ORGANISATION MONDIALE  
DU COMMERCE  S/DCS/W/PHL 
24 janvier 2003 
 (03-0505) 
Commerce des services Original:   anglais 
 
 
 
 
LES PHILIPPINES 
 
Projet de version codifiée de la Liste d'engagements spécifiques1 
 
 
 On trouvera ci-joint un projet de version codifiée de la Liste d'engagements spécifiques des 
Philippines en format Word.  Ce document ne  remplace pas les enga gements juridiquement 
contraignants souscrits par les Philippines dans le ur Liste d'engagements spécifiques (GATS/SC/70; 
GATS/SC/70/Suppl.1/Rev.1 et GATS/SC/70/Suppl.2). 
  Est joint au projet de liste codifiée un projet de version codifiée de la Liste d'exemptions de 
l'article II (NPF) des Philippines (GATS/EL/ 70 et GATS/EL/70/Suppl.1) en format Word. 
 
 Les projets de versions codifiées de la liste et de la Liste d'exemptions de l'obligation NPF ont 
été établis par le Secrétariat, à la demande des Me mbres, pour faciliter le processus de négociation, y 
compris la présentation des offres initiales.  
_______________ 
 
  
 
                                                          
 
1 Le présent document a été établi, en anglais seulemen t, par le Secrétariat sous sa propre responsabilité 
et sans préjudice des positions des Membres ni de le urs droits et obligations dans le cadre de l'OMC.  S/DCS/W/PHL 
Page 2 THE PHILIPPINES - SCHEDULE OF SPECIFIC COMMITMENTS 
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
I. HORIZONTAL COMMITMENTS 
 ALL SECTORS 
 INCLUDED IN THIS 
 SCHEDULE 
 
 
  
  
 
 
   
 
 
   
 3)  In Activities Expressly Reserved by Law to  
 Citizens of the Philippines  (i.e., foreign 
 equity is limited to a minority share): 
  The participation of foreign investors in the  
 governing body of any corporation engaged in  
 activities expressly reserved to 3) Access to Domestic Credit
 
 
 A foreign firm, engaged in non-manufacturing  
 activities availing itself of peso borrowings,   shall observe, at the time of borrowing, the  
 prescribed 50:50  debt-to-equity ratio.  Foreign  
 firms covered are:  
  citizens of the Philippines by law shall be  
 limited  to the proportionate share of foreign  
 capital of such entities.  
 All executive and managing officers must be  
 citizens of the Philippines. 
  (a) partnerships, more than 40 per cent of  
 whose capital is owned by non-Filipino  
 citizens;  and   (b) corporations, more than 40 per cent of  
 whose total subscribed capital stock is owned  
 by non-Filipino citizens. 
  
  Acquisition of Land  
 
 All lands of the public domain are owned by  
 the State.   This requirement does not apply to banks and  
 non-bank financial intermediaries  
  Only citizens of the Philippines or  
 corporations or associations at least 60 per   cent of whose capital is owned by such  
 citizens may own land other than public lands  
 and acquire public lands through lease.  
 
  Foreign investors may lease only  private- 
 owned lands. 
     S/DCS/W/PHL
 Page 3Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 
  4) Entry and Temporary Stay of Natural Persons  
 Supplying Services  
 Non-resident aliens may be admitted to the  
 Philippines for the supply of a service after a   determination of the non-availability of a  
 person in the Philippines who is competent,  
 able and willing, at the time of application, to   perform the services for which the alien is  
 desired.
1 
  
  
II. SECTOR SPECIFIC COMMITMENTS 
2. COMMUNICATION  
 SERVICES 
    
 All subsectors 3) No franchise, ce rtificate, or any other form of  
 authorization for the operation of a public   utility shall be granted except to citizens of the 
 Philippines or to corporations or associations  
 organized under the laws of the Philippines at  
 least 60 per cent of whose capital is owned by  
 such citizens   
 3),4)Limitations listed in the horizontal section  
 shall also apply 
   
B. Courier Services  
 1) Commercial presence is required 
2) None 
3) None 4) None 
 1) None 
2) None 
3) None 4) None 
  
 
                                                           
 1 The Philippines shall undertake a review of this provision with in two (2) years after the entry into force of the Agreement fo r the Philippines.  S/DCS/W/PHL 
Page 4 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
C. Telecommunication  
 Services  
    
 The following services (a- 
 g) are offered only on a  
 facilities basis, for public   use, using either wired or  
 wireless technology except  
 cable television (CATV)   and satellite 
    
(a) Voice telephone services 
 - Local services 
 - Toll services 
  Domestic   International 1) Unbound 
2) Unbound 
3) Entry is subject to the following requirements  
 and conditions: 1) None 
2) None 
3)  
(b) Telegraph Services  (i) Franchise from from Congress of the  
  Philippines  (i) The number of non-Filipino citizens in the 
Board of Directors of  an entity shall be 
proportionate to the aggregate share of 
foreign capital of that entity.  
(c) Telex Services 
(d) Packet-switched data  
 transmission services (e) Circuit-switched data  
 transmission services  (ii) Certificate of Public Convenience and  
  Necessity (CPCN) from the National  
  Telecommunications Commission  (ii) All executives and managers must be 
  citizens of the Philippines.  
(f) Facsimile services 
(g) Others 
 
  Cellular Mobile 
Telephone Service  (iii) Foreign equity is permitted up to 40% 
 (iv) Resale of private leased lines is not 
allowed 
 (v) Call back, dial back and other similar 
schemes which result in the same 
operation are not authorized. 
 (vi) Subject to the availability and efficient    utilization of radio frequencies   
 4) Unbound 4) Unbound    S/DCS/W/PHL
 Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
Voice mail 
On-line information and  data base retrieval 
Electronic data exchange  
 Videotex 
 1) Only through duly enfranchised and  
 certificated domestic public   telecommunications carriers 
2) None 
3) Operation subject to securing of:  (i) Franchise from the Congress of the  
 Philippines 
 (ii) Certificate of Public Convenience and   Necessity (CPCN) from the National  
 Telecommunications Commission 
4) None  1) None 
  
2) None 
3) None  
 
  
 
4) None   
  S/DCS/W/PHL 
Page 6 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
COMMUNICATION SERVICES 
  The commitments in communication services ar e in accordance with the General Agreement on Trade in Services and its Annex on T elecommunications.  In support of 
 market access commitments undertaken, the fo llowing principles will form the basis for the regulatory  framework in basic telec ommunications. 
 1. Competitive safeguard
 
 
 Appropriate measures shall be maintained for the purpose of pr eventing suppliers from engaging in or continuing anti-competiti ve practices 
 
2. Interconnection  
  In order to achieve viable, efficient, reliable and universal telecommunications serv ices, a fair and reasonable interconnecti on of facilities of authorized public 
 network operators and other providers of telecommunications services shall be provided. 
  Interconnection shall be at any technically feasible point in the network, under non-discriminatory terms and conditions, in a  timely fashion, and on terms and 
 conditions that are fair, transparent and reasonable. 
  A service supplier requesting interconnection with another supplie r will have recourse after a reasonable period of time which  has been made publicly known to an 
 independent domestic body, which may be a regulatory body referred to in paragraph 5 below, to resolve disputes regarding appr opriate terms, conditions and rates for 
 interconnection within a reasonable period of time, to the extent that these have not been established previously. 
 
3. Universal Service
 
 
 Universal service obligations, as may be defined by the appropri ate Authority, shall be administer ed in a transparent, non-dis criminatory and competitively neutral 
 manner.  
 Authorized international gateway and mobile cellular telephone se rvice providers are required by law to install a set number o f local exchange lines in designated areas. 
    S/DCS/W/PHL
 Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 
4. Public availability of licensing criteria  
 
 Where a license is required, the following shall be made publicly available: 
  (a) all the licensing criteria and the period of time normally required to reach a decision  concerning an application for a l icense; 
 
 (b) the terms and conditions of individual licenses  
 The reasons for the denial of a license will be made known to the applicant upon request. 
 5. Independent regulators
 
 
 The regulatory body is separa te from, and not accountable to, any supplier of a basic telecommunications services.  The decisi ons of and the procedures used by 
 regulators shall be impartial with respect to all market participants. 
 
 The regulation of telecommunication suppliers shall rely principa lly on an administrative process that is stable, transparent and fair, giving due emphasis to technical, 
 legal, economic and financial considerations, and with due regard to the observance of due process at all times. 
 
 A national consultative forum shall be maintained to allow inte raction among the telecommunicati ons industries, user groups, a nd academic and research institutions on 
 important issues in the field of communications. 
 6. Allocation and use of scarce resources
 
 
 Any procedures for the allocation and use of scarce resources wh ich are frequencies, numbers and rights of way, will be carrie d out in an objective, timely, transparent 
 and non-discriminatory manner.  The current state of allocated frequency bands will be made pub licly available, but detailed i dentification of frequencies allocated for 
 specific government uses is not required. 
  S/DCS/W/PHL 
Page 8 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
7. FINANCIAL SERVICES 
 The commitments in financial services are in accordance with the General Agreement in Trade in Services and its Annex on Finan cial Services 
 All subsectors 
 3) The appropriate regulat ory authority in the  
 Philippines shall determine whether public  
 interest and economic conditions justify  
 authorization for the  establishment of   commercial presence or expansion of existing  
 operations in banking and other financial  
 services in the Philippines.  For foreign   financial institutions with internationally 
 recognized standing such determination shall  
 include a demonstrated capacity to contribute  
  
 
  to the attainment of Phillipine development  
 objectives particularly in the promotion of  
 trade, investments and appropriate technology   transfer; and the country of incorporation  has  
 strategic trade and investment relations with  
 the Philippines.   
  In banking, the Monetary Board shall ensure  
 that at all times seventy per cent (70%) of the  
 resources or assets of the Philippine banking  
 system is held by domestic banks which are at  
 least majority-owned by Filipinos.   
 3),4)Limitations listed in the horizontal section  
 shall also apply. 
     S/DCS/W/PHL
 Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Banking and Other  
 Financial Services   
 (excluding Insurance) 
 
Commercial Banking: - Acceptance of deposits and  
 other repayable funds from  
 the public  
- Lending of all types,   
 including consumer credit,   mortgage credit, and  
 financing of commercial  
 transaction  1) Commercial presence is required 
2) None 3) I. Forms of commercial presence
 
 
(a) Establishment of foreign bank branches . 
 Bound for ten (10) new licences for the period 
 1995-2000.  Full banking authority to new and 
 existing foreign bank branches.  1) None 
2) None 3) A foreign bank, widely-owned and publicly 
listed, may avail itself of only one form of 
commercial presence at a time.  However, this shall not preclude secondary invest ment in the equity of a 
locally incorporated bank  not exceeding thirty per 
cent (30%) of voting stock or forty per cent (40%) upon approval by the President of the Phillipines.  
- All payment and money  
 transmission services,  
 including credit, charge and   debit cards, travellers  
 cheques and bankers drafts 
  Each foreign bank shall be allowed to  
 establish a maximum of four (6) branches,   
 with the first two (2) of these branches at  
 locations of its choice and the remaining two  
 (2) branches at locations designated by the  
 Monetary Board.  
 
  
 
  
 
- Guarantees and  
 commitments  The prescribed capital ratio shall consist of the 
 permanently assigned capital and "net due to"   account not exceeding the equivalent of four  
 (4) times the amount of permanently assigned  
 capital.  The permanently assigned capital and   fifteen per cent (15%) of the required "net 
 due to" account shall be inwardly remitted and 
 converted into Philippine currency.     S/DCS/W/PHL 
Page 10 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
- Trading for own account or  
 for account of customers,   whether on an exchange, in  
 an over-the-counter market  
 or otherwise, the following:  
 - Money market 
instruments  
  (bank's own 
promissory  
  notes, repurchase    agreements, and 
certificates  
  of assignment/ 
participation  
  with recourse); (b) Acquisition of up to forty-nine per cent  
 (49%) of the voting stock of an existing   domestic bank.  Existing foreign banks  
 owning voting stock beyond the fifty-one  
 (51%) of the voting  
 
(c) Investing in up to forty-nine per cent   (49%) of the voting stock of a new locally  
 incorporated banking subsidiary.  Existing  
 investments of foreign banks beyond the fifty-  one percent (51%) level will be maintained at  
 their existing levels.   
 - foreign exchange; 
  - derivative products  
  including, but not 
limited to, futures and 
options; 
  The majority of the members of the Board of  
 Directors of a locally incorporated bank shall   be citizens of the Philippines. 
   
- exchange rate and interest  
 rate instruments,  including  
 products such as swaps,   forward rate agreements;   
 and 
 - other allowable negotiable  
 instruments and financial  
 assets  
  For foreign service suppliers other than banks,  
 aggregate share in the voting stock of a locally 
 incorporated bank shall be limited to thirty per  cent (30%) or up to forty per cent (40%) upon  
 approval by the President of the  
 Philippines. Shareholding in a locally   incorporated bank must  not exceed twenty per  
 cent (20%) for an individual and thirty per  
 cent (30%) for a corporation.      S/DCS/W/PHL
 Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
- Participation in issues of all  
 kinds of securities,   including underwriting and  
 placement as agent  
 (whether publicly or   privately) and provision of  
 services related to such  
 issues  II. Scope Of Operations
 
 Prior authority is required for the following: 
 
 - acceptance of depo sit substitutes and 
other repayable funds from the public; 
 
 - guarantees and commitments;   
 - performance of trust,  investment  
  management and other fiduciary functions  
  
 
  
 
  
 
  
- Asset management,  such as  
 cash or portfolio  
 management, all forms of  
 collective investment   management, custodial,  
 depository and trust  
 services  
Underwriting (firm and best efforts basis) may  
be performed only by commercial banks  
with expanded commercial banking  authority. 
   
 4) None 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies. 
  
Investment houses : 
 
- Purchase and sell, distribute  
 or arrange to distribute on a   guaranteed basis securities  
 of other corporations 
 1) Commercial presence is required 
2) None 
3) Must be organized as a stock corporation 
  Subject to foreign equity limitation of forty- 
 nine per cent (49%) 1) None 
2) None 
3) None  
- Participate as soliciting  
 dealer or selling group  
 member in tender offers,   block sales, or exchange  
 offering of securities 
  The majority of the members of the Board of  
 Directors shall be citizens of the Philippines    S/DCS/W/PHL 
Page 12 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
- Deal in options, rights or  
 warrants relating to   securities 
 
- Act as financial consultant,   investment adviser or  
 broker 
 - Act as portfolio  
 manager/financial agent 
 - Design pension, profit- 
 sharing and other employee  
 benefits plans   An investment house is not  allowed to engage 
 in banking operations  
 Prior authority is required for the performance  
 of quasi-banking functions  
4) None 
   
  
 
  
4) None 
   
 
Financial Advisory  
Services, as follows:  
 - credit reference and  
 analysis 
 
 1) None 
2) None 
3) Required to be organized as a commercial   bank, or an investment house,  or a non-bank  
 financial intermediary   
 1) None 
2) None 
3) None  
 
  
 
- investment and portfolio   
 research and advice 
  For commercial banks,  all limitations  
 mentioned under mode 3 above for  
 commercial banks shall apply 
  For investment houses,  all limitations  
 mentioned under mode 3 above for investment 
 houses shall apply  Foreign equity participation is bound at forty  
 per cent (40%) for non-bank financial  
 intermediary   
 4) None 
 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies.     S/DCS/W/PHL
 Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Factoring 
 1) Commercial presence is required 
2) None 3) Must be performed by a financing company  
 only, organized either as a corporation or  
 general partnership.  1) None 
2) None 3) None 
 
   
 
  Subject to foreign equity limitation of forty  
 per cent (40%) 
  Membership of non-Filipino citizens in the  
 Board of Directors is limited to one-third of  
 the Board's total membership in the case of a   corporation; no foreign managing partners in  
 the case of a general partnership. 
   
 4) None 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies.   
 Financial leasing 1) Commercial presence is required 
2) None 
3) Must be performed by a financing company  
 only, organized either as a corporation or  general partnership. 
 1) None 
2) None 
3) None   S/DCS/W/PHL 
Page 14 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  Subject to foreign equity limitation of forty  
 per cent (40%)    
 
  Membership of non-Filipino citizens in the  
 Board of Directors is limited to one-third of  
 the Board's total membership in the case of a   corporation;  no foreign managing partners in  
 the case of a general partnership. 
 4) None 
  
 
  
 
 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies.   
 
 Money broking and Foreign  
 Exchange broking  1) Commercial presence is required 
2) None 3) Required to be organized as a commercial  
 bank or a non-bank financial intermediary   
  For commercial banks,  all other limitations  
 mentioned in mode 3 above for commercial  
 banks shall apply. 
 1) None 
2) None 3) None 
 
  
 
  
 
  Foreign equity participation is bound at forty  
 per cent (40%) for non-bank financial  
 intermediary.   
 4) None 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies. 
  
 Credit card services 1) Commercial presence is required 
2) None 
3) Required to be organized as a commercial   bank or a non-bank financial intermediary 1) None 
2) None 
3) None     S/DCS/W/PHL
 Page 15Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 
  For commercial banks,  all other limitations  
 mentioned in mode 3 above for commercial   banks shall apply. 
 
 Foreign equity participation is bound at forty   per cent (40%) for non-bank financial  
 intermediary. 
 4) None 
  
  
 
  
 
 4) A non-Filipino citizen employed as officer or  
 assigned to do technical functions shall have  
 two Filipino understudies.   
 
 Promotion and provision of  
 information by a  
 representative office about   the services or products  
 offered by a foreign bank 
 1) Commercial presence is required 
2) None 
3) None 4) None 
 
 1) None 
2) None 
3) None 4) None 
  
 
Securities  dealership/brokerage 
 
- Trading for own account or  
 for account of customers,   whether in an exchange, in  
 an  over-the- counter   
 market or otherwise,  the   following: 
 1) Commercial presence is required 
2) None 
3) Required to be organized as an investment  
 house or as a securities broker/dealer  
 corporation or partnership.  
 For investment houses, all other limitations  
 mentioned under mode (3) above for   investment houses shall apply. 
 1) None 
2) None 
3) None 
 
   
 
 - Equities and its 
derivative products 
such as warrants  
  and options  
 - Transferable securities  For securities broker/dealer - must be a  
 member of the stock exchange.  Membership  
 is limited to 200. Underwriting is allowed  
 only on best-efforts basis.  
4) None  
 
 
  
4) None 
   S/DCS/W/PHL 
Page 16 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Participation in issues of all  
 kinds of securities,   including under-writing and  
 placement as agent  
 (whether publicly or   privately) and provision of  
 services related to such  
 issues  1) Commercial presence is required 
2) None 3) Required to be organized as an investment  
 house or as a securities broker/dealer  
 corporation or partnership.  
 For investment houses, all other limitations  
 mentioned under mode (3) above for   investment houses shall apply. 
 
 For securities broker/dealer - must be a   member of the stock exchange.  Membership  
 is limited to 200. Underwriting is allowed  
 only on best-efforts basis.  
4) None 
 1) None 
2) None 3) None 
 
  
 
  
 
  
 
  
4) None 
  
 
 Performance of the   functions of stock transfer  
 agent such as but not  
 limited to monitoring the  
 issuance and transfer of  
 stock certificates  1) Commercial presence is required 
2) None 
3) Must be organized either as a corporation or  
 partnership with at least one certified public  
 accountant duly licensed in the Philippines 
4) None  1) None 
2) None 
3) None 
 
 
4) None   
 
 Transactions of an issuer   primarily engaged in the   business of investing,  
 reinvesting or trading in  
 securities 1) Commercial presence is required 
2) None 3) Must be performed by an investment  
 company. 
  Foreign equity participation is bound at forty  
 per cent (40%) 1) None 
2) None 3) None  
 
  All members of the Board of Directors must  
 be citizens of the Philippines. 
 
4) None   
 
 
4) None   
   S/DCS/W/PHL
 Page 17Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Sale of contracts for the  
 payment of benefits or   performance of future  
 services such as life,  
 education, pension and   internment plans 
 1) Commercial presence is required 
2) None 3) Foreign equity participation is bound at forty  
 per cent (40%) 
4) None  1) None 
2) None 3) None 
 
4) None   
 
 Insurance   All subsectors 
 3),4)Limitations listed in the all-sector  
 horizontal section and all financial services   section shall apply. 
  
  
 3) Limitations in market access listed in the  
 specific sub-sectors below shall not apply to  
 existing wholly or majority foreign-owned  
 authorized2 insurance/reinsurance companies  
 and to those insurance/ reinsurance companies  
 that will be permitted entry for the period  
 October 1994-October 1996 under the terms   and conditions of Department of Finance  
 Order No. 100 and 100-A.  
 
 4) Qualified Non-Filipino citizens may be  
 employed for technical positions only within  
 the first five (5) years of operation of the   enterprise, their stay not to exceed five (5)  
 years upon entry. 
 Each employed non-Filipino citizen shall have  at least two (2) Filipino understudies. 
  
 
 Life insurance as follows:  
 
- Ordinary 
- Group - Industrial 
- Health and accident 
- Annuities  1) Risks located in the Philippines should be  
 insured with the companies authorized
3  to  
 transact business in the Philippines 
2) Same as (1) above 3) Market access is limited to: 
 
 1) Unbound 
 
 
2) Unbound 3) None 
  
                                                           
 2 The company which had been issued a licen ce or a certificate of authority by the In surance Commission to transact business in the Philippines prior to 1 October 
1994.  
3 Authorized means the company has been i ssued a licence or a certificate of authority  by the Insurance Commission to transact b usiness in the Philippines.  S/DCS/W/PHL 
Page 18 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
  (a) Acquisition of up to forty per cent (40%) 
of the voting stock of an existing domestic insurance company. 
 
 (b) Investing in up to forty per cent (40%) of 
the voting stock of a new locally 
incorporated insurance company. 
  
 
  Participation of non-Filipino citizens in the  
 Board of Directors of a locally incorporated  
 insurance company is limited to one-third of  
 the Board's total membership.  
4) None  
 
 
  
4) None 
    S/DCS/W/PHL
 Page 19Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 General non-life, as  
 follows:  
- Fire and allied risks/  
 earthquakes/shock/typhoon/  floods/tidal wave 
 
- Marine ocean   marine/inland  
 marine/marine hull/aviation 
  1) Risks located in the Philippines shall be  
 insured with the companies authorized
4  to  
 transact business in the Philippines 
2) Same as (1) above 
3) Market access is limited to:  
(a) Acquisition of up to forty per cent (40%) of  
 the voting stock of an existing domestic   insurance company. 
 
 (b) Investing in up to forty per cent (40%) of  the voting stock of a new locally incorporated 
 insurance company 
 1) Unbound 
  
2) Unbound 
3) None   
- Casualty motor car/health   and accident/burglary/ 
 engineering miscellaneous-  
 - Suretyship fidelity/surety  
 bonds  Participation of non-Filipino citizens in the  
 Board of Directors of a locally incorporated  
 insurance company is limited to one third of  
 the Board's total membership. 4) None  
 
 
 4) None  
 
 Insurance auxiliary  
 services, as follows:  
- acturial consultancies 
 - average adjustors 
  
1) Commercial presence is required 
2) None 3) Subject to foreign equity limitation of forty  
 per cent (40%)  
  Participation of non-Filipino citizens in the  
 Board of Directors of domestic companies is  
 limited to one third of the Board's total   membership. 
  
1) Unbound 
2) None 3) None 
 
 
 4) None 
 4) None 
  
 
                                                           
 4 Authorized means the company has been i ssued a licence or a certificate of authority  by the Insurance Commission to transact b usiness in the Philippines.  S/DCS/W/PHL 
Page 20 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Reinsurance/ 
 Retrocession  1) Priority cessions to authorized  
 insurance/reinsurance companies  
 Foreign unauthorised reinsures should be  
 represented by resident agents duly registered   with the Insurance Commission 
 1) None 
  
 
  
  
 
  Ten per cent (10%) of total insurance cessions  
 to foreign  unauthorised reinsures should be   ceded to the National  Reinsurance  
 Corporation of the  Philippines.   
 2) Same as (1) above 
3) Market access is limited to: 
 
 (a) Acquisition of up to forty per cent (40%)    of the voting stock of an existing 
domestic reinsurance company. 2) None 
3) None  
  (b) Investing in up to forty per cent (40%) of  
  the voting stock of a new locally 
incorporated reinsurance company. 
   
  Participation of non-Filipino citizens in the  
 Board of Directors of a locally incorporated  
 reinsurance company is limited to one third of  
 the Board's total membership. 
 4) None  
  
 
 4) None  
9. TOURISM AND TRAVEL  
 RELATED SERVICES     
A. Hotels and Restaurants  
       S/DCS/W/PHL
 Page 21Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Tourism accommodation  
 facilities  
- Hotel 
- Resort  - Pension house 
- Tourist inn 
- Apartel 1) Unbound* 
2) None 3) Subject to foreign equity limitation of 40 per  
 cent for pension house, tourist inn and apartel 
4) As a general rule, only citizens of the  
 Philippines can be employed in tourism-
 oriented establishments. 1) Unbound* 
2) None 3) None 
 
4) None  
 
  However, for hotels and resorts, aliens may be  
 employed subject to the pertinent provisions  
 of the Tripartite Agreement among the  
 Department of Tourism, Department of Labor   and Employment and the Bureau of  
 Immigration, as follows: 
  
 
   
 
  (i) Only hotels/resorts duly accredited by the  
 Department of Tourism shall be allowed to  
 engage the services of aliens  
 (ii) Aliens may occupy a maximum of four  
 (4) managerial positions in a hotel or resort  
 establishment  
 
  (iii) For new hotels or resorts, aliens required  
 during the pre-operation stage and up to six  
 (6) months after opening of the hotel/resort to  
 the public may be employed  
 (iv) The services of aliens may be engaged  
 during special occasions/events such as food   festivals, provided the service contract shall be 
 limited to a period of three (3) months  
 renewable for a maximum period of another   three (3) months  
 
                                                           
 * Due to lack of technical feasibility.   S/DCS/W/PHL 
Page 22 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Specialty Restaurants 1) Unbound* 
2) None 3) No foreign equity is allowed if the specialty  
 restaurant is not part of the facilities of a hotel 
 1) Unbound* 
2) None 3) None  
 4)  Aliens may be employed in specialty  
 restaurants subject to pertinent provisions of 
 the Tripartite Agreement among the 
 Department of Tourism, Department of Labor  and Employment and the Bureau of 
 Immigration, as follows: 
 4) None 
 
  (i) Only specialty restaurants duly accredited  
  with the Department of Tourism as well 
as those forming part of the integrated operation of accredited hotels/resorts may 
be allowed to engage the services of 
aliens;  
 
  (ii) A specialty restaurant with a minimum of  
  75-seat capacity shall be allowed to 
employ one (1) alien Specialty Chef or 
Sous Chef.  In the initial stage of 
operation of a specialty restaurant and for a maximum period of two (2) years, three 
(3) more alien specialty chefs or sous 
chefs may be employed; and  
  
  (iii) A specialty restaurant with a seating  
  capacity of 500 or more may be allowed 
to employ three (3) additional aliens in any of the following positions: specialty 
chef, sous chef, food service manager or a 
combination of the above. 
  
 
 Professional Congress  
 Organizers  1) Unbound* 
2) None 3) Subject to foreign equity limitation of 40 per  
 cent 
4) None  1) Unbound* 
2) None 3) None 
 
4) None     S/DCS/W/PHL
 Page 23Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Travel Agencies 
 1) Commercial presence is required 
2) None 3) Subject to foreign equity limitation of 40 per  
 cent 
4) Managers and executives must be resident   Filipino citizens 1) None 
2) None 3) None 
 
4) None   
 
11 TRANSPORT SERVICES 
    
A. Maritime Transport  
 Services  
    
 All subsectors 3) No franchise, ce rtificate, or any other form of  
 authorization for the operation of a public  
 utility shall be granted except to citizens of the 
 Philippines or to corporations or associations   organized under the laws of the Philippines at  
 least  60 per cent of whose capital is owned by 
 such citizens.  
 
 
 4) Only aliens qualified to hold technical  
 positions may be employed within the first  
 five years of operation of the enterprise,  their  
 stay not to exceed five (5) years upon entry. 
 Each employed alien should have at least two   (2) Filipino understudies. 
 
3),4)Limitations listed in the horizontal section   shall also apply 
  
  
 
 International Transport  
 (passenger and freight),  
 except 
 (a) cabotage transport, and 
(b) government-owned  
 cargoes
5 
 1) None 
2) None 
3) None 
4) For specialized vessels, aliens may be   employed as supernumeraries only for a  
 period of six months. 
 1) None 
2) None 
3) None 
4) None   
                                                           
 5 Subject to the Cargo Reservation Law which requires that cargoes owned by government-owned or controlled corporations shall be  shipped on board Philippine flag 
vessels.  S/DCS/W/PHL 
Page 24 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Leasing/rental of vessels  
 without crew  1) None 
2) None 3) Bareboat charter or l ease contract subject to  
 approval by the Maritime Industry  Authority  
 (MARINA) 4) None 
 1) None 
2) None 3) None 
 
 4) None 
  
 
 Maintenance and repair of  
 vessels 1) Unbound* 
2) Any repairs, conversion or drydocking of   Philippine-owned or registered vessels are  
 required to be done at domestic ship repair  
 yards registered with the Maritime Industry   Authority (MARINA). 1) Unbound* 
2) None  
 3) None 
4) None 3) None 
4) None    S/DCS/W/PHL
 Page 25Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
C. Air Transport Services  
    
 Leasing/rental of aircraft  
 without crew 
 1) None 
2) None 
3) Lease contract subject to approval by the Civil 
 Aeronautics Board 4) None 
 1) None 
2) None 
3) None 
 4) None 
  
 
 Maintenance and repair of  
 aircraft 
 1) Unbound* 
2) None 
3) None 
4) None  1) Unbound* 
2) None 
3) None 
4) None    
 
 General Sales and Cargo  
 Sales Agency  1) Commercial presence is required 
2) None 3) None 
4) None 
 1) None 
2) None 3) None 
4) None 
  
 
E. Rail Transport Services  
    
 Passenger and freight  
 transport 
 1) Unbound* 
2) None 
3) None 4) None 
 1) Unbound* 
2) None 
3) None 4) None 
   
 
 Maintenance and repair of  
 rail transport equipment 
 1) Unbound* 
2) None 
3) None 
4) None  1) Unbound* 
2) None 
3) None 
4) None   
                                                           
 * Due to lack of technical feasibility. 
   S/DCS/W/PHL 
Page 26 Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
F. Road Transport Services  
    
 Passenger and freight  
 transport 
 1) Unbound* 
2) None 
3) Provisional authority/certificate of public  
 convenience must be secured from the Land   Transportation Franchising and Regulatory  
 Board (LTFRB) 1) Unbound* 
2) None 
3) None 
  
 
   
  New entrants are subject to economic needs  
 test, as follows:  (a) the need to provide protection to  
 investments of operators in unserved  
 areas/developmental routes;  and  (b) the route measured capacity test for  
 number of vehicles. 
4) None  
  
 
  
 
4) None   
 Maintenance and repair of   road vehicles 
 1) Unbound* 
2) None 
3) None 
4) None  1) Unbound* 
2) None 
3) None 
4) None   
H. Services Auxiliary to all  
 Modes of Transport  
    
 Cargo handling services 
 Storage and warehousing  services 
 Container yard and depot  
 services  1) Unbound* 
2) None 3) None 
4) None 
 1) Unbound* 
2) None 3) None 
4) None 
   
 
                                                           
 *Due to lack of technical feasibility    S/DCS/W/PHL
 Page 27Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons  
Sector or Sub-sector Limitations on Market Access Limi tations on  National Treatm ent Additional Commitments 
 Freight forwarding services 
 1) None 
2) None 3) None 
4) None 
 1) None 
2) None 3) None 
4) None 
  
  
_______________ 
 
   S/DCS/W/PHL 
Page 28 
THE PHILIPPINES – LIST OF ARTICLE II (MFN) EXEMPTIONS 
 
Sector or Subsector Description of measure 
indicating its inconsistency 
with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for 
the exemption 
ALL SECTORS 
 
Entry and temporary stay of natural persons 
supplying services 
  
 
A special visa category is provided for traders and 
investors of countries with 
which the Philippines has concluded treaties on entry 
rights for traders and investors 
 Under this special category, the 
labor market test is waived and 
simplied entry procedures are provided 
  
 
All countries   
 
Expiry date or termination of bilateral treaties on 
entry rights for traders and 
investors   
 
To facilitate entry into the Philippines, on the basis of 
reciprocity, of foreign nationals for 
purposes of trade, investment and related activities 
 
Maritime Transport 
Services 
 
Liner cargo trade   
 
 
Executive Order 769 provides for a preferential cargo sharing 
arrangement with countries 
which are parties to the UNCTAD Liner Code 
 
Under the above-mentioned arrangement, a Party to the 
UNCTAD Liner Code 
effectively implementing the Code is assured of at least 40 
per cent share of its bilateral 
export and import liner cargo trade with the Philippines 
  
 
 
All countries which have acceded to the UNCTAD Liner 
Code 
  
 
 
Indefinite   
 
 
Ensure effective participation of Philippine ocean-going fleet in 
Philippine liner cargo trade 
   S/DCS/W/PHL
 Page 29Sector or Subsector Description of measure 
indicating its inconsistency 
with Article II Countries to which the 
measure applies Intended duration Conditions creating the need for 
the exemption 
Cabotage transport  Access to domestic shipping is 
reserved for Philippine owned or registered vessels 
 
However, limited access to domestic shipping is granted to 
countries with which the 
Philippines has concluded 
agreements on Amity, 
Commerce and Navigation  All countries 
 Expiry date or termination 
of bilateral agreements on Amity, Commerce and 
Navigation 
 Allow limited access to cabotage 
transport on a reciprocal basis  
Commercial banking 
 Authorization for financial 
service suppliers of another 
Member to establish commercial presence or expand 
existing operations in 
commercial banking in the Philippines shall be subject to a 
reciprocity test. 
 All countries 
 Indefinite 
 To ensure Philippine financial service 
suppliers are acco rded full market 
access and national treatment in the financial service 
market of another Member. 
 
 
__________