: Provided, however, That aliens workingin the country with valid permits issued by theDepartment of Labor and Employment, may exercisethe right to self-organization and join or assist la- bororganizations of their own choosing for purposes ofcollective bargaining: Provided, further, That said aliens

are nationals of a country which grants the same orsimilar rights to Filipino workers. (As amended bySection 29, Republic Act No. 6715, March 21, 1989).

Article. 270. Regulation of foreign assistance.

(a) No foreign individual, organization or entity maygive any donations, grants or other forms of assistance,in cash or in kind, directly or indirectly, to any labororganization, group of workers or any auxiliary thereof,such as cooperatives, credit unions and institutionsengaged in research, education or communication, inrelation to trade union activities, without priorpermission by the Secretary of Labor.“Trade union activities” shall mean: (1) organization, formation and administration of labor

organization;(2) negotiation and administration of collectivebargaining agreements;(3) all forms of concerted union action;(4) organizing, managing, or assisting unionconventions, meetings, rallies, referenda, teach- ins,seminars, conferences and institutes;(5) any form of participation or involvement inrepresentation proceedings, representation elections,consent elections, union elections; and(6) other activities or actions analogous to theforegoing.(b) This prohibition shall equally apply to foreign

donations, grants or other forms of assistance, in cashor in kind, given directly or indirectly to any employeror employer’s organization to support any activity oractivities affecting trade unions.(c) The Secretary of Labor shall promulgate rules andregulations to regulate and control the giving andreceiving of such donations, grants, or other forms ofassistance, including the mandatory reporting of theamounts of the donations or grants, the specific



recipients thereof, the projects or activities proposed tobe supported, and their duration.

Article. 271. Applicability to farm tenants andrural workers.

The provisions of this Title pertaining to foreignorganizations and activities shall be deemed applicablelikewise to all organizations of farm tenants, rural workers, and the like: Provided, That in appropriate

cases, the Secretary of Agrarian Reform shall exercisethe powers and responsibilities vested by this Title inthe Secretary of Labor.

ART. 288. Penalties.

Except as otherwise provided in this Code, or unlessthe acts complained of hinge on a question ofinterpretation or implementation of ambiguousprovisions of an existing collective bargainingagreement, any violation of the provisions of this Codedeclared to be unlawful or penal in nature shall bepunished with a fine of not less than One ThousandPesos (P1,000.00) nor more than Ten Thousand Pesos(P10,000.00) or imprisonment of not less than threemonths nor more than three years, or both such fine

and imprisonment at the discretion of the court.In addition to such penalty, any alien found guilty shallbe summarily deported upon completion of service ofsentence. Any provision of law to the contrary notwithstanding,any criminal offense punished in this Code, shall beunder the concurrent jurisdiction of the Municipal orCity Courts and the Courts of First Instance. (Asamended by Section 3, Batas Pambansa Bilang70).

OMNIBUS RULES IMPLEMENTING THE LABOR CODE

RULE XIV: Employment of Aliens

SECTION 1. Coverage. This Rule shall apply to all aliens employed or seekingemployment in the Philippines, and their present orprospective employers.

SECTION 2. Submission of list

All employers employing foreign nationals, whetherresident or nonresident shall submit a list of suchnationals to the Bureau indicating their names,citizenship, foreign and local addresses; nature ofemployment and status of stay in the Philippines.

SECTION 3. Registration of resident aliens All employed resident aliens shall register with theBureau under such guidelines as may be issued by it.

SECTION 4. Employment permit required forentry

No alien seeking employment, whether on resident ornon-resident status, may enter the Philippines withoutfirst securing an employment permit from theDepartment of Labor and Employment. If an alienenters the country under a non-working visa and wishesto be employed thereafter, he may only be allowed tobe employed upon presentation of a duly approvedemployment permit.

SECTION 5. Requirements for employmentpermit application.

The application for an employment permit shall beaccompanied by the following:(a) Curriculum vitae duly signed by the applicantindicating his educational background, his work



experience and other data showing that he possesseshigh technical skills in his trade or profession;(b) Contract of employment between the employer andthe principal which shall embody the following, amongothers:(1) That the non-resident alien worker shall comply

with all applicable laws and rules and regulations of thePhilippines;(2) That the non-resident alien worker and theemployer shall bind themselves to train at least two (2)Filipino understudies for a period to be determined bythe Secretary of Labor and Employment; and(3) That he shall not engage in any gainful employmentother than that for which he was issued a permit.(c) A designation by the employer of at least two (2)understudies for every alien worker. Such understudiesmust be the most ranking regular employees in thesection or department for which the expatriates arebeing hired to ensure the actual transfer of technology.

SECTION 6. Issuances of employment permit

he Secretary of Labor and Employment may issue anemployment permit to the applicant based on:a) Compliance by the applicant and his employer withthe requirements of Section 2 hereof;b) Report of the Bureau Director as to the availabilityor non-availability of any person in the Philippines whois competent, able, and willing to do the job for whichthe services of the applicant are desired;c) His assessment as to whether or not the employmentof the applicant will redound to the national interest;d) Admissibility of the alien as certified by theCommission on Immigration and Deportation; e) Therecommendation of the Board of Investments or other

appropriate government agencies if the applicant will beemployed in preferred areas of investments or inaccordance with im- peratives of economicdevelopments; andf) Payments of a P100.00 fee.

SECTION 7. Duration of employment permit

Subject to renewal upon showing of good cause, theemployment permit shall be valid for a minimumperiod of one (1) year starting from the date of its is-suance unless sooner revoked by the Secretary of Laborand Employment for violation of any provisions of theCode or of these Rules.

SECTION 8. Advice to Commission on

Immigration and Deportation.

The Bureau shall advice the Commission onImmigration and Deportation on the issuance of an

employment permit to an applicant.

SECTION 9. Understudy Training Program

The employer shall submit a training program for hisunderstudies to the Bureau within thirty (30) days uponarrival of the alien workers. The supervision of thetraining program shall be the responsibility of theBureau and shall be in accordance with standardsestablished by the Secretary of Labor and Employment.

REPUBLIC ACT NO. 8042 MIGRANT WORKERS AND OVERSEAS FILIPINOS



ACT

Sec. 2. Declaration of Policies.

(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorialintegrity, national interest and the right to self-determination paramount in its relations with otherstates, the State shall, at all times, uphold the dignity of

its citizens whether in country or overseas, in general,and Filipino migrant workers, in particular.(b) The State shall afford full protection to labor, localand overseas, organized and unorganized, and promotefull employment and equality of employmentopportunities for all. Towards this end, the State shallprovide adequate and timely social, economic and legalservices to Filipino migrant workers.(c) While recognizing the significant contribution ofFilipino migrant workers to the national economythrough their foreign exchange remittances, the Statedoes not promote overseas employment as a means tosustain economic growth an achieve national

development. The existence of the overseasemployment program rests solely on the assurance thatthe dignity and fundamental human rights andfreedoms of the Filipino citizen shall not, at any time,be compromised or violated. The State, therefore, shallcontinuously create local employment op- portunitiesand promote the equitable distribution of wealth andthe benefits of development.(d) The State affirms the fundamental equality beforethe law of women and men and the significant role of women in nation-building. Recognizing thecontribution of overseas migrant women workers andtheir particular vulnerabilities, the State shall apply

gender sensitive criteria in the formulation andimplementation of policies and programs affectingmigrant workers and the composition of bodies taskedfor the welfare of migrant workers.(e) Free access to the courts and quasi-judicial bodiesand adequate legal assistance shall not be denied to anyperson by reason of poverty. In this regard, it isimperative that an effective mechanism be instituted toensure that the rights and interest of distressed overseasFilipinos, in general, and Filipino migrant workers, inparticular, documented or undocumented, are ad-equately protected and safeguarded.(f) The right of Filipino migrant workers and all

overseas Filipinos to participate in the democraticdecision-making processes of the State and to berepresented in institutions relevant to overseasemployment is recognized and guaranteed.(g) The State recognizes that the ultimate protection toall migrant workers is the possession of skills. Pursuantto this and as soon as practicable, the government shalldeploy and/or allow the deployment only of skilledFilipino workers.



(h) Non-governmental organizations, duly recognizedas legitimate, are partners of the State in the protectionof Filipino migrant workers and in the promotion oftheir welfare. The State shall cooperate with them in aspirit of trust and mutual respect.(i) Government fees and other administrative costs of

recruitment, introduction, placement and assistance tomigrant workers shall be rendered free withoutprejudice to the provision of Sec. 36 hereof.Nonetheless, the deployment of Filipino overseas workers, whether landbased or sea-based, by localservice contractors and manning agencies employingthem shall be encouraged. Appropriate incentives maybe extended to them.

Sec. 4. Deployment of Migrant Workers.

The State shall deploy overseas Filipino workers only incountries where the rights of Filipino migrant workersare protected. The government recognizes any of thefollowing as a guarantee on the part of the receivingcountry for the protection and the rights of overseas

Filipino workers:(a) It has existing labor and social laws protecting therights of migrant workers;(b) It is a signatory to multilateral conventions,declarations or resolutions relating to the protectionof migrant workers; (c) It has concluded a bilateralagreement or arrangement with the governmentprotecting the rights of overseas Filipino workers; and(d) It is taking positive, concrete measures to protectthe rights of migrant workers.Sec. 5. Termination or Ban on Deployment. -Notwithstanding the provisions of Sec. 4 hereof, thegovernment, in pursuit of the national interest or

when public welfare so requires, may, at any time,terminate or impose a ban on the deployment ofmigrant workers.

Sec. 14. Travel Advisory/InformationDissemination.

To give utmost priority to the establishment ofprograms and services to prevent illegal recruitment,fraud and exploitation or abuse of Filipino migrant workers, all embassies and consular offices, through thePhilippine Overseas Employment Administra- tion(POEA), shall issue travel advisories or disseminateinformation on labor and employment conditions,migration realities and other facts; and adherence ofparticular countries to international standards onhuman and workers’ rights which will adequately

prepare individuals into making informed andintelligent decisions about overseas employment. Suchadvisory or information shall be published in anewspaper of general circulation at least three (3) timesin every quarter.

Sec. 15. Repatriation of Workers; EmergencyRepatriation Fund.

he repatriation of the worker and the transport of hispersonal belongings shall be the primary responsibilityof the agency which recruited or deployed the workeroverseas. All costs attendant to repatriation shall be



borne by or charged to the agency concerned and/or itsprincipal. Likewise, the repatriation of remains andtransport of the personal belongings of a deceased worker and all costs attendant thereto shall be borne bythe principal and/ or the local agency. However, incases where the termination of employment in due

solely to the fault of the worker, the principal/employeror agency shall not in any manner be responsible forthe repatriation of the former and/or his belongings.

The Overseas Workers Welfare Administration(OWWA), in coordination with appropriateinternational agencies, shall undertake the repatriationof workers in cases of war, epidemic, disaster orcalamities, natural or man-made, and other similarevents without prejudice to reimbursement by theresponsible principal or agency. However, in cases where the principal or recruitment agency cannot beidentified, all costs attendant to repatriation shall be

borne by the OWWA.

For this purpose, there is hereby created andestablished an emergency repatriation fund under theadministration, control and supervision of the OWWA,initially to consist of One hundred million pesos(P100,000,000.00), which shall be taken from theexisting fund controlled and administered by theOWWA. Thereafter, such fund shall be provided for inthe General Appropriations Act from year to year:Provided,That the amount appropriated shall in no casebe less than One hundred million pesos(P100,000,000.00), inclusive of outstanding balances.

Sec. 19. Establishment of a Migrant Workersand other Overseas Filipinos Resource Center.

Within the premises and under the administrativejurisdiction of the Philippine Embassy in countries where there are large concentrations of Filipino migrant workers, there shall be established a Migrant Workersand Other Overseas Filipinos Resource Center with thefollowing services:

(a) Counselling and legal services;(b) Welfare assistance including the procurement ofmedical and hospitalization services;(c) Information, advisory and programs to promotesocial integration such as post-arrival orientation,settlement and community networking services and

activities for social interaction;(d) Institute a scheme of registration of undocumented workers to bring them within the purview of this Act.For this purpose, the Center is enjoined to compelexisting undocumented workers to registered with it within six (6) months from the effectivity of this Act,under pain of having his/her passport cancelled;(e) Human resource development, such as training andskills upgrading;



(f) Gender sensitive program and activities to assistparticular needs of women migrant workers;(g) Orientation program for returning worker and othermigrants; and(h) Monitoring of daily situations, circumstances andactivities affecting migrant workers and other overseas

Filipinos

The establishment and operations of the Center shall bea joint undertaking of the various government agencies. The Center shall be open for twenty-four (24) hoursdaily including Saturdays, Sunday and holidays, andshall be staffed by Foreign Service personnel, serviceattaches or officers who represent other Philippinegovernment agencies abroad and, if available, individual volunteers and bona fide non- governmentorganizations from the host countries. In countriescategorized as highly problematic by the Department ofForeign Affairs and the Department of Labor and

Employment and where there is a concentration ofFilipino migrant workers, the government must providea lawyer and a social worker for the Center. The Labor Attache shall coordinate the operation of the Centerand shall keep the Chief of Mission informed andupdated on all matters affecting it.

The Center shall have a counterpart 24-hourinformation and assistance center at the Department ofForeign Affairs to ensure a continuous network andcoordinative mechanism at the home office.

Section 1. Declaration of Policies.

(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorial

integrity, national interest and the right to self-determination paramount its relations with other states,the State shall, all times, uphold the dignity of itscitizens whether in the country or overseas, in general,the Filipino migrant workers, in particular.(b) The State shall afford full protection to labor, localand overseas, organized and unorganized, and promotefull employment and equality of employmentopportunities for all. Toward this end, the State shallprovide adequate and timely social, economic and legalservices to Filipino migrant workers.(c) While recognizing the significant contribution ofFilipino migrant workers to the national economy

through their foreign exchange remittances, the Statedoes not promote overseas employment as a means tosustain economic growth and achieve nationaldevelopment. The existence of the overseasemployment program rest solely on the assurance thatthe dignity and fundamental human rights and freedomof the Filipino citizen shall not, at any time, becompromised or violated. The State, therefore, shallcontinuously create local employment opportunities



and promote the equitable distribution of wealth andthe benefits of development.(d) The State affirms the fundamental equality beforethe law of women and men and the significant role of women in nation-building. Recognizing thecontribution of women migrant workers and their

particular vulnerabilities, the State shall apply gendersensitive criteria in the formulation and implementationof policies and programs affecting migrant workers andthe composition of bodies tasked for the welfare ofmigrant workers.(e) Free access to the courts and quasi-judicial bodiesand adequate legal assistance shall not be denied to anypersons by reason of poverty. In this regard, it isimperative that an effective mechanism be instituted toensure that the rights and interest of distressed overseasFilipinos, in general, and Filipino migrant workers, inparticular, documented or undocumented, are ad-equately protected and safeguarded.

(f) The right of Filipino migrant workers and alloverseas Filipinos to participate in the democraticdecision-making processes of the State and to berepresented in institutions relevant to overseasemployment is recognized and guaranteed.(g) The State recognizes that the ultimate protection toall migrant workers is the possession of skills. Pursuantto this and as soon as practicable, the government shalldeploy and/or allow the deployment only to skilledFilipino workers.(h) Non-governmental organizations, duly recognizedas legitimate, are partners of the State in the protectionof Filipino migrant workers and in the promotion of

their welfare, the State shall cooperate with them in aspirit of trust and mutual respect.

Sec. 3. Guarantee of Migrant Workers Rights.

The Secretary of Labor and Employment shall deployor allow the deployment of Filipino migrant workersonly in countries where their rights are protected,recognizing any of the following as a guarantee for theprotection of the rights of migrant workers:(a) The country has existing labor and social lawsprotecting the rights of migrant workers;(b) The country is a signatory to multilateralconventions declarations or resolutions relating to theprotection of migrant workers;(c) The country has concluded a bilateral agreement or

arrangement with the Philip- pine Government on theprotection of the rights of Overseas Filipino Workers;and (d) The host country is taking positive, concretemeasures to protect the rights of migrant workers. ThePOEA shall process overseas employment contractsonly for countries meeting any of the above criteria, asdetermined by the Secretary of Labor and Employment.

Sec. 6. Travel Advisory. The DFA through the POEA shall issue traveladvisories or disseminate information on labor and



employment conditions, migration realities and otherfacts, as well as adherence of particular countries tointernational standards on human and workers rights which will adequately prepare individuals into makinginformed and intelligent decisions about overseasemployment. The POEA shall publish, at least once a

month, such advisory in a newspaper of generalcirculation. The POEA may undertake other programs or resort toother modes of information and disseminationcampaign, such as the conduct of nationwide,comprehensive and sustainable Pre-EmploymentOrientation Seminars.

Sec. 44. Establishment of Overseas Filipinos

Resource Center.

Pursuant to Sec.s 19 and 23 of the Migrant Workersand Overseas Filipinos Act of 1995, a Migrant Workersand Overseas Filipinos Resource Center (FilipinosResource Center) shall be established in countries where there are at least 20,000 migrant workers. Wherefeasible it shall be established within the premises of the

Embassy. When the Filipinos Resource Center is established outside the premises of the Embassy, the Department ofForeign Affairs shall exert its best effort to secureappropriate accreditation from the host government inaccordance with applicable laws and practices.

Sec. 45. Services.

The Filipinos Resource Center shall provide thefollowing services:(a) Counseling and legal services;(b) Welfare assistance including the procurement ofmedical and hospitalization services;(c) Information, advisory programs to promote socialintegration such as post-arrival orientation, settlement

and community networking services and activities forsocial interaction;(d) Registration of undocumented workers to bringthem within the purview of the Act;(e) Implementation of the Voluntary MembershipProgram of OWWA;(f) Human resource development, such as training andskills upgrading;(g) Gender-sensitive programs and activities to assistparticular needs of migrant workers;(h) Orientation program for returning workers andother migrants;(i) Monitoring of daily situation, circumstances and

activities affecting migrant workers and other overseasFilipinos;(j) Seeing to it that labor and social welfare laws in thehost country are fairly applied to migrant workers andother overseas Filipinos; and(k) Conciliation of disputes arising from employer-employee relationship.

Sec. 46. Personnel.Each Filipinos Resource Center shall be staffed by aminimum of four (4) personnel composed of the



following:a. A Labor Attache (DOLE)b. Foreign Service personnel (DFA)c. A Welfare Officer (OWWA)d. A Center Coordinator (OWWA)e. An interpreter, when necessary (local hire)

When the Foreign Service Post is deemed highlyproblematic and has a concentration of Filipino migrant workers, a lawyer and a social worker may be deployedby concerned government agency upon therecommendation of the Chief of Mission.

Sec. 47. Administration.

The Labor Attache shall coordinate the operation ofthe Filipinos Resource Center and shall keep the Chiefof Mission informed and updated on all mattersaffecting it.

Sec. 48. Round-the Clock Operations.

The Filipinos Resource Center shall operate on a 24-hour basis including Saturdays, Sundays and holidays. Acounterpart 24-hour information and Assistance Center

to ensure a continuous network and coordinativemechanism shall be established at the DFA.

Sec. 49. Budget.

he establishment, yearly maintenance and operatingcosts of the Filipinos Resource Centers, including thecosts of services and programs not specially fundedunder the Act, shall be sourced from the General Appropriations Act (GAA) and shall be included in theannual budget of DOLE. In the meantime, existingFilipino Workers Development Centers presentlymanned and operated by the OWWA shall be fundedby the OWWA until such time as the operatingexpenses and other related expenditures of the FilipinosResource Centers are integrated in the GAA.

However, the salaries and allowances of overseaspersonnel shall be sourced from their respectiveagency’s budget.

Sec. 50. Sharing of information.

The registry of undocumented workers and otherrelevant data shall be provided by the FilipinosResource Centers to the inter-agency Committee onShared Information Systems.

XIV. ENFORCEMENT OF CONTRACTUALOBLIGATIONS

Sec. 51. Role of OWWA.

The Welfare Officer, or in his/her absence, the CenterCoordinator of the Filipinos Resource Center shallmake proper representations with the

employer/principal and/or agency as the case may be,through conciliation meetings or conferences for thepurpose of enforcing contractual obligationsconcerning migrant workers. For this purpose, theofficer may enlist the assistance of the OWWA HomeOffice.

AN ACT ESTABLISHING THEOVERSEAS WORKERS’ INVESTMENT

FUND TO PROVIDE INCENTIVES TO



OVERSEAS WORKERS, REDUCE THEFOREIGN DEBT BURDEN, AND FOR

OTHER PURPOSES.

Sec. 6. Debt Purchase Guidelines.

In buying Philippine foreign debt papers pursuant tothe debt-for- note scheme, the OWI Fund Board shallobserve the following guidelines and standards:

(1) Priority shall be given to Philippine foreign debtpapers where the loan proceeds were actually utilizedin projects, programs and balance of paymentsfinancing which benefited the Filipino people;(2) Loans categorized by law or pronounced by thePresident pursuant to the recommendation of the JointLegislative-Executive Foreign Debt Council asimmoral, odious, and/or illegal shall not be subject tothe debt-for-note scheme;(3) Foreign indebtedness which are subject to anypending litigation or repudiation shall not be subject toany debt conversion or reduction arrangements;(4) Only debt papers having a minimum discount rate

of thirty-five percent (35%) shall be considered fordebt-for-note this Act; and(5) Only remittances coursed through the nonfinancialentities and money couriers shall be utilized for debtconversion. Such remittances coursed through thefinancial institutions shall be used as loan andinvestment funds that will give priority to the needs andconcerns of overseas workers and their families. Saidloan and investment funds may also be utilized tofinance the needs of small business enterprises:Provided, That the workers’ funds are one hundredpercent (100%) guaranteed by the Government.

Sec. 7. Investment Instrument.

The participatory debt reduction certificate (PDRC)

shall be a negotiable government security guaranteed bythe Republic of the Philippines to be issued in any ofthe following denominations: US$ 100, $200, $300,$400, $500, $1,000 and $2,000, redeemable in Philippinepesos at the full value of the Central Bank buying rateone (1) day prior to redemption. It shall automaticallybear an interest rate which shall be reckoned based onthe quarterly average of the London Interbank OfferedRates (LIBOR) plus one percent (1%), to bedetermined at the end of each quarter but payable at theend of each semester, and shall have a maturity of five(5) years from the date of issuance.The PDRC shallincorporate a tax-free premium over and above the face

value of the same certificate, the percentage of whichshall be fixed at one-half (1/2) of the numerical valueof the discount of the purchased debt papers at thetime of the remittance. The premium shall not earninterest. The holder of a PDRC shall be entitled to receive incash one-fifth (1/5) of the premium rate, which shall bestamped on the PDRC upon issuance, at the end ofevery one (1) full year from the date of issue of the



certificate. The PDRCs shall be directly and immediatelyreleased/delivered to the beneficiaries. At the option of the remitting worker or his beneficiaryin the Philippines, the PDRC may be exchanged forcash at face value at the official exchange rate with any

of the accredited financial institutions, used as collateralfor loans with concessional interest rates, sold to anyinvestor, or kept to earn market interest rates.

POEA RULES AND REGULATIONSGOVERNING THE RECRUITMENT

AND EMPLOYMENT OF LAND-BASEDOVERSEAS WORKERS February 4, 2002

PART II: LICENSING AND REGULATIONRULE VII: ADVERTISEMENT FOR

OVERSEAS JOBS

SECTION 3.Foreign Advertisers for Overseas Job Vacancies.

Foreign principals/employers who wish to advertiseoverseas job vacancies may do so only through aPOEA-licensed agency or through the Administrator.

ART III: PLACEMENT BY THE PRIVATESECTOR

RULE I: VERIFICATION OF DOCUMENTS AND REGISTRATION OF FOREIGN

PRINCIPALS, EMPLOYERS ANDPROJECTS

SECTION 3. Application for Registration ofForeign Principals and Projects.

Only duly licensed entities may file for the registrationof foreign principals and projects.

PART III: PLACEMENT BY THE PRIVATESECTOR

RULE I: VERIFICATION OF DOCUMENTS AND REGISTRATION OF FOREIGN

PRINCIPALS, EMPLOYERS AND

PROJECTSSECTION 3. Application for Registration of

Foreign Principals and Projects.Only duly licensed entities may file for the registrationof foreign principals and projects.

SECTION 4. Documentary Requirements forRegistration of Principals/Projects.

The following verified documents shall be submitted tothe POEA, through the Philippine licensed agent forregistration of the principal, employer or project:a. Special power of attorney or recruitment agreement,or service agreement, as the case may be; b. Masteremployment contract of the foreign principal; and c.Manpower request of the foreign principal indicatingthe position and salary of the workers to be hired;POCB-registered projects shall also be registered withthe Administration without however undergoing theforegoing procedures, subject to guidelines as may beprescribed.Subsequent manpower requests from the registeredprincipal/project shall be submitted to the Adminis-tration.

SECTION 5. Registration of Foreign Placement Agencies.

Foreign placement agencies or similar entities may beregistered as principals if they are authorized to operateas such in their respective countries and subject tosuch guidelines as may be prescribed by the



Administration.

SECTION 6. Validity of Registration of ForeignPrincipals and Projects.

Upon compliance with the documentary requirements,the foreign principal or project shall be registered bythe POEA valid for a maximum of four (4) years,unless sooner revoked or cancelled by the Administration on any of the following grounds: a.

Expiration of the principal’s business license; b. Upon written mutual agreement by the parties to pre-terminate the Agreement;c. False documentation or misrepresentation inconnection with the application for registration;andd. Final judgment in a disciplinary action against theforeign principal.Provisional registration may be granted for a period ofninety (90) days for a principal that substantially meetsthe registration requirements.

The expiration of the agency’s license shall not causethe automatic expiration or cancellation of the

registration which shall only be suspended until therenewal of the license.

SECTION 7. Renewal of Registration The registration shall be renewed upon request by theagency provided that the documents required for initialregistration are still valid.

SECTION 8. Open Registration.

A foreign principal that acts as direct employer may beregistered to more than one Philippine agency,provided that — a. A uniform compensation package shall be adopted bythe principal and the agency; andb. The principal has a verified job order of at least 50 workers; orc. That the principal must have hired at least 50 workers

within a period of one year immediatelypreceding the registration.

SECTION 9. Dual Registration.

A principal that is licensed to operate as foreignplacement agency by its government may be registeredto a maximum of two (2) Philippine agencies, providedthat:a. A uniform compensation package shall be adopted bythe principal and the agency; andb. The principal has a verified job order of at least 50 workers; orc. That the principal must have hired at least 50 workers within a period of one year immediatelypreceding the registration.

SECTION 10. Transfer of Registration.

The registration of a foreign placement agency may betransferred to another agency provided thecompensation package previously approved by the Administration shall be maintained; and providedfurther the transferee shall assume full and completeresponsibility for all contractual obligations of theprincipals to its workers originally recruited andprocessed by the former agency.

SECTION 11. Action on Application for Claims for money or enforcement of obligations arising



Registration of Principals With OutstandingObligations.

out of business relations between principals and theirexisting agencies may be conciliated by the Administration. However, the pendency of theconciliation shall not prevent the Administration fromacting on the request for registration, if public interestso requires.

SECTION 12. Registration of Principals inCountries with Special Conditions ofEmployment.

The registration of principals in countries with uniqueor special conditions of employment shall be governedby guidelines prescribed by the Administration.

RULE II: ACCREDITATION OF FOREIGNPRINCIPALS EMPLOYERS AND

PROJECTS

SECTION 1. Accreditation of ForeignPrincipals Employers and Projects.

Foreign principals, employer or projects in countries or work sites where there are no POLOS to verifyrecruitment documents shall undergo accreditation atthe POEA.

SECTION 2. Documentary Requirements for Accreditation.

The principal/employer shall submit the followingdocuments to the POEA through the Philippinelicensed agency for evaluation and accreditation:

a. Special power of attorney or recruitment agreement,or service agreement with the Philippine licensedagency;b. Master employment contract of the direct employeror foreign placement agency containing the minimumrequirements for contracts of employment of landbased workers as provided for in Section 2(b), Rule 1,Part III of these Rules.c. Manpower request indicating the position and salaryof the workers to be hired;d. Valid business license, registration certificate orequivalent document or proof of existence ofproject validated or certified by the issuing authority in

the host country; ande. Visa assurance or any equivalent document validatedby the issuing authority.

SECTION 3. Validity of Accreditation.

The accreditation of a foreign principal, employer orproject shall be valid for four (4) years unless soonerrevoked or cancelled by the POEA on any of thefollowing grounds:a. Expiration of the principal’s business license; b. Upon written mutual agreement by the parties to pre-terminate the Agreement;c. False documentation or misrepresentation inconnection with the application for registration;and

d. Final judgment in a disciplinary action against theforeign principal.

SECTION 4. Renewal of Accreditation. The accreditation shall be renewed upon request by theagency provided that the documents required for initialaccreditation are still valid.

SECTION 5. Open Accreditation.

A foreign principal that acts as direct employer may beaccredited to more than one Philippine agency,provided that:a. A uniform compensation package shall be adopted by



the principal and the agency; andb. The principal has a verified job order of at least 50 workers; orc. That the principal must have hired at least 50 workers within a period of one year immediatelypreceding the accreditation.

SECTION 6. Dual Accreditation.

A principal that is licensed to operate as foreignplacement agency by its government may be accreditedto a maximum of two (2) Philippine agencies, providedthat:a. A uniform compensation package shall de adopted bythe principal and the agency; andb. The principal has a verified job order of at least 50 workers; orc. That the principal must have hired at least 50 workers within a period of one year immediatelypreceding the accreditation.

PART VII DISCIPLINARY ACTION CASESRULE II DISCIPLINARY ACTIONS

AGAINST PRINCIPALS/EMPLOYERS

SECTION 1. Grounds for Disciplinary Action Against Foreign Principals/Employers.

a. Default on its contractual obligations to the migrant worker and/or to its Philippine agent;b. Gross violation of laws, rules and regulations onoverseas employment;c. Gross negligence leading to serious injury or illnessor death of the worker;d. Grave misconduct;e. Conviction of an offense involving moral turpitude;f. Any other case analogous to the foregoing.

SECTION 2. Filing of Complaint.

Any aggrieved person may file a complaint in writ- ingand under oath for disciplinary action against aprincipal/employer with the Administration.

The Administration may, on its own initiative, conductproceedings against principals/employers based on verifiable or official reports.

SECTION 3. Contents and Form of Complaint.

All complaints shall be under oath and must contain thefollowing:a. Name/s and address/es of the complainants;b. Name/s and address/es of the respondent/s;c. Specific acts or omissions constituting the allegedoffense;d. Place where the offense was committed;e. Date when the offense was committed;f. Relief sought. All supporting documents must be attached to the

complaint, whenever possible.

SECTION 4. Temporary disqualification.

A foreign employer/principal against whom acomplaint for disciplinary action has been filed shall betemporarily disqualified from participating in theoverseas employment program until the respondentsubmits to the jurisdiction of the Administration.

SECTION 5. Effect of Filing an Answer.Upon filing of an answer, the respondent employershall be qualified to participate in the overseasemployment program without prejudice to the outcome



of the investigation whereby the proper penalty shall beimposed.

SECTION 6. Preventive Suspension.

A principal/employer may be suspended fromparticipating in the overseas employment programpending investigation of the disciplinary action case when the evidence of guilt is strong and there is

reasonable ground to believe that the continueddeployment to the principal/employer will result tofurther violation or exploitation of migrant workers. The OE Adjudicator shall, within sixty (60) calendardays from the filing of the case, submit his findings andrecommendations in the form of a draft order.

SECTION 7. Handling of Cases. The procedure provided in this Book shall also apply todisciplinary action cases involving foreignemployers/principals.

SECTION 8. Disqualification of ForeignEmployers/Principals.

Foreign employers/principal is against whom thepenalty of suspension or disqualification had beenimposed through an order, decision or resolution shallbe disqualified from participating in the overseas

employment program unless cleared by the Administration or the penalty imposed is lifted.

POEA RULES AND REGULATIONSGOVERNING THE RECRUITMENT

AND EMPLOYMENT OF SEAFARERS

PART II: LlCENSING AND REGULATION

Rule IISection 1 (d)

Clearance of all members of the board of directors,partners and proprietor of the applicant agency fromthe NBI, Anti-Illegal Recruitment Branch of POEAand other government agencies as the need may require;provided that where the member or partner concernedis a foreigner, clearance from his country of origin shallbe required.

Rule VSection 1. Advertisement for Actual Job

Vacancies.

Licensed manning agencies may advertise for actual job vacancies without prior approval from the Administration if covered by manpower requests ofaccredited foreign principals and projects. Theadvertisements shall indicate the following information:a. Name, address and POEA license number of theagency;b. Type of ship and its registration;c. Level of competence, skill and knowledge categoriesand qualification standards;and d. Number of available positions.

Section 3. Foreign Advertisements for MaritimeEmployment.

Foreign principals/employers who wish to advertise jobrequirements using Philippine print media, broadcast ortelevision may do so only through a POEA licensedagency.


Rule ISection 1. Verification of Documents.

Manning documents of foreign principals andemployers shall undergo verification at their principalplace of business prior to registration with POEA. ThePhilippine Overseas Labor Office (POLO) nearest theirprincipal place of business shall review and verify the



documents with the view to establish the existence ofthe employing person/entity, its capability to hire theseafarer at the applicable rates and at desirable workingconditions that are in conformity with the minimumstandards prescribed by the Administration and/or withthe labor laws and legislations of the country whose flag

the ships will be flying and/or international maritimelabor standards.

Section 3. Application for Registration ofForeign Principals and Enrolment of Ships.

Only duly licensed manning agencies may file anapplication for registration of principals.Registered principals shall enroll ships through theiragencies subject to the guidelines as may be determinedby the Administration.

Section 5 (d) Approval and Validity ofRegistration.

Final judgment in a disciplinary action against theforeign principal.

Rule IISection 1. Accreditation of Principals and

Enrolment of Ships.

In the absence of a Philippine Overseas Labor Office inthe principal place of business of the foreign principals,employers or vessel owner/operator/manager to verifythe manning documents, accreditation shall be

conducted at the POEA.Only duly licensed manning agencies may file anapplication for accreditation of principals andenrolment of ships. Accredited principals shall enrollships through their agencies subject to the guidelines asmay be determined by the Administration.

Section 3. Authentication of Documents.

Authentication of documents of foreign principals shallbe undertaken by any of the following:a. Appropriate official of the Philippine Embassy orConsulate, or the authorized Philippine foreignrepresentative, in the absence of a Philippine mission;orb. Appropriate official of any of the designated

government ministries or offices of the host country. The manning agreement and special power of attorneyrequired for accreditation may be signed by theauthorized officials of both the hiring company and itslocal agent in the presence of any member of thePOEA Directorate or those officers of the Administration who are authorized to administer oath. The Administration shall charge attestation fees as maybe allowed by the Secretary.

Section 6. Approval and Validity of Accreditation.

The Administration shall issue to the agency an ac-creditation certificate for its principal after the approvalof accreditation request. The accreditation of the principal shall be valid for a

period of four (4) years from the date of issuance,unless sooner revoked by the Administration on thefollowing grounds:a. Upon mutual agreement of the parties to pre-terminate the agreement;b. Expiration of the principal’s business license; c. False documentation or misrepresentation inconnection with the application for accreditation;or



d. Final judgment in a disciplinary action against theforeign principal.

Rule IVSection 3. Motion for Extension.

Only one motion for extension of time to file Answershall be allowed. The Overseas Employment Adjudicator, upon receipt of such motion, may, uponmeritorious grounds, grant a non-extendible period of

ten (10) calendar days, except where allegations in thecomplaint refer to facts or circumstances whichoccurred abroad making it necessary to verify with theconcerned foreign principal, a longer period may begranted. A ruling on the motion may be made by theOverseas Employment Adjudicator during theproceedings and entered in the minutes or sent bypersonal service or by registered mail.

PART VI: DISCIPLINARY ACTION CASES

Rule I

Section 1. Jurisdiction

The Administration shall exercise original and exclusivejurisdiction to hear and decide disciplinary action casesagainst seafarers, foreign employers, and principals

which are administrative in character.Rule II

B. Offenses During Employment1. Smuggling or violation of any custom rules andregulations of the Philippines and of foreign ports

Rule III

Section 1. Grounds for Disciplinary Action Against Foreign Principals/Employers:

a. Default on its contractual obligations to the seafarerand/or to its Philippine agent;b. Gross violation of laws, Rules and Regulations onoverseas employment;c. Grave misconduct;d. Conviction of an offenseinvolving moral turpitude;e. Gross negligence leading to serious injury or illnessor death of the seafarer;f. Any other case analogous to the foregoing.

Section 4. Temporary Disqualification.

A foreign employer/principal against whom acomplaint for disciplinary action has been filed shall betemporarily disqualified from participating in themaritime employment program until the respondentsubmits to the jurisdiction of the Administration.

ection 7. Disqualification of ForeignEmployers/Principals.

Foreign employers/principals against whom the penaltyof suspension or disqualification has been imposedthrough a final order, decision or resolution shall bedisqualified from participating in the maritimeemployment unless cleared by the Administration orthe penalty imposed is lifted.

POEA RULES AND REGULATIONSGOVERNING THE RECRUITMENT AND EMPLOYMENT OF SEAFARERS

PART II: LlCENSING AND REGULATION

Rule II

Section 1 (d) Clearance of all members of the board ofdirectors, partners and proprietor of the applicantagency from the NBI, Anti-Illegal Recruitment Branchof POEA and other government agencies as the needmay require; provided that where the member or



partner concerned is a foreigner, clearance from hiscountry of origin shall be required.

Rule V

Section 1. Advertisement for Actual Job Vacancies.Licensed manning agencies may advertise for actual job vacancies without prior approval from the

Administration if covered by manpower requests of ac-credited foreign principals and projects. Theadvertisements shall indicate the following information:

a. Name, address and POEA license number of theagency;

b. Type of ship and its registration;c. Level of competence, skill and knowledge categoriesand qualification standards; and d. Number of availablepositions.Section 3. Foreign Advertisements for MaritimeEmployment. Foreign principals/employers who wishto advertise job requirements using Philippine print

media, broadcast or television may do so only through aPOEA licensed agency.


Rule ISection 1. Verification of Documents. Manningdocuments of foreign principals and employers shallundergo verification at their principal place of businessprior to registration with POEA. The Philip- pineOverseas Labor Office (POLO) nearest their principalplace of business shall review and verify the documents with the view to establish the existence of theemploying person/entity, its capability to hire theseafarer at the applicable rates and at desirable workingconditions that are in conformity with the minimumstandards prescribed by the Administration and/or withthe labor laws and legislations of the country whose flagthe ships will be flying and/or international maritimelabor standards.Section 3. Application for Registration of ForeignPrincipals and Enrolment of Ships. Only duly licensedmanning agencies may file an application forregistration of principals.Registered principals shall enroll ships through theiragencies subject to the guidelines as may be deter-

mined by the Administration.Section 5 (d) Approval and Validity of Registration.Final judgment in a disciplinary action against theforeign principal.

Rule IISection 1. Accreditation of Principals and Enrolment ofShips. In the absence of a Philippine Overseas LaborOffice in the principal place of business of the foreignprincipals, employers or vessel owner/op-



erator/manager to verify the manning documents,accreditation shall be conducted at the POEA.Only duly licensed manning agencies may file anapplication for accreditation of principals and enrol-ment of ships.

Accredited principals shall enroll ships through theiragencies subject to the guidelines as may be deter-mined by the Administration.Section 3. Authentication of Documents. Authentication of documents of foreign principals shallbe undertaken by any of the following:a. Appropriate official of the Philippine Embassy orConsulate, or the authorized Philippine foreignrepresentative, in the absence of a Philippine mission;orb. Appropriate official of any of the designatedgovernment ministries or offices of the host country. The manning agreement and special power of attorney

required for accreditation may be signed by theauthorized officials of both the hiring company and itslocal agent in the presence of any member of thePOEA Directorate or those officers of the Administration who are authorized to administer oath. The Administration shall charge attestation fees as maybe allowed by the Secretary.Section 6. Approval and Validity of Accreditation. The Administration shall issue to the agency an ac-creditation certificate for its principal after the approvalof accreditation request. The accreditation of the principal shall be valid for aperiod of four (4) years from the date of issuance,unless sooner revoked by the Administration on thefollowing grounds:a. Upon mutual agreement of the parties to pre-terminate the agreement;

b. Expiration of the principal’s business license; c. False documentation or misrepresentation inconnection with the application for accreditation;

ord. Final judgment in a disciplinary action against theforeign principal.

Rule IVSection 3. Motion for Extension. Only one motion for

extension of time to file Answer shall be allowed. TheOverseas Employment Adjudicator, upon receipt ofsuch motion, may, upon meritorious grounds, grant anon-extendible period of ten (10) calendar days, except where allegations in the complaint refer to facts orcircumstances which occurred abroad making itnecessary to verify with the concerned for- eignprincipal, a longer period may be granted. A ruling onthe motion may be made by the Overseas Employment



the mortgage such lien may be enforced by the mortgagee by suit inremaining admiralty, wherein the vessel itself may be made a partlydefendant and be arrested in the manner as provided in Section 11hereof. Original jurisdiction of all such suits is granted to the Courtof First Instance of the Philippines exclusively. In addition to anynotice by publication, actual notice of commencement of any such

suit shall direct, to (1) the master, other ranking officer, or caretakerof the vessel, and (2) any person who has recorded a notice of claimof an undischarged lien upon the vessel, as provided in Section 7hereof, unless after search by the mortgage satisfactory to the court,such mortgagor, master, other ranking officer, caretaker, or claimantis not found within the Philippines. Failure to give notice to anysuch person, as required by this Section, shall be liable to suchperson for damages in the amount of his interest in the vesselterminated by the suit.In case of judicial foreclosure as providedherein, the provisions of Rule 68 of the New Rules of Court, if notinconsistent herewith, shall apply.The lien of a preferred shipmortgage may also be enforced by a suit in rem in admiralty orotherwise in any foreign country in which the vessel may be found

pursuant to the procedure of said country for the enforcement ofship mortgages constituting maritime liens on vessels documentedunder the laws of said country.

Section 15. Foreign Ship Mortgages.

As used in Sections 10 to 18 hereof, the term "preferred mortgage"shall include, in addition to a preferred mortgage made pursuant tothe provisions of this Decree, any mortgage, hypothecation, orsimilar charge created as security upon any documented foreign vessel if such mortgage, hypothecation, or similar charge has beenduly and validly executed in accordance with the laws of the foreignnation under the laws of which the vessel is documented and hasbeen duly registered in accordance with such laws in a public registereither at the port of registry of the vessel or at a central office; andthe term "preferred mortgage lien" shall also include the lien of such

mortgage, hypothecation, or similar charge: Provided, however, Thatsuch "preferred mortgage lien" in the case of a foreign vessel shallbe subordinate to maritime liens for repairs, supplies, towage, use ofdrydock or marine railway, or other necessaries, performed orsupplied in the Philippines.

Section 19. Surrender ofDocuments; termination ofmortgagee's interest; sale of

mortgaged vessel.

(a) The documents of a vessel of the Philippines covered by apreferred mortgaged may not be surrendered (except in the case ofthe forfeiture of the vessel or its sale by the order of any court of thePhilippines or any foreign country) without the approval of theMaritime Industry Authority. The Administrator shall not grant suchapproval without the mortgagee's consent.

Section 20. Who May Bid in the

Foreclosure Sale. - The followingpersons are qualified to bid in theforeclosure sale of the mortgaged

vessel:

(b) A foreign mortgagee or foreign national whose country hasdiplomatic relations with the Philippines or whose country grants

reciprocal rights to Filipino citizens.In case the purchaser is aforeign individual or entity, the Philippine Coast Guard shall, uponpresentation of the certificate of sale, cancel the registration of the vessel and issue a certificate to that effect upon request.

Section 21. Maritime Lien forNecessaries; persons entitled to

such lien.

Any person furnishing repairs, supplies, towage, use of dry dock ormarine railway, or other necessaries to any vessel, whether foreign ordomestic, upon the order of the owner of such vessel, or of a personauthorized by the owner, shall have a maritime lien on the vessel, which may be enforced by suit in rem, and it shall be necessary to



allege or prove that credit was given to the vessel.

Carriage of Goods By Sea Act;CA No. 65

Section 13.

This Act shall apply to all contracts for carriage of goods by sea toor from ports of the United States in foreign trade. As used in this

Act the term "United States" includes its districts, territories, andpossessions: Provided, however, That the Philippine legislature mayby law exclude its application to transportation to or from ports ofthe Philippine Islands. The term "foreign trade" means thetransportation of goods between the ports of the United States andports of foreign countries. Nothing in this Act shall be held to applyto contracts for carriage of goods by sea between any port of theUnited States or its possessions, and any other port of the UnitedStates or its possession: Provided, however, That any bill of ladingor similar document of title which is evidence of a contract for thecarriage of goods by sea between such ports, containing an expressstatement that it shall be subject to the provisions of this Act, shallbe subjected hereto as fully as if subject hereto as fully as if subject

hereto by the express provisions of this Act: Provided, further, Thatevery bill of lading or similar document of title which is evidence ofa contract for the carriage of goods by sea from ports of the UnitedStates, in foreign trade, shall contain a statement that it shall haveeffect subject to the provisions of this Act.

Section 14.

Upon the certification of the Secretary of Commerce that theforeign commerce of the United States in its competition with thatof foreign nations is prejudiced the provisions, or any of them, of Title I of this Act, or by the laws of any foreign country or countriesrelating to the carriage of goods by sea, the President of the UnitedStates, may, from time to time, by proclamation, suspend any or allprovisions of Title I of this Act for such periods of time orindefinitely as may be designated in the proclamation. The President

may at any time rescind such suspension of Title I hereof, and anyprovisions thereof which may have been suspended shall thereby bereinstated and again apply to contracts thereafter made for thecarriage of goods by sea. Any proclamation of suspension orrescission of any such suspension shall take effect on a date namedtherein, which date shall be not less than ten days from the issue ofthe proclamation.Any contract for the carriage of goods by sea,subject to the provisions of this Act, effective during any period when title I hereof, or any part thereof, is suspended, shall besubject to all provisions of law now or hereafter applicable to thatpart of Title I which may have thus been suspended.

Republic Act No. 7471 AN ACT

TO PROMOTE THEDEVELOPMENT OF

PHILIPPINE OVERSEASSHIPPING

SECTION 4. Foreign ExchangeRequirements. —

Foreign exchange requirements of Philippine Shipping enterprisesfor the purchase of oceangoing vessels for registration under thePhilippine flag, for repair or improvement of vessels, forimportation of engines, spare parts, accessories, supplies, containersand for other expenses required for the operation of vessels in



foreign ports or in the high seas, when recommended by theMARINA, shall be made available to the Philippine shippingenterprise subject to the regulations.

CODE OF COMMERCE

ARTICLE 15.

Foreigners and companies created abroad may engage in commerce

in the Philippines,subject to the laws of their country with respect totheir capacity to contract, and to the provisions of this Code asregard the creation of their establishments in Philippine territory,their mercantileoperations, and the jurisdiction of the courts of thenation.The provisions of the article shall be understood to be without prejudice to what, in particular cases,may be established bytreaties or agreements with other powers.

ARTICLE 578.

If the vessel being on a voyage or in a foreign port, its owner orowners should voluntarily alienate it, either to Filipinos or toforeigners domiciled in the capital or in a port of another country,the bill of sale shall be executed before the consul of the Republic ofthe Philippines at the port where it terminates its voyage and saidinstrument shall produce no effect with respect to third persons if it

is not inscribed in the registry of the consulate. The consul shallimmediately forward a true copy of the instrument of purchase andsale of the vessel to the registry of vessels of the port where said vessel is inscribed and registered.In every case the alienation of the vessel must be made to appear with a statement of whether the vendor receives its price in whole or in part, or whether he preservesin whole or in part any claim on said vessel. In case the sale is madeto a Filipino, this fact shall be stated in the certificate of navigation.

When a vessel, being on a voyage, shall be rendered useless fornavigation, the captain shall apply to the competent judge on courtof the port of arrival, should it be in the Philippines; and should itbe in a foreign country, to the consul of the Republic of the

Philippines, should there be one, or, where there is none, to thejudge or court or to the local authority; and the consul, or the judgeor court, shall order an examination of the vessel to be made.

If the consignee or the insurer should reside at said port, or shouldhave representatives there, they must be cited in order that they maytake part in the proceedings on behalf of whoever may beconcerned.

ARTICLE 579

After the damage to the vessel and the impossibility of her beingrepaired, in order to continue the voyage had been shown, its sale atpublic auction shall be ordered, subject to the following rules: 5. Ifthe sale should take place while the vessel is in a foreign country, thespecial provisions governing such cases shall be observed.

ARTICLE 583

If the ship being on a voyage the captain should find it necessary tocontract one or more of the obligations mentioned in sub-divisions8 and 9 of Article 580, he shall apply to the judge or court if he is inPhilippine territory, and otherwise to the Filipino consul, shouldthere be one and in his absence, to the judge or court or to theproper local authority, presenting the certificate of the registry of the vessel treated of in Article 612, and the instruments proving theobligation contracted. The judge or court, the consul or the localauthority as the case may be, in view of the result of the proceedings



instituted, shall make a temporary memorandum in the certificate oftheir result, in order that it may be recorded in the registry when the vessel returns to the port of her registry, or so that if can beadmitted as a legal and preferred obligation in case of sale before thereturn, by reason of the sale of the vessel by virtue of a declarationof unseaworthiness. The omission of this formality shall make the

captain personally liable for the credits which may be prejudicedthrough his fault.

ARTICLE 622

If, when on a voyage, the captain should receive news of theappearance of corsairs or men of war against his flag, he shall beobliged to make the nearest neutral port, inform his ship agent orshippers, and await an occasion to sail under convoy or until thedanger is over, or to final orders from the ship agent or shippers.

ARTICLE 623

If he shoud be attacked by a corsair and after having tried to avoidthe encounter and having resisted the delivery of the effects of the vessel or of her cargo, they should be forcibly taken away from him,or he should be obliged to deliver them, he shall make an entry ofthat fact in his freight book and shall prove it before the competentauthority at the first port he touches. After the force majeur has

been proven, he shall be exempted from liability.

ARTICLE 624

A captain whose vessel has gone through a hurricane or whobelieves that the cargo has suffered damage or averages, shall make aprotest thereon before the competent authority at the first port hetouches within twenty-four hours following his arrival, and shallratify it within the same period when he arrives at the place of hisdestination, proceeding immediately with the proof of the facts, without opening the hatches not until after this has been done. Thecaptain shall proceed in the same manner if, the vessel having been wrecked, he is saved alone or with part of his crew, in which case heshall appear before the nearest authority, and make a swornstatement of facts. The authority or the consul abroad shall verifythe said facts receiving sworn statements of the members of the

crew and passengers who may have been saved; and taking suchother steps as may help in arriving at the facts, he shall make astatement of what may be the result of the proceedings in thelogbook and in that of the sailing mate, and shall deliver the originalrecords of the proceedings to the captain, stamped and folioed, witha memorandum of the folios, which he must rubricate, for theirpresentation to the judge or court of the port of destination. Thestatement of the captain shall be believed if it is in accordance withthose of the crew and passengers; if they disagree, the latter shall beaccepted, always saving proof to the contrary.

ARTICLE 826

If a vessel should collide with another, through the fault, negligence,or want of skill of the captain, sailing mate, or any other member ofthe complement, the owner of the vessel at fault shall indemnify the

damages suffered, after an expert appraisal.

ARTICLE 827If the collission is imputable to both vessels, each one shall sufferher own damage, and both shall be solidarily liable for the damagesoccasioned to their cargoes.

COMMERCIAL LAW

CORPORATION CODE OF THEPHILIPPINES



Sec. 134. Revocation of license.

Without prejudice to other grounds provided by special laws,the license of a foreign corporation to transact business in thePhilippines may be revoked or suspended by the Securities andExchange Commission upon any of the following grounds:1. Failure to file its annual report or pay any fees as required bythis Code;

2. Failure to appoint and maintain a resident agent in thePhilippines as required by this Title;3. Failure, after change of its resident agent or of his address, tosubmit to the Securities and Exchange Commission a statementof such change as required by this Title;4. Failure to submit to the Securities and ExchangeCommission an authenticated copy of any amendment to itsarticles of incorporation or by-laws or of any articles of mergeror consolidation within the time prescribed by this Title;5. A misrepresentation of any material matter in any application,report, affidavit or other document submitted by suchcorporation pursuant to this Title;6. Failure to pay any and all taxes, imposts, assessments or

penalties, if any, lawfully due to the Philippine Government orany of its agencies or political subdivisions;7. Transacting business in the Philippines outside of thepurpose or purposes for which such corporation is authorizedunder its license;8. Transacting business in the Philippines as agent of or actingfor and in behalf of any foreign corporation or entity not dulylicensed to do business in the Philippines; or9. Any other ground as would render it unfit to transactbusiness in the Philippines. (n)

Sec. 135. Issuance of certificate ofrevocation.

Upon the revocation of any such license to transact business inthe Philippines, the Securities and Exchange Commission shallissue a corresponding certificate of revocation, furnishing a

copy thereof to the appropriate government agency in theproper cases. The Securities and Exchange Commission shall also mail to thecorporation at its registered office in the Philippines a notice ofsuch revocation accompanied by a copy of the certificate ofrevocation. (n)

Sec. 136. Withdrawal of foreigncorporations.

- Subject to existing laws and regulations, a foreign corporationlicensed to transact business in the Philippines may be allowedto withdraw from the Philippines by filing a petition for withdrawal of license. No certificate of withdrawal shall beissued by the Securities and Exchange Commission unless allthe following requirements are met;

1. All claims which have accrued in the Philippines have beenpaid, compromised or settled;2. All taxes, imposts, assessments, and penalties, if any, lawfullydue to the Philippine Government or any of its agencies orpolitical subdivisions have been paid; and3. The petition for withdrawal of license has been publishedonce a week for three (3) consecutive weeks in a newspaper ofgeneral circulation in the Philippines

SECURITIES REGULATIONS



CODE

SEC. 13. Rejection and Revocation ofRegistration of Securities. -

13.1. The Commission may reject a registration statement andrefuseregistration of the security there under, or revoke the effectivityof a

registration statement and the registration of the security thereunder afterdue notice and hearing by issuing an order to such effect,setting forth itsfindings in respect thereto, if it finds that:a) The issuer:(i) Has been judicially declared insolvent;(ii) Has violated any of the provisions of this Code, the rulespromulgated pursuant thereto, or any order of the Commissionof which theissuer has notice in connection with the offering for which aregistrationstatement has been filed;

(iii) Has been or is engaged or is about to engage in fraudulenttransactions;

(iv) Has made any false or misleading representation of materialfactsin any prospectus concerning the issuer or its securities;(v) Has failed to comply with any requirement that theCommissionmay impose as a condition for registration of the security for which theregistration statement has been filed; orb) The registration statement is on is face incomplete orinaccurate in

any material respect or includes any untrue statement of amaterial fact oromits to state a material fact required to be stated therein ornecessary tomake the statements therein not misleading; orc) The issuer, any officer, director or controlling person of theissuer,or person performing similar functions, or any underwriter hasbeenconvicted, by a competent judicial or administrative body, uponplea ofguilty, or otherwise, of an offense involving moral turpitudeand/or fraud or

is enjoined or restrained by the Commission or othercompetent judicial oradministrative body for violations of securities, commodities,and otherrelated laws.For purposes of this subsection, the term "competent judicialoradministrative body" shall include a foreign court of competentjurisdiction



Section 141. Provision of Relief.

Section 141. Provision of Relief. - The court may issue orders:

(a) suspending any action to enforce claims against the entity orotherwise seize or foreclose on property of the foreign entitylocated in the Philippines;

(b) requiring the surrender property of the foreign entity to theforeign representative; or

(c) providing other necessary relief.

Section 142. Factors in Granting Relief.

In determining whether to grant relief under this subchapter,the court shall consider;

(a) the protection of creditors in the Philippines and theinconvenience in pursuing their claim in a foreign proceeding;

(b) the just treatment of all creditors through resort to a unifiedinsolvency or rehabilitation proceedings;

(c) whether other jurisdictions have given recognition to theforeign proceeding;

(d) the extent that the foreign proceeding recognizes the rightsof creditors and other interested parties in a mannersubstantially in accordance with the manner prescribed in this Act; and

(e) the extent that the foreign proceeding has recognized andshown deference to proceedings under this Act and previouslegislation.

Republic Act No. 7042: AN ACT TO

PROMOTE FOREIGNINVESTMENTS, PRESCRIBE

THE PROCEDURES FORREGISTERING ENTERPRISES

DOING BUSINESS IN THEPHILIPPINES, AND FOR OTHER

PURPOSES

Foreign Investments Act of 1991

Section 2. Declaration of Policy.

It is the policy of the State to attract, promote and welcomeproductive investments from foreign individuals, partnerships,corporations, and governments, including their politicalsubdivisions, in activities which significantly contribute tonational industrialization and socioeconomic development tothe extent that foreign investment is allowed in such activity by

the Constitution and relevant laws. Foreign investments shall beencouraged in enterprises that significantly expand livelihoodand employment opportunities for Filipinos; enhance economic value of farm products; promote the welfare of Filipinoconsumers; expand the scope, quality and volume of exportsand their access to foreign markets; and/or transfer relevanttechnologies in agriculture, industry and support services.Foreign investments shall be welcome as a supplement toFilipino capital and technology in those enterprises serving



mainly the domestic market.

As a general rule, there are no restrictions on extent of foreignownership of export enterprises. In domestic marketenterprises, foreigners can invest as much as one hundredpercent (100%) equity except in areas included in the negative

list. Foreign owned firms catering mainly to the domesticmarket shall be encouraged to undertake measures that willgradually increase Filipino participation in their businesses bytaking in Filipino partners, electing Filipinos to the board ofdirectors, implementing transfer of technology to Filipinos,generating more employment for the economy and enhancingskills of Filipino workers.

Section 3. Definitions

c) The term "foreign investment" shall mean as equityinvestment made by a non-Philippine national in the form offoreign exchange and/or other assets actually transferred to thePhilippines and duly registered with the Central Bank whichshall assess and appraise the value of such assets other thanforeign exchange;

d) The praise "doing business" shall include soliciting orders,service contracts, opening offices, whether called "liaison"offices or branches; appointing representatives or distributorsdomiciled in the Philippines or who in any calendar year stay inthe country for a period or periods totalling one hundred eighty(180) days or more; participating in the management,supervision or control of any domestic business, firm, entity orcorporation in the Philippines; and any other act or acts thatimply a continuity of commercial dealings or arrangements, andcontemplate to that extent the performance of acts or works, orthe exercise of some of the functions normally incident to, andin progressive prosecution of, commercial gain or of the

purpose and object of the business organization: Provided,however, That the phrase "doing business: shall not be deemedto include mere investment as a shareholder by a foreign entityin domestic corporations duly registered to do business, and/orthe exercise of rights as such investor; nor having a nomineedirector or officer to represent its interests in such corporation;nor appointing a representative or distributor domiciled in thePhilippines which transacts business in its own name and for itsown account;

g) The term "Foreign Investments Negative List" or "NegativeList" shall mean a list of areas of economic activity whoseforeign ownership is limited to a maximum of forty ownership

is limited to a maximum of forty percent (40%) of the equitycapital of the enterprise engaged therein.

Section 5. Registration of Investmentsof Non-Philippine Nationals.

Without need of prior approval, a non-Philippine national, asthat term is defined in Section 3 a), and not otherwisedisqualified by law may upon registration with the Securitiesand Exchange Commission (SEC), or with the Bureau of TradeRegulation and Consumer Protection (BTRCP) of theDepartment of Trade and Industry in the case of singleproprietorships, do business as defined in Section 3 (d) of this



Act or invest in a domestic enterprise up to one hundredpercent (100%) of its capital, unless participation of non-Philippine nationals in the enterprise is prohibited or limited toa smaller percentage by existing law and/or limited to a smallerpercentage by existing law and/or under the provisions of this Act. The SEC or BTRCP, as the case may be, shall not impose

any limitations on the extent of foreign ownership in anenterprise additional to those provided in this Act: Provided,however, That any enterprise seeking to avail of incentivesunder the Omnibus Investment Code of 1987 must apply forregistration with the Board of Investments (BOI), which shallprocess such application for registration in accordance with thecriteria for evaluation prescribed in said Code: Provided, finally, That a non-Philippine national intending to engage in the sameline of business as an existing joint venture in his application forregistration with SEC. During the transitory period as providedin Section 15 hereof, SEC shall disallow registration of theapplying non-Philippine national if the existing joint ventureenterprise, particularly the Filipino partners therein, can

reasonably prove they are capable to make the investmentneeded for they are competing applicant. Upon effectivity ofthis Act, SEC shall effect registration of any enterprise applyingunder this Act within fifteen (15) days upon submission ofcompleted requirements.

Section 6. Foreign Investments inExport Enterprises.

Foreign investment in export enterprises whose products andservices do not fall within Lists A and B of the ForeignInvestment Negative List provided under Section 8 hereof isallowed up to one hundred percent (100%) ownership.

Export enterprises which are non-Philippine nationals shallregister with BOI and submit the reports that may be requiredto ensure continuing compliance of the export enterprise with

its export requirement. BOI shall advise SEC or BTRCP, as thecase may be, of any export enterprise that fails to meet theexport ratio requirement. The SEC or BTRCP shall thereuponorder the non-complying export enterprise to reduce its sales tothe domestic market to not more than forty percent (40%) ofits total production; failure to comply with such SEC orBTRCP order, without justifiable reason, shall subject theenterprise to cancellation of SEC or BTRCP registration,and/or the penalties provided in Section 14 hereof.

Section 7. Foreign Investments in

Domestic Market Enterprises.

Non-Philippine nationals may own up to one hundred percent(100%) of domestic market enterprises unless foreignownership therein is prohibited or limited by existing law or theForeign Investment Negative List under Section 8 hereof.

A domestic market enterprise may change its status to exportenterprise if over a three (3) year period it consistently exportsin each year thereof sixty per cent (60%) or more of its output.

Section 8. List of Investment AreasReserved to Philippine Nationals

(Foreign Investment Negative List).

The Foreign Investment Negative List shall have three (3)component lists: A, B, and C:

a) List A shall enumerate the areas of activities reserved toPhilippine nationals by mandate of the Constitution and



specific laws.

b) List B shall contain the areas of activities and enterprisespursuant to law:

1) Which are defense-related activities, requiring prior clearance

and authorization from Department of National Defense(DND) to engage in such activity, such as the manufacture,repair, storage and/or distribution of firearms, ammunition,lethal weapons, military ordnance, explosives, pyrotechnics andsimilar materials; unless such manufacturing or repair activity isspecifically authorized, with a substantial export component, toa non-Philippine national by the Secretary of National Defense;or

2) Which have implications on public health and morals, suchas the manufacture and distribution of dangerous drugs; allforms of gambling; nightclubs, bars, beerhouses, dance halls;sauna and steambath houses and massage clinics.

Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of five hundredthousand US dollars (US$500,000) are reserved to Philippinenationals, unless they involve advanced technology asdetermined by the Department of Science and Technology.Export enterprises which utilize raw materials from depletingnatural resources, with paid-in equity capital of less than theequivalent of five hundred thousand US dollars (US$500,000)are likewise reserved to Philippine nationals.

Amendments to List B may be made upon recommendation ofthe Secretary of National Defense, or the Secretary of Health,

or the Secretary of Education, Culture and Sports, indorsed bythe NEDA, or upon recommendation motu propio of NEDA,approved by the President, and promulgated by PresidentialProclamation.

c) List C shall contain the areas of investment in which existingenterprises already serve adequately the needs of the economyand the consumer and do not require further foreigninvestments, as determined by NEDA applying the criteriaprovided in Section 9 of this Act, approved by the Presidentand promulgated in a Presidential Proclamation.

The Transitory Foreign Investment Negative List established in

Sec. 15 hereof shall be replaced at the end of the transitoryperiod by the first Regular Negative List to the formulated andrecommended by the NEDA, following the process and criteriaprovided in Section 8 and 9 of this Act. The first RegularNegative List shall be published not later than sixty (60) daysbefore the end of the transitory period provided in said section,and shall become immediately effective at the end of thetransitory period. Subsequent Foreign Investment NegativeLists shall become effective fifteen (15) days after publication in



two (2) newspapers of general circulation in the Philippines:Provided, however, That each Foreign Investment NegativeList shall be prospective in operation and shall in no way affectforeign investments existing on the date of its publication.

Amendments to List B and C after promulgation and

publication of the first Regular Foreign Investment NegativeList at the end of the transitory period shall not be made moreoften than once every two (2) years.

Section 9. Determination of Areas ofInvestment for Inclusion in List C of the

Foreign Investment Negative List.

Upon petition by a Philippine national engage therein, an areaof investment may be recommended by NEDA for inclusion inList C of the Foreign Investment Negative List upondetermining that it complies with all the following criteria:

a) The industry is controlled by firms owned at least sixtypercent (60%) by Filipinos;

b) Industry capacity is ample to meet domestic demand;

c) Sufficient competition exists within the industry;

d) Industry products comply with Philippine standards of healthand safety or, in the absence of such, with internationalstandards, and are reasonably competitive in quality with similarproducts in the same price range imported into the country;

e) Quantitative restrictions are not applied on imports ofdirectly competing products;

f) The leading firms of the industry substantially comply withenvironmental standards; and

g) The prices of industry products are reasonable.

REPUBLIC ACT NO. 9160 AN ACT DEFINING THE CRIME

OF MONEY LAUNDERING,PROVIDING PENALTIES

THEREFOR AND FOR OTHERPURPOSES.

Anti-Money Laundering Act of 2001.

Sec. 2. Declaration of Policy.

It is hereby declared the policy of the State to protect andpreserve the integrity and confidentiality of bank accounts andto ensure that the Philippines shall not be used as a moneylaundering site for the proceeds of any unlawful activity.Consistent with its foreign policy, the State shall extend

cooperation in transnational investigations and prosecutions ofpersons involved in money laundering activities wherevercommitted.

Sec. 3. Definitions

(b) "Covered transaction" is a single, series, or combination oftransactions involving a total amount in excess of Four MillionPhilippine pesos (PhP4,000,000.00) or an equivalent amount inforeign currency based on the prevailing exchange rate withinfive (5) consecutive banking days except those between acovered institution and a person who, at the time of the



transaction was a properly identified client and the amount iscommensurate with the business or financial capacity of theclient; or those with an underlying legal or trade obligation,purpose, origin or economic justification.It likewise refers to a single, series or combination or pattern ofunusually large and complex transactions in excess of Four

Million Philippine pesos (PhP4,000,000.00) especially cashdeposits and investments having no credible purpose or origin,underlying trade obligation or contract.

Sec. 7. Creation of Anti-Money

Laundering Council (AMLC).

The Anti-Money Laundering Council is hereby created and shallbe composed of the Governor of the Bangko Sentral ngPilipinas as chairman, the Commissioner of the InsuranceCommission and the Chairman of the Securities and ExchangeCommission as members. The AMLC shall act unanimously inthe discharge of its functions as defined hereunder:

(2) to issue orders addressed to the appropriate Supervising Authority or the covered institution to determine the trueidentity of the owner of any monetary instrument or property

subject of a covered transaction report or request for assistancefrom a foreign State, or believed by the Council, on the basis ofsubstantial evidence, to be, in whole or in part, whereverlocated, representing, involving, or related to, directly orindirectly, in any manner or by any means, the proceeds of anunlawful activity;

(8) to receive and take action in respect of, any request fromforeign states for assistance in their own anti-money launderingoperations provided in this Act;

Sec. 13. Mutual Assistance among States.

(a) Request for Assistance from a Foreign State. - Where aforeign State makes a request for assistance in the investigationor prosecution of a money laundering offense, the AMLC may

execute the request or refuse to execute the same and informthe foreign State of any valid reason for not executing therequest or for delaying the execution thereof. The principles ofmutuality and reciprocity shall, for this purpose, be at all timesrecognized.(b) Powers of the AMLC to Act on a Request for Assistancefrom a Foreign State. - The AMLC may execute a request forassistance from a foreign State by: (1) tracking down, freezing,restraining and seizing assets alleged to be proceeds of anyunlawful activity under the procedures laid down in this Act; (2)giving information needed by the foreign State within theprocedures laid down in this Act; and (3) applying for an orderof forfeiture of any monetary instrument or property in the

court: Provided, That the court shall not issue such an orderunless the application is accompanied by an authenticated copyof the order of a court in the requesting State ordering theforfeiture of said monetary instrument or property of a person who has been convicted of a money laundering offense in therequesting State, and a certification or an affidavit of acompetent officer of the requesting State stating that theconviction and the order of forfeiture are final and that nofurther appeal lies in respect of either.



(c) Obtaining Assistance from Foreign States. - The AMLC maymake a request to any foreign State for assistance in (1) trackingdown, freezing, restraining and seizing assets alleged to beproceeds of any unlawful activity; (2) obtaining information thatit needs relating to any covered transaction, money launderingoffense or any other matter directly or indirectly related thereto;

(3) to the extent allowed by the law of the foreign State,applying with the proper court therein for an order to enter anypremises belonging to or in the possession or control of, any orall of the persons named in said request, and/or search any orall such persons named therein and/or remove any document,material or object named in said request: Provided, That thedocuments accompanying the request in support of theapplication have been duly authenticated in accordance with theapplicable law or regulation of the foreign State; and (4)applying for an order of forfeiture of any monetary instrumentor property in the proper court in the foreign State: Provided, That the request is accompanied by an authenticated copy ofthe order of the regional trial court ordering the forfeiture of

said monetary instrument or property of a convicted offenderand an affidavit of the clerk of court stating that the convictionand the order of forfeiture are final and that no further appeallies in respect of either.(d) Limitations on Requests for Mutual Assistance. - The AMLC may refuse to comply with any request for assistance where the action sought by the request contravenes anyprovision of the Constitution or the execution of a request islikely to prejudice the national interest of the Philippines unlessthere is a treaty between the Philippines and the requestingState relating to the provision of assistance in relation to moneylaundering offenses.(e) Requirements for Requests for Mutual Assistance from

Foreign States. - A request for mutual assistance from a foreignState must (1) confirm that an investigation or prosecution isbeing conducted in respect of a money launderer named thereinor that he has been convicted of any money laundering offense;(2) state the grounds on which any person is being investigatedor prosecuted for money laundering or the details of hisconviction; (3) give sufficient particulars as to the identity ofsaid person; (4) give particulars sufficient to identify anycovered institution believed to have any information,document, material or object which may be of assistance to theinvestigation or prosecution; (5) ask from the coveredinstitution concerned any information, document, material orobject which may be of assistance to the investigation or

prosecution; (6) specify the manner in which and to whom saidinformation, document, material or object obtained pursuant tosaid request, is to be produced; (7) give all the particularsnecessary for the issuance by the court in the requested State ofthe writs, orders or processes needed by the requesting State;and (8) contain such other information as may assist in theexecution of the request.(f) Authentication of Documents. - For purposes of thisSection, a document is authenticated if the same is signed or



certified by a judge, magistrate or equivalent officer in or of, therequesting State, and authenticated by the oath or affirmation ofa witness or sealed with an official or public seal of a minister,secretary of State, or officer in or of, the government of therequesting State, or of the person administering the governmentor a department of the requesting territory, protectorate or

colony. The certificate of authentication may also be made by asecretary of the embassy or legation, consul general, consul, viceconsul, consular agent or any officer in the foreign service ofthe Philippines stationed in the foreign State in which therecord is kept, and authenticated by the seal of his office.(g) Extradition. - The Philippines shall negotiate for theinclusion of money laundering offenses as herein definedamong extraditable offenses in all future treaties.

REPUBLIC ACT NO. 8556

AN ACT AMENDING REPUBLIC ACT NO. 5980, AS AMENDED,

OTHERWISE KNOWN AS THEFINANCING COMPANY ACT.

Financing Company Act of 1998

Sec. 6. Form of organization and capitalrequirements.

Financing companies shall be organized in the form of stockcorporations at least forty percent (40%) of the voting stock of which is owned by citizens of the Philippines and shall have apaid-up capital of not less than Ten million pesos (P10,000,000)in case the financing company is located in Metro Manila andother first class cities, Five million pesos (P5,000,000) in otherclasses of cities and Two million five hundred thousand pesos(P2,500,000) in municipalities: Provided, however, That noforeign national may be allowed to own stock in any financingcompany unless the country of which he is a national accords

the same reciprocal rights to Filipinos in the ownership offinancing companies or their counterpart entities in suchcountry: and Provided, further, That financing companies dulyexisting and in operation before the effectivity of this Act shallcomply with the minimum capital requirement within one (1)year from the date of the said effectivity."


AN ACT LIBERALIZING THEENTRY AND SCOPE OF

OPERATIONS OF FOREIGN

BANKS IN THE PHILIPPINES AND FOR OTHER PURPOSES.

SECTION 1. Declaration of Policy

The State shall develop a self-reliant and independent nationaleconomy effectively controlled by Filipinos and encourage,promote, and maintain a stable, competitive, efficient, anddynamic banking and financial system that will stimulateeconomic growth, attract foreign investments, provide a wider variety of financial services to Philippine enterprises,households and individuals, strengthen linkages with global



financial centers, enhance the country's competitiveness in theinternational market and serve as a channel for the flow offunds and investments into the economy to promoteindustrialization.chan robles virtual law libraryPursuant to this policy, the Philippine banking and financialsystem is hereby liberalized to create a more competitive

environment and encourage greater foreign participationthrough increase in ownership in domestic banks by foreignbanks and the entry of new foreign bank branches.cralawIn allowing increased foreign participation in the financialsystem, it shall be the policy of the State that the financialsystem shall remain effectively controlled by Filipinos.cralaw

Sec. 2. Modes of Entry.

The Monetary Board may authorize foreign banks to operate inthe Philippine banking system through any of the followingmodes of entry: (i) by acquiring, purchasing or owning up tosixty percent (60%) of the voting stock of an existing bank; (ii)by investing in up to sixty percent (60%) of the voting stock ofa new banking subsidiary incorporated under the laws of thePhilippines; or (iii) by establishing branches with full banking

authority: Provided, That a foreign bank may avail itself of onlyone (1) mode of entry: Provided, further, That a foreign bankor a Philippine corporation may own up to a sixty percent(60%) of the voting stock of only one (1) domestic bank or newbanking subsidiary.

Sec. 3. Guidelines for Approval.

In approving entry applications of foreign banks, the MonetaryBoard shall: (i) ensure geographic representation andcomplementation; (ii) consider strategic trade and investmentrelationships between the Philippines and the country ofincorporation of the foreign bank; (iii) study the demonstratedcapacity, global reputation for financial innovations and stabilityin a competitive environment of the applicant; (iv) see to it thatreciprocity rights are enjoyed by Philippine banks in the

applicant's country; and (v) consider willingness to fully sharetheir technology. chan robles virtual law libraryOnly those among the top one hundred fifty (150) foreignbanks in the world or the top five (5) banks in their country oforigin as of the date of application shall be allowed entry inaccordance with Section 2 (ii) and (iii) hereof....To qualify toestablish a branch or a subsidiary, the foreign bank applicantmust be widely-owned and publicly-listed in its country oforigin, unless the foreign bank applicant is owned by thegovernment of its country of origin

Sec. 4. Capital Requirements.

(i) For Locally Incorporated Subsidiaries. — The minimumcapital required for locally incorporated subsidiaries of foreignbanks shall be equal to that prescribed by the Monetary Board

for domestic banks of the same category.cralaw(ii) For Foreign Bank Branches. — Foreign banks seeking entrypursuant to Section 2 (iii) of this Act shall permanently assigncapital of not less than the U.S. dollar equivalent of Twohundred ten million pesos (P210,000,000.00) at the exchangerate on the date of the effectivity of this Act, as ascertained bythe Monetary Board. The permanently assigned capital shall beinwardly remitted and converted into Philippine currency. Theforeign bank shall be entitled to three (3) branches. chan robles



virtual law library

The foreign bank may open three (3) additional branches inlocations designated by the Monetary Board by inwardlyremitting and converting into Philippine currency aspermanently assigned capital, the U.S. dollar equivalent of Thirty-five million pesos (P35,000,000.00) per additional branch

at the exchange rate on the date of the effectivity of this Act, asascertained by the Monetary Board. The total number ofbranches for each new foreign bank entrant shall not exceed six(6)

Sec. 8. Equal Treatment.

Foreign banks authorized to operate under Section 2 of this Act, shall perform the same functions, enjoy the sameprivileges, and be subject to the same limitations imposed upona Philippine bank of the same category. These limits include,among others, the single borrower's limit and capital to riskasset ratio as well as the capitalization required for expandedcommercial banking activities under the General Banking Actand other related laws of the Philippines.cralaw The basis for computing the ratio shall be the capital of the

foreign bank branch in the Philippines.cralaw The foreign banks shall guarantee the observance of the rightsof their employees under the Constitution.cralaw Any right, privilege or incentive granted to foreign banks ortheir subsidiaries or affiliates under this Act, shall be equallyenjoyed by and extended under the same conditions toPhilippine banks. Philippine corporations whose shares ofstocks are listed in the Philippine Stock Exchange or are of longstanding for at least ten (10) years shall have the right toacquire, purchase or own up to sixty percent (60%) of the voting stock of a domestic bank

REPUBLIC ACT NO. 8791 May 23,

2000

AN ACT PROVIDING FOR THEREGULATION OF THEORGANIZATION AND

OPERATIONS OF BANKS,QUASI-BANKS, TRUST

ENTITIES AND FOR OTHERPURPOSES

The General Banking Law of 2000

Section 76. Summons and Legal Process.

Summons and legal process served upon the Philippine agent orhead of any foreign bank designated to accept service thereofshall give jurisdiction to the courts over such bank, and serviceof notices on such agent or head shall be as binding upon the

bank which he represents as if made upon the bank itself.Should the authority of such agent or head to accept service ofsummons and legal processes for the bank or notice to it berevoked, or should such agent or head become mentallyincompetent or otherwise unable to accept service whileexercising such authority, it shall be the duty of the bank toname and designate promptly another agent or head upon whom service of summons and processes in legal proceedingsagainst the bank and of notices affecting the bank may be made,



and to file with the Securities and Exchange Commission a dulyauthenticated nomination of such agent. In the absence of theagent or head or should there be no person authorized by thebank upon whom service of summons, processes and all legalnotices may be made, service of summons, processes and legalnotices may be made upon the Bangko Sentral Deputy

Governor In-Charge of the supervising and examiningdepartments and such service shall be as effective as if madeupon the bank or its duly authorized agent or head. In case ofservice for the bank upon the Bangko Sentral Deputy GovernorIn-charge of the supervising and examining departments, thesaid deputy Governor shill register and transmit by mail to thepresident or the secretary of the bank at its head or principaloffice a copy, duly certified by him, of the summons, process,or notice. The sending of such copy of the summons, process,or notice shall be a necessary part of the services and shallcomplete the service. The registry receipt of mailing shall beprima facie evidence of the transmission of the summons,process or notice. All costs necessarily incurred by the said

Deputy Governor for the making and mailing and sending of acopy of the summons, process, or notice to the president or thesecretary of the bank at its head or principal office shall be paidin advance by the party at whose instance the service is made.(17)

Section 77. Laws Applicable.

- In all matters not specifically covered by special provisionsapplicable only to a foreign bank or its branches and otheroffices in the Philippines any foreign bank licensed to dobusiness in the Philippines shall be bound by the provisions ofthis Act, all other laws, rules and regulations applicable to banksorganized under the laws of the Philippines of the same class,except those that provide for the creation, formation,organization or dissolution of corporations or for the fixing of

the relations, liabilities, responsibilities, or duties ofstockholders, members, directors or officers of corporations toeach other or to the corporation.

CRIMINAL LAW

Revised Penal Code

Art. 123.Qualified Piracy — The penalty of reclusion temporal to death shall be imposedupon those who commit any of the crimes referred to in the preceding article,under any of the following circumstances:1. Whenever they have seized a vessel by boarding or firing upon the same;

2. Whenever the pirates have abandoned their victims without means of saving

themselves; or

3. Whenever the crime is accompanied by murder, homicide, physical injuries orrape.

Article 163.Making and importing and uttering false coins. - Any person who makes, imports,or utters, false coins, in connivance with counterfeiters, or importers, shall suffer:1. Prision mayor in its minimum and medium periods and a fine not to exceedP10,000 pesos, if the counterfeited coin be silver coin of the Philippines or coin ofthe Central Bank of the Philippines of ten centavo denomination or above.



2. Prision correccional in its minimum and medium periods and a fine of not toexceed P2,000 pesos, if the counterfeited coins be any of the minor coinage of thePhilippines or of the Central Bank of the Philippines below ten-centavodenomination.3. Prision correccional in its minimum period and a fine not to exceed P1,000pesos, if the counterfeited coin be currency of a foreign country.

Article 166.

Forging treasury or bank notes on other documents payable to bearer; importing,and uttering such false or forged notes and documents. - The forging orfalsification of treasury or bank notes or certificates or other obligations andsecurities payable to bearer and the importation and uttering in connivance withforgers or importers of such false or forged obligations or notes, shall be punishedas follows:1. By reclusion temporal in its minimum period and a fine not to exceed P10,000pesos, if the document which has been falsified, counterfeited, or altered, is anobligations or security of the United States or of the Philippines Islands.

The word “obligation or security of the United States or of the Philippine Islands”shall be held to mean all bonds, certificates of indebtedness, national bank notes,fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn

by or upon authorized officers of the United States or of the Philippine Islands,and other representatives of value, of whatever denomination, which have been ormay be issued under any act of the Congress of the United States or of thePhilippine Legislature.2. By prision mayor in its maximum period and a fine not to exceed P5,000 pesos,if the falsified or altered document is a circulating note issued by any bankingassociation duly authorized by law to issue the same.3. By prision mayor in its medium period and a fine not to exceed P5,000 pesos, ifthe falsified or counterfeited document was issued by a foreign government.4. By prision mayor in its minimum period and a fine not to exceed P2,000 pesos, when the forged or altered document is a circulating note or bill issued by aforeign bank duly authorized therefor.

Article 177.

Usurpation of authority or official functions. - Any person who shall knowinglyand falsely represent himself to be an officer, agent or representative of anydepartment or agency of the Philippine Government or of any foreigngovernment, or who, under pretense of official position, shall perform any actpertaining to any person in authority or public officer of the PhilippineGovernment or any foreign government, or any agency thereof, without beinglawfully entitled to do so, shall suffer the penalty of prision correccional in itsminimum and medium periods.

Article 272.Slavery. - The penalty of prision mayor and a fine of not exceeding 10,000 pesosshall be imposed upon anyone who shall purchase, sell, kidnap or detain a humanbeing for the purpose of enslaving him.

If the crime be committed for the purpose of assigning the offended party tosome immoral traffic, the penalty shall be imposed in its maximum period.

Article 273.

Exploitation of child labor. - The penalty of prision correccional in its minimumand medium periods and a fine not exceeding 500 pesos shall be imposed uponanyone who, under the pretext of reimbursing himself of a debt incurred by anascendant, guardian or person entrusted with the custody of a minor, shall, againstthe latter’s will, retain him in his service.



Article 274.

Services rendered under compulsion in payment of debt. - The penalty of arrestomayor in its maximum period to prision correccional in its minimum period shallbe imposed upon any person who, in order to require or enforce the payment of adebt, shall compel the debtor to work for him, against his will, as householdservant or farm laborer.

SPECIAL PENAL LAWS

Batas PambansaBlg. 22: Bouncing

Checks Law

Section 1.

Checks without sufficient funds. - Any person who makes or draws and issues anycheck to apply on account or for value, knowing at the time of issue that he doesnot have sufficient funds in or credit with the drawee bank for the payment ofsuch check in full upon its presentment, which check is subsequently dishonoredby the drawee bank for insufficiency of funds or credit or would have beendishonored for the same reason had not the drawer, without any valid reason,

ordered the bank to stop payment, shall be punished by imprisonment of not lessthan thirty days but not more than one (1) year or by a fine of not less than butnot more than double the amount of the check which fine shall in no case exceed Two Hundred Thousand Pesos, or both such fine and imprisonment at thediscretion of the courtNote: A check drawn against a dollar account in a foreign country is still violativeof the provisions of BP 22 so long as the check is issued, delivered or uttered inthe Philippines, even if the same is payable outside of the Philippines (De Villa v.Court of Appeals, .G.R. No. 87416 April 8, 1991)

Republic Act No.7610: The Child

Abuse Law

Section 7.

Any person who shall engage in trading and dealing with children including, butnot limited to, the act of buying and selling of a child for money, or for any otherconsideration, or barter, shall suffer the penalty of reclusion temporal to reclusionperpetua. The penalty shall be imposed in its maximum period when the victimunder twelve (12) years of age.

Republic Act No.9208: Anti-

Trafficking inPersons Act of 2003

Section 3(a)

Trafficking in Persons - refers to the recruitment, transportation, transfer orharboring, or receipt of persons with or without the victim’s consent orknowledge, within or across national borders by means of threat or use of force,or other forms of coercion, abduction, fraud, deception, abuse of power or ofposition, taking advantage of the vulnerability of the person, or, the giving orreceiving of payments or benefits to achieve the consent of a person havingcontrol over another person for the purpose of exploitation which includes at aminimum, the exploitation or the prostitution of others or other forms of sexualexploitation, forced labor or services, slavery, servitude or the removal or sale of



organs.

The recruitment, transportation, transfer, harboring or receipt of a child for thepurpose of exploitation shall also be considered as “trafficking in persons” even ifit does not involve any of the means set forth in the preceding paragraph.

Republic Act No.

9327: HumanSecurity Act of 2007

SEC. 3. Terrorism.- Any person who commits an act punishable under any of thefollowing provisions of the Revised Penal Code:a. Article 122 (Piracy in General and Mutiny in the High Seas or in the Philippine Waters);b. Article 134 (Rebellion or Insurrection);

c. Article 134-a (Coup d’ Etat), including acts committed by private persons;

d. Article 248 (Murder);

e. Article 267 (Kidnapping and Serious Illegal Detention); f. Article 324 (CrimesInvolving Destruction), or under

1. Presidential Decree No. 1613 (The Law on Arson);2. Republic Act No. 6969 (Toxic Substances and Hazardous and Nuclear WasteControl Act of1990);

3. Republic Act No. 5207, (Atomic Energy Regulatory and Liability Act of 1968);

4. Republic Act No. 6235 (Anti-Hijacking Law);

5. Presidential Decree No. 532 (Anti-Piracy and Anti-Highway Robbery Law of1974); and,6. Presidential Decree No. 1866, as amended (Decree Codifying the Laws onIllegal and UnlawfulPossession, Manufacture, Dealing in, Acquisition or Disposition of Firearms, Ammunitions or Explosives)thereby sowing and creating a condition of widespread and extraordinary fear and

panic among the populace, in order to coerce the government to give in to anunlawful demand shall be guilty of the crime of terrorism and shall suffer thepenalty of forty (40) years of imprisonment, without the benefit of parole asprovided for under Act No. 4103, otherwise known as the Indeterminate SentenceLaw, as amended.

INFORMATION TECHNOLOGY LAW

DATA PRIVACY ACT (RA 10173)

SEC. 6. Extraterritorial Application. – This Act applies to an act done or practice

engaged in and outside of the Philippines byan entity if:

(a) The act, practice or processing relates topersonal information about a Philippine

citizen or a resident;(b) The entity has a link with the Philippines,

and the entity is processing personalinformation in the Philippines or even if theprocessing is outside the Philippines as longas it is about Philippine citizens or residents

such as, but not limited to, the following:



(1) A contract is entered in the Philippines;

(2) A juridical entity unincorporated in the Philippines buthas central management and control in the country; and(3) An entity that has a branch, agency, office or subsidiaryin the Philippines and the parent or affiliate of thePhilippine entity has access to personal information; and

(c) The entity has other links in thePhilippines such as, but not limited to:

(1) The entity carries on business in the Philippines; and

(2) The personal information was collected or held by anentity in the Philippines.

CYBERCRIME PREVENTION ACT(RA 10175)

SEC. 21.

Jurisdiction. — The Regional Trial Court shall havejurisdiction over any violation of the provisions of this Act. including any violation committed by a Filipinonational regardless of the place of commission. Jurisdictionshall lie if any of the elements was committed within thePhilippines or committed with the use of any computer

system wholly or partly situated in the country, or when bysuch commission any damage is caused to a natural orjuridical person who, at the time the offense wascommitted, was in the Philippines. There shall be designated special cybercrime courtsmanned by specially trained judges to handle cybercrimecases.

INTELLECTUAL PROPERTY P LAW

Intellectual Property Code

Sec. 3. InternationalConventions and Reciprocity.

Any person who is a national or who is domiciled or has a real andeffective industrial establishment in a country which is a party to any

convention, treaty or agreement relating to intellectual property rights orthe repression of unfair competition, to which the Phil- ippines is also aparty, or extends reciprocal rights to nationals of the Philippines by law,shall be entitled to benefits to the extent necessary to give effect to anyprovision of such convention, treaty or reciprocal law, in addition to therights to which any owner of an intellectual property right is otherwiseentitled by this Act. (n)

PATENTS

Sec. 31. Right of Priority.

An application for patent filed by any person who has previously appliedfor the same invention in another country which by treaty, convention, orlaw affords similar privileges to Filipino citizens, shall be considered asfiled as of the date of filing the foreign application: Provided, That: (a) thelocal application expressly claims priority; (b) it is filed within twelve (12)

months from the date the earliest foreign application was filed; and (c) acertified copy of the foreign application together with an Englishtranslation is filed within six (6) months from the date of filing in thePhilippines.

Sec. 33. Appointment of Agent or Representative.

An applicant who is not a resident of the Philippines must appoint andmaintain a resident agent or representative in the Philippines upon whomnotice or process for judicial or administrative procedure relating to theapplication for patent or the patent may be served.

Sec. 39. Information The applicant shall, at the request of the Director, furnish him with the



Concerning CorrespondingForeign Application for

Patents

date and number of any application for a patent filed by him abroad,hereafter referred to as the "foreign application," relating to the same oressentially the same invention as that claimed in the application filed withthe Office and other documents relating to the foreign application. (n)

Sec. 72. Limitations of PatentRights.

The owner of a patent has no right to prevent third parties fromperforming, without his authorization, the acts referred to in Section 71

hereof in the following circumstances:

72.5

Where the invention is used in any ship, vessel, aircraft, or land vehicle ofany other country entering the territory of the Philippines temporarily oraccidentally: Provided, That such invention is used exclusively for theneeds of the ship, vessel, aircraft, or land vehicle and not used for themanufacturing of anything to be sold within the Philippines.

Sec. 73. Prior User.

73.1

Notwithstanding Section 72 hereof, any prior user, who, in good faith wasusing the invention or has undertaken serious preparations to use theinvention in his enterprise or business, before the filing date or prioritydate of the application on which a patent is granted, shall have the right tocontinue the use thereof as envisaged in such preparations within theterritory where the patent produces its effect.

Sec. 77. Infringement Actionby a Foreign National.

Any foreign national or juridical entity who meets the requirements ofSection 3 and not engaged in business in the Philippines, to which apatent has been granted or assigned under this Act, may bring an actionfor infringement of patent, whether or not it is licensed to do business inthe Philippines under existing law.

Sec. 88. MandatoryProvisions. The following provisions shall be included in voluntary license contracts:

88.1 That the laws of the Philippines shall govern the interpretation of thesame and in the event of litigation, the venue shall be the proper court inthe place where the licensee has its principal office;

88.2Continued access to improvements in techniques and processes related tothe technology shall be made available during the period of the technologytransfer arrangement;

88.3

In the event the technology transfer arrangement shall provide forarbitration, the Procedure of Arbitration of the Arbitration Law of thePhilippines or the Arbitration Rules of the United Nations Commissionon International Trade Law (UNCITRAL) or the Rules of Conciliationand Arbitration of the International Chamber of Commerce (ICC) shallapply and the venue of arbitration shall be the Philippines or any neutralcountry; and

88.4 The Philippine taxes on all payments relating to the technology transferarrangement shall be borne by the licensor. (n)

Sec. 119. Application ofOther Sections and Chapters.

119.1 The following provisions relating to patents shall apply mutatis mutandis

to an industrial design registration.SECTION 31 - Right of Priority: Provided, That the application forindustrial design shall be filed within six (6) months from the earliest filingdate of the corresponding foreign application;

SECTION 33 - Appointment of Agent or Representative;

119.3 The following provisions relating to patents shall apply mutatismutandisto a layout -design of integrated circuits registration:

SECTION 33 - Appointment of Agent or Representative; TRADEMARKS



Section 124. Requirements of Application.

124.1

The application for the registration of the mark shall be in Filipino or inEnglish and shall contain the following: (a) A request for registration;(b) The name and address of the applicant;(c) The name of a State of which the applicant is a national or where he

has domicile; and the name of a State in which the applicant has a real andeffective industrial or commercial establishment, if any;(d) Where the applicant is a juridical entity, the law under which it isorganized and existing;(e) The appointment of an agent or representative, if the applicant is notdomiciled in the Philippines;(f) Where the applicant claims the priority of an earlier application, anindication of:i) The name of the State with whose national office the earlier application was filed or if filed with an office other than a national office, the name ofthat office,ii) The date on which the earlier application was filed, andiii) Where available, the application number of the earlier application;

(g) Where the applicant claims color as a distinctive feature of the mark, astatement to that effect as well as the name or names of the color orcolors claimed and an indication, in respect of each color, of the principalparts of the mark which are in that color;(h) Where the mark is a three-dimensional mark, a statement to thateffect;(i) One or more reproductions of the mark, as prescribed in theRegulations;(j) A transliteration or translation of the mark or of some parts of themark, as prescribed in the Regulations;(k) The names of the goods or services for which the registration issought, grouped according to the classes of the Nice Classification,together with the number of the class of the said Classification to which

each group of goods or services belongs; and(l) A signature by, or other self-identification of, the applicant or hisrepresentative.

124.2

The applicant or the registrant shall file a declaration of actual use of themark with evidence to that effect, as prescribed by the Regulations withinthree (3) years from the filing date of the application. Otherwise, theapplication shall be refused or the mark shall be removed from theRegister by the Director.

124.3One (1) application may relate to several goods and/or services, whetherthey belong to one (1) class or to several classes of the Nice Classification.

124.4

If during the examination of the application, the Office finds factual basisto reasonably doubt the veracity of any indication or element in the

application, it may require the applicant to submit sufficient evidence toremove the doubt. (Sec. 5, R.A. No. 166a)

Section 125. Representation; Address for Service.

If the applicant is not domiciled or has no real and effective commercialestablishment in the Philippines, he shall designate by a written documentfiled in the Office, the name and address of a Philippine resident who maybe served notices or process in proceedings affecting the mark. Suchnotices or services may be served upon the person so designated byleaving a copy thereof at the address specified in the last designation filed.If the person so designated cannot be found at the address given in the



last designation, such notice or process may be served upon the Director.(Sec. 3, R.A. No. 166a)

Section 131. Priority Right.

131.1

An application for registration of a mark filed in the Philippines by aperson referred to in Section 3, and who previously duly filed anapplication for registration of the same mark in one of those countries,

shall be considered as filed as of the day the application was first filed inthe foreign country.

131.2No registration of a mark in the Philippines by a person described in thissection shall be granted until such mark has been registered in the countryof origin of the applicant.

131.3

Nothing in this section shall entitle the owner of a registration grantedunder this section to sue for acts committed prior to the date on which hismark was registered in this country: Provided, That, notwithstanding theforegoing, the owner of a well-known mark as defined in Section 123.1(e)of this Act, that is not registered in the Philippines, may, against anidentical or confusingly similar mark, oppose its registration, or petitionthe cancellation of its registration or sue for unfair competition, withoutprejudice to availing himself of other remedies provided for under the law.

131.4

In like manner and subject to the same conditions and requirements, theright provided in this section may be based upon a subsequent regularlyfiled application in the same foreign country: Provided, That any foreignapplication filed prior to such subsequent application has been withdrawn,abandoned, or otherwise disposed of, without having been laid open topublic inspection and without leaving any rights outstanding, and has notserved, nor thereafter shall serve, as a basis for claiming a right of priority.(Sec. 37, R.A. No. 166a)

Section 160. Right of ForeignCorporation to Sue in

Trademark or Service MarkEnforcement Action.

Any foreign national or juridical person who meets the requirements ofSection 3 of this Act and does not engage in business in the Philippinesmay bring a civil or administrative action hereunder for opposition,cancellation, infringement, unfair competition, or false designation oforigin and false description, whether or not it is licensed to do business in

the Philippines under existing laws. (Sec. 21-A, R.A. No. 166a)COPYRIGHTS

Sec. 220. InternationalRegistration of Works.

A statement concerning a work, recorded in an international register inaccordance with an international treaty to which the Philippines is or maybecome a party, shall be construed as true until the contrary is provedexcept:

220.1 Where the statement cannot be valid under this Act or any other lawconcerning intellectual property.

220.2 Where the statement is contradicted by another statement recorded in theinternational register. (n)

Sec. 221. Points of Attachment for Works under

Sections 172 and 173. -

221.1

The protection afforded by this Act to copyrightable works underSections 172 and 173 shall apply to: (a) Works of authors who arenationals of, or have their habitual residence in the Philippines;

(b) Audio-visual works the producer of which has his headquarters orhabitual residence in the Philippines;

(c) Works of architecture erected in the Philippines or other artistic worksincorporated in a building or other structure located in the Philippines;



(d) Works first published in the Philippines; and

(e) Works first published in another country but also published in thePhilippines within thirty days, irrespective of the nationality or residenceof the authors.

221.2

The provisions of this Act shall also apply to works that are to beprotected by virtue of and in accordance with any internationalconvention or other international agreement to which the Philippines is aparty. (n)

Sec. 222. Points of Attachment for Performers. - The provisions of this Act on the protection of performers shall apply to:

222.1 Performers who are nationals of the Philippines;

222.2

Performers who are not nationals of the Philippines but whoseperformances: (a) Take place in the Philippines; or

(b) Are incorporated in sound recordings that are protected under this Act; or

(c) Which has not been fixed in sound recording but are carried bybroadcast qualifying for protection under this Act. (n)

Sec. 223. Points of Attachment for Sound

Recordings. The provisions of this Act on the protection of sound recordings shallapply to:

223.1sound recordings the producers of which are nationals of the Philippines;and

223.2 Sound recordings that were first published in the Philippines. (n)Sec. 224. Points of

Attachment for Broadcasts.

224.1

The provisions of this Act on the protection of broadcasts shall apply to:(a) Broadcasts of broadcasting organizations the headquarters of whichare situated in the Philippines; and

(b) Broadcasts transmitted from transmitters situated in the Philippines.

224.2

The provisions of this Act shall also apply to performers who, and toproducers of sound recordings and broadcasting organizations which, areto be protected by virtue of and in accordance with any internationalconvention or other international agreement to which the Philippines is aparty. (n)

INTELLECTUAL PROPERTY-RELATED

SPECIAL LAWSOptical Media Act (RA 9239)

SECTION 19. Offenses and Penalties.

(a) Imprisonment of at least three (3) years butnot more than six (6) years, and a fine of not lessthan Five hundred thousand pesos (Php500,000.00) but not exceeding One million fivehundred thousand pesos (Php 1,500,000.00), atthe discretion of the Court, shall be imposed onany person, natural or juridical, who shall:



(1) Engage in the importation, exportation,acquisition, sale or distribution of, or possess oroperate manufacturing equipment, parts andaccessories without the necessary licenses fromthe OMB;(2) Engage in the mastering, manufacture,

replication, importation or exportation of opticalmedia without the necessary licenses from theOMB;

(b) Imprisonment of at least one (1) year but notmore than three (3) years, and a fine of not lessthan One hundred thousand pesos (Php100,000.00) but not exceeding Five hundredthousand pesos (Php 500,000.00), at the discretionof the Court, for the following offenses:(1) Engaging in the importation, exportation, sale,or distribution of, or possess or acquire incommercial quantities manufacturing materials

used or intended for use in the mastering,manufacture or replication of optical media without the necessary licenses from the OMB;

(d) Imprisonment of at least thirty (30) days butnot more than ninety (90) days or a fine of notless than Twenty-five thousand pesos (Php25,000.00) but not exceeding Fifty thousand pesos(Php 50,000.00), at the discretion of the Court:(2) Engaging in the sale, rental, distribution,importation, exportation of, or any othercommercial activity involving optical media thatare in violation of this Act.

SECTION 21. Persons Liable.

If the offender is an alien, the person shallimmediately be deported after serving hissentence, and shall, thereafter, be refused entryinto the country.

Anti-Camcording Law (RA 10088)

Section 2. Definition of Terms.

For purposes of this Act:(l)'Transmit" means to convey by any means, whether over a path or a combination of paths,provided by a material substance or by wirelessmeans or otherwise, and whether or not inresponse to a request made.

Section 3. Acts Constituting Unauthorized Possession,Use and/or Control of Audiovisual Recording

Devices.

It shall be unlawful for any person, at a time whencopyright subsists in a cinematographic film orother audiovisual work or its soundtrack and without the authorization of the copyright owneror exclusive licensee thereof, to:

xxx



(b) have in his/her possession, an audiovisualrecording device in an exhibition facility, with theintent of using or attempts to use the audiovisualrecording device to transmit or make a copy ofany performance in the exhibition facility of suchcinematographic film or other audiovisual work or

its soundtrack, or any part thereof; or

Section 4. Penalties.

xxxIf the offender is an alien, said person shallimmediately be deported after payment of the fineand after serving his/her sentence. He/She shallthereafter be refused entry into the Philippines.Xxx

Philippine Plant Variety Protection Act (RA 9168)

Section 5. Newness.

A variety shall be deemed new if the propagatingor harvested material of the variety has not been

sold, offered for sale or otherwise disposed of toothers, by or with the consent of the breeder, forpurposes of exploitation of the variety;xxxb) In other countries or territories in which theapplication has been filed, for more than four (4)years or, in the case of vines or tress, more thansix (6) years before the date of filing of anapplication for Plant Variety Protection.

Section 14. Denomination Used in an ApplicationPreviously Filed abroad.

An application filed in this country, the subjectmatter of which is the same as that of anapplication previously filed abroad, shall use the

same denomination as the latter. However, if suchdenomination does not conform to the provisionsof this Title, the applicant/breeder shall berequired to submit a new denomination.

Section 21. Priority Date.

Any application for a Certificate of Plant VarietyProtection previously filed by a breeder in anothercountry, which by treaty, convention or lawaffords similar privileges to Filipino citizens, shallbe considered as filed locally as of the date offiling of the foreign application: Provided, That:a) The local application expressly claims priority;b) It is filed within twelve (12) months from thefiling date of the earliest foreign application; andc) The applicant submits, within six (6) monthsfrom the filing of the local application,authenticated copies of documents whichconstitute the foreign application, samples orother evidence showing that the variety which isbeing applied for protection is the same variety which has been applied for protection in a foreigncountry.



Section 22. Foreign Nationals.

For purposes of this Act, a person shall beconsidered a national of a foreign country if he isa citizen of such country according to its laws, anatural person residing therein, or is a legal entity whose office is registered in such foreign country.

Section 23. National Treatment.

Any application filed locally for a Certificate of

Plant Variety Protection previously granted to abreeder in another country, which by treaty,convention or law affords similar privileges toFilipino citizens, shall be issued a Certificate ofPlant Variety Protection upon payment of duesand compliance to all the provisions of this Act. This Act shall also apply to the nationals offoreign countries that are members ofintergovernmental organizations or party to anymultilateral agreement or convention concerningthe granting of intellectual property protection toplant varieties.

Section 47. What Constitutes Infringement.

Except as otherwise provided in this Act, any

person who without being entitled to do so,performs the following acts:a) Sell the novel variety, or offer it or expose it forsale, deliver it, ship it, consign it, exchange it, orsolicit an offer to buy it, or any other transfer oftitle or possession of it; orb) Import the novel variety into, or export it from,the Philippines; or

xxx

Section 57. Grounds for the Grant of CompulsoryLicensing.

Any interested person may file a petition forcompulsory license with the Board at any time

after two (2) years from the grant of theCertificate of Plant Variety Protection under this Act when it is for the public interest to grant suchcompulsory license, and:xxxb) There is an overseas market for the sale of anypart of the variety and the same are not met bythe holder; or

xxx

Section 69. Coordination and Cooperation with OtherInstitutions.

For the purpose of verifying certain facts such asbut not limited to the requirements of stability,

distinctness and uniformity, the Board may enterinto agreements with other governmental ornongovernmental institutions both domestic andforeign under a set of conditions germane to itsfunctions. xxx

AN ACT PROVIDING FOR THEPROTECTlON OF LAYOUT-DESIGNS(TOPOGRAPHIES) OF INTEGRATED



CIRCUITS, AMENDING FOR THE PURPOSECERTAIN SECTIONS OF REPUBLIC ACTNO. 8293, OTHERWISE KNOWN AS THEINTELLECTUAL PROPERTY CODE OF THE PHILIPPINES AND FOR OTHER

PURPOSES (RA 9150)

Sec. 1 Sections 112, 113, 114, 116, 117, 118, 119 and 120under Chapter XIIl of R.A. No. 8293 are herebyamended to read as follows:xxx118.5. Registration of a layout-design shall be valid for a period often (10) years, withoutrenewal, and such validity to be counted from thedate of commencement of the protectionaccorded to the layout-design. The protection of alayout-design under this Act shall commence:a) on the date of the first commercial exploitation,anywhere in the world, of the layout-design by or with the consent of the right holder: Provided,

That an application for registration is filed withthe Intellectual Property Office within two (2)years from such date of first commercialexploitation; orb) on the filing date accorded to the applicationfor the registration of the layout-design if thelayout-design has not been previously exploitedcommercially anywhere in the world.

xxx120.3. Grounds for Cancellation of Layout-Designof Integrated Circuits.- Any interested person maypetition that the registration of a layout-design becancelled on the ground that:

xxx(iii) where the application for registration of thelayout-design, was not filed within two (2) yearsfrom its first commercial exploitation anywhere inthe world.

AN ACT AMENDING CERTAINPROVISIONS OF REPUBLIC ACT NO. 8293,

OTHERWISE KNOWN AS THE"INTELLECTUAL PROPERTY CODE OF THE PHILIPPINES", AND FOR OTHER

PURPOSES (RA 10372)

Sec. 15

Section 190.3. of Republic Act No. 8293 is herebyrenumbered and amended as the sole provisionunder Section 190 to read as follows:"SEC 190. Importation and Exportation ofInfringing Materials. – Subject to the approval ofthe Secretary of Finance, the Commissioner ofCustoms is hereby empowered to make rules andregulations for preventing the importation orexportation of infringing articles prohibited underPart IV of this Act and under relevant treaties andconventions to which the Philippines may be a



party and for seizing and condemning anddisposing of the same in case they are discoveredafter they have been imported or before they areexported. (Sec. 30, P.D. No. 49)"

xxx

Special Law on Counterfeit Drugs (RA 8203)

SECTION 4 Prohibited Acts.

The following acts are declared unlawful andtherefore prohibited;

a) The manufacture, sale, or offering for sale,donation, distribution, trafficking, brokering,exportation, or importation or possession ofcounterfeit drugs as defined in Section 3 hereofnot otherwise covered by Republic Act No. 3720,as amended. The presence or availability of suchcounterfeit drugs within the premises of any entity

engaged in the sale, manufacture or distribution ofdrugs and/or pharmaceutical products or in aprivate residence, or in public or private vehicle,or in the premises not covered by a valid licenseto operate from the Bureau, shall constitute aprima facie evidence of violation of this Act:Provided, however, That this presumption shallnot apply to the legitimate owners of trademarks,trade names or other identifying marks, or thelegitimate or authorized representatives or agentsof such owners who have in their possessioncounterfeit drugs which bear the trademarks, tradenames or marks if they can show the sales

invoices or official receipts evidencing theirpurchase from a drugstore, manufacturer ordistributor suspected by them of dealing incounterfeit drugs involving the trademarks, tradenames and other similar identifying marksregistered in their names: Provided, further, Thatsuch counterfeit products shall be reported andimmediately turned over to the Bureau: Provided,finally, That compliance with the precedingprovision shall be made within a reasonableperiod from the date of purchase of suchcounterfeit drugs as indicated in the sales invoice,official receipt, or other similar documents

abovementioned to the time the counterfeit drugsare reported and turned over to the Bureau;

b) Possession of any such counterfeit drugs.However, any person found in possession ofcounterfeit drugs, in violation of this subsection,shall be exempted from liability under theprovisions of this Act after:



xxx

2) presentation of certificates and otherdocuments evidencing the importation orexportation of the counterfeit drugs found in hispossession as required by existing laws, including

those documents required in the precedingparagraph covering the commercial transactionsinvolving counterfeit drugs.

xxx

SECTION 5. Parties Liable

The following persons shall be liable for violation(s) of this Act: a) the manufacturer,exporter or importer of the counterfeit drugs andtheir agents: Provided, That the agents shall beliable only upon proof of actual or constructiveknowledge that the drugs are counterfeit.

Investors and Invention Incentives Act of the

Philippines (RA 7459)

Sec. 6. Tax Exemption.

To promote, encourage, develop and acceleratecommercialization of technologies developed bylocal researchers or adapted locally from foreignsources including inventions, any income derivedfrom these technologies shall be exempted fromall kinds of taxes during the first ten (10) yearsfrom the date of the first sale, subject to the rulesand regulations of the Department of Finance:Provided, that this tax exemption privilegepertaining to invention shall be extended to thelegal heir or assignee upon the death of theinventor.

The technologies, their manufacture or sale, shallalso be exempt from payment of license, permitfees, customs duties and charges on imports.

Sec. 7. Inventions Development Assistance Fund.

There is hereby established an InventionDevelopment Assistance Fund from theoperations of the Technology Application andPromotion Institute in the amount of at leasttwelve percent (12%) of the annual operationsfund of the Institute and from donations,bequests, and other sources, public, private ordomestic or foreign, for assisting potential oractual inventors in the initial experiments andprototype development and other inventor-

development related activities of invention orinnovation. The Fund shall be administered by theInstitute and in the performance of the advisoryboard of inventors from the public and privatesector. All donations to the Assistance Fund shallbe tax exempt or tax deductible.



REPUBLIC ACT NO. 8366: AN ACT LIBERALIZING THE PHILIPPINE INVESTMENT HOUSE INDUSTRY, AMENDINGCERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 129, AS AMENDED, OTHERWISEKNOWN AS THE INVESTMENT HOUSES LAW.Sec. 2. Sec. 5 of Presidential Decree No. 129, as amended, otherwise known as the Investment HousesLaw, is hereby further amended, to read as follows:

“Sec. 5. Citizenship requirements. — At least forty percent (40%) of the voting stock of any Invest- mentHouse shall be owned by citizens of the Philippines. In determining the percentage of foreign- owned voting stocks in Investment Houses, the basis for the computation shall be the citizenship of eachstockholder, and, if the stockholder is a corporation, the citizenship of the individual stockhold- ersholding voting shares in that corporation. In approving foreign equity applications in Investment Houses,the Securities and Exchange Commission shall approve such applications only if the same or similar rightsare enjoyed by Philippine nationals in the applicant’s country.

“Foreign nationals may become members of the board of directors to the extent of the foreign par -ticipation in the equity of said enterprise.”

REPUBLIC ACT NO. 8752: ANTI-DUMPING ACT OF 1999Sec. 3(d). Notice to Exporting Member-Country. - Upon receipt of a properly documented applicationand before proceeding to initiate an investigation, the Secretary shall notify the government of theexporting country about the impending anti-dumping investigation. However, the Secretary shall refrain

from publicizing the application for the initiation of the investigation before a decision has been made toinitiate an investigation.Sec. 3(e). Notice to Concerned Parties and Submission of Evidences. – Within two (2) days from initiationof the investigation and after having notified the exporting country, the Secretary shall identify allinterested parties, i.e., protestee-importer, exporter and/ or foreign producer, notify and requirethem to submit within thirty (30) days from receipt of such notice evidences and information or reply tothe questionnaire to dispute the allegations contained in the application. At this point, the respondent isgiven the opportunity to present evidences to prove that he is not involved in dumping. He shall furnishthem with a copy of the application and its annexes subject to the requirement to protect confidentialinformation. The notice shall be deemed to have been received five (5) days from the date on which it wassent to the respondent or transmitted to the appropriate diplomatic representative of the exportingmember, or an official representative of the exporting territory. If the respondent fails to submit hisanswer, he shall be declared in default, in which case, the Secretary shall make such preliminary determina-

tion of the case on the basis of the information available, among others, the facts alleged in the petitionand the supporting information and documents supplied by the petitioner.Sec. 3(f). Preliminary Determination. - Not later than thirty (30) working days from receipt of the answerof the respondent importer, exporter, foreign producer, exporting member-country, and other interestedparties, the Secretary shall, on the basis of the application of the aggrieved party andthe answer of the respondent/s and their respective supporting documents or information, make apreliminary determination of the application for the imposition of an anti-dumping duty.

In the preliminary determination, the Secretary shall essentially determine the following:(1) Price difference between the export price and the normal value of the article in question in the countryof export or origin;(2) The presence and extent of material injury or threat of injury to the domestic industry producing likeproduct or the material retardation of the establishment of a domestic industry; and

(3) The causal relationship between the allegedly dumped product, commodity or article and the materialinjury or threat of material injury to the affected domestic industry or material retardation ofthe establishment of the domestic industry. The preliminary finding of the Secretary, together with the records of the case shall, within three (3) days,be transmitted by the Secretary to the Commission for its immediate formal investigation. In case hispreliminary finding is affirmative, the burden of proof is shifted to the respondent to rebut thepreliminary finding. The Secretary shall immediately issue, through the Secretary of Finance, writteninstructions to the Commissioner of Customs to impose within three (3) days from receipt of instructionsa cash bond equal to the provisionally estimated anti-dumping duty but not greater than the provisionallyestimated margin of dumping in addition to any other duties, taxes and charges imposed by law on like



articles. The cash bond shall be deposited with the government depository bank and shall be held in trustfor the respondent. Moreover, the posting of the cash bond shall only be required no sooner than sixty(60) days from the date of initiation of the investigation. The date of initiation of the investigation isdeemed to be the date the Secretary publishes such notice in two (2) newspapers of general circulation. The Secretary shall cause such publication immediately after a decision to initiate the investigation hasbeen made. The provisional anti-dumping duty may only be imposed for a four (4) month period which

may be extended to six (6) months upon request by the exporter/s representing a significant percentage ofthe trade involved. However, a provisional anti-dumping duty lower than the provisionally estimatedmargin of dumping can be imposed for a period of six (6) to nine (9) months, if it is deemed sufficient toremove or prevent the material injury.Sec. 3(j). Voluntary Price Undertaking. - Anti-Dumping investigation may be suspended or terminated without the imposition of provisional measures or anti-dumping duties upon receipt of the Commissionof a satisfactory voluntary price undertaking executed by the exporter or foreign producer under oath andac- cepted by the affected industry that he will increase his price or will cease exporting to the Philippinesat a dumped price, thereby eliminated the material injury to the domestic industry producing like product.Price increases under such undertaking shall not be higher than necessary to eliminate the margin ofdumping. A price undertaking shall be accepted only after a preliminary affirmative determination of dumping andinjury caused by such dumping has been made. No price undertaking shall take effect unless it is approved

by the Secretary after a recommendation by the Commission.Even if the price undertaking is acceptable, the investigation shall nevertheless be continued andcompleted by the Commission if the exporter or foreign producer so desires or upon advice of theSecretary. The undertaking shall automatically lapse in case of a negative finding. In case of anyaffirmative finding, the undertaking shall continue, consistent with the provisions of Article VI of theGATT 1994.

PUBLIC ACT NO. 521: CARRIAGE OF GOODS BY SEA ACTSec. 1. That the provisions of Public Act No. 521 of the 7th Congress of the United States, approved on April 16, 1936, be accepted, as it is hereby accepted to be made applicable to all contracts for the carriageof goods by sea to and from Philippine ports in foreign trade: Provided, that nothing in this Act shall beconstrued as repealing any existing provision of the Code of Commerce which is now in force, or aslimiting its application.Sec. 13. This Act shall apply to all contracts for carriage of goods by seas to or from ports of the United

States in foreign trade. As used in this Act the term “United States” includes its districts, territories, andpossessions: Provided, however, that the Philippine Legislature may by law exclude its application totransportation to or from ports of the Philippine Islands. The term “foreign trade” means thetransportation of goods between the ports of the United States and ports of foreign countries. Nothing inthis Act shall be held to apply to contracts for carriage of goods by sea between any port of the UnitedStates or its possessions and any other port of the United States or its possessions: Provided, however,that any bill of lading or similar document of the title which is evidence of a contract for the carriage ofgoods by sea between such ports, containing an express statement that it shall be subject to the provisionsof this Act; shall be subjected hereto as fully as if subject hereto by the express provisions of this Act:Provided, further, that every bill of lading or similar document of title which is evidence of a contract forthe carriage of goods by sea from ports of the United States in foreign trade, shall contain a statement thatit shall have effect subject to the provisions of this Act.Sec. 14. Upon the certification of the Secretary of Commerce that the foreign commerce of the UnitedStates in its competition with that of foreign nations is prejudiced by the provisions, or any of them, ofthe Title I of this Act, or by the laws of any foreign country or countries relating to the carriage of goodsby sea, the President of the United States may, from time to time by proclamation, suspend any or allprovisions of Title I of this Act for such periods of time or indefinitely as may be designated in theproclamation. The President may at any time rescind such suspension of Title I hereof, and any provisionsthereof which may have been suspended shall thereby be reinstated and again apply to contracts thereaftermade for carriage of goods by sea. Any proclamation of suspension or rescission of any such suspensionshall take effect on the date named therein, which date shall be not less than ten days from the issue of theproclamation.



Any contract for the carriage of goods by sea, subject to the provisions of this Act, effective during anyperiod when Title I hereof, or any part thereof, is suspended, shall be subject to all provisions of law nowor hereafter applicable to that part of Title I which may have thus been suspended.REPUBLIC ACT NO. 776: CIVIL AERONAUTICS ACTSec. 10. Powers and duties of the Board. - (H) (1) The Civil Aeronautics Board shall be advised of, andshall consult with the Department of Foreign Affairs concerning the negotiation of any air agreement with

foreign governments for the promotion, establishment, or development of foreign air transportation.(2) In exercising and performing its powers and duties under the provisions of this Act, the Civil Aeronautics Board shall take into consideration the obligation assumed by the Republic of the Philippinesin any treaty, convention or agreement with foreign countries on matters affecting civil aviation.Sec. 34. Eligibility for registration. - Except as otherwise provided in the Constitution and existing treatyor treaties, no aircraft shall be eligible for registration unless it is owned by a citizen or citizens of thePhilippines and is not registered under the laws of any foreign country.

Such certificate shall be conclusive evidence of nationality for international purposes, but not in anyproceedings under the laws of the Republic of the Philippines. The certificate of registration is conclusive evidence of ownership, except in a proceeding where suchownership is, or may be, at issue.

REPUBLIC ACT NO. 8762:RETAIL TRADE LIBERALIZATION ACT OF 2000Sec. 4. Treatment of Natural Born Citizen Who Has Lost His Philippine Citizenship. - A natural-borncitizen of the Philippines who resides in the Philippines shall be granted the same rights as Filipinocitizens for purposes of this Act.Sec. 5. Foreign Equity Participation. - Foreign-owned partnerships, associations and corporation formedand organized under the laws of the Philippines may, upon registration with the Securities and ExchangeCommission (SEC) and the Department of Trade and Industry (DTI), or in case of foreign owned singleproprietorships, with the DTI, Engage or invest in the retail trade business, subject to the followingcategories:Category A – Enterprises with paid-up capital of the equivalent in Philippine Peso of the than Two

million five hundred thousand US dollars (US$2,500,000.00) shall be reserved exclusively for Fili- pinocitizens and corporations wholly owned by Filipino citizens.Category B – Enterprises with a minimum paid-up capital of the equivalent in Philippine Pesos of twomillion five hundred thousand US dollar (US$2,500,000.00) but less than Seven million five hundredthousand US dollars (US$7,500,000.00) may be wholly owned by foreigners except for the first two (2)years after the effectivity of this Act wherein foreign participation shall be limited to not more than sixtypercent (60%) of total equity.Category C – Enterprises with a paid-up capital of the equivalent in Philippine Pesos of Seven mil- lionfive hundred thousand US dollars (US$7,500,000.00), or more may be wholly owned by foreigners:Provided, however, That in no case shall the investments for establishing a store in vestments forestablishing a store in Categories B and C be less than the equivalent in Philippine pesos of Eight hundredthirty thousand US dollars (US$830,000.00).Category D – Enterprises specializing in high-end or luxury products with a paid-up capital of the

equivalent in Philippine Pesos of Two hundred fifty thousand US dollars (US$250,000.00) per store maybe wholly owned by foreigners. The foreign investor shall be required to maintain in the Philippines the full amount of the prescribedmini- mum capital unless the foreign investor has notified the SEC and the DTI of its intention torepatriate its capital and cease operations in the Philippines. The actual use in Philippine operations ofthe inwardly remitted minimum capital requirement shall be monitored by the SEC.Failure to maintain the full amount of the prescribed minimum capital prior to notification of the SECand the DTI, shall subject the foreign investor to penalties or restrictions on any future tradingactivities/businesss in the Philippines.



Foreign retail stores shall secure a certification from the Bangko Sentral ng Pilipinas (BSP) and the DTI, which will verify or confirm inward remittance of the minimum required capital investments.Sec. 6. Foreign Investors Acquiring Shares of Stock of Local Retailers. - Foreign investors acquiringshares from existing retail stores whether or not publicly listed whose net worth is in the excess of thepeso equivalent of Two million five hundred thousand US dollars (US$2,500,000.00) may purchaseonly up to a maximum of sixty percent (60%) of the equity thereof within the first two (2) years from the

effectivity of this Act and thereafter, they may acquire the remaining percentage consistent with theallowable foreign participation as herein provided.Sec. 7. Public Offering of Shares of Stock. – All retail trade enterprises under Categories B and C in whichforeign ownership exceeds eighty percent (80%) of equity shall offer a minimum of thirty percent (30%)of their equity to the public through any stock exchange in the Philippine within eight (8) years from theirstart of operations.Sec. 8. Qualification of Foreign Retailers. - No foreign retailer shall be allowed to engage in retail trade inthe Philippine unless all the following qualifications are met:(a) A minimum of Two hundred million US dollar (US$200,000,000.00) net worth in its parentcorporation for Categories B and C, and Fifty million US dollar (US$50,000,000.00) net worth in itsparent corporation for category D;(b) (5) retailing branches or franchises in operation anywhere around the word unless such retailer has atleast one (1) store capitalized at a minimum of Twenty-five million US dollars (US$25,000,000.00); (c)

Five (5)-year track record in retailing; and(d) Only nationals from, or juridical entities formed or incorporated in Countries which allow the entry ofFilipino retailers shall be allowed to engage in retail trade in the Philippines. The DTI is hereby authorized to pre-qualify all foreign retailers, subject to the provisions of this Act,before they are allowed to conduct business in the Philippine. The DTI shall keep a record of Qualified foreign retailers who may, upon compliance with law, establishretail stores in the Philippine. It shall ensure that parent retail trading company of the foreign investorcomplies with the qualifications on capitalization and track record prescribed in this section The Inter- Agency Committee on Tariff and Related Matters Authority (NEDA) Board shall formulateand regularly update a list of foreign retailers of high-end or luxury goods and render an annual report onthe same to Congress.Sec. 11. Implementing Agency: Rule and Regulations. – The monitoring and regulation of foreign soleproprietorships, partnerships, associations or corporations allowed to engage in retail trade shall be the re-sponsibility of the DTI. This shall include resolution of conflicts. The DTI, in coordination with the SEC,the NEDA and the BSP, shall formulate and issue the implementing rules and regulation necessary toimplement this Act within ninety (90) days after its approval.

REPUBLIC ACT NO. 8799: SECURITIES REGULATION CODE

Sec. 29. Revocation, Refusal or Suspension of Registration of Brokers, Dealers, Salesmen and AssociatedPersons. – 29.1. Registration under Section 28 of this Code may be refused, or any registration grantedthere under may be revoked, suspended, or limitations placed thereon, by theCommission if, after due notice and hearing, the Commission determines the applicant or registrant:(a) Has wilfully violated any provision of this Code, any rule, regulation or order made hereunder, or anyother law administered by the Commission, or in the case of a registered broker, dealer or associatedperson has failed to supervise, with a view to preventing such violation, another person who commits

such violation;(b) Has wilfully made or caused to be made a materially false or misleading statement in any applicationfor registration or report filed with the Commission or a self-regulatory organization, or has wilfullyomitted to state any material fact that is required to be stated therein;(c) Has failed to satisfy the qualifications or requirements for registration prescribed under Section 28 andthe rules and regulations of the Commission promulgated there under;(d) Has been convicted, by a competent judicial or administrative body of an offense involving moralturpitude, fraud, embezzlement, counterfeiting, theft, estafa, misappropriation, forgery, bribery, false oath,or perjury, or of a violation of securities, commodities, banking, real estate or insurance laws; (e) Is



enjoined or restrained by a competent judicial or administrative body from engaging in securities,commodities, banking, real estate or insurance activities or from wilfully violating laws governing suchactivities;(f) Is subject to an order of a competent judicial or administrative body refusing, revoking or suspendingany registration, license or other permit under this Code, the rules and regulations promulgated thereunder, any other law administered by the Commission;

(g) Is subject to an order of a self-regulatory organization suspending or expelling him from mem- bershipor participation therein or from association with a member or participant thereof;(h) Has been found by a competent judicial or administrative body to have wilfully violated any provisionsof securities, commodities, banking, real estate or insurance laws, or has wilfully aided, abetted, counselled,commanded, induced or procured such violation; or(i) Has been judicially declared insolvent.For purposes of this subsection, the term competent judicial or administrative body shall include aforeign court of competent jurisdiction and a foreign financial regulator.Sec. 65. Substituted Service Upon the Commission. - Service of summons or other process shall be madeupon the Commission in actions or legal proceedings against an issuer or any person liable under thisCode who is not domiciled in the Philippines. Upon receipt by the Commission of such summons, theCommission shall within ten (10) days thereafter, transmit by registered mail a copy of such summons andthe complaint or other legal process to such issuer or person at his last known address or principal office.

The sending thereof by the Commission, the expenses for which shall be advanced by the party at whoseinstance it is made, shall complete such service.Sec. 66.5. Notwithstanding anything in Subsection 66.4 to the contrary, on request from a foreignenforce- ment authority of any country whose laws grant reciprocal assistance as herein provided, theCommission may provide assistance in accordance with this subsection, including the disclosure of anyinformation filed with or transmitted to the Commission, if the requesting authority states that it isconducting an investigation which it deems necessary to determine whether any person has violated, is violating, or is about to violate any laws relating to securities or commodities matters that the requestingauthority administers or enforces. Such assistance may be provided without regard to whether the factsstated in the request would also constitute a violation of law of the Philippines.

ACT 1508: CHATTEL MORTAGE LAWSec. 4. Validity. — A chattel mortgage shall not be valid against any person except the mortgagor, hisexecu- tors or administrators, unless the possession of the property is delivered to and retained by the

mortgagee or unless the mortgage is recorded in the office of the register of deeds of the province in which the mortgagor resides at the time of making the same, or, if he resides without the PhilippineIslands, in the province in which the property is situated: Provided, however, That if the property issituated in a different province from that in which the mortgagor resides, the mortgage shall be recordedin the office of the register of deeds of both the province in which the mortgagor resides and that in which the property is situated, and for the purposes of this Act the city of Manila shall be deemed to be aprovince.EXECUTIVE ORDER NO. 226: THE OMNIBUS INVESTMENTS CODE OF 1987

Art. 14. Foreign Investments shall mean equity investments owned by a non-Philippine national made inthe form of foreign exchange or other assets actually transferred to the Philippines and registered with theCentral Bank and the Board, which shall assess and appraise the value of such assets other than foreignexchange. Art. 17. Pioneer enterprise shall mean a registered enterprise (1) engaged in the manufacture, processingor production, and not merely in the assembly or packaging of goods, products, commodities or rawmaterials that have not been or are not being produced in the Philippines on a commercial scale of (2) which uses a design, formula, scheme, method, process or system of production or transformation ofany element, substance or raw materials into another raw material or finished goods which is new anduntried in the Philippines or (3) engaged in the pursuit of agricultural, forestry and mining activitiesand/or services including the industrial aspects of food processing whenever appropriate, pre-determined by the Board, in consultation with the appropriate Department, to be feasible and highly



essential to the attainment of the national goal in relation to a declared specific national food andagricultural program for self sufficiency and other social benefits of the project or (4) which producesnon-conventional fuels or manufactures equipment which utilize non-conventional sources of energy oruses or converts to coal or other non-conventional fuels or sources of energy in its production,manufacturing or processing operations: Provided, That the final product in any of the foregoinginstances, involves or will involve substantial use and processing of domestic raw materials, whenever

available; taking into account the risks and magnitude of investment; Provided, further, That theforegoing definitions shall not in any way limit the rights and incentives granted to less-developed-areaenterprises provided under Title V, Book 1 hereof. Art. 23. Export sales shall mean the Philippine port F.O. B. value, determined from invoices, bills oflading, inward letters of credit, landing certificates, and other commercial documents, of export productsexported directly by a registered export producer or the net selling price of export products sold by aregistered export producer to another export producer, or to an export trader that subsequently exportsthe same: Provided, That sales of export products to another producer or to an export trader shall only bedeemed export sales when actually exported by the latter, as evidenced by landing certificates or similarcommercial documents: Provided, further, That without actual exportation the following shall beconsidered constructively exported for purposes of this provision: Sales of locally manufactured orassembled goods for household and personal use to Filipinos abroad and other non-residents of thePhilippines as well as returning Overseas Filipinos under the Internal Export Program of the government

and paid for in convertible foreign currency inwardly remitted through the Philippine banking systemsshall also be considered export sales. Art. 47. Permissible Investments. If an investment by a non-Philippine national in an enterprise not regis-tered under Book One hereof is such that the total participation by non-Philippine nationals in theoutstanding capital thereof shall exceed forty percent (40%), the enterprise must obtain prior authorityfrom the Board of Investments, which authority shall be granted unless the proposed investment(a) Would conflict with existing constitutional provisions and laws regulating the degree of requiredownership by Philippine nationals in the enterprise; or(b) Would pose a clear and present danger of promoting monopolies or combinations in restraint of trade;or(c) Would be made in enterprise engaged in an area adequately being exploited by Philippine nationals;or(d) Would conflict or be inconsistent with the Investment Priorities Plan in force at the time the

investment is sought to be made; or(e) Would not contribute to the sound and balanced development of the national economy on a self-sustaining basis.Investments made in the form of foreign exchange or other assets actually transferred to the Philippinesshall also be registered with the Central Bank. The Board shall assess and appraise the value of such assetsother than foreign exchange. Article 48. Authority to Do Business. No alien, and no firm association, partnership, corporation or anyother form of business organization formed, organized, chartered or existing under any laws other thanthose of the Philippines, or which is not a Philippine national, or more than forty per cent (40%) of theoutstanding capital of which is owned or controlled by aliens shall do business or engage in any economicactivity in the Philippines or be registered, licensed, or permitted by the Securities and ExchangeCommission or by any other bureau, office, agency, political subdivision or instrumentality of thegovernment, to do business, or engage in any economic activity in the Philippines without first securing a written certificate from the Board of Investments to the effect:(1) That the operation or activity of such alien, firm, association, partnership, corporation or other formof business organization, is not inconsistent with the Investment Priorities Plan;(2) That such business or economic activity will contribute to the sound and balanced development of thenational economy on a self-sustaining basis;(3) That such business or economic activity by the applicant would not conflict with the Constitution orlaws of the Philippines;(4) That the field of business or economic activity is not one that is being adequately exploited byPhilippine nationals; and



(5) That the entry of applicant therein will not pose a clear and present danger of promoting mo- nopoliesor combinations in restraint of trade. Art. 51. Mergers and Consolidations. The provisions of this Book Two shall apply to any merger,consolidation, syndicate or any other combination of firms, associations, partnership or other forms ofbusiness organization that will result in ownership or control by persons or entities that are notPhilippine nationals or have foreign equity participation, of more than forty per cent (40%) of the

outstanding capital of whatever organizations results from the merger, consolidation, syndicate or othercombination. Art. 58. Qualifications of Multinational Company. Any foreign business entity formed, organized and ex-isting under any laws other than those of the Philippines whose purpose, as expressed in its organizationaldocuments or by resolution of its Board of Directors or its equivalent, is to supervise,superintend, inspect or coordinate, its own affiliates, subsidiaries, or branches in the Asia-Pacific Regionmay establish a regional or area headquarters in the Philippines, after securing a license therefor from theSecuri- ties and Exchange Commission, upon the favorable recommendation of the Board ofInvestments. Art. 61. Tax and Duty Free Importation. An alien executive of the regional or area headquarters of amulti- national company shall enjoy tax and duty free importation of personal and household effects asprovided for under Section 105 (h) of the Tariff and Customs Code, as amended, and Section 169 (b) (4)of the Internal Revenue Code, as amended.

Art. 62. Travel Tax Exemption. Personnel of multinational companies performing technical andsupervisory functions with regional headquarters at, but not engaged in business in the Philippines and thedependents of such foreign personnel if joining them during the period of their assignment in thePhilippines, as certified to by the Board of Investments, shall be exempted from the payment of travel taximposed under Section 1 of Presidential Decree No. 1183, by securing a Travel Tax Certificate from thePhilippine Tourism Authority. Art. 63. Exemption from Income Tax. Regional or area headquarters established in the Philippines bymulti- national corporations and which headquarters do not earn or derive income from the Philippinesand which act as supervisory, communications and coordinating center for their affiliates, subsidiaries, orbranches in the Asia-Pacific Regional shall not be subject to income tax.

Art. 64. Exemption from Contractor’s Tax. The regional or area headquarters established in thePhilippines by multinational corporations, including their alien executives, are exempted from thecontractor’s tax.

Art. 65. Exemption from all Kinds of Local Licenses Fees, Dues. The regional or area headquarters ofmultinational companies shall be exempt from all kinds of local licenses, fees, dues, imposts or any otherlocal taxes or burdens. Art. 74. Qualifications. Any alien who possesses the following qualifications may be issued a SpecialInves- tors Resident Visa.1. He had not been convicted of a crime involving moral turpitude;2. He is not afflicted with any loathsome, dangerous or contagious disease;3. He has not been institutionalized for any mental disorder or disability;4. He is willing and able to invest the amount of at least US$75,000.00 in the Philippines; Provided, Thatthe foregoing invested amount shall be lowered to US$50,000 for aliens availing of Executive Order No.63 and Executive Order No. 1037 subject to the conditions imposed by said legislations: Provided,further, That for purposes of compliance with this particular condition, the alien-applicant should provethat he has remitted such amount in acceptable foreign currency to the Philippines. Art. 76. Employment of Foreign Nationals. The provisions of law to the contrary notwithstanding,Export Processing Zone Authority, hereinafter referred to as the “Authority” may authorize an alien or anassociation, partnership, corporation or any other form of business organization formed, organized,chartered or existing under any law other than those of the Philippines, or which is not a Philippinenational, or the working capital of which id fully owned or controlled by aliens to do business or engagein an industry inside the export processing zone.

PRESIDENTIAL DECREE No. 115: TRUST RECEIPTS LAWSec. 6. Currency in which a trust receipt may be denominated. A trust receipt may be denominated in thePhilippine currency or any foreign currency acceptable and eligible as part of international reserves of the



Philippines, the provisions of existing law, executive orders, rules and regulations to the contrary notwith-standing: Provided, however, That in the case of trust receipts denominated in foreign currency, paymentshall be made in its equivalent in Philippine currency computed at the prevailing exchange rate on the datethe proceeds of sale of the goods, documents or instruments held in trust by the entrustee are turned overto the entruster or on such other date as may be stipulated in the trust receipt or other

agreements executed between the entruster and the entrustee.

INSURANCE LAWInsurance Code of the

Philippines

Sec. 7 Anyone except a public enemy may be insured.

Sec. 110

A concealment in a marine insurance, in respect to any of the followingmatters, does not vitiate the entire contract, but merely exonerates the

insurer from a loss resulting from the risk concealed: (a) The nationalcharacter of the insured; (b) The liability of the thing insured to captureand detention; (c) The liability to seizure from breach of foreign laws oftrade; (d) The want of necessary documents; (e) The use of false andsimulated papers.

Sec. 120

CHAPTER III: The Business ofInsurance

Where the nationality or neutrality of a ship or cargo is expressly warranted, it is implied that the ship will carry the requisite documentsto show such nationality or neutrality and that it will not carry anydocuments which cast reasonable suspicion thereon.

INSURANCE COMPANIES:ORGANIZATION,CAPITALIZATOIN, AUTHORIZATION

Sec. 186

No person, partnership, or association of persons shall transact anyinsurance business in the Philip- pines except as agent of a person orcorporation authorized to do the business of insurance in thePhilippines, unless possessed of the capital and assets required of aninsurance corporation doing the same kind of business in thePhilippines and invested in the same manner; nor unless theCommissioner shall have granted to him or them a certificate to theeffect that he or they have complied with all the provisions of law which an insurance corporation doing business in the Philippines isrequired to observe.Every person, partnership, or association receiving any such certificate

of authority shall be subject to the insurance laws of the Philippines andto the jurisdiction and supervision of the Commissioner in the samemanner as if an insurance corporation authorized by the laws of thePhilippines to engage in the business of insurance specified in thecertificate.

Sec. 189Every company must, before engaging in the business of insurance inthe Philippines, file with the Commissioner the following:

(c)If incorporated under any laws other than those of the Philippines, acertificate from the Securities and Exchange Commission showing that



it is duly registered in the mercantile registry of that Commission inaccordance with the Corporation Law. A copy of the articles ofincorporation and by-laws, and any amendments to either, if organizedor formed under any law requiring such to be filed, duly certified by theofficer having the custody of same, or if not so organized, a copy of thelaw, charter or deed of settlement under which the deed of organization

is made, duly certified by the proper custodian thereof, or proved byaffidavit to be a copy; also, a certificate under the hand and seal of theproper officer of such state or country having supervision of insurancebusiness therein, if any there be, that such corporation or company isorganized under the laws of such state or country, with the amount ofcapital stock or assets and legal reserve required by this Code;

(d)

If not incorporated and of foreign domicile, aside from the certificatementioned in paragraph (c) of this section, a certificate setting forth thenature and character of the business, the location of the principaloffice, the name of the individual or names of the persons composingthe partnership or association, the amount of actual capital employed orto be employed therein and the names of all officers and persons by whom the business is or may be managed.

The certificate must be verified by the affidavit of the chief officer,secretary, agent, or manager of the company; and if there are any written articles of agreement of the company, a copy thereof must beaccompany such certificate.

Sec. 190

The Commissioner must require as a condition precedent to thetransaction of insurance business in the Philippines by any foreigninsurance company, that such company file in his office a writtenpower of attorney designating some person who shall be a resident ofthe Philippines as its general agent, on whom any notice provided bylaw or by any insurance policy, proof of loss, summons and other legalprocesses may be served in all actions or other legal proceedings againstsuch company, and consenting that service upon such general agentshall be admitted and held as valid as if served upon the foreign

company at its home office. Any such foreign company shall, as furthercondition precedent to the transaction of insurance business in thePhilippines, make and file with the Commissioner an agreement orstipulation, executed by the proper authorities of said company in formand substance as follows:"The (name of company) does hereby stipulate and agree inconsideration of the permission granted by the InsuranceCommissioner to transact business in the Philippines, that if at any timesaid company shall leave the Philippines, or cease to transact businesstherein, or shall be without any agent in the Philippines on whom anynotice, proof of loss, summons, or legal process may be served, then inany action or proceeding arising out any business or transaction whichoccurred in the Philippines, service of any notice provided by law, or

insurance policy, proof of loss, summons, or other legal process may bemade upon the Insurance Commissioner shall have the same force andeffect as if made upon the company." Whenever such service of notice, proof of loss, summons, or otherlegal process shall be made upon the Commission, he must, within tendays thereafter, transmit by mail, postage paid, a copy of such notice,proof of loss, summons, or other legal process to the company at itshome or principal office. The sending of such copy by theCommissioner shall be a necessary part of the service of the notice,



proof of loss, or other legal process.

LIMIT OF SINGLE RISK

Sec. 215

No insurance company other than life, whether foreign or domestic,shall retain any risk on any one subject of insurance in an amountexceeding twenty per centum of its net worth. For purposes of thissection, the term "subject of insurance" shall include all properties or

risks insured by the same insurer that customarily are considered bynon-life company underwriters to be subject to loss or damage fromthe same occurrence of any hazard insured against.Reinsurance ceded as authorized under the succeeding title shall bededucted in determining the risk retained. As to surety risk, deductionshall also be made of the amount assumed by any other companyauthorized to transact surety business and the value of any securitymortgage, pledged, or held subject to the surety's control and for thesurety's protection.

REINSURANCE TRANSACTIONS

Sec. 217

No insurance company doing business in the Philippines shall cede allor part of any risks situated in the Philippines by way of reinsurance

directly to any foreign insurer not authorized to do business in thePhilippines unless such foreign insurer or, if the services of a non-resident broker are utilized, such non-resident broker is represented inthe Philippines by a resident agent duly registered with theCommissioner as required in this Code. The resident agent of such unauthorized foreign insurer or non-resident broker shall immediately upon registration furnish theCommissioner with the annual statement of such insurer, or of suchcompany or companies where such broker may place Philippinebusiness as of the year preceding such registration, and annuallythereafter as soon as available.

Sec. 218

All insurance companies, both life and non-life, authorized to dobusiness in the Philippines shall cede their excess risks to other

companies similarly authorized to do business in the Philippines in suchamounts and under such arrangements as would be consistent withsound underwriting practices before they enter into reinsurancearrangements with unauthorized foreign insurers.

Sec. 219

Any insurance company doing business in the Philippines desiring tocede their excess risks to foreign insurance or reinsurance companiesnot authorized to transact business in the Philippines may do so underthe following conditions: (1) Except in facultative reinsurance andexcess of loss covers, the full amount of the reserve fund required bylaw shall be set up in the books of and held by the ceding company forso long as the risk concerned is in force; Provided, That in case offacultative insurance, the ceding company shall show to the satisfactionof the Commissioner that the Philippine market cannot provide thefacilities sought abroad.(2) The reserve fund withheld shall be invested in bonds or otherevidences of debt of the Government of the Philippines or its politicalsubdivisions or instrumentalities, or of government-owned orcontrolled corporations and entities, including the Central Bank, and/orother securities acceptable under section two hundred.Should any reinsurance agreement be for any reason cancelled orterminated, the ceding company concerned shall inform theCommissioner in writing of such cancellation or termination within



thirty days from the date of such cancellation or termination or fromthe date notice or information of such cancellation or termination isreceived by such company as the case may be.

VARIABLE CONTRACTS

Sec. 232

(1) No insurance company authorized to transact business in the

Philippines shall issue, deliver, sell or use any variable contract in thePhilippines, unless and until such company shall have satisfied theCommissioner that its financial and general condition and its methodsof operations, including the issue and sale of variable contracts, are notand will not be hazardous to the public or to its policy and contractowners. No foreign insurance company shall be authorized to issue,deliver or sell any variable contract in the Philippines, unless it islikewise authorized to do so by the laws of its domicile.

(2) xxx(3) In determining the qualifications of a company requesting authorityto issue, deliver, sell or use variable contracts, the Commissioner shallalways consider the following: (a) the history, financial and generalcondition of the company; Provided, That such company, if a foreign

company, must have deposited with the Commissioner for the benefitand security of its variable contract owners in the Philippines, securitiessatisfactory to the Commissioner consisting of bonds of theGovernment of the Philippines or its instrumentalities with an actualmarket value of two million pesos; (b) the character, responsibility andfitness of the officers and directors of the company; and (c) the law andregulation under which the company is authorized in the state ofdomicile to issue such contracts.

(4) xxxSUSPENSION ORREVOCATION OF

AUTHORITY

Sec. 247

If the Commissioner is of the opinion upon examination of otherevidence that any domestic or foreign insurance company is in anunsound condition, or that it has failed to comply with the provisionsof law or regulations obligatory upon it, or that its condition or methodof business is such as to render its proceedings hazardous to the publicor to its policyholders, or that its paid-up capital stock, in the case of adomestic stock company, or its available cash assets, in the case of adomestic mutual company, or its security deposits, in the case of aforeign company, is impaired or deficient, or that the margin ofsolvency required of such company is deficient, the Commissioner isauthorized to suspend or revoke all certificates of authority granted tosuch insurance company, its officers and agents, and no new businessshall thereafter be done by such company or for such company by itsagent in the Philippines while such suspension, revocation or disabilitycontinues or until its authority to do business is restored by theCommissioner. Before restoring such authority, the Commissioner shallrequire the company concerned to submit to him a business planshowing the company's estimated receipts and disbursements, as well asthe basis therefor, for the next succeeding three years. (As amended byPresidential Decree No. 1455)

WITHDRAWAL OFFOREIGN INSURANCE

COMPANIES



Sec. 273

A foreign insurance company doing business in the Philippines, uponpayment of the fee hereinafter prescribed and surrender to theCommissioner of its certificate of authority, may apply to withdrawfrom the Philippines. Such application shall be duly executed in writing,accompanied by evidence of due authority for such execution, properlyacknowledged.

Sec. 275

Every foreign insurance company desiring to withdraw from thePhilippines shall, prior to such withdrawal, discharge its liabilities topolicyholders and creditors in this country. In case of its policiesinsuring residents of the Philippines, it shall cause the primary liabilitiesunder such policies to be reinsured and assumed by another insurancecompany authorized to transact business in the Philippines. In the caseof such policies as are subject to cancellation by the withdrawingcompany, it may cancel such policies pursuant to the terms thereof inlieu of such reinsurance and assumption of liabilities.

Sec. 278

A foreign life insurance company that withdraws from the Philippinesshall be considered a "servicing insurance company" if its businesstransactions are confined to accepting periodic premium paymentsfrom, or granting policy loans and paying cash surrender values of

outstanding policies to, or reviving lapsed policies of, Philippinepolicyholders, and such other related services.

CHAPTER IV: Sales Agenciesand Technical Services

RESIDENT AGENTS

Sec. 314

The term "resident agent", as used in this title, is one duly appointed bya foreign insurer or broker not authorized to do business in thePhilippines to receive in its behalf notices, summons and legalprocesses in connection with actions or other legal proceedings againstsuch foreign insurer or broker.

Sec. 315

The application for a certificate of registration as resident agent filed with the Commissioner must be accompanied with: (a) a copy of thepower of attorney, duly notarized and authenticated by the Philippine

Consul in the place where such foreign insurer or broker is domiciled,empowering the applicant to act as resident agent and to receivenotices, summons and legal processes for and in behalf of such foreigninsurer or broker in connection with any action or legal proceedingagainst such foreign insurer or broker; and (b) a copy of thecorresponding certificate issued by the Board of Investments asrequired under Section 4 of Republic Act No. 5455, if such foreigninsurer or broker is not otherwise exempt from such requirement.

ARBITRATION

ARBITRATIONRA 9285 – AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE DISPUTERESOLUTION SYSTEM IN THE PHILIPPINES AND TO ESTABLISH THE OFFICE FOR

ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER PURPOSES

CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATIONSEC. 20. Interpretation of Model Law. - In interpreting the Model Law, regard shall be had to itsinternational origin and to the need for uniformity in its interpretation and resort may be made to thetravaux preparatories and the report of the Secretary General of the United Nations Commission onInternational Trade Law dated March 25, 1985 entitled, "International Commercial Arbitration: AnalyticalCommentary on Draft Trade identified by reference number A/CN. 9/264."



SEC. 21. Commercial Arbitration. - An arbitration is "commercial" if it covers matters arising from allrelationships of a commercial nature, whether contractual or not. Relationships of a transactions: anytrade transaction for the supply or exchange of goods or services; distribution agreements; construction of works; commercial representation or agency; factoring; leasing, consulting; engineering; licensing;investment; financing; banking; insurance; joint venture and other forms of industrial or businesscooperation; carriage of goods or passengers by air, sea, rail or road.

SEC. 22. Legal Representation in International Arbitration. - In international arbitration conducted in thePhilippines, a party may be presented by any person of his choice. Provided, that such representative,unless admitted to the practice of law in the Philippines, shall not be authorized to appear as counsel inany Philippine court, or any other quasi-judicial body whether or not such appearance is in relation to thearbitration in which he appears.SEC. 23. Confidential of Arbitration Proceedings. - The arbitration proceedings, including the records,evidence and the arbitral award, shall be considered confidential and shall not be published except (1) withthe consent of the parties, or (2) for the limited purpose of disclosing to the court of relevant documentsin cases where resort to the court is allowed herein. Provided, however, that the court in which the actionor the appeal is pending may issue a protective order to prevent or prohibit disclosure of documents orinformation containing secret processes, developments, research and other information where it is shownthat the applicant shall be materially prejudiced by an authorized disclosure thereof.SEC. 24. Referral to Arbitration. - A court before which an action is brought in a matter which is the

subject matter of an arbitration agreement shall, if at least one party so requests not later that the pre-trialconference, or upon the request of both parties thereafter, refer the parties to arbitration unless it findsthat the arbitration agreement is null and void, inoperative or incapable of being performed.SEC. 25. Interpretation of the Act. - In interpreting the Act, the court shall have due regard to the policyof the law in favor of arbitration. Where action is commenced by or against multiple parties, one or moreof whom are parties who are bound by the arbitration agreement although the civil action may continue asto those who are not bound by such arbitration agreement.SEC. 26. Meaning of "Appointing Authority.". - "Appointing Authority" as used in the Model Law shallmean the person or institution named in the arbitration agreement as the appointing authority; or theregular arbitration arbitration institution under whose rules the arbitration is agreed to be conducted. Where the parties have agreed to submit their dispute to institutional arbitration rules, and unless theyhave agreed to a different procedure, they shall be deemed to have agreed to procedure under sucharbitration rules for the selection and appointment of arbitrators. In ad hoc arbitration, the default

appointment of an arbitrator shall be made by the National President of the Integrated Bar of thePhilippines (IBP) or his duly authorized representative.SEC. 27. What Functions May be Performed by Appointing Authority. - The functions referred to in Articles 11(3), 11(4), 13(3) and 14(1) of the Model Law shall be performed by the Appointing Authority,unless the latter shall fail or refuse to act within thirty (30) days from receipt of the request in which casethe applicant may renew the application with the Court.

SEC. 28. Grant of Interim Measure of Protection. -(a) It is not incompatible with an arbitration agreement for a party to request, before constitution of thetribunal, from a Court an interim measure of protection and for the Court to grant such measure. Afterconstitution of the arbitral tribunal and during arbitral proceedings, a request for an interim measure ofprotection or modification thereof, may be made with the arbitral tribunal or to the extent that the arbitraltribunal has no power to act or is unable to act effectively, the request may be made with the Court. Thearbitral tribunal is deemed constituted when the sole arbitrator or the third arbitrator who has beennominated, has accepted the nomination and written communication of said nomination and acceptancehas been received by the party making request.

(b) The following rules on interim or provisional relief shall be observed:

(1) Any party may request that provision relief be granted against the adverse party:(2) Such relief may be granted:

(i) to prevent irreparable loss or injury:

(ii) to provide security for the performance of any obligation;(iii) to produce or preserve any evidence; or



(iv) to compel any other appropriate act or omission.(3) The order granting provisional relief may be conditioned upon the provision of security or any act oromission specified in the order.(4) Interim or provisional relief is requested by written application transmitted by reasonable means to theCourt or arbitral tribunal as the case may be and the party against whom the relief is sought, describing inappropriate detail the precise relief, the party against whom the relief is requested, the grounds for the

relief, and evidence supporting the request.(5) The order shall be binding upon the parties.(6) Either party may apply with the Court for assistance in Implementing or enforcing an interim measureordered by an arbitral tribunal.(7) A party who does not comply with the order shall be liable for all damages resulting fromnoncompliance, including all expenses, and reasonable attorney's fees, paid in obtaining the order's judicialenforcement.SEC. 29. Further Authority for Arbitrator to Grant Interim Measure of Protection. - Unless otherwiseagreed by the parties, the arbitral tribunal may, at the request of a party, order any party to take suchinterim measures of protection as the arbitral tribunal may consider necessary in respect of the subjectmatter of the dispute following the rules in Section 28, paragraph 2. Such interim measures may includebut shall not be limited to preliminary injuction directed against a party, appointment of receivers ordetention, preservation, inspection of property that is the subject of the dispute in arbitration. Either party

may apply with the Court for assistance in implementing or enforcing an interim measures ordered by anarbitral tribunal.SEC. 30. Place of Arbitration. - The parties are free to agree on the place of arbitration. Failing suchagreement, the place of arbitration shall be in Metro Manila, unless the arbitral tribunal, having regard tothe circumstances of the case, including the convenience of the parties shall decide on a different place ofarbitration. The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriatefor consultation among its members, for hearing witnesses, experts, or the parties, or for inspection ofgoods, other property or documents.SEC. 31. Language of the Arbitration. - The parties are free to agree on the language or languages to beused in the arbitral proceedings. Failing such agreement, the language to be used shall be English ininternational arbitration, and English or Filipino for domestic arbitration, unless the arbitral tribunal shalldetermine a different or another language or languages to be used in the proceedings. This agreement ordetermination, unless otherwise specified therein, shall apply to any written statement by a party, anyhearing and any award, decision or other communication by the arbitral tribunal. The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation intothe language or languages agreed upon by the parties or determined in accordance with paragraph 1 ofthis section.

CHAPTER 5 - DOMESTIC ARBITRATIONSEC. 32. Law Governing Domestic Arbitration. - Domestic arbitration shall continue to be governed byRepublic Act No. 876, otherwise known as "The Arbitration Law" as amended by this Chapter. The term"domestic arbitration" as used herein shall mean an arbitration that is not international as defined in Article (3) of the Model Law.SEC. 33. Applicability to Domestic Arbitration. - Article 8, 10, 11, 12, 13, 14, 18 and 19 and 29 to 32 ofthe Model Law and Section 22 to 31 of the preceding Chapter 4 shall apply to domestic arbitration.

CHAPTER 6 - ARBITRATION OF CONSTRUCTION DISPUTESSEC. 34. Arbitration of Construction Disputes: Governing Law. - The arbitration of construction disputesshall be governed by Executive Order No. 1008, otherwise known as the Constitution Industry Arbitration Law.SEC. 35. Coverage of the Law. - Construction disputes which fall within the original and exclusivejurisdiction of the Construction Industry Arbitration Commission (the "Commission") shall include thosebetween or among parties to, or who are otherwise bound by, an arbitration agreement, directly or byreference whether such parties are project owner, contractor, subcontractor, quantity surveyor, bondsmanor issuer of an insurance policy in a construction project.



The Commission shall continue to exercise original and exclusive jurisdiction over construction disputesalthough the arbitration is "commercial" pursuant to Section 21 of this Act.SEC. 36. Authority to Act as Mediator or Arbitrator. - By written agreement of the parties to a dispute, anarbitrator may act as mediator and a mediator may act as arbitrator. The parties may also agree in writingthat, following a successful mediation, the mediator shall issue the settlement agreement in the form of anarbitral award.

SEC. 37. Appointment of Foreign Arbitrator. - The Construction Industry Arbitration Commission(CIAC) shall promulgate rules to allow for the appointment of a foreign arbitrator or coarbitrator orchairman of a tribunal a person who has not been previously accredited by CIAC: Provided, That:

(a) the dispute is a construction dispute in which one party is an international party

(b) the person to be appointed agreed to abide by the arbitration rules and policies of CIAC;(c) he/she is either coarbitrator upon the nomination of the international party; or he/she is the commonchoice of the two CIAC-accredited arbitrators first appointed one of whom was nominated by theinternational party; and(d) the foreign arbitrator shall be of different nationality from the international party.SEC. 38. Applicability to Construction Arbitration. - The provisions of Sections 17 (d) of Chapter 2, andSection 28 and 29 of this Act shall apply to arbitration of construction disputes covered by this Chapter.SEC. 39. Court to Dismiss Case Involving a Construction Dispute. - A regional trial court which aconstruction dispute is filed shall, upon becoming aware, not later than the pretrial conference, that the

parties had entered into an arbitration to be conducted by the CIAC, unless both parties, assisted by theirrespective counsel, shall submit to the regional trial court a written agreement exclusive for the Court,rather than the CIAC, to resolve the dispute.

CHAPTER 7 - JUDICIAL REVIEW OF ARBITRAL AWARDS

A. DOMESTIC AWARDSSEC. 40. Confirmation of Award. - The confirmation of a domestic arbitral award shall be governed bySection 23 of R.A. 876. A domestic arbitral award when confirmed shall be enforced in the same manner as final and executorydecisions of the Regional Trial Court. The confirmation of a domestic award shall be made by the regional trial court in accordance with theRules of Procedure to be promulgated by the Supreme Court. A CIAC arbitral award need not be confirmed by the regional trial court to be executory as provided

under E.O. No. 1008.SEC. 41. Vacation Award. - A party to a domestic arbitration may question the arbitral award with theappropriate regional trial court in accordance with the rules of procedure to be promulgated by theSupreme Court only on those grounds enumerated in Section 25 of Republic Act No. 876. Any otherground raised against a domestic arbitral award shall be disregarded by the regional trial court.

B. FOREIGN ARBITRAL AWARDSSEC. 42. Application of the New York Convention. - The New York Convention shall govern therecognition and enforcement of arbitral awards covered by the said Convention. The recognition and enforcement of such arbitral awards shall be filled with regional trial court inaccordance with the rules of procedure to be promulgated by the Supreme Court. Said procedural rulesshall provide that the party relying on the award or applying for its enforcement shall file with the courtthe original or authenticated copy of the award and the arbitration agreement. If the award or agreement isnot made in any of the official languages, the party shall supply a duly certified translation thereof into any

of such languages. The applicant shall establish that the country in which foreign arbitration award was made is a party to theNew York Convention.If the application for rejection or suspension of enforcement of an award has been made, the regional trialcourt may, if it considers it proper, vacate its decision and may also, on the application of the partyclaiming recognition or enforcement of the award, order the party to provide appropriate security.SEC. 43. Recognition and Enforcement of Foreign Arbitral Awards Not Covered by the New YorkConvention. - The recognition and enforcement of foreign arbitral awards not covered by the New YorkConvention shall be done in accordance with procedural rules to be promulgated by the Supreme Court.



The Court may, grounds of comity and reciprocity, recognize and enforce a nonconvention award as aconvention award.SEC. 44. Foreign Arbitral Award Not Foreign Judgment. - A foreign arbitral award when confirmed by acourt of a foreign country, shall be recognized and enforced as a foreign arbitral award and not ajudgment of a foreign court. A foreign arbitral award, when confirmed by the regional trial court, shall be enforced as a foreign arbitral

award and not as a judgment of a foreign court. A foreign arbitral award, when confirmed by the regional trial court, shall be enforced in the same manneras final and executory decisions of courts of law of the Philippines.SEC. 45. Rejection of a Foreign Arbitral Award. - A party to a foreign arbitration proceeding may opposean application for recognition and enforcement of the arbitral award in accordance with the proceduralrules to be promulgated by the Supreme Court only on those grounds enumerated under Article V of theNew York Convention. Any other ground raised shall be disregarded by the regional trial court.SEC. 46. Appeal from Court Decisions on Arbitral Awards. - A decision of the regional trial courtconfirming, vacating, setting aside, modifying or correcting an arbitral award may be appealed to theCourt of Appeals in accordance with the rules of procedure to be promulgated by the Supreme Court. The losing party who appeals from the judgment of the court confirming an arbitral award shall requiredby the appealant court to post counterbond executed in favor of the prevailing party equal to the amountof the award in accordance with the rules to be promulgated by the Supreme Court.

SEC. 47. Venue and Jurisdiction. - Proceedings for recognition and enforcement of an arbitrationagreement or for vacation, setting aside, correction or modification of an arbitral award, and anyapplication with a court for arbitration assistance and supervision shall be deemed as special proceedingsand shall be filled with the regional trial court (i) where arbitration proceedings are conducted; (ii) wherethe asset to be attached or levied upon, or the act to be enjoined is located; (iii) where any of the parties tothe dispute resides or has his place of business; or (iv) in the National Judicial Capital Region, at theoption of the applicant.SEC. 48. Notice of Proceeding to Parties. - In a special proceeding for recognition and enforcement of anarbitral award, the Court shall send notice to the parties at their address of record in the arbitration, or ifany party cannot be served notice at such address, at such party's last known address. The notice shall besent at least fifteen (15) days before the date set for the initial hearing of the application.

EO 1008 – CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTIONINDUSTRY OF THE PHILIPPINES

Sec. 4. Jurisdiction. The CIAC shall have original and exclusive jurisdiction over disputes arising from, orconnected with, contracts entered into by parties involved in construction in the Philippines, whether thedispute arises before or after the completion of the contract, or after the abandonment or breach thereof. These disputes may involve government or private contracts. For the Board to acquire jurisdiction, theparties to a dispute must agree to submit the same to voluntary arbitration. The jurisdiction of the CIAC may include but is not limited to violation of specifications for materials and workmanship; violation of the terms of agreement; interpretation and/or application of contractual timeand delays; maintenance and defects; payment, default of employer or contractor and changes in contractcost.Excluded from the coverage of this law are disputes arising from employer-employee relationships whichshall continue to be covered by the Labor Code of the Philippines.

Sec. 19. Finality of Awards. The arbitral award shall be binding upon the parties. It shall be final andinappealable except on questions of law which shall be appealable to the Supreme Court.Sec. 20. Execution and Enforcement of Awards. As soon as a decision, order to award has become finaland executory, the Arbitral Tribunal or the single arbitrator with the occurrence of the CIAC shall motupropio, or on motion of any interested party, issue a writ of execution requiring any sheriff or otherproper officer to execute said decision, order or award.

RA 876

AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION



AGREEMENTS, TO PROVIDE FOR THE APPOINTMENT OF ARBITRATORS AND THEPROCEDURE FOR ARBITRATION IN CIVIL CONTROVERSIES, AND FOR OTHER

PURPOSES

Section 2. Persons and matters subject to arbitration. - Two or more persons or parties may submit to thearbitration of one or more arbitrators any controversy existing between them at the time of the

submission and which may be the subject of an action, or the parties to any contract may in such contractagree to settle by arbitration a controversy thereafter arising between them. Such submission or contractshall be valid, enforceable and irrevocable, save upon such grounds as exist at law for the revocation ofany contract.Such submission or contract may include question arising out of valuations, appraisals or othercontroversies which may be collateral, incidental, precedent or subsequent to any issue between theparties. A controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a personjudicially declared to be incompetent, unless the appropriate court having jurisdiction approve a petitionfor permission to submit such controversy to arbitration made by the general guardian or guardian adlitem of the infant or of the incompetent.But where a person capable of entering into a submission or contract has knowingly entered into the same with a person incapable of so doing, the objection on the ground of incapacity can be taken only in behalf

of the person so incapacitated.Section 3. Controversies or cases not subject to the provisions of this Act. - This Act shall not apply tocontroversies and to cases which are subject to the jurisdiction of the Court of Industrial Relations or which have been submitted to it as provided by Commonwealth Act Numbered One hundred and three,as amended.Section 4. Form of arbitration agreement. - A contract to arbitrate a controversy thereafter arisingbetween the parties, as well as a submission to arbitrate an existing controversy shall be in writing andsubscribed by the party sought to be charged, or by his lawful agent. The making of a contract or submission for arbitration described in section two hereof, providing forarbitration of any controversy, shall be deemed a consent of the parties to the jurisdiction of the Court ofFirst Instance of the province or city where any of the parties resides, to enforce such contract orsubmission.

Section 5. Preliminary procedure. - An arbitration shall be instituted by:(a) In the case of a contract to arbitrate future controversies by the service by either party upon the otherof a demand for arbitration in accordance with the contract. Such demand shall be set forth the nature ofthe controversy, the amount involved, if any, and the relief sought, together with a true copy of thecontract providing for arbitration. The demand shall be served upon any party either in person or byregistered mail. In the event that the contract between the parties provides for the appointment of a singlearbitrator, the demand shall be set forth a specific time within which the parties shall agree upon sucharbitrator. If the contract between the parties provides for the appointment of three arbitrators, one to beselected by each party, the demand shall name the arbitrator appointed by the party making the demand;and shall require that the party upon whom the demand is made shall within fifteen days after receiptthereof advise in writing the party making such demand of the name of the person appointed by thesecond party; such notice shall require that the two arbitrators so appointed must agree upon the thirdarbitrator within ten days from the date of such notice.

(b) In the event that one party defaults in answering the demand, the aggrieved party may file with theClerk of the Court of First Instance having jurisdiction over the parties, a copy of the demand forarbitration under the contract to arbitrate, with a notice that the original demand was sent by registeredmail or delivered in person to the party against whom the claim is asserted. Such demand shall set forththe nature of the controversy, the amount involved, if any, and the relief sought, and shall beaccompanied by a true copy of the contract providing for arbitration.(c) In the case of the submission of an existing controversy by the filing with the Clerk of the Court ofFirst Instance having jurisdiction, of the submission agreement, setting forth the nature of thecontroversy, and the amount involved, if any. Such submission may be filed by any party and shall be dulyexecuted by both parties.



(d) In the event that one party neglects, fails or refuses to arbitrate under a submission agreement, theaggrieved party shall follow the procedure prescribed in subparagraphs (a) and (b) of this section.Section 6. Hearing by court. - A party aggrieved by the failure, neglect or refusal of another to performunder an agreement in writing providing for arbitration may petition the court for an order directing thatsuch arbitration proceed in the manner provided for in such agreement. Five days notice in writing of thehearing of such application shall be served either personally or by registered mail upon the party in

default. The court shall hear the parties, and upon being satisfied that the making of the agreement orsuch failure to comply therewith is not in issue, shall make an order directing the parties to proceed toarbitration in accordance with the terms of the agreement. If the making of the agreement or default be inissue the court shall proceed to summarily hear such issue. If the finding be that no agreement in writingproviding for arbitration was made, or that there is no default in the proceeding thereunder, theproceeding shall be dismissed. If the finding be that a written provision for arbitration was made andthere is a default in proceeding thereunder, an order shall be made summarily directing the parties toproceed with the arbitration in accordance with the terms thereof. The court shall decide all motions, petitions or applications filed under the provisions of this Act, withinten days after such motions, petitions, or applications have been heard by it.Section 7. Stay of civil action. - If any suit or proceeding be brought upon an issue arising out of anagreement providing for the arbitration thereof, the court in which such suit or proceeding is pending,upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration, shall stay

the action or proceeding until an arbitration has been had in accordance with the terms of the agreement:Provided, That the applicant, for the stay is not in default in proceeding with such arbitration.Section 8. Appointment of arbitrators. - If, in the contract for arbitration or in the submission describedin section two, provision is made for a method of naming or appointing an arbitrator or arbitrators, suchmethod shall be followed; but if no method be provided therein the Court of First Instance shall designatean arbitrator or arbitrators. The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the followinginstances:

(a) If the parties to the contract or submission are unable to agree upon a single arbitrator; or(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his successor has not beenappointed in the manner in which he was appointed; or(c) If either party to the contract fails or refuses to name his arbitrator within fifteen days after receipt ofthe demand for arbitration; or(d) If the arbitrators appointed by each party to the contract, or appointed by one party to the contractand by the proper Court, shall fail to agree upon or to select the third arbitrator.(e) The court shall, in its discretion appoint one or three arbitrators, according to the importance of thecontroversy involved in any of the preceding cases in which the agreement is silent as to the number ofarbitrators.(f) Arbitrators appointed under this section shall either accept or decline their appointments within sevendays of the receipt of their appointments. In case of declination or the failure of an arbitrator orarbitrators to duly accept their appointments the parties or the court, as the case may be, shall proceed toappoint a substitute or substitutes for the arbitrator or arbitrators who decline or failed to accept his ortheir appointments.Section 9. Appointment of additional arbitrators. - Where a submission or contract provides that two ormore arbitrators therein designated or to be thereafter appointed by the parties, may select or appoint a

person as an additional arbitrator, the selection or appointment must be in writing. Such additionalarbitrator must sit with the original arbitrators upon the hearing.Section 10. Qualifications of arbitrators. - Any person appointed to serve as an arbitrator must be of legalage, in full-enjoyment of his civil rights and know how to read and write. No person appointed to servedas an arbitrator shall be related by blood or marriage within the sixth degree to either party to thecontroversy. No person shall serve as an arbitrator in any proceeding if he has or has had financial,fiduciary or other interest in the controversy or cause to be decided or in the result of the proceeding, orhas any personal bias, which might prejudice the right of any party to a fair and impartial award.No party shall select as an arbitrator any person to act as his champion or to advocate his cause.



If, after appointment but before or during hearing, a person appointed to serve as an arbitrator shalldiscover any circumstances likely to create a presumption of bias, or which he believes might disqualifyhim as an impartial arbitrator, the arbitrator shall immediately disclose such information to the parties. Thereafter the parties may agree in writing:

(a) to waive the presumptive disqualifying circumstances; or(b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the same manner as

the original appointment was made.Section 11. Challenge of arbitrators. - The arbitrators may be challenged only for the reasons mentionedin the preceding section which may have arisen after the arbitration agreement or were unknown at thetime of arbitration.

The challenge shall be made before them.If they do not yield to the challenge, the challenging party may renew the challenge before the Court ofFirst Instance of the province or city in which the challenged arbitrator, or, any of them, if there be morethan one, resides. While the challenging incident is discussed before the court, the hearing or arbitrationshall be suspended, and it shall be continued immediately after the court has delivered an order on thechallenging incident.Section 12. Procedure by arbitrators. - Subject to the terms of the submission or contract, if any arespecified therein, are arbitrators selected as prescribed herein must, within five days after appointment ifthe parties to the controversy reside within the same city or province, or within fifteen days after

appointment if the parties reside in different provinces, set a time and place for the hearing of the matterssubmitted to them, and must cause notice thereof to be given to each of the parties. The hearing can bepostponed or adjourned by the arbitrators only by agreement of the parties; otherwise, adjournment maybe ordered by the arbitrators upon their own motion only at the hearing and for good and sufficientcause. No adjournment shall extend the hearing beyond the day fixed in the submission or contract forrendering the award, unless the time so fixed is extended by the written agreement of the parties to thesubmission or contract or their attorneys, or unless the parties have continued with the arbitration withoutobjection to such adjournment. The hearing may proceed in the absence of any party who, after due notice, fails to be present at suchhearing or fails to obtain an adjournment thereof. An award shall not be made solely on the default of aparty. The arbitrators shall require the other party to submit such evidence as they may require for makingan award.No one other than a party to said arbitration, or a person in the regular employ of such party dulyauthorized in writing by said party, or a practicing attorney-at-law, shall be permitted by the arbitrators torepresent before him or them any party to the arbitration. Any party desiring to be represented by counselshall notify the other party or parties of such intention at least five days prior to the hearing. The arbitrators shall arrange for the taking of a stenographic record of the testimony when such a recordis requested by one or more parties, and when payment of the cost thereof is assumed by such party orparties.Persons having a direct interest in the controversy which is the subject of arbitration shall have the rightto attend any hearing; but the attendance of any other person shall be at the discretion of the arbitrators.Section 13. Oath of arbitrators. - Before hearing any testimony, arbitrators must be sworn, by any officerauthorized by law to administer an oath, faithfully and fairly to hear and examine the matters incontroversy and to make a just award according to the best of their ability and understanding. Arbitratorsshall have the power to administer the oaths to all witnesses requiring them to tell the whole truth and

nothing but the truth in any testimony which they may give in any arbitration hearing. This oath shall berequired of every witness before any of his testimony is heard.Section 14. Subpoena and subpoena duces tecum. - Arbitrators shall have the power to require any personto attend a hearing as a witness. They shall have the power to subpoena witnesses and documents whenthe relevancy of the testimony and the materiality thereof has been demonstrated to the arbitrators. Arbitrators may also require the retirement of any witness during the testimony of any other witness. Allof the arbitrators appointed in any controversy must attend all the hearings in that matter and hear all theallegations and proofs of the parties; but an award by the majority of them is valid unless the concurrenceof all of them is expressly required in the submission or contract to arbitrate. The arbitrator or arbitratorsshall have the power at any time, before rendering the award, without prejudice to the rights of any party



to petition the court to take measures to safeguard and/or conserve any matter which is the subject of thedispute in arbitration.Section 15. Hearing by arbitrators. - Arbitrators may, at the commencement of the hearing, ask bothparties for brief statements of the issues in controversy and/or an agreed statement of facts. Thereafterthe parties may offer such evidence as they desire, and shall produce such additional evidence as thearbitrators shall require or deem necessary to an understanding and determination of the dispute. The

arbitrators shall be the sole judge of the relevancy and materiality of the evidence offered or produced,and shall not be bound to conform to the Rules of Court pertaining to evidence. Arbitrators shall receiveas exhibits in evidence any document which the parties may wish to submit and the exhibits shall beproperly identified at the time of submission. All exhibits shall remain in the custody of the Clerk of Courtduring the course of the arbitration and shall be returned to the parties at the time the award is made. Thearbitrators may make an ocular inspection of any matter or premises which are in dispute, but suchinspection shall be made only in the presence of all parties to the arbitration, unless any party who shallhave received notice thereof fails to appear, in which event such inspection shall be made in the absenceof such party.Section 16. Briefs. - At the close of the hearings, the arbitrators shall specifically inquire of all parties whether they have any further proof or witnesses to present; upon the receipt of a negative reply from allparties, the arbitrators shall declare the hearing closed unless the parties have signified an intention to filebriefs. Then the hearing shall be closed by the arbitrations after the receipt of briefs and/or reply briefs.

Definite time limit for the filing of such briefs must be fixed by the arbitrators at the close of the hearing.Briefs may filed by the parties within fifteen days after the close of the oral hearings; the reply briefs, ifany, shall be filed within five days following such fifteen-day period.Section 17. Reopening of hearing. - The hearing may be reopened by the arbitrators on their own motionor upon the request of any party, upon good cause, shown at any time before the award is rendered. When hearings are thus reopened the effective date for the closing of the hearings shall be the date of theclosing of the reopened hearing.Section 18. Proceeding in lieu of hearing. - The parties to a submission or contract to arbitrate may, by written agreement, submit their dispute to arbitration by other than oral hearing. The parties may submitan agreed statement of facts. They may also submit their respective contentions to the duly appointedarbitrators in writing; this shall include a statement of facts, together with all documentary proof. Partiesmay also submit a written argument. Each party shall provide all other parties to the dispute with a copyof all statements and documents submitted to the arbitrators. Each party shall have an opportunity to

reply in writing to any other party's statements and proofs; but if such party fails to do so within sevendays after receipt of such statements and proofs, he shall be deemed to have waived his right to reply.Upon the delivery to the arbitrators of all statements and documents, together with any reply statements,the arbitrators shall declare the proceedings in lieu of hearing closed.Section 19. Time for rendering award. - Unless the parties shall have stipulated by written agreement thetime within which the arbitrators must render their award, the written award of the arbitrators shall berendered within thirty days after the closing of the hearings or if the oral hearings shall have been waived, within thirty days after the arbitrators shall have declared such proceedings in lieu of hearing closed. Thisperiod may be extended by mutual consent of the parties.Section 20. Form and contents of award. - The award must be made in writing and signed andacknowledged by a majority of the arbitrators, if more than one; and by the sole arbitrator, if there is onlyone. Each party shall be furnished with a copy of the award. The arbitrators in their award may grant anyremedy or relief which they deem just and equitable and within the scope of the agreement of the parties,

which shall include, but not be limited to, the specific performance of a contract.In the event that the parties to an arbitration have, during the course of such arbitration, settled theirdispute, they may request of the arbitrators that such settlement be embodied in an award which shall besigned by the arbitrators. No arbitrator shall act as a mediator in any proceeding in which he is acting asarbitrator; and all negotiations towards settlement of the dispute must take place without the presence ofthe arbitrators. The arbitrators shall have the power to decide only those matters which have been submitted to them. The terms of the award shall be confined to such disputes.

The arbitrators shall have the power to assess in their award the expenses of any party against another



party, when such assessment shall be deemed necessary.

Section 21. Fees of arbitration. - The fees of the arbitrators shall be fifty pesos per day unless the partiesagree otherwise in writing prior to the arbitration.Section 22. Arbitration deemed a special proceeding. - Arbitration under a contract or submission shall bedeemed a special proceeding, of which the court specified in the contract or submission, or if none bespecified, the Court of First Instance for the province or city in which one of the parties resides or is

doing business, or in which the arbitration was held, shall have jurisdiction. Any application to the court,or a judge thereof, hereunder shall be made in manner provided for the making and hearing of motions,except as otherwise herein expressly provided.Section 23. Confirmation of award. - At any time within one month after the award is made, any party tothe controversy which was arbitrated may apply to the court having jurisdiction, as provided in sectiontwenty-eight, for an order confirming the award; and thereupon the court must grant such order unlessthe award is vacated, modified or corrected, as prescribed herein. Notice of such motion must be servedupon the adverse party or his attorney as prescribed by law for the service of such notice upon an attorneyin action in the same court.Section 24. Grounds for vacating award. - In any one of the following cases, the court must make anorder vacating the award upon the petition of any party to the controversy when such party provesaffirmatively that in the arbitration proceedings:

(a) The award was procured by corruption, fraud, or other undue means; or

(b) That there was evident partiality or corruption in the arbitrators or any of them; or(c) That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficientcause shown, or in refusing to hear evidence pertinent and material to the controversy; that one or moreof the arbitrators was disqualified to act as such under section nine hereof, and wilfully refrained fromdisclosing such disqualifications or of any other misbehavior by which the rights of any party have beenmaterially prejudiced; or(d) That the arbitrators exceeded their powers, or so imperfectly executed them, that a mutual, final anddefinite award upon the subject matter submitted to them was not made. Where an award is vacated, the court, in its discretion, may direct a new hearing either before the samearbitrators or before a new arbitrator or arbitrators to be chosen in the manner provided in thesubmission or contract for the selection of the original arbitrator or arbitrators, and any provision limitingthe time in which the arbitrators may make a decision shall be deemed applicable to the new arbitrationand to commence from the date of the court's order. Where the court vacates an award, costs, not exceeding fifty pesos and disbursements may be awarded tothe prevailing party and the payment thereof may be enforced in like manner as the payment of costsupon the motion in an action.Section 25. Grounds for modifying or correcting award. - In any one of the following cases, the courtmust make an order modifying or correcting the award, upon the application of any party to thecontroversy which was arbitrated:(a) Where there was an evident miscalculation of figures, or an evident mistake in the description of anyperson, thing or property referred to in the award; or(b) Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits ofthe decision upon the matter submitted; or(c) Where the award is imperfect in a matter of form not affecting the merits of the controversy, and if ithad been a commissioner's report, the defect could have been amended or disregarded by the court.

The order may modify and correct the award so as to effect the intent thereof and promote justicebetween the parties.Section 26. Motion to vacate, modify or correct award: when made. - Notice of a motion to vacate,modify or correct the award must be served upon the adverse party or his counsel within thirty days afteraward is filed or delivered, as prescribed by law for the service upon an attorney in an action.Section 27. Judgment. - Upon the granting of an order confirming, modifying or correcting an award,judgment may be entered in conformity therewith in the court wherein said application was filed. Costs ofthe application and the proceedings subsequent thereto may be awarded by the court in its discretion. Ifawarded, the amount thereof must be included in the judgment.



Section 28. Papers to accompany motion to confirm, modify, correct, or vacate award. - The party movingfor an order confirming, modifying, correcting, or vacating an award, shall at the time that such motion isfiled with the court for the entry of judgment thereon also file the following papers with the Clerk ofCourt;(a) The submission, or contract to arbitrate; the appointment of the arbitrator or arbitrators; and each written extension of the time, if any, within which to make the award.

(b) A verified of the award.(c) Each notice, affidavit, or other paper used upon the application to confirm, modify, correct or vacatesuch award, and a copy of each of the court upon such application.

The judgment shall be docketed as if it were rendered in an action. The judgment so entered shall have the same force and effect in all respects, as, and be subject to all theprovisions relating to, a judgment in an action; and it may be enforced as if it had been rendered in thecourt in which it is entered.Section 29. Appeals. - An appeal may be taken from an order made in a proceeding under this Act, orfrom a judgment entered upon an award through certiorari proceedings, but such appeals shall be limitedto questions of law. The proceedings upon such an appeal, including the judgment thereon shall begoverned by the Rules of Court in so far as they are applicable.Section 30. Death of party. - Where a party dies after making a submission or a contract to arbitrate asprescribed in this Act, the proceedings may be begun or continued upon the application of, or notice to,

his executor or administrator, or temporary administrator of his estate. In any such case, the court mayissue an order extending the time within which notice of a motion to confirm, vacate, modify or correctan award must be served. Upon confirming an award, where a party has died since it was filed ordelivered, the court must enter judgment in the name of the original party; and the proceedings thereuponare the same as where a party dies after a verdict.Section 31. Repealing clause. - The provisions of chapters one and two, Title XIV, of the Civil Code shallremain in force. All other laws and parts of laws inconsistent with this Act are hereby repealed. If anyprovision of this Act shall be held invalid the remainder that shall not be affected thereby.

ENVIRONMENTAL LAWS

LAW ProvisionREPUBLIC ACT NO. 9147 - AN ACT

PROVIDING FOR THE CONSERVATION AND PROTECTION OF WILDLIFE

RESOURCES AND THEIR HABITATS, APPROPRIATING FUNDS THEREFOR AND

FOR OTHER PURPOSES

Sec. 28 If the offender is an alien, he shall bedeported after service and payment of fines, without any further proceedings. (Philippine Lawapplies)

Solid Waste Management Act (R.A. 9003)

Sec. 48 If the offender is an alien, he shall, afterservice of the sentence prescribed above, bedeported without further administrativeproceedings. (Philippine Law applies)

The Philippine Fisheries Code of 1998

Sec. 65. Functions of the Bureau of Fisheries and Aquatic Resources. – d. monitor and review joint

fishing agreements between Filipino citizens andforeigners who conduct fishing activities ininternational waters, and ensure that suchagreements are not contrary to Philippinecommitment under international treaties andconvention on fishing in the high seas;Sec. 87. Poaching in Philippine Waters. - It shallbe unlawful for any foreign person, corporation orentity to fish or operate any fishing vessel in



Philippine waters. The entry of any foreign fishing vessel in Philippine waters shall constitute a primafacie evidence that the vessel is engaged in fishingin Philippine waters.

REPUBLIC ACT NO. 8485 - AN ACT TOPROMOTE ANIMAL WELFARE IN THE

PHILIPPINES, OTHERWISE KNOWN AS"THE ANIMAL WELFARE ACT OF 1998"

Sec. 8 If the violation is committed by an alien, heor she shall be immediately deported after service

of sentence without any further proceedings.(Philippine Law applies)

REPUBLIC ACT NO. 6969[AN ACT TO CONTROL TOXIC

SUBSTANCES AND HAZARDOUS ANDNUCLEAR WASTES PROVIDING

PENALTIES FOR VIOLATIONS THEREOF,

AND FOR OTHER PURPOSES]

Section 14Criminal Offenses and Penalties

a.1. The penalty of imprisonment of six (6) monthsand one day to six (6) years and one day and a fineranging from Six hundred pesos (P600.00) to Fourthousand pesos (P4,000.00) shall be imposedupon any person who shall violate section 13(a) to(c) of this Act and shall not be covered by theProbation Law. If the offender is a foreigner, he

or she shall be deported and barred from anysubsequent entry into the Philippines after servinghis or her sentence;

2. In case any violation of this Act is committedby a partnership, corporation, association or anyjuridical person, the partner, president, director ormanager who shall consent to or shall knowinglytolerate such violation shall be directly liable andresponsible for the act of the employees and shallbe criminally liable as a co-principal;

3. In case the offender is a government official or

employee, he or she shall, in addition to the abovepenalties, be deemed automatically dismissed fromoffice and permanently disqualified from holdingany elective or appointive position.b.1. The penalty of imprisonment of twelve (12)years and one day to twenty (20) years, shall beimposed upon any person who shall violatesection 13(d) of this Act. If the offender is aforeigner, he or she shall be deported and barredfrom any subsequent entry into the Philippinesafter serving his or her sentence;

2. In case of corporations or other associations,the above penalty shall be imposed upon themanaging partner, president or chief executive inaddition to an exemplary damage of at least Fivehundred thousand pesos (P500,000.00). If it is aforeign firm, the director and all officers of suchforeign firm shall be barred from entry into thePhilippines, in addition to the cancellation of its



license to do business in the Philippines;

REPUBLIC ACT NO. 4850 July 18, 1966 AN ACT CREATING THE LAGUNA LAKE

DEVELOPMENT AUTHORITY,

PRESCRIBING ITS POWERS, FUNCTIONS AND DUTIES, PROVIDING FUNDS

THEREFOR, AND FOR OTHER PURPOSES.

Sec. 41. Definition of Terms.

x x x

8) Investor With regards to this Act, investorsshall include public and private investors whetherforeign or local;

x x x

RA 1937 TARIFF AND CUSTOMS CODEBOOK 1 TARIFF LAW

Section 101. Imported Articles Subject to Duty. — All articles, when imported from any foreigncountry into the Philippines, shall be subject toduty upon each importation, even thoughpreviously exported from the Philippines, exceptas otherwise specifically provided for in this Codeor in other laws.

Sec. 105 Conditionally Free Importations. — Thefollowing articles shall be exempt from thepayment of import duties upon compliance withthe formalities prescribed in, or with theregulations which shall be promulgated by theCommissioner of Customs with the approval ofthe department head.(f.) Cost of repairs made in foreign countries upon vessels or aircraft documented, registered orlicensed in the Philippines, upon proofsatisfactory to the Collector of Customs (1) thatadequate facilities for such repairs are notafforded in the Philippines, or (2) that such vessels

or aircraft, while in the regular course of her voyage or flight was compelled by stress of weather or other casualty to put into a foreignport to make such repairs in order to secure thesafety seaworthiness or airworthiness of the vesselor aircraft to enable her to reach her port ofdestination.(n.) Articles (e.g., photographic, sound recording,electrical and other equipment, vehicles, animals,costumes, apparel, properties, supplies, unexposedmotion picture films) brought by foreignproducers for making or recording motionpictures on location in the Philippines, upon

identification and the giving of a bond in anamount equal to one and one-half times theascertained duties, taxes and other chargesthereon, conditioned for exportation thereof orpayment of the corresponding duties, taxes andcharges within six months from the date ofacceptance of the import entry. Unexposedmotion picture films allowed free entry underbond for exportation falling within this subsection



and subsequently exposed, whether or notdeveloped, may be reexported free of importduties, taxes and other charges.

Negative films, undeveloped, exposed outside thePhilippines by resident Filipino citizens or by

producing companies of Philippine registry wherethe principal actors and artists employed for theproduction are Filipinos, upon affidavit by theimporter that such exposed films are the samefilms previously exported from the Philippines. Asused in this paragraph, the terms "actors" and"artists" include the persons working thephotographic camera or other photographic andsound recording apparatus by means of which thefilm is made.

PRESIDENTIAL DECREE NO. 1999: AMENDING SECTION 301 OF

PRESIDENTIAL DECREE NO. 1464

OTHERWISE KNOWN AS THE TARIFF ANDCUSTOMS CODE OF 1978 AS AMENDED.

Sec. 106. Drawbacks: a. On Fuel Used forPropulsion of Vessels. — On all fuel importedinto the Philippines which is afterwards used forthe propulsion of vessels of Philippine registryengaged in trade with foreign countries, or in thecoastwise trade, a refund shall be allowed equal tothe duty imposed by law upon such fuel, less oneper cent thereof, which shall be paid under suchrules and regulations as may be prescribed by theCommissioner of Customs with the approval ofthe department head.

Sec. 201. Basis of Dutiable Value. — Wheneveran imported article is subject to an ad valorem rateof duty, the duty shall be assessed upon themarket value or price at which, at the time ofexportation, the same, like or similar article isfreely offered for sale in the principal markets ofthe exporting country for exportation to thePhilippines, in the usual wholesale quantities andin the ordinary course of trade (excluding internalexcise taxes to be remitted or rebated), plusordinary expenses prior and incidental to thelading of such article on board the vessel oraircraft at the port of export (including taxes or

duties, if any) and freight paid as well as insurancepremium paid covering the transportation of sucharticle to the port of entry in the Philippines. When the value of the article cannot beascertained in accordance with the precedingparagraph, the value shall be the domestic wholesale market value or selling price of thesame, like or similar imported article in theprincipal market of the Philippines on the date of



exportation of the article under appraisement, inthe usual wholesale quantities and in the ordinarycourse of trade, minus the import duty and othertaxes as well as a commission not exceeding sixper centum if any has been paid or contracted tobe paid on goods secured otherwise than by

purchase, and profits not to exceed eight percentum and a reasonable allowance for generalexpenses not to exceed eight per centum onpurchased goods, and all other expenses incidentalto the delivery from the port of importation to theprincipal market in the Philippines.

Sec. 204. Rate of Exchange. — For theassessment and collection of import duty uponimported articles and for other purposes, the valueand prices thereof quoted in foreign currency shallbe converted into the currency of the Philippinesat the current rate of exchange or value specified

or published, from time to time, by the CentralBank of the Philippines.

PRESIDENTIAL DECREE NO. 1973: AMENDING SUBSECTION (A) OF SECTION

THREE HUNDRED TWO OFPRESIDENTIAL DECREE NUMBEREDFOURTEEN HUNDRED SIXTY-FOUR,

OTHERWISE KNOWN AS THE TARIFF ANDCUSTOMS CODE OF 1978, AS AMENDED.

REPUBLIC ACT NO. 1937: AN ACT TOREVISE AND CODIFY THE TARIFF AND

CUSTOMS LAWS OF THE PHILIPPINES

Sec. 205. Effective Date of Rates of Import Duty. — Imported articles shall be subject to the rate orrates of import duty existing at the time of entry,

or withdrawal from warehouse in the Philippines,for consumption.Imported articles shall be deemed "withdrawn"from warehouse in the Philippines forconsumption when the specified form is properlyfiled and accepted, together with any relateddocuments required by any provisions of thisCode and/or regulations to be filed with suchform at the time of withdrawal, by the customsofficial designated to receive the withdrawal entryand any duties, taxes, fees and/or other lawfulcharges required to be paid at the time of withdrawal have been deposited with the customs

official designated to receive such payment.Sec. 304. Discrimination by Foreign Countries. — a. The President, when he finds that the publicinterest will be served thereby, shall byproclamation specify and declare new oradditional duties in an amount not exceeding 50per cent of the existing rates as hereinafterprovided upon articles wholly or in part thegrowth or product of, or imported in a vessel of,



any foreign country whenever he shall find as afact that such country — (1) Imposes, directly or indirectly, upon thedisposition in, or transportation in transit throughor re-exportation from such country of any article wholly or in part the growth or product of the

Philippines any unreasonable charge, exaction,regulation or limitation which is not equallyenforced upon the like articles of every foreigncountry; or(2) Discriminates in fact against the commerce ofthe Philippines, directly or indirectly, by law oradministrative regulation or practice, by or inrespect to any customs, tonnage, or port duty, fee,charge, exaction, classification, regulation,condition, restriction or prohibition, in suchmanner as to place the commerce of thePhilippines at a disadvantage compared with thecommerce of any foreign country.

b. If at any time the President shall find it to be afact that any foreign country has not onlydiscriminated against the commerce of thePhilippines, as aforesaid but has, after the issuanceof a proclamation as authorized in subsection "a"of this section, maintained or increased its saiddiscriminations against the commerce of thePhilippines, the President is hereby authorized, ifhe deems it consistent with the interests of thePhilippines, to issue a further proclamationdirecting that such product of said country orsuch articles imported in its vessels as he shalldeem consistent with the public interests, shall be

excluded from importation into the Philippines.c. Any proclamation issued by the President underthe authority of this section shall, if he deems itconsistent with the interests of the Philippines,extend to the whole of any foreign country or maybe confined to any subdivision or subdivisionsthereof; and the President shall, whenever hedeems the public interests require, suspend,revoke, supplement or amend any suchproclamation.d. All articles imported contrary to the provisionsof this section shall be forfeited to theGovernment of the Philippines and shall be liable

to be seized, prosecuted and condemned in likemanner and under the same regulations,restrictions and provisions as may from time totime be established for the recovery, collection,distribution and remission of forfeiture to thegovernment by the tariff and customs laws. Whenever the provision of this section shall beapplicable to importations into the Philippines ofarticles wholly or in part the growth or product of



any foreign country, they shall be applicablethereto whether such articles are imported directlyor indirectly.

e. It shall be the duty of the Commission toascertain and at all times to be informed whether

any of the discriminations against the commerceof the Philippines enumerated in subsections "a"and "b" of this section are practiced by anycountry; and if and when such discriminatory actsare disclosed, it shall be the duty of theCommission to bring the matter to the attentionof the President, together with recommendation.

Sec. 402. Promotion of Foreign Trade. — a. For the purpose of expanding foreign marketsfor Philippine products as a means of assistance inthe economic development of the country, inovercoming domestic unemployment, in

increasing the purchasing power of the Philippinepeso, and in establishing and maintaining betterrelations between the Philippines and othercountries, the President, is authorized from timeto time:(1) To enter into trade agreements with foreigngovernments or instrumentalities thereof; and(2) To modify import duties (including anynecessary change in classification) and otherimport restrictions, as are required or appropriateto carry out and promote foreign trade with othercountries: Provided, however, That in modifyingimport duties or fixing import quota the

requirements prescribed in subsection "a" ofSection 401 shall be observed: Provided, further, That any modification of import duties and anyfixing of import quotas made pursuant to thisagreement on ASEAN Preferential Trading Arrangements ratified on August 1, 1977 shall notbe subject to the limitations of aforesaid section"a" of Section 401.b. The duties and other import restrictions asmodified in subsection "a" above, shall apply toarticles which are the growth, produce ormanufacture of the specific country, whetherimported directly or indirectly, with which thePhilippines has entered into a trade agreement:Provided, That the President may suspend theapplication of any concession to articles which arethe growth, produce or manufacture of suchcountry because of acts (including the operationsof international cartels) or policies which in hisopinion tend to defeat the purposes set in thissection; and the duties and other importrestrictions as negotiated shall be in force and



effect from and after such time as specified in theOrder.c. Nothing in this section shall be construed togive any authority to cancel or reduce in anymanner any of the indebtedness of any foreigncountry to the Philippines or any claim of the

Philippines against any foreign country.d. Before any trade agreement is concluded withany foreign government or instrumentalitythereof, reasonable public notice of the intentionto negotiate an agreement with such governmentor instrumentality shall be given in order than anyinterested person may have an opportunity topresent his views to the Commission which shallseek information and advice from the Departmentof Agriculture, Department of Natural Resources,Department of Trade and Industry, Departmentof Tourism, the Central Bank of the Philippines,the Department of Foreign Affairs, the Board of

Investments and from such other sources as itmay deem appropriate.

TITLE III VESSELS AND AIRCRAFT IN FOREIGN TRADE

PART 1ENTRANCE AND CLEARANCE OF VESSELSSection 1001. Ports Open to Vessels Engaged inForeign Trade — Duty of Vessel to Make Entry.

— Vessels engaged in the foreign trade shalltouch at ports of entry only, except as otherwisespecially allowed; and every such vessel arriving within a customs collection district of thePhilippines from a foreign port shall make entry atthe port of entry for such district and shall besubject to the authority of the Collector of theport while within his jurisdiction. The master of any war vessel employed by anyforeign government shall not be required to reportand enter on arrival in the Philippines, unlessengaged in the transportation of articles in the wayof trade.Sec. 1013. Arrest of Vessel Departing Before

Entry Made. — When a vessel arriving within thelimits of a collection district from a foreign portdeparts or attempts to depart before entry shallhave been made, not being thereunto compelledby stress of weather, duress of enemies, or othernecessity, the Collector or surveyor of the port orthe commander of any revenue cutter may arrestand bring back such vessel to the most convenientport.

Sec. 1016. Entrance of Vessel through Necessity.



— When a vessel from a foreign port is compelledby stress of weather or other necessity to put intoany other port than that of her destination, themaster, within twenty-four hours after her arrival,shall make protest under oath setting forth thecauses or circumstances of such necessity. This

protest, if not made before the Collector, must beproduced to him, and a copy thereof lodged withhim. Within the same time, the master shall makereport to the Collector if any part of the cargo wasunladen from necessity or lost by casualty beforearrival, and such fact should be made to appear bysufficient proof to the Collector who shall give hisapproval thereto and the unlading shall be deemedto have been lawfully effected.Sec. 1017. Unlading of Vessel in Port fromNecessity. — If the situation is such as to requirethe unlading of the vessel pending sojourn in port,

the Collector shall, upon sufficient proof of thenecessity, grant a permit therefor, and the articlesshall be unladen and stored under the supervisionof the customs authorities. At the request of the master of the vessel or of theowner thereof, the Collector may grant permissionto enter and pay the duties, taxes and othercharges on, and dispose of, such part of the cargoas may be of perishable nature or as may benecessary to defray the expenses attending the vessel.Upon departure, the cargo, or a residue thereof,may be reladen on board the vessel, and the vessel

may proceed with the same to her destination,subject only to the charge for storing and safe-keeping of the articles and the fees for entranceand clearance.No port charges shall be collected on vesselsentering through stress of weather or other causesabove described.Sec. 1018. Entry and Clearance of Vessels of aForeign Government. — The entry and clearanceof transport or supply ship of a foreigngovernment shall be in accordance with theagreement by and between the Philippines and theforeign government.

Sec. 1020. Detention of Warlike VesselContaining Arms and Munitions. — Collectorsshall detain any vessel of commercial registrymanifestly built for warlike purposes and about todepart from the Philippines with a cargoconsisting principally of arms and munitions of war, when the number of men shipped on boardor other circumstances render it probable thatsuch vessel is intended to be employed by the



owner or owners to cruise or commit hostilitiesupon the subjects, citizens, or property of anyforeign prince or state, or of any colony, district,or people with whom the Philippines is at peace,until the decision of the President of thePhilippines be had thereon, or until the owner or

owners shall give bond or security, in double the value of the vessel and cargo, that she will not beso employed, if in the discretion of the Collectorsuch bond will prevent the violation of theprovisions of this section.Sec. 1024. Necessity of Tax Clearance. — ACollector shall not allow products to be ladenaboard a vessel clearing for a foreign port until theshipper shall produce a receipt from an internalrevenue official showing that the taxes and othercharges upon such products have been paid or acertificate from a proper official showing that theproducts are exempt from the payment of taxes

and other charges.Sec. 1025. Export Product to Conform toStandard Grades. — A Collector shall not permitproducts for which standard grades have beenestablished by the government to be laden aboarda vessel clearing for a foreign port, unless theshipment conforms to the requirements of lawrelative to the shipment of such products.

PART 2ENTRANCE AND CLEARANCE OF AIRCRAFT IN FOREIGN TRADESec. 1101. Designation of Airports of Entry. —

The department head concerned uponrecommendation of the Commissioner and theDirector of the Bureau of Civil Aviation isauthorized to designate airports of entry for civilaircraft arriving in the Philippines from any placeoutside thereof and for articles carried on suchaircraft.Sec. 1102. Notice of Arrival. — (a) Non-scheduled Arrivals. — In cases where entry of anaircraft in an area is required, except as hereinafterprovided, timely notice of the intended flight shallbe furnished to the Collector or other customsofficial in charge at or nearest the intended placeof first landing in such area, and to the quarantineand immigration officials in charge at or nearestsuch place of landing. If dependable facilities forgiving notice are not available before departure,any radio equipment the plane possesses shall beutilized to give notice during its approach so far asfeasible. If he has not given timely notice or if thegovernment officials have not arrived, the pilot incommand on landing shall hold the aircraft and



any baggage and article thereon intact and keepthe passengers and crew members in a segregatedplace until the inspecting officials arrive. Except where the uncertainty of communication facilitiesis already known to the government offices incharge, any pilot in command who has not given

timely notice shall furnish affidavit stating thereasons for his failure to do so. Such notice shallspecify the type of aircraft, the registration marksthereon, the name of the pilot in command, theplace of last departure, the international airport, orother place at which landing has been authorized,the number of alien passengers, number of citizenpassengers, and the estimated time of arrival; andshall be sent so as to be received in sufficient timeto enable the officials designated to inspect theaircraft to reach the international airport or suchother place of first landing prior to the arrival ofthe aircraft.

(b) Schedule Arrivals. — Such advance notice willnot be required in the case of aircraft of ascheduled airline arriving in accordance with theregular schedule filed with the Collector for thedistrict in which the place of first landing in thearea is situated and also with the immigrationofficials in charge of such place.Sec. 1103. Landing at International Airports ofEntry. — Except in the case of forced landings,aircraft arriving in the Philippines from anyforeign port or place shall make the first landing atan international airport, unless permission to landelsewhere than at an international airport is first

obtained from the Commissioner and in suchcases the owner or person in charge of the aircraftshall pay the expenses, if any, incurred ininspecting the craft, articles, passengers andbaggage carried therein, and such aircraft shall besubject to the authority of the Collector at theairport while within his jurisdiction.Sec. 1104. Report of Arrival. — The pilot incommand of any aircraft arriving from a foreignport or place shall immediately report his arrival tothe Collector at the airport of entry or to thecustoms official detailed to meet the aircraft at theplace of landing. Such aircraft upon arrival shall be

boarded by the quarantine official and afterpratique is granted shall be boarded by customsofficial, and no person shall be permitted to boardor leave the aircraft without the permission of thecustoms official in charge. The pilot in commandor any other authorized agent of the owner oroperator of the aircraft shall make the necessaryentry. No such aircraft shall without previouspermission therefor from the Collector, depart



from the place of first landing or dischargearticles, passengers or baggage.

TITLE V WAREHOUSING OF IMPORTED ARTICLES

PART 1

WAREHOUSING IN GENERAL

Sec. 1906. Entry of Articles for Warehousing. — The entry of articles for warehousing shall be inthe required number of copies in the prescribedform, and shall be verified as in the entry ofarticles for consumption. No warehousing entryshall be accepted for any article if from the entry,supporting documents and/or information sucharticle is imported contrary to any law.

TITLE VI ADMINISTRATIVE AND JUDICIALPROCEEDINGS

PART 1

SEARCH, SEIZURE AND ARRESTSec. 2202. Special Surveillance for Protection ofCustoms Revenue and Prevention of Smuggling.

— In order to prevent smuggling and to securethe collection of the legal duties, taxes and othercharges, the customs service shall exercisesurveillance over the coast, beginning when a vessel or aircraft enters Philippine territory andconcluding when the article imported therein hasbeen legally passed through the customhouse.Sec. 2204. Place Where Authority May BeExercised. — Persons acting under authorityconferred pursuant to subsection (e) of the

preceding section may exercise their authority within the limits of the collection district only andin or upon the particular vessel or aircraft, or inthe particular place, or in respect to the particulararticle specified in the appointment. All suchappointments shall be in writing, and the originalshall be filed in the customhouse of the district where made. All other persons exercising the powershereinabove conferred may exercise the same atany place within the jurisdiction of the Bureau ofCustoms.Sec. 2205. Exercise of Power of Seizure and

Arrest. — It shall be within the power of acustoms official or person authorized as aforesaid,and it shall be his duty, to make seizure of any vessel, aircraft, cargo, articles, animal or othermovable property when the same is subject toforfeiture or liable for any fine imposed undercustoms and tariff laws, and also to arrest anyperson subject to arrest for violation of anycustoms and tariff laws, such power to be



exercised in conformity with the law and theprovisions of this Code.Sec. 2206. Duty of Officer or Official to DiscloseOfficial Character. — It shall be the duty of anyperson exercising authority as aforesaid, uponbeing questioned at the time of the exercise

thereof, to make known his official character as anofficer or official of the Government, and if hisauthority is derived from special authorization in writing to exhibit the same for inspection, ifdemanded.ec. 2210. Right to Search Vessels or Aircrafts andPersons or Articles Conveyed Therein. — It shallbe lawful for any official or person exercisingpolice authority under the provisions of this Codeto go abroad any vessel or aircraft within thelimits of any collection to go aboard any vessel oraircraft within the limits of any collection district,and to inspect, search and examine said vessel or

aircraft and any trunk, package, box or envelopeon board, and to search any person on board thesaid vessel or aircraft and to this end to hail andstop such vessel or aircraft if under way, to use allnecessary force to compel compliance; and if itshall appear that any breach or violation of thecustoms and tariff laws of the Philippines hasbeen committed, whereby or in consequence of which such vessels or aircrafts, or the article, orany part thereof, on board of or imported by such vessel or aircraft, is liable to forfeiture, to makeseizure of the same or any part thereof. The power of search hereinabove given shall

extend to the removal of any false bottom,partition, bulkhead or other obstruction, so far asmay be necessary to enable the officer to discover whether any dutiable or forfeitable articles may beconcealed therein.

No proceeding herein shall give rise to any claimfor the damage thereby caused to article or vesselor aircraft.

Sec. 2211. Right to Search Vehicles, Beasts andPersons. — It shall also be lawful for a personexercising authority as aforesaid to open andexamine any box, trunk, envelope or other

container, wherever found where he hasreasonable cause to suspect the presence thereinof dutiable or prohibited article or articlesintroduced into the Philippines contrary to law,and likewise to stop, search and examine any vehicle, beast or person reasonably suspected ofholding or conveying such article as aforesaid.Sec. 2212. Search of Persons Arriving FromForeign Countries. — All persons coming into the



Philippines from foreign countries shall be liableto detention and search by the customs authoritiesunder such regulations as may be prescribedrelative thereto.Female inspectors may be employed for theexamination and search of persons of their own

sex.

TITLE VIII

GENERAL PROVISIONS

PENAL PROVISIONSSec. 3601. Unlawful Importation. — Any person who shall fraudulently import or bring into thePhilippines, or assist in so doing, any article,contrary to law, or shall receive, conceal, buy, sell,or in any manner facilitate the transportation,concealment, or sale of such article afterimportation, knowing the same to have beenimported contrary to law, shall be punished by a

fine of not less than six hundred pesos nor morethan five thousand pesos and imprisonment fornot less than six months nor more than two yearsand, if the offender is an alien, he shall bedeported after serving the sentence. When, upon trial for a violation of this section,the defendant is shown to have or to have hadpossession of the article in question, suchpossession shall be deemed sufficient evidence toauthorize conviction, unless the defendant shallexplain the possession to the satisfaction of thecourt.Sec. 3602. Various Fraudulent Practices AgainstCustoms Revenue. — Any person who makes orattempts to make any entry of imported orexported article by means of any false orfraudulent invoice, declaration, affidavit, letter,paper, or by means of any false statement, writtenor verbal, or by means of any false or fraudulentpractice whatsoever, or shall be guilty of any willful act or omission by means of whereof theGovernment might be deprived of the lawfulduties, taxes and other charges, or any portionthereof, accruing from the article or any portionthereof, embraced or referred to in such invoice,declaration, affidavit, letter, paper, or statement,or affected by such act or omission, shall, for eachoffense, be punished by a fine of not less than sixhundred pesos nor more than five thousand pesosand by imprisonment for not less than six monthsnor more than two years and if the offender is analien, he shall be deported after serving thesentence.


AN ACT INSTITUTING A NEW SYSTEM OF



MINERAL RESOURCES EXPLORATION,DEVELOPMENT, UTILIZATION, AND

CONSERVATION (Philippine Mining Act of1995)

Section 3

Definition of Terms

t. Foreign-owned corporation means anycorporation, partnership, association, orcooperative duly registered in accordance with lawin which less than fifty per centum (50%) of thecapital is owned by Filipino citizens.

aq. Qualified person means any citizen of thePhilippines with capacity to contract, or acorporation, partnership, association, orcooperative organized or authorized for thepurpose of engaging in miring, with technical andfinancial capability to undertake mineral resources

development and duly registered in accordance with law at least sixty per centum (60%) of thecapital of which is owned by citizens of thePhilippines: Provided, That a legally organizedforeign-owned corporation shall be deemed aqualified person for purposes of granting anexploration permit, financial or technicalassistance agreement or mineral processingpermit.

Section 35 Terms and Conditions

f. Representations and warranties that, except forpayments for dispositions for its equity, foreigninvestments in local enterprises which arequalified for repatriation, and local supplier’scredits and such other generally accepted andpermissible financial schemes for raising funds for valid business purposes, the contractor shall notraise any form of financing from domestic sourcesof funds, whether in Philippine or foreigncurrency, for conducting its mining operations forand in the contract area;

Section 39Option to Convert into a Mineral Agreement

The contractor has the option to convert thefinancial or technical assistance agreement to amineral agreement at any time during the term ofthe agreement, if the economic viability of thecontract area is found to be inadequate to justifylarge-scale mining operations, after proper notice



to the Secretary as provided for under theimplementing rules and regulations: Provided, That the mineral agreement shall only be for theremaining period of the original agreement.In the case of a foreign contractor, it shall reduceits equity to forty percent (40%) in the

corporation, partnership, association, orcooperative. Upon compliance with thisrequirement by the contractor, the Secretary shallapprove the conversion and execute the mineralproduction-sharing agreement.

Section 56Eligibility of Foreign-owned/-controlledCorporation

A foreign-owned/-controlled corporation may begranted a mineral processing permit.

Section 59 Training and Development

A contractor shall maintain an effective programof manpower training and developmentthroughout the term of the mineral agreement andshall encourage and train Filipinos to participate inall aspects of the mining operations, including themanagement thereof. For highly-technical andspecialized mining operations, the contractor may,subject to the necessary government clearances,employ qualified foreigners.

Section 62

Employment of Filipinos

A contractor shall give preference to Filipinocitizens in all types of mining employment withinthe country insofar as such citizens are qualified toperform the corresponding work with reasonableefficiency and without hazard to the safety of theoperations. The contractor, however, shall not behindered from hiring employees of his ownselection, subject to the provisions ofCommonwealth Act No. 613, as amended, for

technical and specialized work which, in hisjudgment and with the approval of the Director,requires highly-specialized training or longexperience in exploration, development orutilization of mineral resources: Provided, That inno case shall each employment exceed five (5)years or the payback period as represented inoriginal project study, whichever is longer:Provided, further, That each foreigner employed



as mine manager, vice-president for operations orin an equivalent managerial position in charge ofmining, milling, quarrying or drilling operationshall:a. Present evidence of his qualification and workexperience; or

b. Shall pass the appropriate government licensureexamination; or

c. In special cases, may be permitted to work bythe Director for a period not exceeding one (1)year: Provided, however, That if reciprocalprivileges are extended to Filipino nationals in thecountry of domicile, the Director may grant waivers or exemptions.

Section 81

Government Share in Other Mineral Agreements

The share of the Government in co-productionand joint-venture agreements shall be negotiatedby the Government and the contractor taking intoconsideration

a. capital investment of the project;

b. risks involved;

c. contribution of the project to the economy; andd. other factors that will provide for a fair andequitable sharing between the Government andthe contractor. The Government shall also be entitled to

compensations for its other contributions whichshall be agreed upon by the parties, and shallconsist, among other things, the contractor’sincome tax, excise tax, special allowance,

withholding tax due from the contractor’s foreignstockholders arising from dividend or interestpayments to the said foreign stockholders, in caseof a foreign national, and all such other taxes,duties and fees as provided for under existinglaws. The Government share in financial or technicalassistance agreement shall consist of, among otherthings, the contractor’s corporate income tax,

excise tax, special allowance, withholding tax duefrom the contractor’s foreign stockholders arisingfrom dividend or interest payments to the saidforeign stockholder in case of a foreign nationaland all such other taxes, duties and fees asprovided for under existing laws. The collection of Government share in financialor technical assistance agreement shall commenceafter the financial or technical assistance



agreement contractor has fully recovered its pre-operating expenses, exploration, and developmentexpenditures, inclusive.

Section 94

Investment Guarantees

The contractor shall be entitled to the basic rightsand guarantees provided in the Constitution andsuch other rights recognized by the government asenumerated hereunder:a. Repatriation of investments. The right torepatriate the entire proceeds of the liquidation ofthe foreign investment in the currency in whichthe investment was originally made and at theexchange rate prevailing at the time ofrepatriation.b. Remittance of earnings. The right to remitearnings from the investment in the currency in

which the foreign investment was originally madeand at the exchange rate prevailing at the time ofremittance.c. Foreign loans and contracts. The right to remitat the exchange rate prevailing at the time ofremittance such sums as may be necessary to meetthe payments of interest and principal on foreignloans and foreign obligations arising fromfinancial or technical assistance contracts.d. Freedom from expropriation. The right to befree from expropriation by the Government ofthe property represented by investments or loans,or of the property of the enterprise except forpublic use or in the interest of national welfare ordefense and upon payment of just compensation.In such cases, foreign investors or enterprisesshall have the right to remit sums received ascompensation for the expropriated property in thecurrency in which the investment was originallymade and at the exchange rate prevailing at thetime of remittance.


AN ACT ADOPTING THE STRATEGICENVIRONMENTAL PLAN FOR PALAWAN,

CREATING THE ADMINISTRATIVEMACHINERY FOR ITS IMPLEMENTATION,CONVERTING THE PALAWAN

INTEGRATED AREA DEVELOPMENTPROJECT OFFICE TO ITS SUPPORT STAFF,PROVIDING FUNDS THEREFOR, AND FOROTHER PURPOSES. ["Strategic Environmental

Plan (SEP) for Palawan Act."]

SEC. 19. Powers and Functions. — In order to



successfully implement the provisions of this Act,the Council is hereby vested with the followingpowers and functions:xxx4. Arrange, negotiate for, and accept donations,grants, gifts, loans, and other funding from

domestic and foreign sources to carry out theactivities and purposes of the SEP;

xxx

REPUBLIC ACT NO. 7308 AN ACT TO PROMOTE AND DEVELOP

THE SEED INDUSTRY IN THEPHILIPPINES AND CREATE A NATIONAL

SEED INDUSTRY COUNCIL AND FOROTHER PURPOSES [Seed Industry

Development Act of 1992]SEC. 16. Funds of the Council. — There ishereby created a special account in the generalfund to be known as the Seed Fund which shall be

obtained from the following sources:xxxd. donations from private or government agencies,either domestic or foreign: Provided, That saidfunds shall be held in trust by the Bureau of PlantIndustry: Provided, further, That the allocation,utilization and disposition of such funds shall beby and under the authority of the Council.

xxx

Plant Quarantine Law of 1978: P.D. No. 1433

Sec. 6. Exportation of plants and plant products. – The Director and/ or Plant Quarantine Officersshall cause the inspection and phytosanitary

certification of all plants, plant products and otherrelated materials capable of harboring plant pests,if the importing country so requires.

The Water Code of the Philippines: P.D. No. 1067

a. Rivers and their natural beds;b. Continuous or intermittent waters of springsand brooks running in their natural beds and thebeds themselvesc. Natural lakes and lagoons;d. All other categories of surface waters such as water flowing over lands, water form rainfall whether natural or artificial, and water fromagriculture runoff, seepage and drainage;e. Atmospheric water;

f. subterranean or ground water; andg. Seawater

TAXATION

NATIONALINTERNAL Title II, Chapter I: Definitions



REVENUECODE

SEC. 22. Definitions - When used in this Title:

x x x

D) The term ‘foreign,’ when applied to a corporation, means a corporation which isnot domestic.

x x x(F) The term ‘resident alien’ means an individual whose residence is within thePhilippines and who is not a citizen thereof.(G) The term ‘nonresident alien’ means an individual whose residence is not withinthe Philippines and who is not a citizen thereof.

(H) The term ‘resident foreign corporation’ applies to a foreign corporation engagedin trade or business within the Philippines.

(I) The term ‘nonresident foreign corporation’applies to a foreign corporation notengaged in trade or business within the Philippines.

x x x

Title II, Chapter II: General PrinciplesSEC. 23. General Principles of Income Taxation in the Philippines. - Except when

otherwise provided in this Code:x x x(D) An alien individual, whether a resident or not of the Philippines, is taxable onlyon income derived from sources within the Philippines;

x x x(F) A foreign corporation, whether engaged or not in trade or business in thePhilippines, is taxable only on income derived from sources within the Philippines.

Title II, Chapter III: Tax on Individuals

SEC. 24. Income Tax Rates

x x x(C) Alien Individual Employed by Regional or Area Headquarters and RegionalOperating Headquarters of Multinational Companies. - There shall be levied,collected and paid for each taxable year upon the gross income received by every

alien individual employed by regional or area headquarters and regional operatingheadquarters established in the Philippines by multinational companies as salaries, wages, annuities, compensation, remuneration and other emoluments, such

21as honoraria and allowances, from such regional or area headquarters and regionaloperating headquarters, a tax equal to fifteen percent (15%) of such gross income:Provided, however, That the same tax treatment shall apply to Filipinos employedand occupying the same position as those of aliens employed by these multinationalcompanies. For purposes of this Chapter, the term ‘multinational company’ means aforeign firm or entity engaged in international trade with affiliates or subsidiaries orbranch offices in the Asia-Pacific Region and other foreign markets.(D) Alien Individual Employed by Offshore Banking Units. - There shall be levied,collected and paid for each taxable year upon the gross income received by everyalien individual employed by offshore banking units established in the Philippines assalaries, wages, annuities, compensation, remuneration and other emoluments, suchas honoraria and allowances, from such off-shore banking units, a tax equal to fifteenpercent (15%) of such gross income: Provided, however, That the same tax treatmentshall apply to Filipinos employed and occupying the same positions as those of aliensemployed by these offshore banking units.(E) Alien Individual Employed by Petroleum Service Contractor and Subcontractor. - An Alien individual who is a permanent resident of a foreign country but who isemployed and assigned in the Philippines by a foreign service contractor or by a



foreign service subcontractor engaged in petroleum operations in the Philippines shallbe liable to a tax of fifteen percent (15%) of the salaries, wages, annuities,compensation, remuneration and other emoluments, such as honoraria andallowances, received from such contractor or subcontractor: Provided, however, Thatthe same tax treatment shall apply to a Filipino employed and occupying the sameposition as an alien employed by petroleum service contractor and subcontractor.

Any income earned from all other sources within the Philippines by the alienemployees referred to under Subsections (C), (D) and (E) hereof shall be subject tothe pertinent income tax, as the case may be, imposed under this Code. Title II, Chapter IV: Tax on Corporations

SEC. 28. Rates of Income Tax on Foreign Corporations. -

(A) Tax on Resident Foreign Corporations. -(1) In General. - Except as otherwise provided in this Code, a corporation organized,authorized, or existing under the laws of any foreign country, engaged in trade orbusiness within the Philippines, shall be subject to an income tax equivalent to thirty-five percent (35%) of the taxable income derived in the preceding taxable year fromall sources within the Philippines: provided, That effective January 1, 1998, the rate ofincome tax shall be thirty-four percent (34%); effective January 1, 1999, the rate shallbe thirty-three percent (33%), and effective January 1, 2000 and thereafter, the rate

shall be thirty-two percent (32%).In the case of corporations adopting the fiscal-year accounting period, the taxableincome shall be computed without regard to the specific date when sales, purchasesand other transactions occur. Their income and expenses for the fiscal year shall bedeemed to have been earned and spent equally for each month of the period. The reduced corporate income tax rates shall be applied on the amount computed bymultiplying the number of months covered by the new rates within the fiscal year bythe taxable income of the corporation for the period, divided by twelve.Provided, however, That a resident foreign corporation shall be granted the option tobe taxed at fifteen percent (15%) on gross income under the same conditions, asprovided in Section 27 (A).(2) Minimum Corporate Income Tax on Resident Foreign Corporations. - Aminimum corporate income tax of two percent (2%) of gross income, as prescribedunder Section 27 (E) of this Code, shall be imposed, under the same conditions, on aresident foreign corporation taxable under paragraph (1) of this Subsection.(3) International Carrier. - An international carrier doing business in the Philippinesshall pay a tax of two and one-half percent (2 1/2%) on its ‘Gross Philippine Billings’as defined hereunder:(a) International Air Carrier. - ‘Gross Philippine Billings’ refers to the amount ofgross revenue

22derived from carriage of persons, excess baggage, cargo and mail originating from thePhilippines in a continuous and uninterrupted flight, irrespective of the place of saleor issue and the place of payment of the ticket or passage document: Provided, Thattickets revalidated, exchanged and/or indorsed to another international airline form

part of the Gross Philippine Billings if the passenger boards a plane in a port or pointin the Philippines: Provided, further, That for a flight which originates from thePhilippines, but transshipment of passenger takes place at any port outside thePhilippines on another airline, only the aliquot portion of the cost of the ticketcorresponding to the leg flown from the Philippines to the point of transshipmentshall form part of Gross Philippine Billings.(b) International Shipping. - ‘Gross Philippine Billings’ means gross revenue whetherfor passenger, cargo or mail originating from the Philippines up to final destination,regardless of the place of sale or payments of the passage or freight documents.



(4) Offshore Banking Units. - The provisions of any law to the contrarynotwithstanding, income derived by offshore banking units authorized by the BangkoSentral ng Pilipinas (BSP) to transact business with offshore banking units, includingany interest income derived from foreign currency loans granted to residents, shall besubject to a final income tax at the rate of ten percent (10%) of such income. Any income of nonresidents, whether individuals or corporations, from transactions

with said offshore banking units shall be exempt from income tax.(5) Tax on Branch Profits Remittances. - Any profit remitted by a branch to its headoffice shall be subject to a tax of fifteen (15%) which shall be based on the totalprofits applied or earmarked for remittance without any deduction for the taxcomponent thereof (except those activities which are registered with the PhilippineEconomic Zone Authority). The tax shall be collected and paid in the same manneras provided in Sections 57 and 58 of this Code: provided, that interests, dividends,rents, royalties, including remuneration for technical services, salaries, wagespremiums, annuities, emoluments or other fixed or determinable annual, periodic orcasual gains, profits, income and capital gains received by a foreign corporationduring each taxable year from all sources within the Philippines shall not be treated asbranch profits unless the same are effectively connected with the conduct of its tradeor business in the Philippines.

(6) Regional or Area Headquarters and Regional Operating Headquarters ofMultinational Companies. -(a) Regional or area headquarters as defined in Section 22(DD) shall not be subject toincome tax.(b) Regional operating headquarters as defined in Section 22(EE) shall pay a tax often percent (10%) of their taxable income.(7) Tax on Certain Incomes Received by a Resident Foreign Corporation. – (a) Interest from Deposits and Yield or any other Monetary Benefit from DepositSubstitutes, Trust Funds and Similar Arrangements and Royalties. - Interest from anycurrency bank deposit and yield or any other monetary benefit from depositsubstitutes and from trust funds and similar arrangements and royalties derived fromsources within the Philippines shall be subject to a final income tax at the rate oftwenty percent (20%) of such interest: Provided, however, That interest income

derived by a resident foreign corporation from a depository bank under the expandedforeign currency deposit system shall be subject to a final income tax at the rate ofseven and one-half percent (7 1/2%) of such interest income.(b) Income Derived under the Expanded Foreign Currency Deposit System. -Income derived by a depository bank under the expanded foreign currency depositsystem from foreign currency transactions with local commercial banks includingbranches of foreign banks that may be authorized by the Bangko Sentral ng Pilipinas(BSP) to transact business with foreign currency deposit system units, includinginterest income from foreign currency loans granted by such depository banks undersaid expanded foreign currency deposit system to residents, shall be subject to a finalincome tax at the rate of ten percent (10%) of such income. Any income of nonresidents, whether individuals or corporations, from transactions with depository banks under the expanded system shall be exempt from income tax.(c) Capital Gains from Sale of Shares of Stock Not Traded in the Stock Exchange. - A final tax at

23the rates prescribed below is hereby imposed upon the net capital gains realizedduring the taxable year from the sale, barter, exchange or other disposition of sharesof stock in a domestic corporation except shares sold or disposed of through thestock exchange:

Not over P100,000………………………… 5%



On any amount in excess of P100,000……. 10% (d) Intercorporate Dividends. - Dividends received by a resident foreign corporationfrom a domestic corporation liable to tax under this Code shall not be subject to taxunder this Title.

(B) Tax on Nonresident Foreign Corporation. -(1) In General. - Except as otherwise provided in this Code, a foreign corporation not

engaged in trade or business in the Philippines shall pay a tax equal to thirty-fivepercent (35%) of the gross income received during each taxable year from all sources within the Philippines, such as interests, dividends, rents, royalties, salaries, premiums(except reinsurance premiums), annuities, emoluments or other fixed or determinableannual, periodic or casual gains, profits and income, and capital gains, except capitalgains subject to tax under subparagraphs (C) and (d): Provided, That effective 1,1998, the rate of income tax shall be thirty-four percent (34%); effective January 1,1999, the rate shall be thirty-three percent (33%); and, effective January 1, 2000 andthereafter, the rate shall be thirty-two percent (32%).(2) Nonresident Cinematographic Film Owner, Lessor or Distributor. - Acinematographic film owner, lessor, or distributor shall pay a tax of twenty-fivepercent (25%) of its gross income from all sources within the Philippines.(3) Nonresident Owner or Lessor of Vessels Chartered by Philippine Nationals. - A

nonresident owner or lessor of vessels shall be subject to a tax of four and one-halfpercent (4 1/2%) of gross rentals, lease or charter fees from leases or charters toFilipino citizens or corporations, as approved by the Maritime Industry Authority.(4) Nonresident Owner or Lessor of Aircraft, Machineries and Other Equipment. -Rentals, charters and other fees derived by a nonresident lessor of aircraft,machineries and other equipment shall be subject to a tax of seven and one-halfpercent (7 1/2%) of gross rentals or fees.

(5) Tax on Certain Incomes Received by a Nonresident Foreign Corporation. – (a) Interest on Foreign Loans. - A final withholding tax at the rate of twenty percent(20%) is hereby imposed on the amount of interest on foreign loans contracted on orafter August 1, 1986;(b) Intercorporate Dividends. - A final withholding tax at the rate of fifteen percent(15%) is hereby imposed on the amount of cash and/or property dividends receivedfrom a domestic corporation, which shall be collected and paid as provided in Section57 (A) of this Code, subject to the condition that the country in which thenonresident foreign corporation is domiciled, shall allow a credit against the tax duefrom the nonresident foreign corporation taxes deemed to have been paid in thePhilippines equivalent to twenty percent (20%) for 1997, nineteen percent (19%) for1998, eighteen percent (18%) for 1999, and seventeen percent (17%) thereafter, which represents the difference between the regular income tax of thirty-five percent(35%) in 1997, thirty-four percent (34%) in 1998, and thirty-three percent (33%) in1999, and thirty-two percent (32%) thereafter on corporations and the fifteen percent(15%) tax on dividends as provided in this subparagraph;(c) Capital Gains from Sale of Shares of Stock not Traded in the Stock Exchange. - Afinal tax at the rates prescribed below is hereby imposed upon the net capital gains

realized during the taxable year from the sale, barter, exchange or other disposition ofshares of stock in a domestic corporation, except shares sold, or disposed of throughthe stock exchange:

Not over P100,000…………..………………… 5%

On any amount in excess of P100,000………… 10% Title II, Chapter VI: Computation of Gross Income

24

SEC. 32. Gross Income.

x x x



(B) Exclusions from Gross Income

x x x

(6) Retirement Benefits, Pensions, Gratuities, etc.-x x x(c) The provisions of any existing law to the contrary notwithstanding, social securitybenefits, retirement gratuities, pensions and other similar benefits received by resident

or nonresident citizens of the Philippines or aliens who come to reside permanentlyin the Philippines from foreign government agencies and other institutions, private orpublic.x x x

(7) Miscellaneous Items. – (a) Income Derived by Foreign Government. - Income derived from investments inthe Philippines in loans, stocks, bonds or other domestic securities, or from intereston deposits in banks in the Philippines by (i) foreign governments, (ii) financinginstitutions owned, controlled, or enjoying refinancing from foreign governments,and (iii) international or regional financial institutions established by foreigngovernments.

Title II, Chapter VII: Allowable DeductionsSEC. 34. Deductions from Gross Income. - Except for taxpayers earningcompensation income arising from personal services rendered under an employer-employee relationship where no deductions shall be allowed under this Section otherthan under subsection (M) hereof, in computing taxable income subject to income taxunder Sections 24 (A); 25 (A); 26; 27 (A), (B) and (C); and 28 (A) (1), there shall beallowed the following deductions from gross income;

(A) Expenses. -(1) Ordinary and Necessary Trade, Business or Professional Expenses.-

x x x(c) Bribes, Kickbacks and Other Similar Payments. - No deduction from grossincome shall be allowed under Subsection (A) hereof for any payment made, directlyor indirectly, to an official or employee of the national government, or to an officialor employee of any local government unit, or to an official or employee of a

government-owned or -controlled corporation, or to an official or employee orrepresentative of a foreign government, or to a private corporation, generalprofessional partnership, or a similar entity, if the payment constitutes a bribe orkickback.

x x x

(C) Taxes.-(1) In General. - Taxes paid or incurred within the taxable year in connection with thetaxpayer’s profession, trade or business, shall be allowed as deduction, except

(a) The income tax provided for under this Title;(b) Income taxes imposed by authority of any foreign country; but this deductionshall be allowed in the case of a taxpayer who does not signify in his return his desireto have to any extent the benefits of paragraph (3) of this subsection (relating tocredits for taxes of foreign countries);

(c) Estate and donor’s taxes; and (d) Taxes assessed against local benefits of a kind tending to increase the value of theproperty assessed.

25Provided, That taxes allowed under this Subsection, when refunded or credited, shallbe included as part of gross income in the year of receipt to the extent of the incometax benefit of said deduction.(2) Limitations on Deductions. - In the case of a nonresident alien individual engagedin trade or business in the Philippines and a resident foreign corporation, the



deductions for taxes provided in paragraph (1) of this Subsection (C) shall be allowedonly if and to the extent that they are connected with income from sources within thePhilippines.(3) Credit Against Tax for Taxes of Foreign Countries. - If the taxpayer signifies inhis return his desire to have the benefits of this paragraph, the tax imposed by this Title shall be credited with:

(a) Citizen and Domestic Corporation. - In the case of a citizen of the Philippines andof a domestic corporation, the amount of income taxes paid or incurred during thetaxable year to any foreign country; and(b) Partnerships and Estates. - In the case of any such individual who is a member ofa general professional partnership or a beneficiary of an estate or trust, hisproportionate share of such taxes of the general professional partnership or the estateor trust paid or incurred during the taxable year to a foreign country, if hisdistributive share of the income of such partnership or trust is reported for taxationunder this Title. An alien individual and a foreign corporation shall not be allowed the credits againstthe tax for the taxes of foreign countries allowed under this paragraph.

x x x(6) Year in Which Credit Taken. - The credits provided for in Subsection (C)(3) of

this Section may, at the option of the taxpayer and irrespective of the method ofaccounting employed in keeping his books, be taken in the year which the taxes ofthe foreign country were incurred, subject, however, to the conditions prescribed inSubsection (C)(5) of this Section. If the taxpayer elects to take such credits in the yearin which the taxes of the foreign country accrued, the credits for all subsequent yearsshall be taken upon the same basis and no portion of any such taxes shall be allowedas a deduction in the same or any succeeding year.

(D) Losses. –

x x x(2) Proof of Loss. - In the case of a nonresident alien individual or foreigncorporation, the losses deductible shall be those actually sustained during the yearincurred in business, trade or exercise of a profession conducted within thePhilippines, when such losses are not compensated for by insurance or other formsof indemnity. The secretary of Finance, upon recommendation of the Commissioner,is hereby authorized to promulgate rules and regulations prescribing, among otherthings, the time and manner by which the taxpayer shall submit a declaration of losssustained from casualty or from robbery, theft or embezzlement during the taxableyear: Provided, That the time to be so prescribed in the rules and regulations shall notbe less than thirty (30) days nor more than ninety (90) days from the date ofdiscovery of the casualty or robbery, theft or embezzlement giving rise to the loss;and

(H) Charitable and Other Contributions. -

x x x(2) Contributions Deductible in Full. - Notwithstanding the provisions of thepreceding subparagraph, donations to the following institutions or entities shall be

deductible in full;x x x(b) Donations to Certain Foreign Institutions or International Organizations. -donations to foreign institutions or international organizations which are fullydeductible in pursuance

26of or in compliance with agreements, treaties, or commitments entered into by theGovernment of the Philippines and the foreign institutions or internationalorganizations or in pursuance of special laws;



x x xSEC. 37. Special Provisions Regarding Income and Deductions of InsuranceCompanies, Whether Domestic or Foreign. -(A) Special Deduction Allowed to Insurance Companies. - In the case of insurancecompanies, whether domestic or foreign doing business in the Philippines, the netadditions, if any, required by law to be made within the year to reserve funds and the

sums other than dividends paid within the year on policy and annuity contracts maybe deducted from their gross income: Provided, however, That the released reservebe treated as income for the year of release.x x x(D) Assessment Insurance Companies.- Assessment insurance companies, whetherdomestic or foreign, may deduct from their gross income the actual deposit of sums with the officers of the Government of the Philippines pursuant to law, as additionsto guarantee or reserve funds.

SEC. 42. Income from Sources Within the Philippines.-(A) Gross Income From Sources Within the Philippines. - The following items ofgross income shall be treated as gross income from sources within the Philippines:x x x

(2) Dividends. - The amount received as dividends:

xxx(b) from a foreign corporation, unless less than fifty percent (50%) of the grossincome of such foreign corporation for the three-year period ending with the close ofits taxable year preceding the declaration of such dividends or for such part of suchperiod as the corporation has been in existence) was derived from sources within thePhilippines as determined under the provisions of this Section; but only in an amount which bears the same ration to such dividends as the gross income of the corporationfor such period derived from sources within the Philippines bears to its gross incomefrom all sources.

Title II, Chapter X: Estates and TrustsSEC. 61. Taxable Income. - The taxable income of the estate or trust shall becomputed in the same manner and on the same basis as in the case of an individual,

except that:x x x(C) In the case of a trust administered in a foreign country, the deductions mentionedin Subsections (A) and (B) of this Section shall not be allowed: Provided, That theamount of any income included in the return of said trust shall not be included incomputing the income of the beneficiaries.

Title II, Chapter XI: Other Income Tax RequirementsSEC. 67. Collection of Foreign Payments. - All persons, corporations, duly registeredgeneral co-partnerships (companias colectivas) undertaking for profit or otherwisethe collection of foreign payments of interests or dividends by means of coupons,checks or bills of exchange shall obtain a license from the Commissioner, and shall besubject to such rules and regulations enabling the government to obtain theinformation required under this Title, as the Secretary of Finance, upon

recommendation of the Commissioner, shall prescribe. Title III, Chapter I: Estate TaxSEC. 86. Computation of Net Estate. - For the purpose of the tax imposed in thisChapter, the value of the net

27estate shall be determined:

x x x

(E) Tax Credit for Estate Taxes paid to a Foreign Country. -(1) In General. - The tax imposed by this Title shall be credited with the amounts of



any estate tax imposed by the authority of a foreign country.

(2) Limitations on Credit. - The amount of the credit taken under this Section shall besubject to each of the following limitations:(a) The amount of the credit in respect to the tax paid to any country shall not exceedthe same proportion of the tax against which such credit is taken, which thedecedent’s net estate situated within such country taxable under this Title bears to his

entir net estate; and(b) The total amount of the credit shall not exceed the same proportion of the taxagainst which such credit is taken, which the decedent’s net estate situated outside thePhilippines taxable under this Title bears to his entire net estate.

Title III, Chapter II: Donor’s Tax SEC. 101. Exemption of Certain Gifts. - The following gifts or donations shall beexempt from the tax provided for in this Chapter:

x x x

(C) Tax Credit for Donor’s Taxes Paid to a Foreign Country. -(1) In General. - The tax imposed by this Title upon a donor who was a citizen or aresident at the time of donation shall be credited with the amount of any donor’s taxof any character and description imposed by the authority of a foreign country.(2) Limitations on Credit. - The amount of the credit taken under this Section shall besubject to each of the following limitations:(a) The amount of the credit in respect to the tax paid to any country shall not exceedthe same proportion of the tax against which such credit is taken, which the net giftssituated within such country taxable under this Title bears to his entire net gifts; and(b) The total amount of the credit shall not exceed the same proportion of the taxagainst which such credit is taken, which the donor’s net gifts situated outside thePhilippines taxable under this title bears to his entire net gifts.SEC. 104. Definitions. - For purposes of this Title, the terms ‘gross estate’ and ‘gifts’include real and personal property, whether tangible or intangible, or mixed, whereversituated: Provided, however, That where the decedent or donor was a nonresidentalien at the time of his death or donation, as the case may be, his real and personalproperty so transferred but which are situated outside the Philippines shall not be

included as part of his ‘gross estate’ or ‘gross gift’: Provided, further, That franchise which must be exercised in the Philippines; shares, obligations or bonds issued by anycorporation or sociedad anonima organized or constituted in the Philippines inaccordance with its laws; shares, obligations or bonds by any foreign corporationeighty-five percent (85%) of the business of which is located in the Philippines;shares, obligations or bonds issued by any foreign corporation if such shares,obligations or bonds have acquired a business situs in the Philippines; shares or rightsin any partnership, business or industry established in the Philippines, shall beconsidered as situated in the Philippines: Provided, still further, that no tax shall becollected under this Title in respect of intangible personal property: (a) if thedecedent at the time of his death or the donor at the time of the donation was acitizen and resident of a foreign country which at the time of his death or donationdid not impose a transfer tax of any character, in respect of intangible personal

property of citizens of the Philippines not residing in that foreign country, or (b) ifthe laws of the foreign country of which the decedent or donor was a citizen andresident at the time of his death or donation allows a similar exemption from transferor death taxes of every character or description in respect of intangible personalproperty owned by citizens of the Philippines not residing in that foreign country.

Title IV, Chapter I: Imposition of Value-Added TaxSEC. 106. Value-Added Tax on Sale of Goods or Properties. –

28

(A) Rate and Base of Tax.



x x x(2) The following sales by VAT-registered persons shall be subject to zero percent(0%) rate:(a) Export Sales. - The term ‘export sales’ means: (1) The sale and actual shipment of goods from the Philippines to a foreign country,irrespective of any shipping arrangement that may be agreed upon which may

influence or determine the transfer of ownership of the goods so exported and paidfor in acceptable foreign currency or its equivalent in goods or services, andaccounted for in accordance with the rules and regulations of the Bangko Sentral ngPilipinas (BSP);(2) Sale of raw materials or packaging materials to a nonresident buyer for delivery toa resident local export-oriented enterprise to be used in manufacturing, processing,packing or repacking in the Philippines of the said buyer’s goods and paid for inacceptable foreign currency and accounted for in accordance with the rules andregulations of the Bangko Sentral ng Pilipinas (BSP);(3) Sale of raw materials or packaging materials to export-oriented enterprise whoseexport sales exceed seventy percent (70%) of total annual production;

(4) Sale of gold to the Bangko Sentral ng Pilipinas (BSP); and(5) Those considered export sales under Executive Order NO. 226, otherwise known

as the Omnibus Investment Code of 1987, and other special laws.(b) Foreign Currency Denominated Sale. - The phrase ‘foreign currency denominatedsale’ means sale to a nonresident of goods, except those mentioned in Sections 149and 150, assembled or manufactured in the Philippines for delivery to a resident inthe Philippines, paid for in acceptable foreign currency and accounted for inaccordance with the rules and regulations of the Bangko Sentral ng Pilipinas (BSP).(c) Sales to persons or entities whose exemption under special laws or internationalagreements to which the Philippines is a signatory effectively subjects such sales tozero rate.

x x x

Title V: Other Percentage Taxes

SEC. 118 Percentage Tax on International Carriers. -

(A) International air carriers doing business in the Philippines shall pay a tax of threepercent (3%) of their quarterly gross receipts.(B) International shipping carriers doing business in the Philippines shall pay a taxequivalent to three percent (3%) of their quarterly gross receipts.SEC. 120. Tax on Overseas Dispatch, Message or Conversation Originating from thePhilippines. –

xxx(B) Exemptions. - The tax imposed by this Section shall not apply to:

xxx(2) Diplomatic Services. - Amounts paid for messages transmitted by any embassyand consular offices of a foreign government;(3) International Organizations. - Amounts paid for messages transmitted by a publicinternational organization or any of its agencies based in the Philippines enjoying

privileges, exemptions and immunities which the Government of the Philippines iscommitted to recognize pursuant to an international agreement; and

29

xxxSEC. 123. Tax on Life Insurance Premiums. - There shall be collected from everyperson, company or corporation (except purely cooperative companies orassociations) doing life insurance business of any sort in the Philippines a tax of fivepercent (5%) of the total premium collected, whether such premiums are paid inmoney, notes, credits or any substitute for money; but premiums refunded within six



(6) months after payment on account of rejection of risk or returned for other reasonto a person insured shall not be included in the taxable receipts; nor shall any tax bepaid upon reinsurance by a company that has already paid the tax; nor upon doingbusiness outside the Philippines on account of any life insurance of the insured whois a nonresident, if any tax on such premium is imposed by the foreign country wherethe branch is established nor upon premiums collected or received on account of any

reinsurance , if the insured, in case of personal insurance, resides outside thePhilippines, if any tax on such premiums is imposed by the foreign country where theoriginal insurance has been issued or perfected; nor upon that portion of thepremiums collected or received by the insurance companies on variable contracts (asdefined in section 232(2) of Presidential Decree No. 612), in excess of the amountsnecessary to insure the lives of the variable contract workers.Cooperative companies or associations are such as are conducted by the membersthereof with the money collected from among themselves and solely for their ownprotection and not for profit.SEC. 124. Tax on Agents of Foreign Insurance Companies. - Every fire, marine ormiscellaneous insurance agent authorized under the Insurance Code to procurepolicies of insurance as he may have previously been legally authorized to transact onrisks located in the Philippines for companies not authorized to transact business in

the Philippines shall pay a tax equal to twice the tax imposed in Section 123:Provided, That the provision of this Section shall not apply to reinsurance: Provided,however, That the provisions of this Section shall not affect the right of an owner ofproperty to apply for and obtain for himself policies in foreign companies in cases where said owner does not make use of the services of any agent, company orcorporation residing or doing business in the Philippines. In all cases where ownersof property obtain insurance directly with foreign companies, it shall be the duty ofsaid owners to report to the Insurance Commissioner and to the Commissioner eachcase where insurance has been so effected, and shall pay the tax of five percent (5%)on premiums paid, in the manner required by Section 123.

Title VII: Documentary Stamp TaxSEC. 177. Stamp Tax on Bonds, Debentures, Certificate of Stock or IndebtednessIssued in Foreign Countries. - On all bonds, debentures, certificates of stock, or

certificates of indebtedness issued in any foreign country, there shall be collectedfrom the person selling or transferring the same in the Philippines, such as tax as isrequired by law on similar instruments when issued, sold or transferred in thePhilippines.SEC. 181. Stamp Tax Upon Acceptance of Bills of Exchange and Others. - Upon anyacceptance or payment of any bill of exchange or order for the payment of moneypurporting to be drawn in a foreign country but payable in the Philippines, there shallbe collected a documentary stamp tax of Thirty centavos (P0.30) on each Twohundred pesos (P200), or fractional part thereof, of the face value of any such bill ofexchange, or order, or the Philippine equivalent to such value, if expressed in foreigncurrency.SEC. 182. Stamp Tax on Foreign Bills of Exchange and Letters of Credit. - On allforeign bills of exchange and letters of credit (including orders, by telegraph or

otherwise, for the payment of money issued by express or steamship companies or byany person or persons) drawn in but payable out of the Philippines in a set of three(3) or more according to the custom of merchants and bankers, there shall becollected a documentary stamp tax of Thirty centavos (P0.30) on each Two hundredpesos (P200), or fractional part thereof, of the face value of any such bill of exchangeor letter of credit, or the Philippine equivalent of such face value, if expressed inforeign currency.

Title X, Chapter II: Crimes, Other Offenses and Forfeitures

SEC. 257. Penal Liability for Making False Entries, Records or Reports, or Using



place where the plaintiff resides, or where the property or any portion thereof is situated or found.

Rule 8, Manner of Making Allegations in Pleadings.Sec. 6. Judgment. — In pleading a judgment or decision of a domestic or foreign court, judicial or quasi-judicial tribunal, or of a board or officer, it is sufficient to aver the judgment or decision without settingforth matter showing jurisdiction to render it.

Rule 11. When to File Responsive Pleadings.

Sec. 2. Answer of a Defendant Foreign Private Juridical Entity. — Where the defendant is a foreignprivate juridical entity and service of summons is made on the government official designated by law toreceive the same, the answer shall be filed within thirty (30) days after receipt of summons by suchentity.

Rule 14. Summons.Sec. 12. Service Upon Foreign Private Juridical Entity. — When the defendant is a foreign private juridicalentity which has transacted business in the Philippines, service may be made on its resident agentdesignated in accordance with law for that purpose, or, if there be no such agent, on the governmentofficial designated by law to that effect, or on any of its officers or agents within the Philippines.Sec. 15. Extraterritorial Service. — When the defendant does not reside and is not found in the Philip-pines, and the action affects the personal status of the plaintiff or relates to, or the subject of which is,property within the Philippines, in which the defendant has or claims a lien or interest, actual or

contingent, or in which the relief demanded consists, wholly or in part, in excluding the defendant fromany interest therein, or the property of the defendant has been attached within the Philippines, servicemay, by leave of court, be effected out of the Philippines by personal service as under section 6; or bypublication in a newspaper of general circulation in such places and for such time as the court mayorder, in which case a copy of the summons and order of the court shall be sent by registered mail to thelast known address of the defendant, or in any other manner the court may deem sufficient. Any ordergranting such leave shall specify a reasonable time, which shall not be less than sixty (60) days afternotice, within which the defendant must answer.Sec. 16. Residents Temporarily Out of the Philippines. — When any action is commenced against adefendant who ordinarily resides within the Philippines, but who is temporarily out of it, service may, byleave of court, be also effected out of the Philippines, as under the preceding section.

Rule 21. Subpoena.Sec. 10. Exceptions. — The provisions of sections 8 (Compelling Attendance) and 9 (Contempt) of this

Rule shall not apply to a witness who resides more than one hundred (100) kilometers from his residenceto the place where he is to testify by the ordinary course of travel, or to a detention prisoner if nopermission of the court in which his case is pending was obtained.

Rule 23. Depositions Pending Actions.Sec. 4. Use of Depositions. — At the trial or upon the hearing of a motion or an interlocutoryproceeding, any part or all of a deposition, so far as admissible under the rules of evidence, may be usedagainst any party who was present or represented at the taking of the deposition or who had due noticethereof, in accordance with any one of the following provisions: Any deposition may be used by any party for the purpose of contradicting or impeaching the testimonyof deponent as a witness; The deposition of a party or of anyone who at the time of taking the deposition was an officer, director,or managing agent of a public or private corporation, partnership, or association which is a party may be

used by an adverse party for any purpose; The deposition of a witness, whether or not a party, may be used by any party for any purpose if thecourt finds: (1) that the witness is dead; or (2) that the witness resides at a distance more than onehundred (100) kilometers from the place of trial or hearing, or is out of the Philippines, unless it appearsthat his absence was procured by the party offering the deposition; or (3) that the witness is unable toattend or testify because of age, sickness, infirmity, or imprisonment; or (4) that the party offering thedeposition has been unable to procure the attendance of the witness by subpoena; or (5) uponapplication and notice, that such exceptional circumstances exist as to make it desirable, in the interest ofjustice and with due regard to the importance of presenting the testimony of witnesses orally in opencourt, to allow the deposition to be used; and



If only part of a deposition is offered in evidence by a party, the adverse party may require him tointroduce all of it which is relevant to the part introduced, and any party may introduce any other parts.Sec. 11. Persons Before Whom Depositions may be Taken in Foreign Countries. — In a foreign state orcountry, depositions may be taken (a) on notice before a secretary of embassy or legation, consul general,consul, vice-consul, or consular agent of the Republic of the Philippines; (b) before such person orofficer as may be appointed by commission or under letters rogatory; or (c) the person referred to in

section 14 hereof.Sec. 12. Commission or Letters Rogatory. — A commission or letters rogatory shall be issued only whennecessary or convenient, on application and notice, and on such terms and with such direction as are justand appropriate. Officers may be designated in notices or commissions either by name or descriptivetitle and letters rogatory may be addressed to the appropriate judicial authority in the foreign country.

Rule 39. Execution, Satisfaction and Effect of Judgments.Sec. 48. Effect of Foreign Judgments or Final Orders. — The effect of a judgment or final order of a tri-bunal of a foreign country, having jurisdiction to render the judgment or final order is as follows: (a) Incase of a judgment or final order upon a specific thing, the judgment or final order is conclusive uponthe title to the thing; and (b) In case of a judgment or final order against a person, the judgment or finalorder is presumptive evidence of a right as between the parties and their successors in interest by asubsequent title. In either case, the judgment or final order may be repelled by evidence of a want ofjurisdiction, want of notice to the party, collusion, fraud, or clear mistake of law or fact.

Rule 57. Preliminary Attachment.Sec. 1. Grounds Upon Which Attachment may Issue. — At the commencement of the action or at anytime before entry of judgment, a plaintiff or any proper party may have the property of the adverse partyattached as security for the satisfaction of any judgment that may be recovered in the following cases:

1.

In an action for the recovery of a specified amount of money or damages, other than moral andexemplary, on a cause of action arising from law, contract, quasi-contract, delict or quasi-delictagainst a party who is about to depart from the Philippines which intent to defraud hiscreditors;

2.

In an action for money or property embezzled or fraudulently misapplied or converted to hisown use by a public officer, or an officer of a corporation, or an attorney, factor, broker agent,or clerk, in the course of his employment as such, or by other person in a fiduciary capacity, orfor a willful violation of duty;

3.

In an action to recover the possession of property unjustly or fraudulently taken, detained orconverted, when the property, or any part thereof, has been concealed, removed, or dis- posedof to prevent its being found or taken by the applicant or an authorized person;

4. In an action against a party who has been guilty of a fraud in contracting the debt or incur- ringthe obligation upon which the action is brought, or in the performance thereof;

5. In an action against a party who has removed or disposed of his property, or is about to do so, with intent to defraud his creditors; or

6.

In an action against a party who does not reside and is not found in the Philippines, or on whom summons may be served by publication.

Sec. 5. Manner of Attaching Property. — The sheriff enforcing the writ shall without delay and with allreasonable diligence attach, to await judgment and execution in the action, only so much of the propertyin the Philippines of the party against whom the writ is issued, not exempt from execution, as may besufficient to satisfy the applicant’s demand, unless the former makes a deposit with the court from which

the writ is issued, or gives a counterbond executed to the applicant, in an amount equal to the bondfixed by the court in the order of attachment or to the value of the property to be attached, exclusive ofcosts. No levy on attachment pursuant to the writ issued under section 2 hereof shall be enforced unlessit is preceded, or contemporaneously accompanied, by service of summons, together with a copy of thecomplaint, the application for attachment, the applicant’s af - fidavit and bond, and the order and writ ofattachment, on the defendant within the Philippines. The requirement of prior or contemporaneousservice of summons shall not apply where the summons could not be served personally or by substitutedservice despite diligent efforts, or the defendant is a resident of the Philippines temporarily absenttherefrom, or the defendant is a non-resident of the Philippines, or the action is one in rem or quasi in



rem.

Rule 58. Preliminary Injunction.Sec. 4. Verified Application and Bond for Preliminary Injunction or Temporary Restraining Order. — Apreliminary injunction or temporary restraining order may be granted only when:

1.

The application in the action or proceeding is verified, and shows facts entitling the applicant tothe relief demanded; and

2.

Unless exempted by the court, the applicant files with the court where the action or proceedingis pending, a bond executed to the party or person enjoined, in an amount to be fixed by thecourt, to the effect that the applicant will pay to such party or person all damages which hemay sustain by reason of the injunction or temporary restraining order if the court shouldfinally decide that the applicant was not entitled thereto. Upon approval of the requisite bond, a writ of preliminary injunction shall be issued.

3. When an application for a writ of preliminary injunction or a temporary restraining order isincluded in a complaint or any initiatory pleading, the case, if filed in a multiple-sala court, shallbe raffled only after notice to and in the presence of the adverse party or the person to

be enjoined. In any event, such notice shall be preceded, or contemporaneously accompanied, by serviceof summons, together with a copy of the complaint or initiatory pleading and the applicant’s affidavitand bond, upon the adverse party in the Philippines. However, where the summons could not be servedpersonally or by substituted service despite diligent efforts, or the adverse party is a resident of thePhilippines temporarily absent therefrom or is a nonresident thereof, the requirement of prior orcontemporaneous service of summons shall not apply.d. The application for a temporary restraining order shall thereafter be acted upon only after all partiesare heard in a summary hearing which shall be conducted within twenty-four (24) hours after thesheriff’s return of service and/or the records are received by the branch selected by raffle and to whichthe records shall be transmitted immediately.

RULES ON SPECIAL PROCEEDINGS

Rule 73. Venue and Processes.Sec. 1. Where estate of deceased person settled. — If the decedent is an inhabitant of the Philippines atthe time of his death, whether a citizen or an alien, his will shall be proved, or letters of administrationgranted, and his estate settled, in the Court of First Instance in the province in which he resides at thetime of his death, and if he is an inhabitant of a foreign country, the Court of First Instance of any

province in which he had estate. The court first taking cognizance of the settlement of the estate of adecedent, shall exercise jurisdiction to the exclusion of all other courts. The jurisdiction assumed by acourt, so far as it depends on the place of residence of the decedent, or of the location of his estate,shall not be contested in a suit or proceeding, except in an appeal from that court, in the original case, or when the want of jurisdiction appears on the record.

Rule 74. Settlement of Estates.Sec. 5. Period for claim of minor or incapacitated person. — If on the date of the expiration of the periodof two (2) years prescribed in the preceding section the person authorized to file a claim is a minor ormentally incapacitated, or is in prison or outside the Philippines, he may present his claim within one (1)year after such disability is removed.

Rule 76. Allowance or Disallowance of Will.Sec. 8. Proof when witnesses dead or insane or do not reside in the Philippines. — If it appears at the

time fixed for the hearing that the subscribing witnesses are dead or insane, or that none of them residesin the Philippines, the court may admit the testimony of other witnesses to prove the sanity of thetestator, and the due execution of the will; and as evidence of the execution of the will, it may admitproof of the handwriting of the testator and of the subscribing witnesses, or of any of them.

Rule 77. Allowance of Will Proved Outside of Philippines and Administration of Estate Thereunder.Sec. 1. Will proved outside Philippines may be allowed here. — Wills proved and allowed in a foreigncountry, according to the laws of such country, may be allowed, filed, and recorded by the proper Courtof First Instance in the Philippines. chanrobles virtua law library

Sec. 2. Notice of hearing for allowance. — When a copy of such will and of the order or decree of the



allowance thereof, both duly authenticated, are filed with a petition for allowance in the Philippines, bythe executor or other person interested, in the court having jurisdiction, such court shall fix a time andplace for the hearing, and cause notice thereof to be given as in case of an original will presented forallowance.Sec. 3. When will allowed, and effect thereof. — If it appears at the hearing that the will should be al-lowed in the Philippines, the court shall so allow it, and a certificate of its allowance, signed by the judge,

and attested by the seal of the court, to which shall be attached a copy of the will, shall be filed andrecorded by the clerk, and the will shall have the same effect as if originally proved and allowed in suchcourt.Sec. 4. Estate, how administered. — When a will is thus allowed, the court shall grant letters testamentary,or letters of administration with the will annexed, and such letters testamentary or of administration,shall extend to all the estate of the testator in the Philippines. Such estate, after the payment of just debtsand expenses of administration, shall be disposed of according to such will, so far as such will mayoperate upon it; and the residue, if any, shall be disposed of as is provided by law in cases of estates inthe Philippines belonging to persons who are inhabitants of another state or country.

Rule 78. Letters Testamentary and of Administration When and to Whom Issued.Sec. 1. Who are incompetent to serve as executors or administrators. — No person is competent to serveas executor or administrator who:

1. Is a minor;

2. Is not a resident of the Philippines; and3. Is in the opinion of the court unfit to execute the duties of the trust by reason of drunkenness,improvidence, or want of understanding or integrity, or by reason of conviction of an offense involvingmoral turpitude.

Rule 88. Payment of the Debts of the EstateSec. 10. When and how claim proved outside the Philippines against insolvent resident’s estate paid.– Ifit appears to the court having jurisdiction that claims have been duly proven in another country againstthe estate of an insolvent who was at the time of his death an inhabitant of the Philippines, and that theexecutor or administrator in the Philippines had knowledge of the presentation of such claims in suchcountry and an opportunity to contest their allowance, the court shall receive a certified list of suchclaims, when perfected in such country, and add the same to the list of claims proved against thedeceased person in the Philippines so that a just distribution of the whole estate may be made equally

among all its creditors according to their respective claims; but the benefit of this and the precedingsections shall not be extended to the creditors in another country if the property of such deceasedperson there found is not equally apportioned to the creditors residing in the Philip- pines and the othercreditors, according to their respective claims.

Rule 91. Escheats.Sec. 1. When and by whom petition filed. — When a person dies intestate, seized of real or personalproperty in the Philippines, leaving no heir or person by law entitled to the same, the Solicitor Generalor his representative in behalf of the Republic of the Philippines, may file a petition in the Court of FirstInstance of the province where the deceased last resided or in which he had estate, if he resided out ofthe Philippines, setting forth the facts, and praying that the estate of the deceased be declared escheated.Sec. 3. Hearing and judgment. — Upon the satisfactory proof in open court on the date fixed in the orderthat such order has been published as directed and that the person died intestate, seized of real orpersonal property in the Philippines, leaving no heir or person entitled to the same, and no sufficientcause being shown to the contrary, the court shall adjudge that the estate of the deceased in thePhilippines, after the payment of just debts and charges, shall escheat; and shall, pursuant to law, assignthe personal estate to the municipality or city where he last resided in the Philippines, and the real estateto the municipalities or cities, respectively, in which the same is situated. If the deceased never resided inthe Philippines, the whole estate may be assigned to the respective municipalities or cities where thesame is located. Such estate shall be for the benefit of public schools, and public charitable institutionsand centers in said municipalities or cities. The court, at the instance of an interested party, or on its own motion, may order the establishment of apermanent trust, so that only the income from the property shall be used.



Rule 92. Venue.Sec. 1. Where to institute proceedings. — Guardianship of the person or estate of a minor or in-competent may be instituted in the Court of First Instance of the province, or in the justice of the peacecourt of the municipality, or in the municipal court of the chartered city where the minor or incompetentperson resides, and if he resides in a foreign country, in the Court of First Instance of the province wherein his property or part thereof is situated; provided, however, that where the value of the property

of such minor or incompetent exceeds the jurisdiction of the justice of the peace or municipal court, theproceedings shall be instituted in the Court of First Instance.

In the City of Manila, the proceedings shall be instituted in the Juvenile and Domestic Relations Court.

Rule 93. Appointment of Guardians.Sec. 6. When and how guardian for nonresident appointed; Notice. — When a person liable to be putunder guardianship resides without the Philippines but has estate therein, any relative or friend of suchperson, or any one interested in his estate, in expectancy or otherwise, may petition a court havingjurisdiction for the appointment of a guardian for the estate, and if, after notice given to such person andin such manner as the court deems proper, by publication or otherwise, and hearing, the court is satisfiedthat such nonresident is a minor or incompetent rendering a guardian necessary or convenient, it mayappoint a guardian for such estate.Sec. 8. Service of judgment. — Final orders or judgments under this rule shall be served upon the civilregistrar of the municipality or city where the minor or incompetent person resides or where hisproperty or part thereof is situated.

Rule 98. Trustees.Sec. 4. Proceedings where trustee appointed abroad. — When land in the Philippines is held in trust forpersons resident here by a trustee who derives his authority from without the Philippines, such trusteeshall, on petition filed in the Court of First Instance of province where the land is situated, and after duenotice to all persons interested, be ordered to apply to the court for appointment as trustee; and uponhis neglect or refusal to comply with such order, the court shall declare such trust vacant, and shallappoint a new trustee in whom the trust estate shall vest in like manner as if he had been originallyappointed by such court.

SPECIAL LAWS

PRESIDENTIAL DECREE NO. 1069:PRESCRIBING THE PROCEDURE FOR THE

EXTRADITION OF PERSONS WHO HAVECOMMITTED CRIMES IN A FOREIGN COUNTRY

Section 1. Short-Title. — This Decree shall be known as the“Philippine Extradition Law.”Sec. 2. Definition of Terms. — When used in this law, thefollowing terms shall, unless the context otherwise indicates, havemeanings respectively assigned to them:

“Extradition” — The removal of an accused from the Philippines with the object of placing him at the disposal of foreign authoritiesto enable the requesting state or government to hold him in con-nection with any criminal investigation directed against him or theexecution of a penalty imposed on him under the penal or criminallaw of the requesting state or government.Extradition Treaty or Convention — An extradition agreementbetween the Republic of the Philip- pines and one or more foreignstates or governments. Accused — The person who is, or is suspected of being, within theterritorial jurisdiction of the Philippines, and whose extradition hasbeen requested by a foreign state or government. "Requesting Stateor Government" — The foreign state or government from which



the request for extradition has emanated.

Foreign Diplomat — Any authorized diplomatic representative ofthe requesting state or government and recognized as such by theSecretary of Foreign Affairs.Secretary of Foreign Affairs — The head of the Department ofForeign Affairs of the Republic of the Philippines, or in his

absence, any official acting on his behalf or temporarily occupyingand discharging the duties of that position. Aims of Extradition. — Extradition may be granted only pursuantto a treaty or convention, and with to: A criminal investigation instituted by authorities of the requestingstate or government charging the accused with an offensepunishable under the laws both of the requesting state orgovernment and the Republic of the Philippines by imprisonmentor other form relevant extradition treaty or convention; or The execution of a prison sentence imposed by a court of therequesting state or government, with such duration as thatstipulated in the relevant extradition treaty or convention, to beserved in the jurisdiction of and as a punishment for an offense

committed by the accused within the territorial jurisdiction of therequesting state or government.

Sec. 4. Request; By whom made; Requirements. — (1) Any foreign state or government with which the Republic ofthe Philippines has entered into extradition treaty or convention,only when the relevant treaty or convention, remains in force, mayrequest for the extradition of any accused who is or suspected ofbeing in the territorial jurisdiction of the Philippines.(2) The request shall be made by the Foreign Diplomat of therequesting state or government, addressed to the Secretary ofForeign Affairs, and shall be accompanied by:(a) The original or an authentic copy of either — (1) the decision

or sentence imposed upon the accused by the court of therequesting state or government; or (2) the criminal charge and the warrant of arrest issued by the authority of the requesting state orgovernment having jurisdiction of the matter or some otherinstruments having the equivalent legal force.(b) A recital of the acts for which extradition is requested, with thefullest particulars as to the name and identity of the accused, his whereabouts in the Philippines, if known, the acts or omissionscomplained of, and the time and place of the commission of theseacts;(c) The text of the applicable law or a statement of the contents ofsaid law, and the designation or description of the offense by thelaw, sufficient for evaluation of the request; and

(d) Such other documents or information in support of the request.Duty of Secretary of Foreign Affairs; Referral of Request: Filing ofPetition. — (1) Unless it appears to the Secretary of Foreign Affairs that therequest fails to meet the requirements of this law and the relevanttreaty or convention, he shall forward the request together with therelated documents to the Secretary of Justice, who shallimmediately designate and authorize an attorney in his office totake charge of these case.



(2) The attorney so designated shall file a written petition with theproper Court of First Instance of the province or city havingjurisdiction of the place, with a prayer that the court take therequest under consideration and shall attach to the petition allrelated documents. The filing of the petition and the service of thesummons to the accused shall be free from the payment of docket

and sheriff 's fees.(3) The Court of First Instance with which the petition shall havebeen filed shall have and continue to have the exclusive power tohear and decide the case, regardless of the subsequent whereaboutsof the accused, or the change or changes of his place of residence.Sec. 6. Issuance of Summons; Temporary Arrest; Hearing, Serviceof Notices. —

1.

Immediately upon receipt of the petition, the presidingjudge of the court shall, as soon as practicable, summonthe accused to appear and to answer the petition on theday and hour fixed in the order. We may issue a warrantfor the immediate arrest of the accused which may beserved anywhere within the Philippines if it appears to the

presiding judge that the immediate arrest and temporarydetention of the accused will best serve the ends of justice.Upon receipt of the answer, or should the accused afterhaving received the summons fail to answer within thetime fixed, the presiding judge shall hear the ace or setanother date for the hearing thereof.

2. The order and notice as well as a copy of the warrant ofarrest, if issued, shall be promptly served each upon theaccused and the attorney having charge of the case.

Sec. 7. Appointment of Counsel de Officio. — If on the date setfor the hearing the accused does not have a legal counsel, thepresiding judge shall appoint any law practitioner residing withinhis territorial jurisdiction as counsel de officio for the accused to

assist him in the hearing.Sec. 8. Hearing in Public; Exception; Legal Representation. — 1. The hearing shall be public unless the accused requests, withleave of court, that it be conducted in chamber.2. The attorney having charge of the case may upon requestrepresent the requesting state or government throughout theproceeding. The requesting state or government may, however,retain private counsel to represent it for particular extradition case.3. Should the accused fail to appear on the date set for hearing, orif he is not under detention, the court shall forthwith issue a warrant for this arrest which may be served upon the accusedanywhere in the Philippines.

Sec. 9. Nature and Conduct of Proceedings. — In the hearing, the provisions of the Rules of Court insofar aspracticable and not inconsistent with the summary nature of theproceedings, shall apply to extradition cases, and the hearing shallbe conducted in such a manner as to arrive as a fair and speedydisposition of the case.Sworn statements offered in evidence at the hearing of anyextradition case shall be received and admitted as evidence ifproperly and legally authenticated by the principal diplomatic or



consular officer of the Republic of the Philippines residing in therequesting state.Sec. 10. Decision. — Upon conclusion of the hearing, the courtshall render a decision granting the extradition, and giving hisreasons therefore upon showing of the existence of a prima faciecase. Otherwise, it shall dismiss the petition.

Sec. 11. Service of Decision. — The decision of the court shall bepromptly served on the accused if he was not present at thereading thereof, and the clerk of the court shall immediatelyforward two copies thereof to the Secretary of Foreign Affairsthrough the Department of Justice.

Sec. 12. Appeal by Accused; Stay of Execution. — The accused may, within 10 days from receipt of the decision ofthe Court of First Instance granting extradition, appeal to theCourt of Appeals, whose decision in extradition cases shall be finaland immediately executory. The appeal shall stay the execution of the decision of the Court ofFirst Instance.Sec. 13. Application of Rules of Court. — The provisions of the

Rules of Court governing appeal in criminal cases in the Court of Appeals shall apply in appeal in Extradition cases, except that theparties may file type- written or mimeograph copies of their brief within 15 days from receipt of notice to file such briefs.Sec. 14. Service of Decision of Court of Appeals. — The accusedand the Secretary of Foreign Affairs, through the Department of Justice, shall each be promptly served with copies of the decisionof the Court of Appeals.Sec. 15. Concurrent Request for Extradition. — In case extraditionof the same person has been requested by two or more states, theSecretary of Foreign Affairs, after consultation with the Secretaryof Justice, shall decide which of the several requests shall be firstconsidered, and copies of the former’s decision thereon shallpromptly be forwarded to the attorney having charge of the case, ifthere be one, through the Department of Justice.Sec. 16. Surrender of Accused. — After the decision of the court inan extradition case has become final and executory, the accusedshall be placed at the disposal of the authorities of the requestingstate or government, at a time and place to be determined by theSecretary of Foreign Affairs, after consultation with the foreigndiplomat of the requesting state or government.Sec. 17. Seizure and Turn Over of Accused Properties. — Ifextradition is granted, articles found in the possession of theaccused who has been arrested may be seized upon order of thecourt at the instance of the requesting state or government, and

such articles shall be delivered to the foreign diplomat of therequesting state or government who shall issue the correspondingreceipt therefor.Sec. 18. Costs and Expenses; By Whom Paid. — Except when therelevant extradition treaty provides otherwise, all costs orexpenses incurred in any extradition proceeding and inapprehending, securing and trans- mitting an accused shall be paidby the requesting state or government. The Secretary of Justiceshall certify to the Secretary of Foreign Affairs the amounts to be



paid by the requesting state or government on account of expensesand costs, and the Secretary of Foreign Affairs shall cause theamounts to be collected and transmitted to the Secretary of Justice for deposit in the National Treasury of the Philippines.Sec. 19. Service of Court Processes. — All processes emanatingfrom the court in connection with extradition cases shall be served

or executed by the Sheriff of the province or city concerned or ofany member of any law enforcement agency;

Sec. 20. Provisional Arrest. — 1.

In case of urgency, the requesting state may, pursuant tothe relevant treaty or convention and while the sameremains in force; request for provisional arrest of theaccused pending receipt of the request for extraditionmade in accordance with Section 4 of this Decree.

2. A request for provisional arrest shall be sent to theDirector of the National Bureau of Investigation, Manila,either through the diplomatic channels or direct by post ortelegraph.

3.

The Director of the National Bureau of Investigation or

any official acting on his behalf shall upon receipt of therequest immediately secure a warrant for the provisionalarrest of the accused from the presiding judge of theCourt of First Instance of the province or city havingjurisdiction of the place, who shall issue the warrant forthe provisional arrest of the accused. The Director of theNational Bureau of Investigation through the Secretary ofForeign Affairs shall inform the requesting of the result ofits request.

4. If within a period of 20 days after the provisional arrestthe Secretary of Foreign Affairs has not received therequest for extradition and the documents mentioned inSection 4 of this Decree, the accused shall be releasedfrom custody

5.

Release from provisional arrest shall not prejudice re-arrest and extradition of the accused if a request forextradition is received subsequently in accordance with therelevant treaty of convention.

REPUBLIC ACT NO. 9048: AN ACT AUTHORIZING THE CITY OR MUNICIPALCIVIL REGISTRAR OR THE CONSUL GENERAL TOCORRECT A CLERICAL OR TYPOGRAPHICAL ERRORIN AN ENTRY AND/OR CHANGE OF FIRST NAME ORNICKNAME IN THE CIVIL REGISTER WITHOUTNEED OF A JUDICIAL ORDER, AMENDING FOR THIS

PURPOSE ARTICLES 376 AND 412 OF THE CIVIL CODEOF THE PHILIPPINES.

Section 2.Definition of Terms – As used in this Act, the followingterms shall mean:

3. “Clerical or typographical error” refers to a mistake

committed in the performance of clerical work in writing,copying, transcribing or typing an entry in the civil registerthat is harmless and innocuous, such as misspelled nameor misspelled place of birth or the like, which is visible to



the eyes or obvious to the understanding, and can becorrected or changed only by reference to other existingrecord or records: Provided, however, That no correctionmust involve the change of nationality, age, status or sexof the petitioner.

4. “Civil Register” refers to the various registry books and

related certificates and documents kept in the archives ofthe local civil registry offices, Philippine Consulates and ofthe Office of the Civil Registrar General.

Section 3.Who May File the Petition and Where. – Any personhaving direct and personal interest in the correction of a clerical ortypographical error in an entry and/or change of first name ornickname in the civil register may file, in person, a verified petition with the local civil registry office of the city or municipality wherethe record being sought to be corrected or changed is kept.In case the petitioner has already migrated to another place in thecountry and it would not be practical for such party, in terms oftransportation expenses, time and effort to appear in person beforethe local civil registrar keeping the documents to be corrected or

changed, the petition may be filed, in person, with the local civilregistrar of the place where the interested party is presently residingor domiciled. The two (2) local civil registrars concerned will thencommunicate to facilitate the processing of the petition.Citizens of the Philippines who are presently residing or domiciledin foreign countries may file their petition, in person, with thenearest Philippine Consulates. The petitions filed with the city or municipal civil registrar or theconsul general shall be processed in accordance with this Act andits implementing rules and regulations. All petitions for the clerical or typographical errors and/or changeof first names or nicknames may be availed of only once.

COMMONWEALTH ACT NO. 63:

AN ACT PROVIDING FOR THE WAYS IN WHICHPHILIPPINE CITIZENSHIP MAY BE LOST ORREACQUIRED.Section 1. How citizenship may be lost. - A Filipino citizen maylose his citizenship in any of the following ways and/or events:

1. By naturalization in a foreign country;

2. By express renunciation of citizenship;3. By subscribing to an oath of allegiance to support theconstitution or laws of a foreign country upon attaining twenty-oneyears of age or more: Provided, however, That a Filipino may notdivest himself of Philippine citizenship in any manner while theRepublic of the Philippines is at war with any country.

4. By rendering services to, or accepting commission in, the armedforces of a foreign country, and the taking of an oath of allegianceincident thereto, with the consent of the Republic of thePhilippines, shall not divest a Filipino of his Philippine citizenshipif either of the following circumstances is present: (a) The Republicof the Philippines has a defensive and/or offensive pact of alliance with the said foreign country; or(b) The said foreign countrymaintains armed forces on Philippine territory with the consent ofthe Republic of the Philippines: Provided, That the Filipino citizen



concerned, at the time of rendering said service, or acceptance ofsaid commission, and taking the oath of allegiance incident theretostates that he does so only in connection with his service to saidforeign country: And, Provided, finally, That any Filipino citizen who is rendering service to, or is commissioned in, the armedforces of a foreign country under any of the circumstances

mentioned in paragraph (a) or (b). shall not be permitted toparticipate nor vote in any election of the Republic of thePhilippines during the period of his service suspended to, orcommission in, the armed forces of said foreign country. Upon hisdischarge from the service of the said foreign country, he shall beautomatically entitled to the full enjoyment of his civil and politicalrights as a Filipino citizen; (As amended by R. A. 106, R. A. 2639and R. A. 3834).

5. By cancellation of the certificates of naturalization;6. By having been declared by competent authority, a deserter ofthe Philippine armed forces in time of war, unless subsequently, a plenary pardon or amnesty has beengranted; and

7. In the case of a woman, upon her marriage to a foreigner if, by virtue of the laws in force in her husband’s country, she acquireshis nationality. The provisions of this section notwithstanding, the acquisition ofcitizenship by a natural born Filipino citizen from one of theIberian and any friendly democratic countries or from the UnitedKingdom shall not produce loss or forfeiture of his Philippinecitizenship if the law Of that country grants the same privilege toits citizens and such had been agreed upon by treaty between thePhilippines and the foreign country from which citizenship isacquired.Sec. 2. How citizenship may be reacquired. -- Citizenship may bereacquired: \

1.

By naturalization: Provided, That the applicant possessnone of the disqualifications prescribed in section two of Act Numbered Twenty-nine hundred and twenty-seven.

2. By repatriation of deserters of the Army, Navy or AirCorps: Provided, That a woman who lost her citizenshipby reason of her marriage to an alien may be repatriated inaccordance with. the provisions of this Act after thetermination of the marital status; and

3. By direct act of the National Assembly.

Sec. 3. Procedure incident to reacquisition of Philippinecitizenship. - The procedure prescribed for naturalization tinder Act Numbered Twenty-nine hundred and twenty-seven, as

amended, shall apply to the reacquisition of Philippine citizenshipby naturalization provided for in the next preceding. section:Provided, That the qualifications and special qualificationsprescribed in sections three and four of said. Act shall not berequired: And, Provided, further:

1. That the applicant be at least twenty-one years of age andshall have resided in the Philippines at least six monthsbefore he applies for naturalization;

2. That he shall have conducted himself in a proper and



irreproachable manner during the entire period of hisresidence in the Philippines, in his relations with. theconstituted government as well as with the community in which he is living; and

3. That he subscribes to an oath declaring his intention torenounce absolutely and perpetually alt faith and allegiance

to the foreign authority, state or sovereignty of which he was a citizen or subject.Sec. 4. Repatriation shall be effected by merely taking the necessaryoath of allegiance to the Commonwealth of the Philippines andregistration in the proper civil registry.Sec. 5. The Secretary of Justice shall issue the necessary regulationsfor the proper enforcement of this Act. Naturalization blanks andother blanks required for carrying out the provisions of this Actshall be prepared and furnished by the Solicitor General subject toapproval of the Secretary of Justice.

COMMONWEALTH ACT NO. 473:

AN ACT TO PROVIDE FOR THE ACQUISITION OFPHILIPPINE CITIZENSHIP BY NATURALIZATION

AND TO REPEAL ACTS NUMBERED 2927 AND 3448.Sec. 1. Title of Act. – This Act shall be known and may be cited asthe “Revised Naturalization Law.”Sec. 2. Qualifications. – Subject to Section four of this Act, anyperson having the following qualifications may become a citizen ofthe Philippines by naturalization:First. He must be not less than twenty-one years of age on the dayof the hearing of the petition;Second. He must have resided in the Philippines for a continuousperiod of not less than ten years; Third. He must be of good moral character and believes in the

principles underlying the Philippine Constitution, and must haveconducted himself in a proper and irreproachable manner duringthe entire period of his residence in the Philippines in his relation with the constituted government as well as with the community in which he is living.Fourth. He must own real estate in the Philippines worth not lessthan five thousand pesos, Philip- pine currency, or must have someknown lucrative trade, profession, or lawful occupation;Fifth. He must be able to speak and write English or Spanish andany one of the principal Philippine languages; and cban robles virtual law librarySixth. He must have enrolled his minor children of school age, inany of the public schools or private schools recognized by the

Office of Private Education of the Philippines, where thePhilippine history, government and civics are taught or prescribedas part of the school curriculum, during the entire period of theresidence in the Philippines required of him prior to the hearing ofhis petition for naturalization as Philippine citizen.Sec. 3. Special qualifications. The ten years of continuous residencerequired under the second condition of the last preceding Sec. shallbe understood as reduced to five years for any petitioner havingany of the following qualifications:



1.

Having honorably held office under the Government ofthe Philippines or under that of any of the provinces,cities, municipalities, or political subdivisions thereof;

2.

Having established a new industry or introduced a usefulinvention in the Philippines;

3.

Being married to a Filipino woman;

4

Having been engaged as a teacher inthe Philippines in a public orrecognized private school notestablished for the exclusiveinstruction of children of persons ofa particular nationality or race, in anyof the branches of education orindustry for a period of not less thantwo years;

5 Having been born in the Philippines.Sec. 4. Who are disqualified. - The following cannot be naturalizedas Philippine citizens:

1. Persons opposed to organized government or affiliated with anyassociation or group of persons who uphold and teach doctrinesopposing all organized governments;

2

Persons defending or teaching thenecessity or propriety of violence,personal assault, or assassination forthe success and predominance oftheir ideas;

3Polygamists or believers in thepractice of polygamy;

4Persons convicted of crimesinvolving moral turpitude;

5

Persons suffering from mentalalienation or incurable contagiousdiseases.

6

Persons who, during the period oftheir residence in the Philippines,have not mingled socially with theFilipinos, or who have not evinced asincere desire to learn and embracethe customs, traditions, and ideals ofthe Filipinos;

7

Citizens or subjects of nations with whom the United States and thePhilippines are at war, during the

period of such war;

8

Citizens or subjects of a foreigncountry other than the United States whose laws do not grant Filipinosthe right to become naturalizedcitizens or subjects thereof.

Sec. 5. Declaration of intention. – One year prior to the filing ofhis petition for admission to Philippine citizenship, the applicantfor Philippine citizenship shall file with the Bureau of Justice, a



declaration under oath that it is bona fide his intention to become acitizen of the Philippines. Such declaration shall set forth name,age, occupation, personal description, place of birth, last foreignresidence and allegiance, the date of arrival, the name of the vesselor aircraft, if any, in which he came to the Philippines, and theplace of residence in the Philippines at the time of making the

declaration. No declaration shall be valid until lawful entry forpermanent residence has been established and a certificate showingthe date, place, and manner of his arrival has been issued. Thedeclarant must also state that he has enrolled his minor children, ifany, in any of the public schools or private schools recognized bythe Office of Private Education of the Philippines, wherePhilippine history, government, and civics are taught or prescribedas part of the school curriculum, during the entire period of theresidence in the Philippines required of him prior to the hearing ofhis petition for naturalization as Philippine citizen. Each declarantmust furnish two photographs of himself.Sec. 6. Persons exempt from requirement to make a declaration ofintention. – Persons born in the Philip- pines and have received

their primary and secondary education in public schools or thoserecognized by the Government and not limited to any race ornationality, and those who have resided continuously in the Phil-ippines for a period of thirty years or more before filing theirapplication, may be naturalized without having to make adeclaration of intention upon complying with the otherrequirements of this Act. To such requirements shall be addedthat which establishes that the applicant has given primary andsecondary education to all his children in the public schools or inprivate schools recognized by the Government and not limited toany race or nationality. The same shall be understood to beapplicable with respect to the widow and minor children of an alien who has declared his intention to become a citizen of the

Philippines, and dies before he is actually naturalized.Sec. 7. Petition for citizenship. – Any person desiring to acquirePhilippine citizenship shall file with the competent court, a petitionin triplicate, accompanied by two photographs of the petitioner,setting forth his name and surname; his present and former placesof residence; his occupation; the place and date of his birth; whether single or married and the father of children, the name, age,birthplace and residence of the wife and of each of the children;the approximate date of his or her arrival in the Philippines, thename of the port of debarkation, and, if he remembers it, the nameof the ship on which he came; a declaration that he has thequalifications required by this Act, specifying the same, and that heis not disqualified for naturalization under the provisions of this

Act; that he has complied with the requirements of Sec. five of this Act; and that he will reside continuously in the Philippines fromthe date of the filing of the petition up to the time of his admis-sion to Philippine citizenship. The petition must be signed by theapplicant in his own handwriting and be supported by the affidavitof at least two credible persons, stating that they are citizens of thePhilippines and personally know the petitioner to be a resident ofthe Philippines for the period of time required by this Act and aperson of good repute and morally irreproachable, and that said



petitioner has in their opinion all the qualifications necessary tobecome a citizen of the Philippines and is not in any waydisqualified under the provisions of this Act. The petition shall alsoset forth the names and post-office addresses of such witnesses asthe petitioner may desire to introduce at the hearing of the case. The certificate of arrival, and the declaration of intention must be

made part of the petition.Sec. 8. Competent court. — The Court of First Instance of theprovince in which the petitioner has resided at least one yearimmediately preceding the filing of the petition shall have exclusiveoriginal jurisdiction to hear the petition.cban robles virtual lawlibrarySec. 9. Notification and appearance. — Immediately upon the filingof a petition, it shall be the duty of the clerk of the court to publishthe same at petitioner’s expense, once a week for three consecutive weeks, in the Official Gazette, and in one of the newspapers ofgeneral circulation in the province where the petitioner resides, andto have copies of said petition and a general notice of the hearingposted in a public and conspicuous place in his office or in the

building where said office is located, setting forth in such noticethe name, birthplace and residence of the petitioner, the date andplace of his arrival in the Philippines, the names of the witnesses whom the petitioner proposes to introduce in support of hispetition, and the date of the hearing of the petition, which hearingshall not be held within ninety days from the date of the lastpublication of the notice. The clerk shall, as soon as possible,forward copies of the petition, the sentence, the naturalizationcertificate, and other pertinent data to the Department of theInterior, the Bureau of Justice, the Provincial Inspector of thePhilippine Constabulary of the province and the Justice of thePeace of the municipality wherein the petitioner resides.Sec. 10. Hearing of the petition. — No petition shall be heard within

thirty days preceding any election. The hearing shall be public, andthe Solicitor-General, either himself or through his delegate or theprovincial fiscal concerned, shall appear on behalf of theCommonwealth of the Philippines at all the proceedings and at thehearing. If, after the hearing, the court believes, in view of theevidence taken, that the petitioner has all the qualifications requiredby, and none of the disqualifications specified in this Act and hascomplied with all requisites herein established, it shall order theproper naturalization certificate to be issued and the registration ofthe said naturalization certificate in the proper civil registry asrequired in Section Ten of Act Numbered Three thousand sevenhundred and fifty-three.Sec. 11. Appeal. — The final sentence may, at the instance of either

of the parties, be appealed to the Supreme Court.Sec. 12. Issuance of the Certificate of Naturalization. — If, after thelapse of thirty days from and after the date on which the parties were notified of the Court, no appeal has been filed, or if, uponappeal, the decision of the court has been confirmed by theSupreme Court, and the said decision has become final, the clerk ofthe court which heard the petition shall issue to the petitioner anaturalization certificate which shall, among other things, state thefollowing: The file number of the petition, the number of the



naturalization certificate, the signature of the person naturalizedaffixed in the presence of the clerk of the court, the personalcircum- stances of the person naturalized, the dates on which hisdeclaration of intention and petition were filed, the date of thedecision granting the petition, and the name of the judge whorendered the decision. A photograph of the petitioner with the dry

seal affixed thereto of the court which granted the petition, mustbe affixed to the certificate.Before the naturalization certificate is issued, the petitioner shall, inopen court, take the following oath:

“I, ______________________________________, solemnlyswear that I renounce absolutely and forever all allegiance andfidelity to any foreign prince, potentate, state or sovereignty, andparticular- ly to the ____________________. of which at this timeI am a subject or citizen; that I will support and defend theConstitution of the Philippines and that I will obey the laws, legalorders and decrees promulgated by the duly constituted authoritiesof the Commonwealth of the Philippines; [and I hereby declarethat I recognize and accept the supreme authority of the United

States of America in the Philippines and will maintain true faithand allegiance thereto; and that I impose this obligation uponmyself voluntarily without mental reservation or purpose ofevasion.

“So help me God.”Sec. 13. Record books. — The clerk of the court shall keep twobooks; one in which the petition and declarations of intentionshall be recorded in chronological order, noting all proceedingsthereof from the filing of the petition to the final issuance of thenaturalization certificate; and another, which shall be a record ofnatu- ralization certificates each page of which shall have aduplicate which shall be duly attested by the clerk of the court anddelivered to the petitioner.cban robles virtual law library

Sec. 14. Fees. — The clerk of the Court of First Instance shallcharge as fees for recording a petition for naturalization and forthe proceedings in connection therewith, including the issuance ofthe certificate, the sum of thirty pesos. The Clerk of the Supreme Court shall collect for each appeal andfor the services rendered by him in connection therewith, the sumof twenty-four pesos.Sec. 15. Effect of the naturalization on wife and children.-Any woman who is now or may hereafter be married to a citizen of thePhilippines, and who might herself be lawfully naturalized shall bedeemed a citizen of the Philippines.Minor children of persons naturalized under this law who have

been born in the Philippines shall be considered citizens thereof. A foreign-born minor child, if dwelling in the Philippines at thetime of the naturalization of the parent, shall automaticallybecome a Philippine citizen, and a foreign-born minor child, whois not in the Philippines at the time the parent is naturalized, shallbe deemed a Philippine citizen only during his minority, unless hebegins to reside permanently in the Philippines when still a minor,in which case, he will continue to be a Philippine citizen even afterbecoming of age.



A child born outside of the Philippines after the naturalization ofhis parent, shall be considered a Philippine citizen, unless withinone year after reaching the age of majority, he fails to register him-self as a Philippine citizen at the American Consulate of thecountry where he resides, and to take the necessary oath ofallegiance.

Sec. 16. Right of Widow and Children of Petitioners who haveDied. - In case a petitioner should die before the final decision hasbeen rendered, his widow and minor children may continue theproceedings. The decision rendered in the case shall, so far as the widow and minor children are concerned, produce the same legaleffect as if it had been rendered during the life of the petitioner.Sec. 17. Renunciation of Title or Orders of Nobility. - In case thealien applying to be admitted to citizenship has borne anyhereditary title, or has been of any of the orders of nobility in theKingdom or state from which he came, he shall, in addition to theabove requisites, make an express renunciation of his title or orderof nobility in the court to which his application is made, and hisrenunciation shall be recorded in the court, unless with the express

consent of the National Assembly.Sec. 18. Cancellation of Naturalization Certificate Issued. - Uponmotion made in the proper proceedings by the Solicitor-General orhis representative, or by the proper provincial fiscal, the competentjudge may cancel the naturalization certificate issued and itsregistration in the Civil Register:

1

If it is shown that said naturalizationcertificate was obtained fraudulentlyor illegally.

2

If the person naturalized shall, withinthe five years next following theissuance of said naturalizationcertificate, return to his native

country or to some foreign countryand establish his permanent resi-dence there: Provided, That the factof the person naturalized remainingfor more than one year in his nativecountry or the country of his formernationality, or two years in any otherforeign country, shall be consideredas prima facie evidence of hisintention of taking up his permanentresidence in the same;

3If the petition was made on aninvalid declaration of intention;

4

If it is shown that the minor childrenof the person naturalized failed tograduate from a public or privatehigh schools recognized by theOffice of Private Education of thePhilippines, where Philip- pinehistory, government and civics aretaught as part of the schoolcurriculum, through the fault of their



parents either by neglecting tosupport them or by transferring hemto another school or schools. Acertified copy of the decreecancelling the naturalizationcertificate shall be forwarded by the

clerk of the Court to the Departmentof the Interior and the Bureau of Justice.

5

If it is shown that the naturalizedcitizen has allowed himself to beused as a dummy requiring Phil-ippine citizenship as a requisite forthe exercise, use or enjoyment of aright, franchise or privilege.

Sec. 19. Penalties for violation of this Act.-Any person who shallfraudulently make, falsify, forge, change, alter, or cause or aid anyperson to do the same, or who shall purposely aid and assist infalsely making, forging, falsifying, changing or altering a

naturalization certificate for the purpose of making use thereof, orin order that the same may be used by another person or persons,and any person who shall purposely aid and assist another inobtaining a naturalization certificate in violation of the provisionsof this Act, shall be punished by a fine of not more than fivethousand pesos or by imprisonment for not more than five years,or both, and in the case that the person convicted is a naturalizedcitizen his certificate of naturalization and the registration of thesame in the proper civil registry shall be ordered cancelled.Sec. 20. Prescription. - No person shall be prosecuted, charged, orpunished for an offense implying a violation of the provisions ofthis Act, unless the information or complaint is filed within fiveyears from the detection or discovery of the commission of said

offense.Sec. 21. Regulation and blanks. - The Secretary of Justice shall issuethe necessary regulations for the proper enforcement of this Act.Naturalization certificate blanks and other blanks required forcarrying out the provisions of this Act shall be prepared andfurnished by the Solicitor-General, subject to the approval of theSecretary of Justice.Sec. 22. Repealing clause. - Act Numbered Twenty-nine hundredand twenty-seven as amended by Act Num- bered Thirty-fourhundred and forty-eight, entitled “The Naturalization Law”, isrepealed: Provided, That nothing in this Act shall be construed toaffect any prosecution, suit, action, or proceedings brought, or anyact, thing, or matter, civil or criminal, done or existing before the

taking effect of this Act, but as to all such prosecutions, suits,actions, proceedings, acts, things, or matters, the laws, or parts oflaws repealed or amended by this Act are continued in force andeffect.Sec. 23. Date when this Act shall take effect.-This Act shall takeeffect on its approval. Approved: June 17, 1939.

COMMONWEALTH ACT NO. 613: AN ACT TO CONTROL AND REGULATE THEIMMIGRATION OF ALIENS INTO THE PHILIPPINES.



TITLE OF ACTSection 1. This Act shall be known as “The Philippine Immigration

Act of 1940. “

BUREAU OF IMMIGRATIONSec. 2. Officials. - A Bureau of Immigration [now Commission onImmigration and Deportation] is established under a

Commissioner of Immigration, who shall have two assistants, aFirst Deputy Commissioner of Immigration [now AssociateCommissioner of Immigration] and a Second DeputyCommissioner of Immigration [now Associate Commissioner ofImmigration] . For administrative purposes, the Bureau ofImmigration [now Commission on Immigration and Deportation]shall be under the supervision and control of the Department ofLabor [now Department of Justice] or of any other executivedepartment which the President may subsequently determine.

COMMISSIONER OF IMMIGRATIONSec. 3. Appointment; term of office; compensation. - TheCommissioner of Immigration shall be appointed by thePresident, with the consent of the Commission on Appointmentsof the National Assembly, and shall hold office at the pleasure ofthe President. He shall receive compensation at the rate of tenthousand pesos per annum. Administrative head powers as such. - He shall be theadministrative head of the Bureau of Immi- gration and shallpossess the powers generally conferred upon bureau chiefs. Heshall have charge of the administration of all laws relating to theimmigration of aliens into the Philippines and shall have theimmediate control, direction and supervision of all officers, clerks,and employees of the Bureau of Immigration. He shall issue,subject to the approval of the Department Head, such rules andregulations and prescribe such forms of bond, reports, and other

papers, and shall issue from time to time such instructions notinconsistent with law, as he shall deem best calculated to carry outthe provisions of the immigration laws. He shall submit a report tothe President, in writing, of the transactions of his office, annuallyor oftener as the President may require.

DEPUTY COMMISSIONERS OF IMMIGRATIONSec. 4. (a) Appointment; term of office; compensation. - The twoDeputy Commissioners shall be appointed by the President, withthe consent of the Commission on Appointments of the National Assembly, and they shall hold office at the pleasure of thePresident. The First Deputy Commis- sioner shall receivecompensation at the rate of nine thousand pesos per annum andthe Second Deputy Commissioner shall receive compensation at

the rate of eight thousand four hundred pesos per annum. Duringthe absence or disability of the Commissioner, the First DeputyCommissioner shall act as Commissioner, and during the absenceor disability of both the Commissioner and the First DeputyCommissioner, the Second Deputy Commissioner shall act asCommissioner, and the Deputy Commissioner who shall so act asCommissioner, shall perform the duties of the latter in addition tohis own duties.

(b) No person shall be appointed Commissioner or Deputy



Commissioner unless he be a natural- born citizen of thePhilippines and is at least thirty years of age.

IMMIGRANT INSPECTORSSec. 5. (a) The position of Immigrant Inspector is created,appointments to which shall be made upon the recommendationof the Commissioner of Immigration in accordance with the Civil

Ser- vice Laws.(b) Whenever he shall deem it necessary, the Commissioner ofImmigration may appoint, with the consent of the properDepartment Head, any qualified employee of the Govern- ment toserve as Acting Immigrant Inspector Acting Immigrant Inspectorsshall have the same powers and authority as Immigrant Inspectors.Sec. 6. Powers of Immigration Officer. - The examination of aliensconcerning their right to enter or remain in the Philippines shall beperformed by Immigrant Inspectors with the advice of medicalauthorities in appropriate cases. Immigrant Inspectors areauthorized to exclude any alien not properly documented asrequired by this Act, admit any alien complying with the applicableprovisions of the immigration laws and to enforce the immigration

laws and regulations prescribed thereunder. Immigrant Inspectorsare also empowered to administer oaths, to take and considerevidence concerning the right of any alien to enter or reside in thePhilippines, and to go aboard and search for aliens on any vessel orother conveyance in which they believe aliens are being broughtinto the Philippines. Immigrant Inspectors shall have the power toarrest, without warrant, any alien who intheir presence or view isentering or is still in the course of entering the Philippines in violation of immigration laws or regulations prescribed thereunder.

OTHER EMPLOYEESSec. 7. Appointment and Salary. - All other employees of theBureau of Immigration except as otherwise provided in this Act,shall be appointed by the Head of Department, upon therecommendation of the Commissioner of Immigration, inaccordance with civil service rules and regulations, and they shallreceive such salaries as may be assigned to them conformably tothe provisions of Common- wealth Act Numbered Four hundredand two. ASSIGNMENT OF IMMIGRATION EMPLOYEES TOOVERTIME WORKSec. 7-A. Immigration employees may be assigned by theCommissioner of Immigration to do over- time work at rates fixedby him when the service rendered is to be paid for by shippingcompanies and airlines or other persons served.

BOARD OF COMMISSIONERS

Sec. 8. Decision of the Board. - The board of Commissioners,hereinafter referred to in this Act, shall be composed of theCommissioner of Immigration and the two DeputyCommissioners. In the absence of a member of the Board, theDepartment Head shall designate an officer or employee in theBureau of Immigration to serve as a member thereof. In any casecoming before the Board of Com- missioners, the decision of anytwo members shall prevail.

NONIMMIGRANTS



Sec. 9. Aliens departing from any place outside the Philippines, who are otherwise admissible and who qualify within one of thefollowing categories, may be admitted as nonimmigrants:a. A temporary visitor coming for business or for pleasure or forreasons of health;

b. A person in transit to a destination outside the Philippines;

c. A seaman serving as such on a vessel arriving at a port of thePhilippines and seeking to enter tem-

porarily and solely in the pursuit of his calling as a seaman;d. Alien businessman. - An alien entitled to enter the Philippinesunder and in pursuance of the provisions of a treaty of commerceand navigation:1. Solely to carry on substantial trade principally between thePhilippines and the foreign state of which he is a national; or (2)solely to develop and direct the operations of an enterprise in which, in accordance with the Constitution and the laws of thePhilippines he has invested or of an enterprise in which he isactively in the process of investing, a substantial amount of capital;and his wife, and his unmarried children under twenty-one years ofage, if accompanying or following to join him, subject to thecondition that citizens of the Philippines are accorded likeprivileges in the foreign state of which such alien is a national;e. An accredited official of a foreign government recognized by theGovernment of the Philippines, his family, attendants, servants,and employees;f. Higher than high school. - A student, having means sufficient forhis education and support in the Philippines, who is at leasteighteen years of age and who seeks to enter the Philippinestemporar- ily and solely for the purpose of taking up a course ofstudy higher than high school at a university, seminary, academy,college or school approved for such alien students by the

Commissioner of Im- migration;g. Prearranged employment. - An alien coming to prearrangedemployment for whom the issuance of a visa has been authorizedin accordance with section twenty of this Act, and his wife, and hisunmar- ried children under twenty-one years of age, ifaccompanying him or if following to join him within a period ofsix months from the date of his admission into the Philippines as anonimmigrant under this paragraph. An alien who is admitted as anonimmigrant cannot remain in the Philippines permanently. Toobtain permanent admission, a nonimmigrant alien must depart voluntarily to some foreign country and procure from theappropriate Philippine consul the proper visa and thereafterundergo examination by the officers of the Bureau of Immigration

at a Philippine port of entry for determination of his admissibilityin accordance with the requirements.

DOCUMENTATION OF NONIMMIGRANTSSec. 10. Presentation of unexpired passport. - Nonimmigrants mustpresent for admission into the Philippines unexpired passports orofficial documents in the nature of passports issued by the gov-ernments of the countries to which they owe allegiance or othertravel documents showing their origin and identity as prescribed byregulations, and valid passport visas granted by diplomatic or



consular officers, except that such documents shall not be requiredof the following aliens:

1

A child qualifying as a nonimmigrant,born subsequent to the issuance ofthe passport visa of anaccompanying parent, the visa not

having expired; and

2 A seaman qualifying as such underSection 9 (c) of this Act.

Sec. 11. The form and manner of applying for a passport visa andthe form and validity of such passport visa shall be established byregulations.Sec. 12. A passport visa shall not be granted to an applicant whofails to establish satisfactorily his nonimmigrants status or whoseentry into the Philippines would be contrary to the public safety.

IMMIGRANTSSec. 13. Under the conditions set forth in this Act, there may beadmitted into the Philippines immigrants, termed “quotaimmigrants” not in excess of fifty (50) of any one nationality or

without nationality for any one calendar year, except that thefollowing immigrants, termed “non-quota immigrants,” may beadmitted without regard to such numerical limitations. The corresponding Philippine Consular representative abroad shallinvestigate and certify the eligibility of a quota immigrantprevious to his admission into the Philippines. Qualified anddesirable aliens who are in the Philippines under temporary staymay be admitted within the quota, subject to the provisions of thelast paragraph of Section 9 of this Act.

1

The wife or the husband or theunmarried child under twenty-one.years of age of a Philip- pine citizen,if accompanying or following to joinsuch citizen;

2

A child of alien parents born duringthe temporary visit abroad of themother, the mother having beenpreviously lawfully admitted into thePhilippines for permanent residence,if the child is accompanying orcoming to join a parent and appliesfor admission within five years fromthe date of its birth;

3

A child born subsequent to theissuance of the immigration visa of

the accompanying parent, the visanot having expired;

4

A woman who was a citizen of thePhilippines and who lost hercitizenship because of her marriageto an alien or by reason of the loss ofPhilippine citizenship by herhusband, and her unmarried childunder twenty- one years of age, if



accompanying or following to joinher;

5

A person previously lawfullyadmitted into the Philippines forpermanent residence, who isreturning from a temporary visit

abroad to an unrelinquishedresidence in the Philippines;

6

A natural-born citizen of thePhilippines, who has beennaturalized in a foreign country, andis returning to the Philippines forpermanent residence, including hisspouse and mi- nor unmarriedchildren, shall be considered a non-quota immigrant for purposes ofentering the Philippines.

Sec. 14. Persons with dual nationality - The nationality of animmigrant whose admission is subject to the numerical limitations

imposed by Section Thirteen of this Act shall be that of thecountry of which the immigrant is a citizen or subject, self-governing dominions being treated as separate countries. Thenationality of an immigrant possessing dual nationality may be thatof either of the two countries regarding him as a citizen or subjectif he applies for a visa in a third country, but if he applies for such visa within one of the two countries regarding him as a national,his nationality shall be that of the country in which he shall file hisapplication.

DOCUMENTATION OF IMMIGRANTSSec. 15. Presentation of unexpired passport; in the case of thechildren. - Immigrants must present for admission into thePhilippines unexpired passports or official documents in the nature

of passports issued by the governments of the countries to whichthey owe allegiance or other travel documents showing their originand identity as prescribed by regulations, and valid immigration visas issued by consular officers, except that children bornsubsequent to the issuance of the immigration visa or a reentrypermit in case of children born abroad during the temporary visitabroad of their mothers as provided for in paragraph (c) of Section Thirteen of this Act, the immigration visa or reentry permit nothaving expired, and returning residents as referred to in Section Thirteen (f) hereof, present unexpired reentry permits as providedfor in Section twenty-two of this Act, shall not be subject to thesedocumentary requirements. No child shall, however, be exemptfrom these documentary requirements unless the alleged mothershall have proved her state of pregnancy before the consularofficers in the case of children born subsequent to the issuance of a valid immigration visa, or before the immigration authority prior toher departure from the Philippines in the case of children bornabroad of mothers with valid reentry permits: Provided, however, That in the latter case should the mother become pregnant afterher departure from the Philippines the fact of her pregnancy shallbe proved before the consul officers who shall issue theappropriate certification for presentation to the immigration



authorities upon her return to the Philippines.

Sec. 16. The form and manner of applying for an immigration visaand the form and validity of such immigration visa shall beestablished by regulations.Sec. 17. No immigration visa shall be issued to an immigrant if theconsular officer knows from statements in the application

therefor or from the papers submitted therewith or otherwise hasreason to believe that the immigrant is inadmissible into thePhilippines under the immigration laws.

IMMIGRATION VISAS FOR QUOTA IMMIGRANTSSec. 18. An immigration visa shall not be issued by a consularofficer to an immigrant whose admission into the Philippines issubject to the numerical limitations imposed by Section Thirteen ofthis Act until the consular officer shall have received from theCommissioner of Immigration the allotment of a quota numberto be placed upon the visa for the immigrant.Sec.19. Preference in allotment of quota numbers. - In allottingquota numbers, the Commissioner of immigration shall accordpreference to immigrants who are the fathers and mothers ofPhilippine citizens who are twenty-one years of age or over, andthe wives, husbands, and unmarried children under of twenty-oneyears of age, of aliens lawfully admitted into the Philippines forpermanent residence and residing therein. Such preference shall beaccorded only upon petition made therefor under regulationsprescribed by the Commissioner.

IMMIGRATION VISAS FOR NON-QUOTA IMMIGRANTSSec. 20. In case of prearranged employment. - (a) A passport visafor a nonimmigrant referred to in Section Nine (g) of this Act whois coming to prearranged employment shall not be issued by aconsular officer until the consular officer shall have receivedauthorization for the issuance of the visa. Such authorization shall

be given only on petition filed with the Commissioner ofImmigration establishing that no person can be found in thePhilippines willing and competent to perform the labor or servicefor which the nonimmigrant is desired and that the nonimmigrant’sadmission would be beneficial to the public interest. The petitionshall be made under oath, in the form and manner prescribed byregulations, by the prospective employer or his representative.Filing of petition under oath. - The petition shall state fully thenature of the labor or service for which the nonimmigrant isdesired, the probable length of time for which he is to be engaged,the wages and other compensation which he is to receive, thereasons why a person in the Philippines cannot be engaged toperform the labor or service for which the nonimmigrant is desired

and why the nonimmigrant’s admission would be beneficial to thepublic interest. Accompanying documents. - The petition shall be accompanied bya certified copy of any written contract or agreement entered intofor the immigrant’s service and shall contain such additional in-formation as may be deemed material. Substantiation of all theallegations made in the petition shall be required and theallegations that no person can be found in the Philippines willingand competent to perform the labor or service for which the



nonimmigrant is desired and that the nonimmigrant’s admission would be beneficial to the public interest shall be establishedbeyond doubt by convincing and satisfactory evidence. The title“Immigration Visas for Non-quota Immigrant” shall be under-stood to refer only to section twenty-one of the same Act. Approval of petition. - If the Board of Commissioners finds that

the petition complies with the requirements of the precedingparagraph and that the petitioner has established the facts entitlinghim to the authorization, the Board shall grant the petition and theCommissioner shall so inform the petitioner and promptly transmitauthorization to the consular office at which the immigrant is toapply for a visa. Such an immigrant, upon receiving a visa andapplying for admission into the Philippines, shall be exempt fromthe provisions of paragraph fourteen of section twenty-nine (a) ofthis Act excluding aliens coming to perform unskilled manual laborin pursuance of a promise or offer of employment.Sec. 21. Non-quota immigration visas may be issued by theconsular officers to other immigrants claiming non-quota statusupon the receipt of satisfactory proof that they are entitled to such

status.REENTRY PERMITSSec. 22. Filing of application; issuance of permit. - Any lawfulresident alien about to depart temporarily from the Philippines who desires a reentry permit may apply to the Commissioner ofIm- migration for such permit. If the Commissioner finds that theapplicant has been lawfully admitted into the Philippines forpermanent residence, he shall issue the permit which shall be validfor a period not exceeding one year except that upon applicationfor extension and good cause therefor being shown by theapplicant, it may be extended by the Commissioner for additionalperiods not exceeding one year each. The Commissioner shallprescribe the form of permit. Applications for the issuance or

extension of permits shall be made under oath and in such formand manner as the Com- missioner shall by regulations prescribe. The permit, upon approval of the Commissioner of Immigration,may be made good for several trips within the period of one year:Provided however, That the holder thereof shall be required to paythe fee required under Section Forty-Two (a) (3) of this Act forevery trip he makes.

EMIGRATION CLEARANCE CERTIFICATESec. 22-A. Issuance of certificate. - Any alien about to depart fromthe Philippines temporarily or for permanent residence abroadshall, before leaving the country, apply to the Commissioner of Im-migration for a clearance certificate. If the Commissioner finds that

the applicant has no pending obligation with the Government, itsinstrumentalities, agencies and subdivisions, and that there is nopending, criminal, civil or administrative action which, by lawrequires his presence, in the Philip- pines, the Commissioner shallissue the certificate upon surrender of the alien or all othercertificates previously issued to him by the Bureau of Immigrationshowing his admission and/or residence in the Philippines.CANCELLATION OF ENTRANCE DOCUMENTS FORFRAUD



Sec. 23. An immigration visa, or a passport visa, or a ReentryPermit, obtained by fraud or willful misrepresentation of fact shallbe subject to cancellation by the issuing officer or by the Board ofCommissioners.

PORTS OF ENTRYSec. 24. Selected from customs ports of entry. - The Commissioner

of Immigration shall designate ports, from among the ports ofentry designated by law, as ports of entry for customs purposes, at which aliens may enter the Philippines. Such ports shall bedesignated by the Commissioner as unlimited or ports of limitedports of entry. At limited ports of entry only such classes of aliensmay enter as may be permitted by the Commissioner underregulations prescribed by him. He shall also have power to closeports so designated whenever he should deem it to be advisable inthe public interest and upon sufficient notice to the public.

DETENTION OF ARRIVING ALIENSSec. 25. Period of detention of aliens. - For the purpose ofdetermining whether aliens arriving in the Philippines belong toany of the classes excluded by the immigration laws, the Period

examining immigration officers may order such aliens detained onboard the vessel bringing them or in such other place as theofficers may designate, such detention to be for a sufficient lengthof time to enable the officers to determine whether they belong toan excluded class and their removal to such other place to be at theexpense of the vessel bringing them.

BOARDS OF SPECIAL INQUIRYSec. 26. Every alien who may not appear to the examiningimmigration officer at the port of arrival to be clearly and beyond adoubt entitled to land shall be detained for examination in relationthereto by a board of special inquirySec. 27. (a) Composition. - Every board of special inquiry shall be

composed of a Chairman and two members, who shall beappointed by the President of the Philippines alone and shall beremovable at his pleasure. The Commissioner of Immigration mayassign to such officers duties and functions in addition to thosepertaining to them by reason of their membership in the board. Atports where it is not convenient or necessary to organizepermanent boards of special inquiry, the resident may des- ignateany other employee of the Government to serve as a member ofthe board of special inquiry which might be organized therein fromtime to time.

(b) Board powers. - A board of special inquiry shall have authority:

1

to determine whether an alienseeking to enter or land in the

Philippines shall be allowed to enteror land or shall be excluded; and

2

to make its findings andrecommendations in all the casesprovided for in section twenty-nineof this Act wherein theCommissioner of Immigration mayadmit an alien who is otherwiseinadmissible. For this purpose, the



board or any member thereof, mayadminister oaths and take evidenceand in case of necessity may issuesubpoena and/or subpoena ducestecum. The hearing of all casesbrought before a board of special

inquiry shall be conducted underrules of procedure to be pre- scribedby the Commissioner ofImmigration.

Appeal to Board of Commissioners. - The decision of any twomembers of the board shall prevail and shall be final unlessreversed on appeal by the Board of Board of Commissioners ashereafter stated, or, in the absence of an appeal, unless reversed bythe Board of Commissioners after a review by it, motu proprio ofthe entire proceedings within one year from the promulgation ofsaid decision. At the conclusion of the hearing of any case, theboard of special inquiry shall at once proceed to deliberate anddecide on the merits thereof. The decision shall be promulgated

and the findings and recommendation, in proper cases, submittednot later than two days from the date of the delibera- tion. Shouldthe board of special inquiry need more time to make a writtendecision of findings and recommendation in view of the nature ofthe case, the chairman thereof shall report the case to theCommissioner of Immigration who may grant an extension of timeif he considers it necessary. Who may appeal. - An alien excluded by a board of special inquiryor a dissenting member thereof may appeal to the Board ofCommissioners, whose decision in the case shall be final. Thedecision on appeal shall be put in writing and promulgated not lessthan seven days from the time the case is submitted for decision.In appealed cases, the alien shall have the right to be represented

by an attorney or counsel who shall have access to the record ofthe board of special inquiry in the particular case on appeal.

MEDICAL EXAMINATION OF ARRIVING ALIENSSec. 28. Designation of examining team. - The physical and mentalexamination of arriving aliens shall be made by medical officers ofthe Government designated under order of the President to makesuch examinations, who shall certify for the information of theimmigration officers and the boards of special inquiry any and allphysical and mental defects or disease observed after an exami-nation by them of such aliens. Should such medical officers be notavailable, private physicians may be employed for examiningarriving aliens, the necessary expenses therefor to be chargeableagainst the appropriation provided for the Bureau of Immigration.

EXCLUDED CLASSESSec. 29. (a) The following classes of aliens shall be excluded fromentry into the Philippines:

1. Idiots or insane persons and persons who have been insane;2. Persons afflicted with a loathsome or dangerous contagiousdisease, or epilepsy:3. Persons who have been convicted of a crime involving moralturpitude;



4. Prostitutes, or procurers, or persons coming for any immoralpurposes;

5. Persons likely to become, public charge;

6. Paupers, vagrants, and beggars;7. Persons who practice polygamy or who believe in or advocatethe practice of polygamy;

8. Persons who believe in or advocate the overthrow by force and violence of the Government of the Philippines, or of constitutedlawful authority, or who disbelieve in or are opposed to organizedgovernment, or who advocate the assault or assassination of publicofficials because of their office, or who advocate or teachprinciples, theories, or ideas contrary to the Constitution of thePhilippines or advocate or teach the unlawful destruction ofproperty, or who are members of or affiliated with anyorganization entertaining or teaching such doctrines;9. Persons over fifteen years of age, physically capable of reading, who cannot read printed matter in ordinary use in any languageselected by the alien, but this provision shall not apply to thegrandfather, grandmother, father, mother, wife, husband or childof a Philippine citizen or of an alien lawfully resident in thePhilippines;10. Persons who are members of a family accompanying anexcluded alien, unless in the opinion of the Commissioner ofImmigration no hardship would result from their admission;11. Persons accompanying an excluded person who is helplessfrom mental or physical disability or infancy, when the protectionor guardianship of such accompanying person or persons isrequired by the excluded person, as shall be determined by theCommissioner of Immigration;12. Children under fifteen years of age, unaccompanied by or notcoming to a parent, except that any such children may be admitted

in the discretion of the Commissioner of Immigra- tion, ifotherwise admissible;13. Stowaways, except that any stowaway may be admitted in thediscretion of the Commis- sioner of Immigration, if otherwiseadmissible;14. Persons coming to perform unskilled manual labor inpursuance of a promise or offer of employment, express orimplied, but this provision shall not apply to persons bearing pass-port visas authorized by Section Twenty of this Act;15. Persons who have been excluded or deported from thePhilippines, but this provision may be waived in the discretion ofthe Commissioner of Immigration: Provided, however, That theCommissioner of Immigration shall not exercise his discretion in

favor of aliens excluded or deported on the ground of convictionfor any crime involving moral turpitude or for any crime penalizedunder Sections Forty-Five and Forty-Six of this Act or on theground of having engaged in hoarding, black-marketing orprofiteering unless such aliens have previously resided in thePhilippines immediately before his exclusion or deportation for aperiod of ten years or more or are married to native Filipino women;

16. Persons who have been removed from the Philippines at the



expense of the Government of the Philippines, as indigent aliens,under the provisions of section forty-three of this Act, and whohave not obtained the consent of the Board of Commissioners toapply for readmission; and17. Persons not properly documented for admission as may berequired under the provisions of this Act.

(b) Notwithstanding the provisions of this Section, theCommissioner of Immigration, in his discretion, may permit toenter any alien properly documented, who is subject to exclusionunder this section, but who is:1. An alien lawfully resident in the Philippines who is returningfrom a temporary visit abroad; 2. An alien applying for temporaryadmission.Sec. 30. Any alien seeking admission into the Philippines may berequired to testify under oath on matters relating to hisadmissibility. The burden of proof shall be upon such alien toestablish that he is not subject to exclusion under any provision ofthe immigration laws.

IMMIGRANT HEAD TAX

Sec. 31. A tax of twenty-five pesos shall be collected for every alienover sixteen years of age admitted into the Philippines for a stayexceeding sixty days. The tax shall be paid to the ImmigrationOfficer or, in his absence to the Collector of Customs, for theaccount of the Commissioner of Immigration, at the port to whichthe alien shall come, by the master, agent, owner, or consignee ofthe vessel bringing said alien to the Philippines, or by the alienhimself where collection from the master, agent, owner, orconsignee of the vessel shall be impracticable. The tax imposed bythis Section shall be a lien on the vessel and shall be a debt in favorof the Government of the Philippines against the owner or ownersof the vessel, and payment thereof may be enforced by any legalremedy. The Collector of Customs shall, upon the request of theCommissioner of Immigration, withhold clearance from any vessel which has been declared in default of any obligation incurred underthis section.

CREW LISTS AND PASSENGERS MANIFESTSSec. 32. The master, agent, owner or consignee of any vesselarriving in the Philippines from a place outside thereof, ordeparting from the Philippines for a place outside thereof, shallfurnish to the immigration officer in charge at the port of arrivaland at the port of departure, such crew lists and passengermanifests and such other information concerning the personsarriving or departing on the vessel as shall be required inregulations prescribed by the Commissioner of Immigration:

Provided, that the Commissioner of Immigration may, in hisdiscretion, exempt any vessel or vessels from the requirement ofthis Section. The crew lists of incoming vessels shall be duly visaed byPhilippine consular officials abroad.

SEAMENSec. 33. It shall be the duty of the master, agent, owner, orconsignee of any vessel arriving in the Philippines from a placeoutside thereof to detain on board any alien seaman employed on



such vessel until the immigration officer in charge has inspectedsuch seaman, and to detain such seaman on board after inspectionand to remove such seaman if required by the immigration officerin charge or by the Commissioner of Immigration to do so. Noseaman employed on board such a vessel shall be paid off ordischarged while the vessel is in a port of the Philippines without

the permission of the immigration authorities.Sec. 34. An alien seaman employed on a vessel arriving in thePhilippines from a place outside thereof may be permitted to landtemporarily under such regulations as shall be prescribed by theCommissioner of Immigration.OBLIGATION OF TRANSPORTING VESSELS IN CASESOF DETENTION AND EXCLUSIONSec. 35. The cost of maintenance while on land, medical treatmentin hospital or elsewhere, burial in the event of death, and transferto the vessel in the event of return, of any alien brought to thePhilip- pines and temporarily removed from the vessel forexamination by order of the immigration officers, shall be borne bythe owner or owners of the vessel on which the alien came.

Sec. 36. An alien brought to the Philippines who is excluded shallbe immediately sent back, in ac- commodations of the same classin which he arrived, to the country whence he came, on the same vessel bringing him, unless in the opinion of the Commissioner ofImmigration, immediate return is not practicable or proper. Theexpense of the return of such an alien shall be borne by the owneror owners of such vessel. If the Commissioner of Immigrationfinds that immediate return is not practicable or proper, or if the vessel by which the excluded alien came has left the Philippinesand it is impracticable for any reason to return the alien within areasonable time by another vessel owned by the same interests, thecost of return may be paid by the Government and recovered fromthe owner, agent. or consignee of the vessel. Where return to the

country whence the excluded alien. came cannot for any reasonbe effected, the Commissioner of Immigration may direct thealien's removal to the country of his nativity or of which he is anational, and the cost of such removal, if removal by vessel on which he came or by another vessel owned by the same interestscannot be accomplished within a reasonable time, shall likewise beat the expense of the owners of such vessel.

DEPORTATION OF ALIENSSec. 37. (a) The following aliens shall be arrested upon the warrantof the Commissioner of Immigra- tion or of any other officerdesignated by him for the purpose and deported upon the warrantof the Commissioner of Immigration after a determination by theBoard of Commissioners of the existence of the ground fordeportation as charged against the alien:

1

Any alien who enters the Philippinesafter the effective date of this Act bymeans of false and misleadingstatements or without inspection andadmission by the immigrationauthorities at a designated port ofentry or at any place other than at adesignated port of entry;



Provided, That in the case of an alien who, for any reason, is convicted andsentenced to suffer both impris-onment and deportation, said alienshall first serve the entire period ofhis imprisonment before he is

actually deported: Provided however, That the imprisonment may be waived by the Commissioner ofImmigration with the consent of theDepartment Head, and uponpayment by the alien concerned ofsuch amount as the Commissionermay fix and approved by theDepartment Head;

10

Any alien who, at any time withinfive years after entry, shall have beenconvicted of violating theprovisions of the Philippine

Commonwealth Act Numbered SixHundred and Fifty-Three, otherwiseknown as the Philippine AlienRegistration Act of 1941, or who, atany time after entry, shall have beenconvicted more than once of violating the provisions of the same Act;

11

Any alien who engages inprofiteering, hoarding, or black-marketing, independent of anycriminal action which may bebrought against him;

12

Any alien who is convicted of anyoffense penalized underCommonwealth Act Numbered Fourhundred and seventy-three,otherwise known as the RevisedNaturalization Laws of thePhilippines, or any law relating toacquisition of Philippine citizenship;

13

Any alien who defrauds his creditorby absconding or alienatingproperties to prevent them frombeing attached or executed;

(b) Deportation may be effected under clauses 2, 7, 8, 11 and 12 of

paragraph (a) of this Section at any time after entry, but shall notbe effected under any other clause unless the arrest in the deporta-tion proceedings is made within five years after the cause fordeportation arises. Deportation under clauses 3 and 4 shall not beeffected if the court, or judge thereof, when sentencing the alien,shall recommend to the Commissioner of Immigration that thealien be not deported.(c) No alien shall be deported without being informed of thespecific grounds for deportation nor without being given a hearing



under rules of procedure to be prescribed by the Commissioner ofImmigration.(d) In any deportation proceeding involving the entry of an alienthe burden of proof shall be upon the alien to show that he enteredthe Philippines lawfully, and the time, place, and manner of suchentry, and for this purpose he shall be entitled to a statement of the

facts in connection with his arrival as shown by any record in thecustody of the Bureau of Immigration.(e) Any alien under arrest in a deportation proceeding may bereleased under bond or under such other conditions as may beimposed by the Commissioner of Immigration.Sec. 38. An alien ordered deported shall, at the option of theCommissioner of Immigration, be removed to the country whencehe came, or to the foreign port at which he embarked for thePhilip- pines, or to the country of his nativity or of which he is acitizen or subject, or to the country in which he resided prior tocoming to the Philippines.Sec. 39. If deportation proceedings are instituted within five yearsafter entry, unless deportation is made by reason of causes which

arose subsequent to the alien’s entry, the cost of deportation fromthe port of deportation shall be at the expense of the owner orowners of the vessel by which the alien came; if that is notpracticable, in such case and in all other cases, the cost ofdeportation shall be payable from the appropriations available forthe purpose.

LEGALIZATION OF RESIDENCE OF ALIENSSec. 41. (a) Any alien in the Philippines at the time of the passageof this Act concerning whom no record of admission forpermanent residence exists or can be located may apply to theCommis- sioner of Immigration for legalization of his residence inthe Philippines. The application shall be made in the form andmanner prescribed by regulations issued by the Commissioner. Anyalien in the Philippines, whose record of admission for permanentresidence does not exist or cannot be located and who shall fail tolegalize his residence in the Philippines as provided in this section,shall be presumed to be unlawfully within the Philippines.

(b) If the Commissioner of Immigration finds that the applicant:1. entered in the Philippines prior to the effective date of this Act;2. has maintained a residence in the Philippines since he entered; 3.is a person of good moral character; and 4. is not subject todeportation. The Commissioner shall make a record in the Bureau ofImmigration that the applicant’s residence in the Philippines hasbeen legalized.

(c) An alien whose residence has been legalized in accordance withthe provisions of this Section shall be deemed to have beenlawfully admitted into the Philippines as of the date of his entry.

REMOVAL OF INDIGENT ALIENSSec. 43. The Commissioner of Immigration shall have the authorityto remove either to their native country, or to the country from whence they come, or to the country of which they are citizens orsubjects, at any time after entry, at the expense of anyappropriation available, such aliens as fall into distress or need



public aid from causes arising subsequent to their entry and aredesirous of being so removed,. but any person thus removed shallforever be ineligible for readmission except, upon the authorizationof the Board of Commissioners obtained previous to embarkationfor the Philippines.Sec. 44. (a) If any vessel or aircraft arriving at a port of the

Philippines from a place outside thereof: (l) Fails to submit to theimmigration officials at the port of arrival the crew lists, duly vi-saed, and passenger manifests and other information required byregulations issued under Section Thirty-Two of this Act.(2) Fails to produce or satisfactorily account for every seaman orpassenger whose name appears in such crew list or passengermanifest - the pilot, master, agent, owner, or consignee of the vessel or aircraft shall be subject to a fine of fifty pesos in the caseof each person concerning whom there such failure.(b) If any vessel or aircraft arriving at a port in the Philippines froma place outside thereof and having an alien on board:

1

Fails to prevent the landing of suchalien in the Philippines at any time

place other than as designated by theimmigration officers; or

2

Refuses or fails to pay the cost ofmaintenance and other costs, asrequired by Section Thir- ty-Five ofthis Act, of such alien whentemporarily removed from the vessels or aircraft for examination byorder of the immigration officers; or

3

Refuses to receive such alien onboard for removal from thePhilippines if he is excluded, or topay the cost of his removal, if by

another vessel or aircraft, as requiredby Section Thirty- Six of this Act; or

4

Makes any charge against such alienfor the cost referred to in clause (2)above, or for the cost of the removalof the alien from the Philippines ifhe is excluded, or takes any securityfrom the alien for the payment ofany such costs - the pilot master,agent, owner or consignee of the vessel or aircraft shall be subject to afine of five hundred pesos for eachand every violation of theseprovisions in the case of each personconcerning whom here is such violation.

(c) If any vessel or aircraft arriving at a port in the Philippines froma place outside thereof brings on board any alien bound for thePhilippines who is not properly documented as required by this Act, the pilot, master, agent, owner or consignee of the vessel oraircraft shall be subject to a fine of five hundred pesos in the caseof each person brought.



(d) Whenever the Commissioner of Immigration shall find thatthere has been a violation of any of the foregoing provisions of thissection, the Commissioner of Immigration shall collect the fine andmay enforce through the Collector of Customs, its payment againstthe vessel in the same manner as fines are collected and enforcedagainst vessels under the customs law. The fines shall be deposited

in the Philippine Treasury. No vessel shall be granted clearancepending the determination of the question of the liability to thepayment of such fine or while the fine remains unpaid, exceptupon deposit with the Bureau of Immigration of security sufficientto cover the fine(e) No action or proceeding for the enforcement of any fine forany violation of the provisions of this Section shall be institutedmore than five years after the violation is committed.

PENAL PROVISIONS

Sec. 45. Any individual who:

1

When applying for an immigrationdocument, impersonates anotherindividual, or falsely appears in the

name of deceased individual, orevades the immigration laws byappearing under an assumed orfictitious name; or

2

Issues or otherwise disposes of animmigration document to any personnot authorized by law to receive suchdocument; or

3

Obtains, accepts or uses anyimmigration document, knowing it tobe false; or

4

Being an alien, enters the Philippines

without inspection and admission bythe immigration officials, or obtainsentry into the Philippines by willful,false, or misleading representation or willful concealment of a material;

5

Being an alien shall, for anyfraudulent purpose, representhimself to be a Philippine citizen inorder to evade any requirement ofthe immigration laws: or

6

In any immigration matter, shallknowingly make under oath any falsestatement or representations; or

7

Being an alien shall depart from thePhilippines without first securing anemigration clearance certificatesrequired by Section Twenty-Two-Aof the Act; or

8

Attempts or conspires with anotherto commit any of the foregoing acts,shall be guilty of an offense, andupon conviction thereof, shall be



fined not more than one thousandpesos, and imprisoned for not morethan two years, and deported if he isan alien.

Sec. 45-A. Persons duly served with subpoena or subpoena ducestecum and who fail to comply with the requirements thereof shall,

after conviction, be imprisoned for not more than fifteen days orfined for not more than one hundred pesos, or both.Sec. 46. Any individual who shall bring into or land in thePhilippines or conceal, harbor, employ, or give comfort to anyalien not duly admitted by any immigration officer or not lawfullyentitled to enter or reside within the Philippines under the terms ofthe immigration laws, or attempts, conspires with, or aids anotherto commit any such act, and any alien who enters the Philippines without inspection and admission by the immigration officials, orobtains entry into the Philippines by willful, false, or misleadingrepresentation or willful concealment of a material fact, shall beguilty of an offense, and upon conviction thereof, shall be finednot less than five thousand pesos but not more than ten thousand

pesos, imprisoned for not less than five years but not more thanten years, and deported if he is an alien. Dismissal by the employerbefore or after apprehension does not relieve the employer of theoffense.If the individual who brings into or lands in the Philippines orconceals, harbors, employs or gives comfort to any alien not dulyadmitted by any immigration officer or not lawfully entitled toenter or reside herein, or who attempts, conspires with or aidsanother to commit any such act, is the pilot, master, agent, owner,consignee, or any person in charge of the vessel or aircraft whichbrought the alien into the Philippines from any place outsidethereof, the fine imposed under the first paragraph hereof shallconstitute a lien against the vessel or aircraft and may be enforced

in the same manner as fines are collected and enforced against vessels under the customs laws: Provided, however, That if thecourt shall, in its discretion, consider forfeiture be justified by thecircumstances of the case, it shall order, in lieu of the fine imposed,the forfeiture of the vessel or aircraft in favor of the Govern- ment without prejudice to the imposition of the penalty of imprisonmentprovided in the preceding paragraph.Sec. 46-A. The pilot, master, agent, owner, consignee, or anyperson in charge of a vessel or aircraft which carries passenger intothe Philippines from abroad, is prohibited from allowing thepassengers to disembark therefrom, unless all the passengersthereof have been checked up by the Commission- er ofImmigration or his authorized representatives. A violation of the

provisions hereof shall, upon conviction, be punishable by a fine ofnot more than one thousand pesos and by an imprisonment of notmore than six months. If the offender is the owner of the vessel oraircraft, the fine imposed herein shall be five thousand pesos.

SPECIAL PROVISIONSSec. 47. Notwithstanding the provisions of this Act, the Presidentis authorized:

(a) When the public interest so warrants:



(l) To waive the documentary requirements for any class ofnonimmigrants, under such conditions as he may impose;(2) To admit, as nonimmigrants, aliens not otherwise provided forby this Act, who are coming for temporary period only, under suchconditions as he may prescribe;(3) To waive the passport requirements for immigrants, under such

conditions as he may prescribe(4) To reduce or to abolish the passport visa fees in the case of anyclass of nonimmigrants who are nationals of countries which grantsimilar concessions to Philippine citizens of a similar class visitingsuch countries;(5) To suspend the entry of aliens into the Philippines from anycountry in which cholera or other infectious or contagious diseaseis prevalent;(b) For humanitarian reasons, and when not opposed to the publicinterest, to admit aliens who are refugees for religious, political, orracial reasons, in such classes of cases and under such conditions ashe may prescribe.

FOREIGN GOVERNMENT OFFICIALS

Sec. 48. Nothing in this Act shall be construed to apply to anofficial of a recognized foreign government who is coming on thebusiness of his government, nor to his family, attendants, servants,and employees, except that they shall be in possession of passportsor other credentials shoving their official status, duly visaed byPhilippine diplomatic officials abroad, unless the President ordersotherwise, and that their names shall appear on the passenger listsof transporting vessels required by Section 32 of this Act, andfurther, that any alien admitted in the status of attendant, servantor employee of a foreign government official who fails to maintainsuch status, shall be deported under the procedure prescribed bySection 37 of this Act.

COMMONWEALTH ACT NO. 625: AN ACT PROVIDING THE MANNER IN WHICH THEOPTION TO ELECT PHILIPPINE CITIZENSHIP SHALL BEDECLARED BY A PERSON WHOSE MOTHER IS AFILIPINO CITIZEN.Section 1. The option to elect Philippine citizenship in accordance with subsection (4), Section 1, Article IV, of the Constitution shallbe expressed in a statement to be signed and sworn to by the partyconcerned before any officer authorized to administer oaths, andshall be filed with the nearest civil registry. The said party shallaccompany the aforesaid statement with the oath of allegiance tothe Constitution and the Government of the Philippines.Sec. 2. If the party concerned is absent from the Philippines, he

may make the statement herein authorized before any officer of theGovernment of the United States authorized to administer oaths,and he shall forward such statement together with his oath ofallegiance, to the Civil Registry of Manila.Sec. 3. The civil registrar shall collect as filing fees of the statement,the amount of ten pesos.Sec. 4. The penalty of prision correccional, or a fine not exceedingten thousand pesos, or both, shall be imposed on anyone foundguilty of fraud or falsehood in making the statement herein



prescribed.

RULE ON DOMESTIC AND INTER-COUNTRY ADOPTION

A. DOMESTIC ADOPTION.

SEC. 3.

Definition of Terms. – For purposes of this Rule:

(v) “Residence” means a person’s actual stay in the Philippines for three (3) continuous years immediatelyprior to the filing of a petition for adoption and which is maintained until the adoption decree is entered. Temporary absences for professional, business, health, or emergency reasons not exceeding sixty (60) daysin one (1) year does not break the continuity requirement.(w) “Alien” refers to any person, not a Filipino citizen, who enters and remains in the Philippines and is inpossession of a valid passport or travel documents and visa.SEC. 4. Who may adopt. – The following may adopt: Any alien possessing the same qualifications as above-stated for Filipino nationals: Provided, That hiscountry has diplomatic relations with the Republic of the Philippines, that he has been living in thePhilippines for at least three (3) continuous years prior to the filing of the petition for adoption andmaintains such residence until the adoption decree is entered, that he has been certified by his diplomaticor consular office or any appropriate government agency to have the legal capacity to adopt in hiscountry, and that his government allows the adoptee to enter his country as his adopted child. Provided,

further, That the requirements on residency and certification of the alien’s qualification to adopt in hiscountry may be waived for the following:(i) former Filipino citizen who seeks to adopt a relative within the fourth (4th) degree of consanguinity oraffinity;

(ii) one who seeks to adopt the legitimate child of his Filipino spouse;

(iii) one who is married to a Filipino citizen and seeks to adopt jointly with his spouse a relative within thefourth (4th) degree of consanguinity or affinity of the Filipino spouse.SEC. 7. Contents of the Petition. – The petition shall be verified and specifically state at the heading ofthe initiatory pleading whether the petition contains an application for change of name, rectification ofsimulated birth, voluntary or involuntary commitment of children, or declaration of child as abandoned,

dependent or neglected.1. f the adopter is a Filipino citizen, the petition shall allege the following:

a. The jurisdictional facts;

b. That the petitioner is of legal age, in possession of full civil capacity and legal rights; is of good moralcharacter; has not been convicted of any crime involving moral turpitude; is emotionally andpsychologically capable of caring for children; is at least sixteen (16) years older than the adoptee, unlessthe adopter is the biological parent of the adoptee or is the spouse of the adoptee’s parent; and is in aposition to support and care for his children in keeping with the means of the family and has undergonepre-adoption services as required by Section 4 of Republic Act No. 8552.2. If the adopter is an alien, the petition shall allege the following:

a. The jurisdictional facts;

b. Sub-paragraph 1(b) above;

c. That his country has diplomatic relations with the Republic of the Philippines;

d. That he has been certified by his diplomatic or consular office or any appropriate government agencyto have the legal capacity to adopt in his country and his government allows the adoptee to enter hiscountry as his adopted child and reside there permanently as an adopted child; ande. That he has been living in the Philippines for at least three (3) continuous years prior to the filing of thepetition and he maintains such residence until the adoption decree is entered.

The requirements of certification of the alien’s qualification to adopt in his country and of residency maybe waived if the alien:a. is a former Filipino citizen who seeks to adopt a relative within the fourth degree of consanguinity oraffinity; or



b. seeks to adopt the legitimate child of his Filipino spouse; or

c.is married to a Filipino citizen and seeks to adopt jointly with his spouse a relative within the fourthdegree of consanguinity or affinity of the Filipino spouse.If the adoptee is a foundling, the petition shall allege the entries which should appear in his birthcertificate, such as name of child, date of birth, place of birth, if known; sex, name and5)

citizenship of adoptive mother and father, and the date and place of their marriage.6) If the petition prays for a change of name, it shall also state the cause or reason for the change of name.

In all petitions, it shall be alleged:

a.The first name, surname or names, age and residence of the adoptee as shown by hisrecord of birth, baptismal or foundling certificate and school records.b. That the adoptee is not disqualified by law to be adopted.

c. The probable value and character of the estate of the adoptee.

d. The first name, surname or names by which the adoptee is to be known and registeredin the Civil Registry. A certification of non-forum shopping shall be included pursuant to Section 5, Rule 7 of the 1997 Rulesof Civil Procedure.SEC. 11. Annexes to the Petition. – The following documents shall be attached to the petition:D. If the petitioner is an alien, certification by his diplomatic or consular office or any appropriategovernment agency that he has the legal capacity to adopt in his country and that his government allowsthe adoptee to enter his country as his own adopted child unless exempted under Section 4(2);E. Home study report on the adopters. If the adopter is an alien or residing abroad but qualified to adopt,the home study report by a foreign adoption agency duly accredited by the Inter-Country AdoptionBoard;SEC. 13. Child and Home Study Reports. – In preparing the child study report on the adoptee, theconcerned social worker shall verify with the Civil Registry the real identity and registered name of theadoptee. If the birth of the adoptee was not registered with the Civil Registry, it shall be the responsibilityof the social worker to register the adoptee and secure a certificate of foundling or late registration, as thecase may be. The social worker shall establish that the child is legally available for adoption and the documents insupport thereof are valid and authentic, that the adopter has sincere intentions and that the adoption shall

inure to the best interests of the child.In case the adopter is an alien, the home study report must show the legal capacity to adopt and that hisgovernment allows the adoptee to enter his country as his adopted child in the absence of the certificationrequired under Section 7(b) of Republic Act No. 8552.If after the conduct of the case studies, the social worker finds that there are grounds to deny the petition,he shall make the proper recommendation to the court, furnishing a copy thereof to the petitioner.SEC. 15. Supervised Trial Custody. – Before issuance of the decree of adoption, the court shall give theadopter trial custody of the adoptee for a period of at least six (6) months within which the parties areexpected to adjust psychologically and emotionally to each other and establish a bonding relationship. Thetrial custody shall be monitored by the social worker of the court, the Department, or the social service ofthe local government unit, or the child-placement or child-caring agency which submitted and preparedthe case studies. During said period, temporary parental authority shall be vested in the adopter. The court may, motu proprio or upon motion of any party, reduce the period or exempt the parties if it

finds that the same shall be for the best interests of the adoptee, stating the reasons therefor. An alien adopter however must complete the 6-month trial custody except the following:a. a former Filipino citizen who seeks to adopt a relative within the fourth (4th) degree of consanguinityor affinity; or ab.one who seeks to adopt the legitimate child of his Filipino spouse; orc. one who is married to a Filipino citizen and seeks to adopt jointly with his or her spouse thelatter’s relative within the fourth (4th) degree of consanguinity or affinity.If the child is below seven (7) years of age and is placed with the prospective adopter through a pre-adoption placement authority issued by the Department, the court shall order that the prospective adopter



shall enjoy all the benefits to which the biological parent is entitled from the date the adoptee is placed with him. The social worker shall submit to the court a report on the result of the trial custody within two weeksafter its termination.B. INTER-COUNTRY ADOPTION.

SEC. 26. Applicability. – The following sections apply to inter-country adoption of Filipino children by

foreign nationals and Filipino citizens permanently residing abroad.SEC. 27. Objectives. – The State shall:a. consider inter-country adoption as an alternative means of child care, if the child cannot be placed in afoster or an adoptive family or cannot, in any suitable manner, be cared for in the Philippines;b. ensure that the child subject of inter-country adoption enjoys the same protection accorded to childrenin domestic adoption; andc. take all measures to ensure that the placement arising therefrom does not result in improper financialgain for those involved.SEC. 28. Where to File Petition. – A verified petition to adopt a Filipino child may be filed by a foreignnational or Filipino citizen permanently residing abroad with the Family Court having jurisdiction over theplace where the child resides or may be found.It may be filed directly with the Inter-Country Adoption Board.SEC. 29. Who may be adopted. – Only a child legally available for domestic adoption may be the subject

of inter-country adoption.SEC. 30 Contents of Petition. – The petitioner must allege:

a. his age and the age of the child to be adopted, showing that he is at least twenty seven (27) years of ageand at least sixteen (16) years older than the child to be adopted at the time of application, unless thepetitioner is the parent by nature of the child to be adopted or the spouse of such parent, in which casethe age difference does not apply;b. if married, the name of the spouse who must be joined as co-petitioner except when the adoptee is alegitimate child of his spouse;c. that he has the capacity to act and assume all rights and responsibilities of parental authority under hisnational laws, and has undergone the appropriate counseling from an accredited counselor in his country;d. that he has not been convicted of a crime involving moral turpitude;

that he is eligible to adopt under his national law;e. that he can provide the proper care and support and instill the necessary moral values and example toall his children, including the child to be adopted;f. that he agrees to uphold the basic rights of the child, as embodied under Philippine laws and the U. N.Convention on the Rights of the Child, and to abide by the rules and regulations issued to implement theprovisions of Republic Act No. 8043;g. that he comes from a country with which the Philippines has diplomatic relations and whosegovernment maintains a similarly authorized and accredited agency and that adoption of a Filipino child isallowed under his national laws;h. andthat he possesses all the qualifications and none of the disqualifications provided in this Rule, in Republic Act No. 8043 and in all other applicable Philippine laws.SEC. 31.

Annexes.- The petition for adoption shall contain the following annexes written and officially translated inEnglish:a. Birth certificate of petitioner;

b." Marriage contract, if married, and, if applicable, the divorce decree, or judgment dissolving themarriage;"

c. Sworn statement of consent of petitioner’s biological or adopted children above ten (10) years of age;d. Physical, medical and psychological evaluation of the petitioner certified by a duly licensed physicianand psychologist;e. Income tax returns or any authentic document showing the current financial capability of the petitioner;



f. Police clearance of petitioner issued within six (6) months before the filing of the petitioner;

g. Character reference from the local church/minister, the petitioner’s employer and a member of theimmediate community who have known the petitioner for at least five (5) years;h. Full body postcard-size pictures of the petitioner and his immediate family taken at least six (6) monthsbefore the filing of the petition.SEC. 32. Duty of Court. – The Court, after finding that the petition is sufficient in form and substance

and a proper case for inter-country adoption, shall immediately transmit the petition to the Inter-Country Adoption Board for appropriate action.

Conflicts Laws Compilation

Documents

Transcript of Conflicts Laws Compilation