RESTRICTED  
   
WT/TPR/S/368  
5 February 2018  
(18-0780) Page: 1/106 
Trade Policy Review Body    
 
TRADE POLICY REVIEW  
REPORT BY THE SECRET ARIAT  
THE PHILIPPINES  
This report, prepared for the fifth Trade Policy Review of the Philippines, has been drawn up by the 
WTO Secretariat on its  own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement 
Establishing the World Trade Organization), sought clarification from The Philippines on its trade 
policies and practices.  
 
Any technical questions arising from this report may be addressed to Mr. Arne Klau (tel: 022 739 
5706); Mr. Thomas Friedheim (tel: 022 739 5083) and Mr. Xinyi Li (tel: 022 739 5579).  
 
Document WT/TPR/G/36 8 contains the policy statemen t submitted by the Philippines.  
 
  
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on the Philippines. This report was drafted 
in English.  
  WT/TPR/S/3 68 • The Philippines  
 
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  6 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ..........................  9 
1.1   Main Features of the Economy  ................................ ................................ ......................  9 
1.2   Recent Economic Developments  ................................ ................................ ................... 10 
1.2.1    Overview of economic growth  ................................ ................................ .................... 10 
1.2.2    Fiscal policy and structural reforms  ................................ ................................ ............ 11 
1.2.3    Monetary and exchange rate policy  ................................ ................................ ............ 13 
1.2.4    External balance  ................................ ................................ ................................ ......15 
1.3   Developments in Trade and Investment  ................................ ................................ ........ 16 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 16 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 20 
2   TRADE AND INVESTMENT  REGIMES ................................ ................................ ...........  22 
2.1   General Framework  ................................ ................................ ................................ ....22 
2.2   Trade Policy Formulation and Objectives  ................................ ................................ ........ 22 
2.3   Trade Agreements and Arrangements  ................................ ................................ ........... 23 
2.3.1    WTO ................................ ................................ ................................ ...................... 23 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 24 
2.3.2.1    ASEAN  ................................ ................................ ................................ ................. 24 
2.3.2.2    Japan  ................................ ................................ ................................ .................. 25 
2.3.2.3    European Free Trade Association (EFTA)  ................................ ................................ ..25 
2.3.2.4    European Union  ................................ ................................ ................................ ....25 
2.3.3   Other agreements and arrangements  ................................ ................................ ......... 26 
2.3.3.1    APEC ................................ ................................ ................................ ................... 26 
2.3.3.2    GSP ................................ ................................ ................................ ..................... 26 
2.4   Investment Regime  ................................ ................................ ................................ ....26 
3   TRADE POLICIES AND P RACTICES BY MEASURE  ................................ ........................  30 
3.1   Measures Directly Affecting Imports  ................................ ................................ .............. 30 
3.1.1    Customs procedures, valuation, and requirements  ................................ ....................... 30 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 31 
3.1.3   Tariffs  ................................ ................................ ................................ .................... 31 
3.1.3.1    Applied MFN tariffs  ................................ ................................ ................................ 31 
3.1.3.2    Tariff quotas  ................................ ................................ ................................ ......... 34 
3.1.3.3    Bound rates  ................................ ................................ ................................ ......... 34 
3.1.3.4    Preferential tariffs  ................................ ................................ ................................ .35 
3.1.3.5    Tariff concessions and exemptions  ................................ ................................ .......... 35 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 37 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 38 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 41 
3.1.6.1    Anti-dumping and countervailing measures  ................................ .............................. 41 WT/TPR/S/3 68 • The Philippines  
 
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  3.1.6.2    Safeguard measures  ................................ ................................ ............................. 41 
3.1.6.3    Other measures  ................................ ................................ ................................ ....42 
3.2   Measures Directly Affecting Exports  ................................ ................................ .............. 43 
3.2.1    Customs procedures and requirements  ................................ ................................ .......43 
3.2.2    Minimum export prices  ................................ ................................ ............................. 43 
3.2.3    Export taxes, charges, and levies  ................................ ................................ ............... 43 
3.2.4    Export prohibitions, restrictions, and licensing  ................................ ............................. 43 
3.2.5    Export support and promotion  ................................ ................................ ................... 44 
3.2.6    Export processing zones  ................................ ................................ ........................... 45 
3.2.7    Export finance, insurance, and guarantees  ................................ ................................ ..45 
3.2.8    Export performance requirements  ................................ ................................ .............. 46 
3.3   Measures Affecting Production and Trade  ................................ ................................ .......46 
3.3.1    Standards and other technical requirements  ................................ ............................... 46 
3.3.2    Sanitary and phytosanitary requirements  ................................ ................................ ....47 
3.3.3    Labelling and marking requirements  ................................ ................................ ........... 49 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 50 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 51 
3.3.6    Government procurement  ................................ ................................ ......................... 52 
3.3.7    Other measures  ................................ ................................ ................................ .......55 
3.3.8    Intellectual property rights  ................................ ................................ ........................ 55 
3.3.8.1    General issues  ................................ ................................ ................................ ......55 
3.3.8.2    Patents  ................................ ................................ ................................ ................ 55 
3.3.8.3    Copyright and related rights  ................................ ................................ ................... 56 
3.3.8.4    Trademarks  ................................ ................................ ................................ .......... 57 
3.3.8.5    Utility models, industrial designs and layout designs ................................ .................. 57 
3.3.8.6    Plant varieties  ................................ ................................ ................................ ......57 
3.3.8.7   IP registration and enforcement  ................................ ................................ .............. 57 
4   TRADE POLICIES BY SE CTOR  ................................ ................................ .....................  59 
4.1   Agriculture  ................................ ................................ ................................ ................. 59 
4.1.1    Overview  ................................ ................................ ................................ ................ 59 
4.1.2    Market access  ................................ ................................ ................................ ......... 59 
4.1.2.1    Applied MFN tariffs  ................................ ................................ ................................ 59 
4.1.2.2    Tariff quotas  ................................ ................................ ................................ ......... 59 
4.1.2.3    Special safeguard  ................................ ................................ ................................ ..60 
4.1.3    Domestic support ................................ ................................ ................................ .....60 
4.1.4    Export subsidies  ................................ ................................ ................................ ......62 
4.1.5    Rice ................................ ................................ ................................ ....................... 62 
4.1.6    Sugar  ................................ ................................ ................................ ..................... 65 
4.2   Fisheries  ................................ ................................ ................................ .................... 65 
4.3   Energy  ................................ ................................ ................................ ...................... 67 WT/TPR/S/3 68 • The Philippines  
 
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  4.3.1    Fuels ................................ ................................ ................................ ...................... 67 
4.3.2    Electricity  ................................ ................................ ................................ ............... 69 
4.4   Manufacturing  ................................ ................................ ................................ ............ 70 
4.5   Services  ................................ ................................ ................................ .................... 72 
4.5.1    Financial services  ................................ ................................ ................................ .....72 
4.5.1.1    Banking  ................................ ................................ ................................ ............... 72 
4.5.1.2    Insurance  ................................ ................................ ................................ ............ 75 
4.5.2    Telecommunications  ................................ ................................ ................................ .77 
4.5.3    Transport  ................................ ................................ ................................ ................ 78 
4.5.3.1    Aviation  ................................ ................................ ................................ ............... 78 
4.5.3.2    Maritime  ................................ ................................ ................................ .............. 80 
4.5.4    Tourism  ................................ ................................ ................................ .................. 81 
4.5.5    Professional services  ................................ ................................ ................................ 82 
5   APPENDIX TABLES  ................................ ................................ ................................ .... 84 
 
CHARTS  
 
Chart 1.1 Interest rate spread, January 2011 -October 2017  ................................ .................... 14 
Chart 1.2 Composition of merchandise trade, 2011 and 2016  ................................ .................. 17 
Chart 1.3 Direction of merchandise trade, 2011 and 2016  ................................ ....................... 19 
Chart 3.1 Frequency distribution of MFN tariff rates, 2017  ................................ ....................... 32 
Chart 3.2.Tariff escalation by 2 -digit ISIC industry, 2017  ................................ ........................ 34 
Chart 4.1 Fish production and trade, 2011 -16................................ ................................ ........ 66 
 
TABLES  
 
Table 1.1 Economic activities and employment, 2011 -16 ................................ .........................  9 
Table 1.2 Gross domestic product, 2011 -16 ................................ ................................ .......... 10 
Table 1.3 Selected macroeconomic indicators, 2011 -16 ................................ .......................... 12 
Table 1.4 Balance of payments, 2011 -16 ................................ ................................ .............. 15 
Table 1.5 Trade in services, 2011-16 ................................ ................................ .................... 18 
Table 1.6 Foreign direct investment, 2011 -16 ................................ ................................ ........ 20 
Table 1.7 Approved FDI, by source, 2011 -16 ................................ ................................ ......... 20 
Table 1.8 Share of approved FDI, by sector, 2011 -16 ................................ ............................. 21 
Table 3.1 Structure of the MFN tariff schedule, 2011 and 2017  ................................ ................ 31 
Table 3.2 Summary analysis of Philippine's MFN tariff, 2017  ................................ .................... 32 
Table 3.3 Summary analysis of the Philippines' preferential tariffs, 2017  ................................ ...35 
Table 3.4 Goods subj ect to a conditional duty exemption  ................................ ........................ 36 
Table 3.5 Excise tax rates, 2017  ................................ ................................ .......................... 37 
Table 3.6 Goods subject to import permits or licensing  ................................ ........................... 39 
Table 3.7 Anti -dumping measures, 2012 -17 ................................ ................................ .......... 41 WT/TPR/S/3 68 • The Philippines  
 
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  Table 3.8 Safeguard measures, 2012 -17 ................................ ................................ ............... 42 
Table 3.9 Goods subject to export permits or licensing  ................................ ........................... 44 
Table 3.10 Membership in international IPR conventions and treaties, 2017  .............................. 55 
Table 3.11 IP applications and registrations, 2011 -17 ................................ ............................. 57 
Table 4.1 OECD Producer Su pport Estimate (PSE) for the Philippines, 2014 -16 .......................... 61 
Table 4.2 Determination of in -quota and out -of-quota imports of rice  ................................ .......64 
Table 4.3 Gross value added in the manufacturing sector, 2011 -16 ................................ .......... 70 
Table 4.4 Banking sector structure, December 2016  ................................ ............................... 73 
Table 4. 5 Insurance market structure, 2011 -16 ................................ ................................ .....75 
Table 4.6 Numbers of licensed agents, October 2017 ................................ .............................. 77 
Table 4.7 Selected telecommunications indicators, 2011 –16 ................................ .................... 77 
 
BOXES  
 
Box 3.1 Prohibited imports, 2017  ................................ ................................ ......................... 38 
 
APPENDIX TABLES  
 
Table A1.1 Basic economic and social indicators, 2011 -16 ................................ ....................... 84 
Table A1.2 Merchandise exports by group of products, 2011 -16 ................................ ............... 86 
Table A1.3 Merchandise imports by group of products, 2011 -16 ................................ .............. 88 
 
 
Table A2.1 WTO notifications by the Philippines, 2012 -17 ................................ ....................... 90 
Table A2.2 Tenth foreign investment negative list, May 2015  ................................ .................. 93 
 
 
Table A3.1 In quota and out -of-quota tariff rates, 2017  ................................ .......................... 95 
Table A3.2 SPS accreditation requirements  ................................ ................................ ........... 97 
 
 
Table A4.1 Value of agricultural production, 2012 -16 ................................ ............................  100 
Table A4.2 Tar iff quota administration  ................................ ................................ ................  101 
Table A4.3 Rice imports and procurement, 2012 -16 ................................ .............................  103 
Table A4.4 Cargo throughput, by port, 2011 -16 ................................ ................................ ... 104 
Table A4.5 Specific commitments on professional services undertaken in FTAs  ........................  106 
 
 
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  SUMMARY  
1. Since its last Trade Policy Review in 2012, the Philippine economy has grown at an average 
annual rate of about 6%. Growth was driven mainly by consumption and infrastructure 
investment. GDP per capita in 2016 was some US$2,95 0, up from US$2,580 in 2012. The poverty 
rate declined from 25.2% in 2012 to 21.6% in 2015. Services constitute the most important sector 
in terms of contribution to GDP, and are also the fastest growing export  sector. The Philippine 
Development Plan 2017 -2022 focuses on making the economy more competitive, underpinned by 
sound regulatory practices and competition policy, and open services markets.  
2. Machinery is the Philippines' main merchandise export category. Exports of electronics and 
electrical goods recorded significant growth during the review period, accounting for 25.6% of total 
exports in 2016, up from 9.6% in 2011. Exports of services and remittances have also experienced 
fast growth. Imports of manufactured go ods have increased significantly, from 50% of total 
imports in 2011 to 76% in 2016. The surge of manufactures imports, in particular capital goods 
and consumer products, can be attributed to increasing infrastructure investment and the 
improvement of livin g standards. The United States, the European Union, Japan, China, and 
ASEAN countries are the Philippines'  main trading partners.  
3. During the review period, the Government pursued a conservative fiscal policy, aiming at 
strengthening resilience and building  a fiscal buffer. Consequently, the total government debt to 
GDP ratio decreased from 41% in 2012 to 35% in 2016. In order to achieve a higher growth path, 
the Government has strongly increased infrastructure spending, from 2.7% of GDP in 2013 to 5% 
in 201 6, particularly on inter -island connectivity, road connection, and addressing congestion in 
Metro Manila and other urban areas. Currently, the budget deficit target is set at 3% of GDP.  
4. As regards monetary policy, the central bank maintains an inflation -targeting policy, with 
the current target set at 3%. During the review period, the Philippines received sizeable capital 
inflows , from remittances and portfolio investment, which resulted in excess liquidity. To improve 
policy transmission, the central bank  has operated an interest rate corridor system since 
June 2016; this has narrowed the interest spread between the policy rate and the market rates.  
5. Over the review period, the Philippines recorded a strong inflow of foreign direct investment 
(FDI) which re ached US$7.9 billion in 2016, up from US$1.9 billion in 2011. The Netherlands, 
Australia, the United States, Japan, and Singapore were the major source countries of FDI. More 
than 60% of FDI was invested in the manufacturing sector. Attracting further FDI has been 
hampered by factors such infrastructure problems and restrictions on foreign ownership.  
6. The institutional framework for trade policy remains largely unchanged, although some 
institutional changes did occur, notably in the area of SPS measures and agriculture . The 
Department of Trade and Industry remains responsible for implementation and coordination of 
trade and investment policies, as well as promoting and facilitating trade and investment.  
7. The Philippines grants at least MFN treatment to all WT O Members. It has preferential 
trading agreements with 15 partners: the other nine parties of ASEAN, and six countries that have 
negotiated agreements with ASEAN (Australia and New Zealand, China, India, Japan, and the 
Republic of Korea). An agreement betw een the Philippines and EFTA members has been signed, 
but not yet ratified. FTA negotiations with the E uropean Union are ongoing.  
8. During the period under review, the Philippines provided well over 300 notifications to the 
WTO (including over 200 SPS notif ications). Nevertheless, some notifications remain outstanding, 
notably in the area of agriculture. The Philippines is currently involved in one WTO dispute 
settlement procedure as complainant ; during the review period it was not involved in a ny dispute 
settlement case s as defendant.  
9. The foreign investment regime of the Philippines is governed, inter alia , by the 1987 
Constitution and the Foreign Investments Act of 1991, which covers all activities except financial 
services. Under the Act, the Philippines e stablishes (every two years) a Foreign Investment 
Negative List (FINL) of activities in which FDI is restricted. The Philippines continues to limit 
foreign investment in a number of activities (including agriculture, fisheries, telecom services, and 
public  utilities), but has also taken some liberalizing steps. Thus, various FDI restrictions were WT/TPR/S/3 68 • The Philippines  
 
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  eliminated for professional services (subject to certain exceptions and reciprocity), and banking 
services. Foreign ownership of land is not permitted, but foreign  investors may lease land up to a 
maximum term of 75 years.  
10. The Customs Modernization and Tariff Act of 2016 aim s to modernize customs rules, 
expedite customs procedures, reduce opportunities for corruption, and improve customs service 
delivery. Pre -shipment inspection is mandatory for all bulk or break bulk cargo.  All shipments are 
classified according to risk . Cust oms clearance times for high risk consignments (about 50% of all 
consignments) are between one and two days, while moderate risk consignments require about 
four hours for clearance. The Philippines accepted the WTO Tra de Facilitation Agreement on 
27 Octobe r 2016; it has also submitted a notification regarding its Category A commitments.  
11. The Philippines' tariff comprises 10 ,813 lines at the HS  2017 eight-digit lev el (compared to 
8,299  in 2011 ), with rates ranging from zero to 65%. All tariffs are ad valorem . The average 
applied MFN tariff is 7.6%, up from 6.4% in 2011. The increase in the average tariff is mainly due 
to transposition to HS 2017 and the splitting of lines carrying high tariffs. Tariff rate quotas apply 
on 77 tariff lines. 65% of tariff lines (including all agricultural lines) are bound. The simple average 
bound rate is 25.7% . A wide range of tariff and tax  exemptions are provided under specific laws. 
Revenue forgone under tariff and tax concessions is considerable, amounting to PHP 549 billion  in 
customs duties and PHP 301 billion in VAT in 2016.  
12. Most imports, like domestically produced goods, are subject to value -added tax  which has a 
standard rate of 12% . Food products and agricultural inputs are exempt from VAT. Excise taxes 
are levied on al cohol ic beverages , tobacco products, automobiles, petroleum products, minerals, 
perfumes  and jewellery. A vast range of goods are subject to licences or permits when imported . 
For certain products, multiple permits or licences are required, and informal pa yments have been 
reported by the business community.  
13. In 2016, t he Philippines consolidated its regulatory framework for trade contingency  
measures under the Customs Modernization and Tariff Act.  As at end -2017, t he Philippines 
maintained anti -dumping measures on three products (wheat flour from Turkey, and clear float 
glass and bronze float glass from China) and safeguard measures on three products (steel angle 
bars, testliner board, and newsprint). In addition, a  special agricultural safeguard is in place on 
poultry meat.  
14. Registration and documentation requirements for exporters are similar to those for  
importers.  Only registered companies are allowed to export. No export taxes are levied in the 
Philippines, apart  from exports of plantation logs which are subject to a tax of 20%. Minimum 
export prices for corn and rice are no longer applied. Export licences are required for a wide range 
of products. Exports of rice, corn, and sugar remain restricted and may be expo rted only if there is 
a surplus . Some tax incentives are contingent on export performance.  
15. Economic zones are an important tool for export promotion in the Philippines. Incentives 
include corporate and income tax reductions, VAT and tariff exemptions, and simplified import and 
export procedures.  As at October 2017, there were  376 economic zones with total employment of 
more than 1.3 million. Exports by Filipino -owned companies are also promoted through public 
loans, guarantees and insurance made available b y the Philippine Export -Import Credit Agency . 
16. About 80% of standards are aligned to international standards. There are 72 mandatory  
technical regulations, covering a wide range of goods . The Philippines Accreditation Bureau has 
accredited 243 conformity as sessment bodies. The Philippines has reformed its food safety regime 
based on a "farm -to-fork" approach to enhance food safety. A new Food Safety Act was 
promulgated in 2013; its implementing legislation entered into force in 2015. However, the 
Philippines ' SPS-related import requirements for food, which appear to be complex, remain largely 
unchanged. During the period under review , the Philippines submitted  46 TBT notifications and 
over 200 SPS notifications . Members have not raised any Specific Trade Conc erns regarding its 
SPS and TBT measures.  
17. The Philippines passed its first Competition Act in 2015 and established a competition 
authority in 2016. However, the overall competition environment remains weak in many sectors. 
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  in transport , infrastructure, and housing . The Philippines has notified the N ational Food Authority 
(NFA) as a state -trading enterprise. The NFA has the exclusive authority to import rice , corn and 
other grains . New legislation on public procurement entered into force in 2016. The nationality 
requirement for bidders continues to restrict foreign -owned  entities from participating in public 
procurement. The Philippines is neither a signatory n or an observer of the Plurilateral Agreement 
on Government Procurement.  
18. The legal framework on intellectual property rights has remained basically unchanged.  The 
Bureau of Copyrights , established in 2013, is responsible for promoting awareness of IP right s and 
accreditation of organizations that collect royalties.  Applications and registrations for most types of 
IP have grown strongly during the period under review.  
19. Agriculture and forestry contributes around 10% to GDP. The Philippines ranks among the 
major world producers of bananas, coconuts, pineapples, and rice. The WTO waiver allowing the 
Philippines to defer the tariffication of its quantitative restrictions (QRs) on rice expired in 
June 2017. A bill on tariffication of the QRs is pending in parliame nt as at December 2017. In the 
meantime, the Philippines has extended its WTO waiver -related tariff concessions on rice and other 
commodities. Thus, as at December 2017, the Philippine rice import regime remains under the 
status quo. E nsuring food security  remains the most important objective of agricultural policy 
which includes a credit programme for farmers; a livestock, dairy and poultry programme; and a 
government export marketing campaign for high -value crops.  
20. The Philippines is a net importer of ener gy. The Government has issued a National 
Renewable Energy Programme to encourage the development of renewable energies. Local content 
requirements are applied to bioethanol: production must first exhaust domestic feedstock sources 
before using any imported  equivalent. The cost of energy remains high, hindering the development 
of other sectors.  
21. Manufacturing contributes about 25% to GDP and employs some 8% of the labour force. The 
strongly growing sector mainly comprises: food and beverages, furniture and fi xtures, electronics, 
chemicals, petroleum refining, and motor vehicles. Most industries supply mainly the domestic 
market, except the electronics industry whose products are mostly for export.  
22. The services sector contributes some 51% to GDP; the share of financial services remained 
at some 10% of GDP during the review period. Up to 100% foreign ownership of banks has been  
allowed since June 2014. Foreign banks or their branches are also allowed to participate in 
foreclosure proceedings and take possession of the mortgaged property, with certain restrictions. 
National treatment has been applied, in terms of regulatory requirements, to foreign -owned 
insurance companies since mid -2013, when the Insurance Code was amended.  
23. In transport, the Philippines reserves cabotage for national carriers, both in aviation and 
maritime transport. Most Philippine bilateral air services agreements cover third and fourth 
freedoms. Since July 2015, international relays in maritime transport have been allowed: foreign 
ships may carry goods that are bound for international trade between inter -island domestic ports; 
the goods for international relays must be unloaded by another foreign vessel calling at that port 
en route  to the port of final des tination.   
24. The telecommunications sector in the Philippines is private -sector driven and dominated by 
two companies.  Foreign ownership in telecommunications is not allowed to exceed 40%. Services 
providers must obtain a franchise from Congress before comme ncing business. In 2017, the 
Government issued a National Broadband Plan, with the aim of improving telecom infrastructure 
and promoting an open access network.  
25. Tourism is considered to be central to the Philippines' social and economic development: in 
2016, the sector contributed 8.6% to GDP and 12.8% to employment. During the review period, 
the Government adopted a number of visa facilitation measures to boost tourist arrivals; it also 
took steps to address infrastructure problems that affect the sector.  Restrictions on foreign 
ownership remain in various areas of the tourism sector. While 100% foreign ownership is 
permitted for hotels , a minimum of 40% Filipino ownership applie s to restaurants.  WT/TPR/S/3 68 • The Philippines  
 
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  1  ECONOMIC ENVIRONMENT  
1.1  Main Features of the Economy  
1.1.  The Philippines is located in the western Pacific Ocean, and on the Ring of Fire. The country 
consists of over 7,000 islands.1 Luzon, the major island, is home to the Metropolitan Manila area 
where most of the econo mic activities are concentrated. Visayas comprises the Philippines' central 
islands, where many of the biodiversity and tourism destinations are located. Mindanao, in the 
south, is mostly a rural economy. Inter -island shipping is the major transport mode f or national 
traffic.  
Table 1.1 Economic activities and employment, 2011 -16 
 2011  2012  2013  2014  2015  2016  
Current GDP at market price (US$ billion)  224.1  250.1  271.8  284.6  292.8  304.9  
Current GDP at market price (PHP billion)  9,708.3  10,561.1  11,538.4  12,634.2  13,322.0  14,480.7  
Economic activities (% of GDP)  
Agriculture  15.4 14.4 13.7 13.8 12.5 11.8 
 Agriculture and forestry  13.1 12.2 11.6 11.9 10.8 10.2 
 Fishing  2.3 2.2 2.1 1.9 1.8 1.6 
Mining and quarrying  1.8 1.4 1.2 1.3 1.0 1.0 
Manufacturing  25.6 25.0 24.9 25.1 24.5 24.0 
Construction  6.5 7.3 7.6 7.7 8.3 8.9 
Electricity, gas and water  4.1 4.3 4.2 4.1 4.0 3.8 
Services  46.6 47.6 48.4 48.1 49.7 50.5 
 Trade and repair of motor vehicles  21.2 21.5 21.9 21.6 22.1 22.3 
 Transport, storage, and communication  7.8 7.8 7.7 7.6 7.8 7.7 
 Financial intermediation  8.5 8.8 9.3 9.5 9.7 9.8 
 Real estate and business activities  13.8 14.0 14.5 14.8 15.6 16.0 
 Public administration and defence  5.0 5.3 5.1 4.8 4.7 4.9 
 Other services  11.4 11.7 11.7 11.4 11.9 12.0 
Share of sector in total employment        
Agriculture  33.0 32.2 31.0 30.5 29.2 27.0 
 Agriculture and forestry  29.0 28.4 27.4 26.9 25.7 23.9 
 Fishing  3.9 3.8 3.7 3.6 3.4 3.1 
Mining and quarrying  0.6 0.7 0.7 0.6 0.6 0.5 
Manufacturing  8.3 8.3 8.3 8.3 8.3 8.3 
Construction  5.6 5.9 6.2 6.7 7.0 8.2 
Electricity, gas and water  0.4 0.2 0.2 0.2 0.2 0.2 
Services  52.1 52.6 53.4 53.5 54.7 55.6 
 Trade and repair of motor vehicles  .. 18.3 18.6 18.8 18.9 19.6 
 Transport and storage  .. 7.0 7.2 6.9 7.2 7.4 
 Accommodation and food service 
activities  3.0 4.2 4.2 4.4 4.4 4.3 
 Information and communication  .. 0.9 0.9 0.9 1.0 0.9 
 Financial and insurance activities  .. 1.2 1.2 1.3 1.3 1.3 
 Real estate  .. 0.5 0.5 0.4 0.5 0.5 
 Professional, scientific and technical 
activities  .. 0.5 0.5 0.5 0.5 0.5 
 Administrative and support service 
activities  .. 2.5 2.7 2.8 2.9 3.3 
 Public administration and defen ce; 
compulsory social security  5.0 5.2 5.2 5.1 5.4 5.4 
 Education  3.2 3.2 3.2 3.2 3.3 3.2 
 Human health and social work activities  1.2 1.2 1.2 1.2 1.3 1.2 
 Arts, entertainment and recreation  .. 0.9 0.9 0.9 0.9 0.9 
 Other services  7.8 7.2 7.1 7.0 7.1 7.1 
.. Not available.  
Source:  Philippine Statistics Authority online information; IMF e Library -Data online information.  
1.2.  Services constitute the most important sector in terms of both contribution to gross domestic 
product  (GDP) (51% in 201 6) and employment ( 56% of the labour force) . Within services, "trade 
and repair of motor vehicles" is the largest subsector, accounting for 22% of GDP and 20% of 
employment in 2016; real estate, though only employing 0.5% of the labour force, contributes 
16% to GDP. Manufacturing accounts for about  24% of GDP and some 8 4% of the total value of 
merchandise exports . Agriculture and related activities remain an important sector of the 
economy, despite the decline in its share to 12 % in 201 6. Mining and quarrying is an 
                                                
1 Only approximately 2,000 islands are inhabited.  WT/TPR/S/3 68 • The Philippines  
 
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  underdeveloped sector (1% of G DP), though  the country contains abundant mineral resources 
(Table 1.1) . 
1.3.  The Philippines has a very young population. In 2015, according to the latest census, the 
total population was 100.98 million, with a median age of 24.3. The country is estimated to have 
entered its "demographic window", 70% of its population being of working age, with a 64% labour 
participation rate. Labour exports, through remittances from overseas workers and payment of 
seafarers'  wages, are an important source of national income. Overs eas workers account for 3.2% 
of households. 26.3% of the population are under the poverty line.  
1.2  Recent Economic Developments  
1.2.1   Overview of economic growth  
1.4.  Since the last Review in 2011, the Philippines has experienced robust economic growth at a 
rate of abov e 6% each year (Table 1.2). Despite typhoon Yolanda and the dry weather associated 
with El Ni ño having an impact on growth in 2014 -15, the average growth rate was 6.6% for the 
last five years. This is the highest among the countries in the region. GDP per capita in 2016 was 
US$2,951, while gross national income (GNI) per capita was PHP  168,830 (~US$3,555). According 
to the IMF, growth has reached full capacity, with an almost zero output gap.2 Structural reforms, 
including scaling up in infrastructure and s ocial expenditure as well as relaxing foreign investment 
restrictions, are much needed to raise the potential growth path.  
Table 1.2 Gross domestic product, 2011 -16 
 2011  2012  2013  2014  2015  2016  
Real GDP (US$ billion, 2010 prices)  136.5  149.3  159.0  161.4  167.0  171.1  
Real GDP (PHP billion, 2010 prices)  5,910.2  6,305.2  6,750.6  7,165.5  7,600.2  8,126.4  
Real GDP growth (% of change)  3.7 6.7 7.1 6.1 6.1 6.9 
Current GDP at market price 
(US$ billion)  224.1  250.1  271.8  284.6  292.8  304.9  
Current GDP at market price 
(PHP billion)  9,708.3     10,561.1    11,538.4    12,634.2    13,322.0   14,480.7    
GDP per capita at current market 
price (US$)  2,352.5  2,581.8  2,760.3  2,842.9  2,878.3  2,951.1  
GDP by expenditure (% of GDP)  
Consumption  83.2 85.1 84.2 83.1 84.7 84.7 
 Private consumption  73.5 74.2 73.4 72.5 73.8 73.6 
 Public consumption  9.7 10.8 10.8 10.6 10.9 11.1 
Gross fixed capital formation  18.7 19.6 20.6 20.7 22 24.6 
Net export of goods and services  -3.6 -3.3 -4.2 -3.6 -5.9 -9.0 
 Export of goods and services  32.0 30.8 28.0 28.9 28.4 28.0 
 Import of goods and services  35.7 34.1 32.2 32.6 34.3 36.9 
Source:  Philippine Statistics Authority online information.  
1.5.  The main growth drivers are domestic factors such as consumption and investment 
(Table  1.2). Both consumption and investment, in particular household consumption and private 
construction, have grown rapidly during the period under review (Table 1.2). Buoya nt private 
consumption was fuelled by cash remittances and wage payments from abroad, as well as by the 
rapid development of the business process outsourcing (BPO) sector, neither of which is directly 
reflected in national accounting (Section 1.3.1).  
1.6.  The r evenues of the BPO sector grew at an average pace of 17% per year during 2010 -16, 
and is projected to grow year -on-year at 9% between 2016 and 2022, according to the IT  and 
Business Process Association of the Philippines (IBPAP). In 2016, the sector's reve nue was almost 
US$23 billion. The rapid growth of the BPO sector stimulates other sectors such as construction 
(i.e. for office space and apartments), retail, and restaurants.  
                                                
2 IMF Country  Reports, No. 14/245, No. 15/246, and No. 16/309.  WT/TPR/S/3 68 • The Philippines  
 
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  1.7.  Except in 2014, gross fixed capital formation grew at a double -digit annual rate . In 2016, it 
grew 25% compared to the previous year (Table 1.3). The growth in investment may be explained 
by the boom in the real estate sector and the acceleration in infrastructure investment 
(Section  1.2.2). In June 2016, credit to construction and re al estate grew by more than 20% on a 
year-on-year basis. Since 2014, the authorities have been increasing infrastructure spending, 
through  public -private -partnership (PPP) projects. PPPs have continued to expand from PHP  1.1 
trillion in 201 3 to PHP  1.4 tri llion in June 2016.  
1.8.  While the services balance is in surplus, reflecting strong services exports, such as receipts 
from BPO and workers' remittances, net export of goods and services remain in deficit (Table 1.2).  
1.9.  The unemployment rate has continue d to dec line since 2014 . The unemployment rate in 2016 
was 5.4%, the lowest recorded since 2006.  Youth unemployment remains a dominant problem in 
the labo ur market.  Although it has also declined, the youth unemployment rate is almost triple the 
national rate, at 16.1%, in 2016.  
1.10.   The outlook for the Philippine economy remains favourable despite external headwinds. Real 
GDP growth is forecast  at 6.7 % in 2017 , assuming  continued robust private domestic demand and 
higher public spending . Unemployment is projected to de cline further  in 2017. Inflation is expected 
to re main within the central bank's  target range , as commodity prices stabilize and strong 
economic activity continues.  
1.2.2   Fiscal policy and structural reforms  
1.11.   During the review period, the Government pursued a con servative fiscal policy. The Aquino 
administration (2010 -2016) was focused on strengthening resilience and building a fiscal buffer. A 
target of national government deficit to GDP ratio was set at 2%. Sustained primary surplus and 
rapid GDP growth caused t he government debt -to-GDP ratio to continue declining: government  
debt decreased from 41.4%  of GDP in 20 11 to 34.6% in 2016 (Table 1.3) . 
1.12.   The Philippines has a small government compared to other countries in the region: 
government expenditure accounted for around 16% throughout the years of the review period. As 
for public investment, the Philippines' public capital remains the lowest among ASEAN countries, at 
35% of GDP in 2015.3 Persistently low investment has been reflected in the quality of 
infrastructur e, particularly the inter -island connectivity bottleneck. Poor infrastructure has 
constrained private investment and job creation . 
1.13.   In response, the authorities have increased infrastructure spending since 2013: the state 
budget allocated PHP  207 billion (2 .7% of GDP) for infrastructure in 2013, PHP  442 billion (3.4%) 
in 2014, PHP  570 billion (4%) in 2015, and PHP  767 billion (5%) in 2016. According to an IMF 
study, increasing infrastructure spending from 3% to 5% of GDP will lead to an additional increase 
in GDP by 5% to 11%,  depending on investment efficiency.4 This upward shift of growth path  is 
achieved through the public infrastructure enhancement that leads to a permanent improvement in 
the general productivity of the economy, and crowding  in private in vestment.  
1.14.   National government budget deficits were below the 2% medium -term target  for the years 
2013-15 because of budget under -execution early in the se years. For instance, the actual spending 
on infrastructure in 2014 was PHP  276 billion (62% of the amo unt allocated in the budget). 
Expenditure was withheld in case of a revenue shortfall to secure the 2% of GDP fiscal deficit 
target, which impeded efficient expenditure and risked pro -cyclical fiscal management. Budget 
execution improved thereafter, which led to the deficit reaching 2.4% in 2016. This would imply a 
fiscal stimulus of 0. 4% of GDP in 2016  (Table 1.3) . 
1.15.   When the Government changed in July 2016, the Duterte  administration included the 
ground work from the previous administration in its economic and social policies. The new 
administration announced a Zero -To-Ten-Point Socioeconomic Agenda, in which it includes  policy 
priorities on, inter alia,  accelerating in frastructure investment , raising competitiveness by relaxing 
constitutional restrictions on foreign direct investment  (FDI),  ensuring security of land tenure , 
                                                
3 IMF Working Paper, WP/16/39, February 2016.  
4 IMF Working Paper, WP/16/39, February 2016.  WT/TPR/S/3 68 • The Philippines  
 
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  strengthening the education system , implementing a comprehensive tax policy reform, 
modernizing t ax collection agencies , and improving social welfare program mes. 
1.16.   Starting in 2017, t he Duterte  administration increase d the deficit target to 3% of GDP so as 
to raise infrastructure and social spending , based on appropriate revenue projections.5 In the 201 7 
budget, PHP  858.1 billion was assigned to infrastructure.   
Table 1.3 Selected macroeconomic indicators, 2011 -16  
 2011  2012  2013  2014  2015  2016  
National accounts (% change, unless otherwise indicated)  
Real GDP (at 2000 prices)  3.7 6.7 7.1 6.1 6.1 6.9 
 Consumption  5.1 7.7 5.5 5.3 6.5 7.1 
 Private consumption  5.6 6.6 5.6 5.6 6.3 7.0 
 Government consumption  2.1 15.5 5.0 3.3 7.6 8.4 
 Gross fixed capital formation  -1.9 10.8 11.8 7.2 16.9 25.2 
 Exports of goods and services  -2.5 8.6 -1.0 12.6 8.5 10.7 
 Imports of goods and services  -0.6 5.6 4.4 9.9 14.6 18.5 
Unemployment rate (%)  7.0 7.0 7.1 6.6 6.3 5.5 
Prices and interest rates   
Inflation (CPI, % change)  4.6 3.2 3.0 4.1 1.4 1.8 
Lending rate (%)  6.63 5.65 5.76 5.53 5.58 5.64 
Deposit rate (%)  3.39 3.16 1.66 1.23 1.59 1.60 
Exchange rate        
Pesos/US$ (annual average)  43.31  42.23  42.45  44.40  45.50  47.49  
Real effective exchange rate (% change)  0.7 4.8 4.0 -0.3 6.5 -3.1 
Nominal effective exchange rate (% change)  -1.0 3.7 2.7 -2.5 5.9 -3.9 
Fiscal balance (% of GDP)        
National government balance  -2.0 -2.3 -1.4 -0.6 -0.9 -2.4 
 Revenue and grants  14.0 14.5 14.9 15.1 15.8 15.2 
 Tax revenue  12.4 12.9 13.3 13.6 13.6 13.7 
 Expenditure  16.0 16.8 16.3 15.7 16.7 17.6 
Government total debt  41.4 40.6 39.3 36.4 36.2 34.6 
 Domestic  20.6 22.7 23.1 21.9 21.3 20.3 
 External  20.8 17.9 16.2 14.5 14.9 14.4 
Saving and investment (% of GDP)        
Gross national savings  23.0 21.0 24.2 24.3 23.4 24 
Gross domestic investment  20.5 18.2 20.0 20.5 20.6 24.3 
Savings -investment gap  2.5 2.8 4.2 3.8 2.8 -0.3 
External sector (% of GDP, unless otherwise indicated)  
Current account balance  2.5 2.8 4.2 3.8 2.5 -0.3 
Net merchandise trade  -9.1 -7.6 -6.5 -6.1 -8.0 -11.7 
 Merchandise exports  17.1 18.5 16.4 17.5 14.8 14.0 
 Merchandise imports  26.2 26.1 22.9 23.6 22.7 25.7 
Services balance  2.9 2.5 2.6 1.6 1.9 2.3 
Capital account  0.1 0.0 0.0 0.0 0.0 0.0 
Financial account  -2.4 -2.7 0.8 3.4 0.8 -0.1 
 Direct investment  0.2 0.4 0.0 0.4 0.0 -1.9 
Balance -of-payments  5.1 3.7 1.9 -1.0 0.9 -0.1 
Merchandise exports (% change US$)  4.1 21.2 -4.0 11.9 -13.3 -1.1 
Merchandise imports (% change US$)  9.5 11.3 -4.8 8.0 -1.0 17.7 
Service exports (% change in US$)  6.2 8.3 14.2 9.3 14.0 7.6 
Service imports (% change in US$)  2.5 15.8 14.4 28.2 12.9 2.6 
Gross international reserves (US$ billion, end -period)  75.3 83.8 83.2 79.5 80.7 80.7 
 in months of retained imports  11.6 11.5 11.6 9.9 9.9 8.8 
Total external debt (US$ billion; end -period)  75.6 79.9 78.5 77.7 77.5 74.8 
 % of GDP  33.7 32.0 28.9 27.3 26.5 24.5 
Source:  Philippine Statistics Authority online information; IMF e Library -Data online information; Bangko 
Sentral ng Pilipinas (BSP) online information.  
1.17.   The authorities  aim to increase public infrastructure spending to at least 5 % of GDP over 
the medium term . Indeed, a spending target of PHP  1,840.2 billion (~7.3% of GDP) on 
infrastructure was approved by the Presidential Development Budget Coordination Commit tee on 
9 June 2017. The planned prioritize d investment s of the Government are i nter-island connectivity, 
logistics, farm -to-market roads and tourism sites, address ing congestion in Metro Manila and other 
                                                
5 The previous administration's fiscal deficit targets were based on aspirational revenue targets.  WT/TPR/S/3 68 • The Philippines  
 
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  urban areas, as well as social spending. In order t o expedite infrastructure projects  that are 
deemed urgent , the administration has requested emergency powers from Congre ss for a limited 
period of time.6 Congress' approval of the request was still pending at the time this report was 
finalized.  
1.18.   Together wi th the new 3% mid -term target, the authorities indicated that the fiscal anchor 
would  target a broadly stable consolidated general government debt -to-GDP ratio at the current 
level (36 % of GDP) over the medium term . The 3% deficit target would allow the au thorities to 
address the Philippines'  large infrastructure and social g aps to promote inclusive growth;  it would 
also reduce the debt -to-GDP ratio to less than  31% in 2021, thus providing a margin of 5 % of GDP 
to respond to the materialization of fiscal ri sks and uncertainty through flexible implementation.7 
1.19.   The poverty rate declined from 25.2% in 2012 to 21.6% in 2015.8 The Government set an 
ambitious target to reduce the poverty rate by 1.25 to 1.5 percentage points per year, with a 
cumulative decline of between 7.5% and 9% in six years. In order to achieve this, the authorities 
consider it imperative that the increase in social and infrastructure  spending is targeted at the 
most vulnerable, particularly in rural areas, and is accompanied by strong structu ral policies. In 
this respect, the authorities plan to increase investment in human capital development and 
support programmes designed to promote inclusive growth such as the K -to-12 Programme, 
housing programmes for poor Filipinos, labour protection, and  health care .  
1.20.   Facing the increase in spending on infrastructure and social needs, the Philippines needs to 
reform its tax system and improve revenue collection to finance its structural reform. Tax 
collection is at around 13% of GDP (Table 1.3), reflectin g low compliance and extensive 
exemptions. The authorities note that a comprehensive tax reform package is expected to be 
implemented in January 2018; the package, known as the Tax Reform for Acceleration and 
Inclusion (TRAIN), is expected to simplify the personal income tax structure, tighten VAT 
exemptions, and increase excises on certain goods.   
1.2.3   Monetary and exchange rate policy  
1.21.   The Bangko Sentral ng Pilipinas  (BSP) operates an inflation target band  to achieve its  
primary objective of monetary policy : "to promote price stability conducive to the balanced and 
sustainable growth of the economy ".9 Currently, BSP maintains a target band of 3±1% for the 
period of 2016 -18. The target was lowered by 1% on 29 December 2015. Before that, the inflation 
target was a band of 4±1% for the period 2010 -14. 
1.22.   Amid strong economic activity, h eadline inflation has generally remained  within the target 
band in recent years , and greater exchange rate flexibility has helped cushion the impact of 
external shocks  (Table 1.3) . In 2015 and 2016, inflation fell below the target band due to lower 
food and fuel prices, but is expected to return to within the target range in 2017 as commodity 
prices stabilize and strong economic activity continues.  
1.23.   On 3 June 2016, BSP formally shifted it s monetary operations to an Interest Rate Corridor 
(IRC) system that aims to influence short -term market interest rates to move closely with the 
BSP's policy rate. The IRC is structured as a mid -corridor system, with the Overnight Lending 
Facility (OLF) an d the Overnight Deposit Facility (ODF) forming the upper and lower bounds of the 
corridor, while the overnight reverse repurchase ( RRP) rate is set at the middle of the corridor. The 
RRP rate is the key policy rate to signal the BSP 's monetary policy stanc e. The authorities note 
that these  changes enabled BSP to take a more active role in monetary policy operation, and 
                                                
6 If approved, the emergency power  would authorize the President (or the duly authorized Head of 
Agency) to adopt alternative methods of procurement for the construction, repair, rehabilitation, improvement 
and maintenance of transportation projects aimed at the reductio n of traffic congestion in Metro Manila and 
other urban areas. Such alternative methods include limited source bidding or selective bidding, direct 
contracting or single source procurement, repeat order, and negotiated procurement.  
7 IMF Country Report No.  16/309, September 2016.  
8 National Economic and Development Authority (NEDA), Media Release. Viewed at: 
http://www.neda.gov.ph/2016/10/27/statement -on-full-year-2015-official -poverty -statistics -as-delivered -by-
dir-reynaldo -r-cancio -of-neda/ .  
9 The Bangko Sentral ng Pilipinas (BSP) formally adopted inflation targeting as a framework for 
conducting monetary  policy in January 2002 when the New Central Bank Act (RA 7653) entered into force.  WT/TPR/S/3 68 • The Philippines  
 
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  hence enhance the policy transmission to other market rates as well as  to key macroeconomic 
variables.  
1.24.   Following the global financial crisis , the Philippines received sizeable inflows, from both 
remittances and portfolio investment, resulting in a build -up of reserves a nd persistent excess 
liquidity. Most of the liquidity injected by the build -up of reserves in the period of unconventional 
monetary policies in the advanced economies was passively sterilized by the BSP 's Special Deposit 
Account (SDA) Facility.10 This reflected the limited amount of treasury securities held by the BSP 
for the RRP operations , and its inability to issue its own debt  securities.  Since the BSP lowered the 
SDA rate without changing the RRP rate in 2013, market interest rates have followed the SDA rate 
and remained significantly below the policy rate, with the SDA rate becoming a more relevant 
benchmark rate  (Chart 1.1) .11 Excess liquidity in the banking system has declined slightly since 
mid-2013 but is still substantial.  
1.25.   BSP also introduced the Term Deposit Auction Facility (TDF) as the main tool for absorbing 
liquidity and as a variable rate auction supporting price dis covery  in the money market. Auctions 
for the TDF are conducted once a week at a volume determined by the BSP based on its liquidity 
forecast.  The initial TDF auctions were small , and were oversubscribed by a large margin , and 
market rates have remained at the lower bound  of the IRC. BSP is expected to increase its deposit 
auction volumes to promote the gradual convergence of the TDF and market interest rates toward 
the policy rate (RRP ) (Chart 1.1) .  
Chart 1.1 Interest rate spread, January 2011 -October 2017  
 
Source:  Bangko Sentral ng Pilipinas  (BSP) online information.  
1.26.   According to the authorities, the IRC has significantly reduced interest rate volatilities:  the 
interest rate corridor was symmetric and narrowed at 100 base points, compared to 350 base 
points before.12 Once most of the liquidity is absorbed through open market operations , and 
market rates are well anchored within the corridor, BSP also plans to gra dually reduce the 
relatively high required reserve ratio on banks to minimize the risks of financial disintermediation.  
In March and May 2014, BSP raised the reserve ratio by 200 basis points to 20%, and it has 
                                                
10 In 2013, the Bangko Sentral ng Pilipinas  decided to restrict nonbanks' direct access to SDA. This 
restriction released some 5% of GDP in liquidity in late 2013.  
11 The Overnight Deposit Facility  and the Term Deposit Facility (TDF) formally replaced the Special 
Deposit Account (SDA) facility.  
12 Prior to formally adopting the  IRC system as  a framework for monetary policy implementation, BSP 
had a de facto  corridor with the re purchase (RP) rate (ceiling) and the Special Deposit Account (SDA) rate 
(floor) forming an asymmetrical 350 - base-point corridor around the BSP reverse repurchase (RRP) rate.  
0%1%2%3%4%5%6%7%
Jan-11
July-11
Jan-12
July-12
Jan-13
July-13
Jan-14
July-14
Jan-15
July-15
Jan-16
July-16
Jan-17
July-17RP rate
Policy rate
ODF rate
TDF rate
Market rate
SDA rate
Source:     .....Chart 1.[]  Interest rate spread, January 2011 to October 2017WT/TPR/S/3 68 • The Philippines  
 
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  remained unchanged ever since. Over the perio d under review, the monetary policy stance was 
generally on a gradually tightening trend.  
1.27.   The de jure  exchange rate arrangement is classified as free floating, while the de facto  
exchange arrangement is classified as floating. The value of the Philippine p eso is determined in 
the interbank foreign exchange market; and BSP intervenes in the spot and forward markets in 
order to smooth undue short -term volatility in the exchange rate and to strategically build forex 
reserves.13 
1.28.   The Philippines' real effective exchange rate (REER) was on an upward trend during the 
review period.14 The appreciation of the REER in the Philippines was stronger than neighbouring 
countries such as Malaysia or Thailand. Though the movement of the REER is associated with the 
nominal eff ective exchange rate (NEER), the real appreciation has been due to the inflation 
differential between the Philippines and its trading partners. The IMF considered that the 
Philippines' REER was broadly in line with fundamentals and desired policies.  
1.2.4   Extern al balance  
1.29.   During the period under review, the current account surplus reached its peak in 2013, at 
US$11.4 billion, approximately 4.2% of GDP (Table 1.4). The then surplus reflected the 
Philippines' low level of domestic investment compared with national savings. Raising investment, 
and thus boosting potential growth, by improving the business environment and infrastructure, 
could help reduce external imbalances without necessarily adjusting the exchange rate.  
1.30.   The current account balance  registered a defic it of US$954 million (~0.3% of GDP) in 2016, 
despite a large drop in fuel imports . The reversal of the current account balance reflect ed a 
deceleration in remittances, a decrease  in exports, and a large increase in imports of capital and 
intermediate goods . The deficit  was expected to further increase to US$601 million  (~0.2% of 
GDP) in 201 7 due to higher commodity prices and infrastructure -related imports  (Section 1.3.1) . 
Table 1.4 Balance of payments, 2011 -16  
(US$ million)  
 2011  2012  2013  2014  2015  2016  
Current account balance  5,642.7  6,949.5  11,383.5  10,755.9  7,265.7  -953.9  
 Goods and services balance  -13,866.0  -12,747.4  -10,647.2  -12,753.9  -17,854.4  -28,505.0  
 Goods balance  -20,428.0  -18,926.1  -17,662.0  -17,330.4  -23,309.2  -35,548.8 
  Exports  38,276.5  46,384.3  44,512.4  49,823.7  43,197.1  42,734 .4 
  Imports  58,704.5  65,310.4  62,174.4  67,154.1  66,506.3  78,283.2  
 Services balance  6,562.0  6,178.7  7,014.8  4,576.5  5,454.8  7,043.8  
  Exports  18,878.2  20,439.2  23,335.2  25,498.1  29,065.0  31,265.0  
  Imports  12,316.2  14,260.5  16,320.4  20,921.6  23,610.2  24,221.2 
 Primary i ncome  941.8  197.2  957.3  727.4  1,857.0  2,575.6 
  Credit  7,637.0  8,257.0  8,358.3  8,779.0  9,502.6  9,544.5  
  Compensation of employees  5,853.0  6,524.2  7,038.6  7,419.8  7,808.8  7,517.6  
  Debit  6,695.2  8,059.7  7,401.0  8,051.5  7,645.6  6,968.9 
 Secondary income  18,567.0  19,499.7  21,073.4  22,782.4  23,263.1  24,975.5 
  Credit  19,044.2  20,057.0  21,679.7  23,445.7  24,086.0  25,654.1 
  Workers' remittances  17,140.5  17,953.3  19,288.9  20,762.9  21,510.4  23,151.8  
  Debit  477.2  557.3  606.3  663.3  822.9  678.6 
Capital account  159.9  94.8 133.8  107.9  84.3 102.3  
Financial account  -5,318.6  -6,748.0  2,230.2  9,631.2  2,300.5  -351.2  
 Direct investment  342.5  957.8  -90.4 1,014.3  -99.7 -5,866.6 
 Philippines' direct investment 
abroad  2,349.6  4,173.2  3,646.9  6,753.9  5,539.5  2,113.0  
 Direct investment in the 
Philippines  2,007.2  3,215.4  3,737.4  5,739.6  5,639.2  7,979.6 
                                                
13 IMF Country Report No. 16/309, September 2016.  
14 The authorities indicated that more recently the peso gained external price competitiveness in 
September 2017 : the real effective exchange rate decreased by about 5% on a year -on-year basis.  WT/TPR/S/3 68 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  
 Portfolio investment  -3,663.2  -3,205.0  -1,001.1  2,708.3  5,470.9  1,424.6  
 Assets  -563.2  964.0  -637.8  2,704.9  3,342.7  1,160.8 
 Liabilities  3,100.1  4,169.1  363.4  -3.4 -2,128.2  -263.8  
 Financial derivatives  -1,004.7  -13.7 -88.0 4.0 5.6 -32.2 
 Other investment  -993.2  -4,487.1  3,409.8  5,904.5  -3,076.3  4,123.1  
 Assets  348.3  -1,014.3  3,639.9  5,838.3  -2,212.7  2,707.8  
 Liabilities  1,341.5  3,472.8  230.1  -66.2 863.6  -1,415.3  
Net errors and omissions  278.8  -4,556.3  -4,202.2  -4,090.6  -2,432.9  80.3 
Overall balance of payments  11,400.0  9,236.0  5,084.9  -2,858.0  2,616.5  -420.1  
Source:  BSP online information.  
1.31.   The Philippines continues to have ample reserves; its international reserves stood at 
US$80.7 billion in 2016, covering almost nine months of imports (Table 1.3). The high level of 
reserves is broadly justified by the vulnerability to natural disasters and capital flow volatility. With  
change s in the external environment , like the US interest rate increasing, steady portfolio outflows 
are expected to continue, and gross reserves are projected  to increase modestly over the medium 
term. The opening up of the economy may see a rise in FDI but be accompanied by higher imports 
of capital goods . 
1.32.   The external debt continued to decline during the review period. In 2016, it decreased to 
25% of GDP, dow n from 34% in 2011 (Table 1.3).  
1.3  Developments in Trade and Investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.33.   As shown in an IMF study, the Philippines' growth is more attributed to internal rather than 
external factors. Thus, compared to othe r emerging market economies (EMEs), it is more resilient 
to external shocks, such as China's slowing -down.15 In 2016, t he ratio of merchandise trade 
(exports and imports) to GDP was 46.6% (Table 1.3) . 
1.34.   During the review period, merchandise exports of the Phi lippines reached a peak in 2014 at 
US$61.8 billion, then gradually declined (Table A1.1). In 2016, total merchandise exports were 
valued at US$56.3 billion, compared to US$48 billion in 2011 (an increase of 17% over five years). 
The fluctuation of merchand ise exports reflected the change in external demand for Filipino goods.  
1.35.   Manufactured goods continued to dominate Filipino merchandise exports: their share 
increasing from 57.9% in 2011 to 84.2% in 2016. Exports of electronics and electrical goods grew 
significantly in the last five years, and were the country's biggest export  by far. In particular, the 
share of electronic integrated circuits (ICs) and micro -assemblies  increased from 9.6% in 2011 to 
25.6% in 2016; the share of other electrical machines grew from 6.7% in 2011 to 11% in 2016 
(Chart 1.2). The resurgence of the electronics sector reflected recent Japanese investment in the 
country to diversify the sector from ICs to storage, printers, car parts and other products.  
1.36.   In contrast to the slow growth o f merchandise exports, services exports experienced rapid 
expansion during the review period. In 2011, services exports were valued at US$18.9 billion, 
while in 2016 they were recorded at US$31.4 billion (an increase of 66% over five years) 
(Table  1.5). 
1.37.   Among services trade, BPO is the fastest growing export. According to IBPAP, about 56% of 
BPO business is in the subsector of contact centres, while the rest is mainly in the areas of 
computer application development, healthcare information management, and c reative digital 
services. BPO exports are thus reflected in two services exports: "other business services" and 
"computer services". In 2016, exports under these two categories combined reached 
US$22.9  billion, up from US$20.5 billion in 2015, with an aver age growth rate of 12% per year 
(Table 1.5).  
1.38.   Travel and tourism are another important source of services exports, accounting for 16% of 
services exports in 2016 (Table 1.5).  
                                                
15 IMF Working Paper WP/16/214, November 2016.  WT/TPR/S/3 68 • The Philippines  
 
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  Chart 1.2 Composition of merchandise trade, 2011 and 2016  
 
Source:  UNSD, Comtrade database (SITC Rev.3).  
1.39.   In addition, remittances from overseas workers and wage payments to seafarers are 
considered as Mode 4 services exports. During the period under review, person al remittances grew 
at a slower pace than the period before 2010, at an average rate of 6.3% per year. Despite the 
deceleration, remittances from Filipinos overseas stood at US$29.7 billion in 2016, approximately 
equal to 9.7% of the GDP of that year (Tabl e 1.3). These large remittances from Filipinos working 
abroad support high import volumes relative to GDP.   
1.40.   With its focus on services exports, through BPO and overseas workers, the Philippines, 
compared to other EMEs, is less affected by sluggish external  demand for manufactured goods.  
Chart 1.1  Product composition of merchandise trade, 2011 and 2016
2011 2016
(a)    Exports (f.o.b.)
Other consumer 
goods  3.1%
Manufactures
57.9%
Total:   US$48.0 billion Total:  US$56.3 billion
(b)    Imports (c.i.f.)
Chemicals
10.6%Iron & steel
2.3%Transport equip.
5.8%
Manufactures
49.9%
Office machines &
telecommunication 
equipment
12.9%Other electrical
machines  3.9%
Non-electrical 
machinery
7.9%Non-electrical 
machinery
8.5%Other
0.2%
Other electrical 
machines  4.9%Office machines & 
other telecom. equip.
19.5%
Other semi -manuf.  
5.7%Transport equipment
11.8%
Chemicals
10.1%Manufactures
75.8%
Office machines &
telecommunication
equipment
23.8%
Total:   US$63.7 billion Total:   US$85.9 billionManufactures
84.2%Other electrical
machines
11.0%
Other electrical 
machines
6.7%
Other consumer
goods  7.1%Other
15.8%Office machines & other
telecom. equip.
17.7%Textiles & 
clothing  3.3%Other
1.3%
Other semi -
manuf.  6.8%
Non-electrical 
machinery
2.2%Mining
5.3%
Transport 
equipment  
6.1%
Source :  UNSD, Comtrade database (SITC Rev.3).Other consumer 
goods  4.6%
Mining
11.6%Other consumer 
goods  8.0%
Transport equipment
6.2%
Other 
semi-manuf.
6.2%
Non-electrical 
machinery  1.3%
Other semi -
manuf.  4.0%Mining
8.5%
Agriculture
12.3%Agriculture
11.0%
Mining
23.3%Iron & steel
4.0%Chemicals
3.9%Chemicals  
2.8%Other 
22.4%
Fuels
9.7% Fuels
20.1%
Other mining
1.9%
Other mining  
3.2%Agriculture
9.2%Agriculture
11.3%
Electronic integrated 
circuits & microassemblies
9.6%Electronic integrated 
circuits & microassemblies
25.6%Textiles & clothing  
2.2%WT/TPR/S/3 68 • The Philippines  
 
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  Table 1.5 Trade in services, 2011 -16 
 2011  2012  2013  2014  2015  2016  
Total credit (US$ million)  18,878.2  20,439.2  23,335.2  25,498.1  29,065.0  31,265.0  
 % of total credit  
Maintenance and repair  0.4 0.5 0.3 0.4 0.3 0.3 
Transport  7.5 7.8 7.0 7.4 6.7 6.2 
 Passenger  4.5 4.4 3.9 4.0 3.9 3.8 
 Freight  2.0 2.3 2.2 2.3 1.8 1.4 
 Other  1.0 1.1 0.9 1.0 1.0 1.1 
Travel  16.9 19.9 20.1 19.7 18.1 16.5 
Construction  0.2 0.5 0.4 0.2 0.2 0.2 
Insurance and pension services  0.4 0.4 0.4 0.5 0.4 0.3 
Financial services  0.6 0.5 0.4 0.7 1.4 1.3 
Charges for the use of intellectual 
property n.i.e.  0.03 0.04 0.01 0.04 0.04 0.03 
Telecommunications services  2.0 2.5 2.1 1.4 1.0 1.0 
Computer services  12.6 12.2 12.1 12.2 10.9 16.6 
Other business services  58.9 55.3 56.6 56.8 60.4 48.4 
Personal, cultural and recreational 
services  0.3 0.4 0.5 0.6 0.5 0.5 
Government services  0.1 0.1 0.1 0.1 0.1 0.1 
Total debit (US$ million)  12,316.2  14,260.5  16,320.4  20,921.6  23,610.2  24,221.2 
 % of total debit  
Maintenance and repair  0.7 0.8 1.6 0.4 0.4 0.5 
Transport  26.0 25.3 20.9 18.5 16.3 18.0 
 Passenger  3.6 4.2 3.5 2.5 2.2 2.3 
 Freight  18.8 17.1 14.1 12.9 11.5 13.2 
 Other  3.7 4.1 3.4 3.0 2.7 2.6 
Travel  45.6 45.9 48.0 50.7 48.0 46.1 
Construction  0.4 0.3 0.5 0.3 0.2 0.2 
Insurance and pension services  7.6 6.2 4.9 3.9 3.8 5.6 
Financial services  2.2 1.8 1.8 1.8 1.9 2.3 
Charges for the use of intellectual 
property n.i.e.  3.6 3.3 3.2 2.6 2.6 2.3 
Telecommunications services  1.2 1.4 1.5 1.8 1.7 1.1 
Computer services  1.5 1.0 1.7 1.2 1.4 1.6 
Other business services  8.3 11.7 13.9 17.1 21.7 20.3 
Personal, cultural and recreational 
services  0.3 0.3 0.3 0.3 0.8 0.5 
Government services  2.5 2.1 1.6 1.5 1.1 1.5 
Balance (US$ million)  6,562  6,178.7  7,014.8  4,576.5  5,454.8  7,043.8  
Source:  BSP online information . 
1.41.   Merchandise imports have been on an upward trend since the previous TPR in 2011. In 
2016, merchandise imports reached US$85.9 billion, with a year-on-year growth rate of 23.4% 
(Table A1.2). This steep increase reflects infrastructure -related imports (e.g. machinery, iron and 
steel), and the rising prices of commodities. Before 2016, the Philippines benefited from relative 
low prices of commoditi es, due to its reliance on imports of energy, industrial commodities and 
construction materials.  
1.42.   Mirroring the composition of merchandise exports, manufactured goods accounted for the 
largest share of imports. The proportion of manufactured goods expanded from 49.9% in 2011 to 
75.8% in 2016. Office machines and telecommunications equipment account for the largest 
portion of merchandise imports (23.8%), recording an 11% increase. Imports of transport 
equipment doubled in the review period: in 2016, they were  valued at US$7.6 billion, up from 
US$3.7 billion in 2011 (Chart 1.2). The surge of these types of imports was also matched by an 
expansion in consumer credit and auto loans.  WT/TPR/S/3 68 • The Philippines  
 
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  1.43.   The share of fuel imports dropped significantly from 20.1% in 2011 to 9.7% in 201 6, 
reflecting the collapse of oil prices since mid -2014 (Chart 1.2).  
1.44.   As for trade in services, travel (e.g. overseas tourism) represents the largest share of 
services imports, accounting for more than 45% of all services imports throughout the review 
period (Table 1.5).  
Chart 1.3 Direction of merchandise trade, 2011 and 2016  
 
Source:  UNSD, Comtrade database (SITC Rev.3).  
1.45.   Japan remains the top destination for Filipino merchandise exports: 20.7% of merchandise 
exports in 2016 went to the Japanese market (Chart 1.3). The United States purchased 15.4% of 
Chart 1.2  Direction of merchandise trade, 2013 and 2016
2011 2016
Exports (f.o.b.)
Other Asia
50.1%
Total:   US$48.0 billion Total:  US$56.3 billion
Imports (c.i.f.)
Other 
5.7%China
10.2%
EU-28
7.4%
Middle East
10.1%Singapore
8.1%United States
10.9%
EU-28
7.9%China
18.5%
Thailand
7.8%Singapore
6.5%United States
8.9%
Total:   US$63.7 billion Total:   US$85.9 billionOther Asia
52.8%Japan
18.5%
Middle East
3.6%Korea,  Rep. of
6.5%Korea, Rep. of  
7.3%United States
14.8%Other Asia  2.5%
United States
15.4%Other 
4.9%
Source :  UNSD, Comtrade database.Japan
11.9%China
11.0%
Singapore
6.6%EU-28
12.1%China
12.7%
Singapore
8.9%
Other Asia
50.1%Other Asia
42.3%Japan
11.0%
Other
3.2%Other Asia
6.9%Hong Kong, China
11.7%
EU-28
12.4%Other
4.8%Korea, Rep. of
4.6%
Chinese Taipei
4.2%Hong Kong, China
7.7%
Japan
20.7%
Thailand
3.8%Other Asia 2.0%
Thailand 
5.7%Other Asia   
6.9%Chinese Taipei
6.3%Chinese  Taipei
6.9%
Indonesia
4.0%
Indonesia
5.5%Thailand
4.0%Chinese Taipei
3.7%
Malaysia
4.0%Malaysia
4.4%ASEAN
26.2%ASEAN
23.6%ASEAN
14.9%ASEAN
18.0%
Other ASEAN
2.4%Other ASEAN
1.5%Other ASEAN
5.1%Other ASEAN
4.6%Korea, Rep. of
3.7%WT/TPR/S/3 68 • The Philippines  
 
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  Filipino merchandise exports in 2016, followed by other ASEAN countries (14.9%), and the 
European Union (12.1%) (Table A1.3). This pattern fits with the compositio n of merchandise 
exports: most electronic products are destined for advanced economies.  
1.46.   Other ASEAN countries are the major source of imports to the Philippines, accounting for 
26.2% of the total value in 2016 (Chart 1.3). China supplied 18.5% of all merch andise imports in 
2016, followed by Japan (11.9%), and the United States (8.9%) (Table A1.4).  
1.3.2   Trends and patterns in FDI  
1.47.   During the period under review, the Philippines recorded a strong inflow of FDI, especially 
after 2013. FDI inflow in 2011 was valued at US$1.9 billion, while in 2016 it reached US$7.9 
billion. This resulted largely from the improvement to the economic fun damentals and business 
environment, as well as from sound macroeconomic policies. Meanwhile, the Philippines also 
became an increasing investor in the rest of the world . FDI outflow from the country experienced a 
ten-fold expansion for the five -year period , with a US$3.7 billion outflow in 2016, compared to 
US$339 million in 2011 (Table 1.6).  
Table 1.6 Foreign direct investment, 2011 -16 
 2011  2012  2013  2014  2015  2016  
FDI inflows (US$ million)  2,007.2  3,125.4  3,737.4  5,739.6  5,639.2  7,979.6 
FDI inward stock (US$ million)  33,684.0  45,054.7  47,276.1  56,646.3  58,521.9  64,249.4  
FDI inward stock (% of GDP)  15.0 18.0 17.4 19.9 20.0 21.1 
FDI outflows (US$ million)  2,349.6  4,173.2  3,646.9  6,753.9  5,539.5  2,113.0  
FDI outward stock (US$ million)  18,503.6  24,401.3  29,010.2  35,791.3  41,016.6  43,660.1  
FDI outward stock (% of GDP)  8.3 9.7 10.7 12.6 14.0 14.3 
Source:  Information provided by the authorities.  
1.48.   Further s uccess in attracting FDI inflows has been hampered by a number of factors such as 
lack of good infrastructure , FDI restrictions  (Section 2.[investment regime]), and weak 
competition  environment. The authorities noted that steps have been taken to address t he issues, 
including steadfast implementation of the competition law, drawing up a national competition 
policy , and avoiding regulations that unduly discourage new entrants . 
1.49.   With regard to the source of inward FDI, the Netherlands was the biggest investor,  
accounting for 22% of total approved FDI over the period between 2011 and 2016, followed by 
Japan (21%), and the United States (17%) (Table 1.7).  
Table 1.7 Approved FDI, by source, 2011 -16 
(PHP million)  
Sourc e 2011  2012  2013  2014  2015  2016  
Australia   1,878.4   1,151.5   4,482.4   2,449.3   538.3   32,439.8  
British Virgin Islands   2,324.2   3,721.7   92,780.9   7,328.3   5,625.7   4,520.6  
Canada   1,539.3   956.3   2,721.3   357.9   329.7   1,395.6  
Cayman  Islands   8,443.0   7,018.8   7,298.5   15,444.8   4,428.6   3,656.4  
China   20,657.4   1,988.3   1,240.9   11,476.4   1,455.1   1,519.4  
Denmark   845.1   327.9   607.2   788.0   20.8   6.4  
France   1,145.1   1,355.5   379.8   554.7   21.5   444.3  
Germany   980.0   1,911.8   3,046.3   6,845.1   3,064.7   4,904.6  
Hong Kong, China   875.0   1,261.2   584.4   1,116.4   2,134.1   1,401.2  
India  1,533.3   104.4   583.7   648.8   1,760.5   1,595.6  
Japan   78,321.2   69,037.0   44,784.4   35,659.9   54,711.1   27,058.7  
Korea, Rep. of   13,235.1   9,795.0   8,527.3   4,155.1   23,165.6   16,134.5  
Malaysia   570.9   1,598.8   862.0   351.1   2,904.3   1,084.5  
Netherlands   28,303.3   104,743.3   24,807.7   32,784.0   82,726.6   49,445.9  
Singapore   2,217.1   12,951.6   9,242.1   13,944.8   16,817.2   24,056.0  
Switzerland   2,071.1   878.1   366.1   2,175.3   918.6   412.0  
Separate Customs 
Territory of Taiwan, 
Penghu, Kinmen and 
Matsu  
(Chinese Taipei )  3,130.0   2,472.1   3,140.3   2,977.4   5,457.7   1,608.4  WT/TPR/S/3 68 • The Philippines  
 
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  Sourc e 2011  2012  2013  2014  2015  2016  
Thailand   -   6,582.6   107.7   246.4   448.9   2,567.2  
United Kingdom   1,719.3   6,768.8   1,471.5   7,067.3   4,129.2   4,733.9  
United States   79,854.5   39,996.7   55,343.6   17,423.0   21,740.6   31,427.8  
Others   8,588.0   14,922.9   11,635.5   23,149.1   12,817.0   8,625.9  
Total  258,231.3  289,544.3  274,013.6  186,943.1  245,215.8  219,038.7  
Source:  Information provided by the authorities.  
1.50.   In terms of sectoral distribution of foreign investment , manufacturing and electricity 
accounted for more than 60% during 20 12-16, followed by transport, private services, hotels and 
restaurants, and  real estate (Table 1.8). 
Table 1.8 Share of approved FDI, by sector, 2011 -16 
 2011  2012  2013  2014  2015  2016  
Agriculture, forestry and fishing  0.49 1.56 0.98 0.29 3.47 2.38 
Mining and quarrying  0.21 0.08 0.72 - - 0.28 
Manufacturing  55.34  58.55  28.30  58.57  54.87  43.80  
Electricity, gas, steam and air conditioning supply  11.80  1.97 27.19  3.31 18.96  25.40  
Water supply; sewerage, waste management and 
remediation activities  0.15 0.38 0.05 0.07 0.02 0.80 
Construction  0.01 1.36 0.00 4.14 - 0.01 
Wholesale and retail trade; repair of motor vehicles and 
motorcycles  0.03 0.10 0.06 0.30 0.70 0.46 
Transportation and storage  0.44 18.32  20.24  3.26 2.32 7.12 
Accommodation and food service activities  0.39 2.78 9.26 2.95 2.34 2.41 
Information and communication  1.31 5.33 1.30 2.64 1.28 1.82 
Financial and insurance activities  0.04 0.03 0.02 0.04 0.10 0.12 
Real estate activities  23.90  3.45 2.35 8.34 4.03 3.18 
Professional, scientific and technical activities  0.10 0.06 0.23 0.03 1.17 0.38 
Administrative and support service activities  5.06 5.63 8.97 15.92  9.33 11.75  
Public administration and defence; compulsory social 
security  0.06 0.06 0.01 0.03 - 0.02 
Education  0.01 0.19 0.09 0.04 - - 
Human health and social work activities  - 0.00 0.00 0.08 0.01 0.06 
Arts, entertainment and recreation  0.65 0.14 0.21 0.00 1.20 - 
Other service activities  0.01 0.01 0.02 0.01 0.19 0.02 
Total  100 100 100 100 100 100 
- Negligible.  
Source:  Informat ion provided by the authoritie s.WT/TPR/S/3 68 • The Philippines  
 
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  2  TRADE AND INVESTMENT  REGIMES  
2.1  General Framework  
2.1.  The Constitution of 1987 proclaims the Philippines as a democratic republic with a 
presidential form of government. The executive branch is headed by the President, who is elected 
directly by the people for a single six -year term. The President approves bills that have been 
adopted by Congress, and is vested with the power to issue presidential issuances.1 The legislative 
branch is composed of the Senate (Upper House)  and the House of Representatives (Lower 
House).2 The judicial branch consists of the Supreme Court, appellate courts (such as the Court of 
Appeals and two special appellate courts for taxation and corruption cases), and two levels of trial 
courts.  
2.2.  The Phi lippine procedures for the negotiation, ratification, and entry into force of international 
agreements are set out in Executive Order No. 459 of 1997. Presidential authorization (which 
includes the negotiating position) must be obtained prior to any negoti ations. In general, 
international trade negotiations are conducted by the Department of Trade and Industry (DTI) in 
coordination with the Department of Foreign Affairs (DFA). The President ratifies all international 
agreements and submits treaties to the S enate for concurrence.  
2.2  Trade Policy Formulation and Objectives  
2.3.  The institutional framework for trade policy formulation and implementation remains largely 
unchanged, although some institutional changes did occur, notably in the area of SPS measures 
and agr iculture (transfer of oversight of the National Food Authority to the Office of the Cabinet 
Secretary).  
2.4.  The National Economic and Development Authority (NEDA) is the Philippines' economic 
development and planning agency. The NEDA Board, chaired by the Pres ident, sets the principal  
economic policy direction, and the NEDA Secretariat serves as the Board's research and technical 
support arm. The NEDA Board is supported by several Cabinet -level inter -agency committees, 
including the Committee on Tariff and Rela ted Matters (see below). The (NEDA -approved) 
Philippine Development Plan 2017 -2022 focuses on the competitiveness of the economy through 
open services markets, good regulatory practices and sound competition policy and institutions.3 
2.5.  The Department of Trad e and Industry (DTI) is responsible for implementation and 
coordination of trade and investment policies, as well as promoting and facilitating trade and 
investment.4 Key trade -related implementing agencies are under the authority of the DTI.5 The 
DTI chai rs the Cabinet Committee on Tariff and Related Matters, as well as the Technical 
Committee on WTO Matters, and the Committee for the ASEAN Economic Community . The main 
bodies involved in trade policy matters include : 
a. Committee on Tariff and Related Matters  (CTRM)  – Inter-agency body charged with 
advising the President and the NEDA Board on tariff -related matters; coordinating 
agency positions and recommending national positions for international economic 
                                                
1 Executive orders , administrative orders, proclamations, memorandum orders or circulars, and general or 
special orders, see Administrative Code of 1987 (Book III. Chapter 2). Viewed at: 
http://www.officialgazette.gov.ph/1987/07/25/executive -order -no-292-s-1987 
2 The upper house has 24 members elected directly by universal suffrage (for a six -year term ), while the 
lower house has a maximum of 250 members elected for three years.  
3 NEDA online information. Viewed at: http://www.neda.gov.ph/2017/02 /21/neda -board -approves -
philippine -development -plan-2017-2022/  
4 The DTI was restructured in 2017. Department Order No.17 -35 laid out the organizational structure of 
the Department into the following functional groups, namely Competitiveness and Ease of Do ing Business 
Group (CEODBG); Consumer Protection Group (CPG); Industry Development and Trade Policy Group (IDTPG); 
Management Services Group (MSG); Regional Operations Group (ROG); and Trade and Investments Promotion 
Group (TIPG).  
5 Board of Investments; E xport Marketing Bureau; Bureau of International Trade Relations; Bureau of 
Import Services; Bureau of Trade and Industrial Policy Research; Bureau of Philippine Standards; Philippine 
Accreditation Bureau; Consumer Protection Advocacy Bureau; Fair Trade Enf orcement Bureau; Intellectual 
Property Office of the Philippines.  WT/TPR/S/36 8 • The Philippines  
 
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  negotiations; and recommending to the President a "co ntinuous rationalization 
programme" of the tariff structure.  
b. Technical Committee on WTO Matters (TCWM)  – Government inter -agency body under 
the CTRM charged with recommending to the CTRM positions and strategies relevant to 
the implementation of WTO commit ments and participation in the WTO. It has four sub -
committees responsible for WTO implementation issues: agriculture (chaired by the 
Department of Agriculture)6; industrial tariffs (chaired by the Board of Investments and 
co-chaired by the Tariff Commissi on)7; services (chaired by NEDA)8; and other rules and 
disciplines (chaired by the Bureau of International Trade Relations of the DTI).  
c. Committee for the ASEAN Economic Community (CAEC)  – Inter-agency coordination 
body created in 2011 (Administrative Order 20) to facilitate policy formulation and 
implementation of the Philippines’ AEC commitments.  
d. Tariff Commission  – Body with investigative and research functions related to the effects 
of tariff legislation and tariff relations between the Philippines and third countries. It is 
responsible for: recommending tariff revisions; conducting anti -dumping, countervailing 
and safeguard investigations and recommending definitive measures; underta king 
investigations on petitions to change duty rates and duty classification; and issuing tariff 
classification rulings.  
e. Interagency Committee on Trade in Services (IAC -TS) – Inter-agency body chaired by 
the NEDA that recommends positions on GATS implemen tation matters. The Committee 
has expanded its coverage to include bilateral and regional arrangements pertaining to 
trade in services.  
2.3  Trade Agreements and Arrangements  
2.3.1   WTO  
2.6.  The Philippines grants at least MFN treatment to all trading partners. On 27 October 2016, 
The Philippines accepted the WTO Trade Facilitation Agreement; it has also submitted a notification 
regarding Category A commitments.9 The Philippines is a signatory  to the WTO Information 
Technology Agreement (ITA) and has modified its schedule of concessions  in line with the Nairobi 
Ministerial Declaration on the Expansion of Trade in IT Products .10 In the WTO, the Philippines is a 
member of the following groupings: Asian developing member s, APEC, ASEAN, Cairns group, 
G-20, G -33 and NAMA -11. 
2.7.  During the period under review, the Philippines provided well over 300 WTO notifications 
(Table  A2.1), including some "nil" notifications (e.g. inexistence of agricultural export subsidies 
and non -application of countervailing measures).  
2.8.  Since 1995, the Philippines has been involved in 26 WTO dispute settlement cases; 5 as a 
complainant, 6 as a defendant, and 15 as a third party. Since the last TPR in 2012, the Philippines 
has bec ome involved in two new disputes, reserving its rights as a third party in both cases.11 
Thus, it is currently involved in one case as complainant (DS37112), and seven as a third party.13 
                                                
6 The Department of Agriculture has established a Task Force on WTO Agriculture Re -negotiations to cover 
the DDA, which involves the stakeholders.  
7 The DTI has also established the Joint -Committee on Non -Agriculture Market Access focussing on 
industrial tariff negotiations in the DDA that also involves stakeholders.  
8 The NEDA has an Inter -Agency Committee on Services to address trade in services issues.  
9 WTO document WT/PCTF/N/PHL/1, 1 Aug ust 2014.  
10 See WTO document G/MA/W/117 and Add.19, 26 January 2016 and 28 January 2016. Viewed at: 
https://www.fta.go.kr/webmodule/_PSD_FTA/support/ITA/W117A19 -02_Philippines.pdf  
11 China - Domestic Support for Agricultural Producers (DS511; Complainant: USA); and Colombia -
Measures Relating to the Importation of Textiles, Apparel and Footwear (DS461; Complainant: Panama).  
12 Thailand - Customs and fiscal measures  on cigarettes (DS371). The Appellate Body Report was circulated 
in June 2011. The reasonable period of time granted to Thailand to comply expired in May 2012. Pursuant to 
Article 21.5 of the DSU, the Philippines requested the establishment of a compliance  panel, which took place in 
in December 2016. The DSB final report is expected to be issued in the first quarter of 2018.  WT/TPR/S/3 68 • The Philippines  
 
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  In 2013, The Philippines implemented "An Act Restructuring the Excise T ax on Alcohol and Tobacco 
Products"14 to comply with the Appellate Body Reports on "The Philippines - Taxes on distilled 
spirits" (DS369 and DS403).15 
2.3.2   Regional and preferential agreements  
2.3.2.1   ASEAN  
2.9.   In 2015, the 10  ASEAN member States accomplished their long -standing objective of 
establishing the ASEAN Community, which includes the ASEAN Economic Community (AEC), with 
the ultimate goal of creating a single market and production base, with a free flow of goods, 
services, and investment within the region. The main building blocks of the AEC are the ASEAN 
Trade in Goods Agreement (ATIGA), the ASEAN Framework Agreement on Services (AFAS), and 
the ASEAN Comprehensive Investment Agreement (ACIA). ASEAN's focus for the next ten years is 
set out in the ASEAN Community 202 5 Vision.16 
2.10.   The ATIGA provides for tariff elimination within ASEAN, subject to limited exceptions (e.g. 
rice). This objective has been largely achieved since 2010 with intra -ASEAN import duties having 
been eliminated on 99.65% of tariff lines. The tariff phase -out is complemented by a number of 
trade facilitation initiatives, such as an ASEAN Harmonized Tariff Nomenclature (AHTN), removal of 
NTBs, as well as through harmonization and mutual recognition agreements on conformity 
assessment.  
2.11.   The AFAS (impleme nted since 1995) provides for preferential services market access 
through incrementally improved packages of commitments. The services commitments made in 
these packages include new subsectors, higher foreign equity participation, and fewer restrictions 
to trade in various modes of supply. ASEAN members are currently in the process of completing 
the tenth and final package of services commitments to liberalize a total of 128 subsectors within 
the purview of the ASEAN Economic Ministers.17 In parallel, a new ASEAN Trade in Services 
Agreement (ATISA) is under negotiation, which would enhance the current AFAS.  
2.12.   The ACIA (implemented since 2012) aims to facilitate, protect, promote and liberalize cross -
border investment in ASEAN. The liberalization of investment u nder ACIA covers five sectors 
(manufacturing, agriculture, fisheries, forestry, mining and quarrying, and services incidental to 
these sectors); investment liberalization is also pursued under AFAS (GATS mode 3).  
2.13.   Furthermore, ASEAN countries are in the pro cess of establishing an ASEAN Single Aviation 
Market (ASAM) and an ASEAN Single Shipping Market (ASSM), and expect to implement several 
new transport agreements in the coming years, including on land transport.  
2.14.   ASEAN has RTAs in place with Australia and Ne w Zealand, China, India, Japan, and the 
Republic of Korea . The FTAs with China and the Republic of Korea  were updated and improved 
over the review period. The Philippines is participating in negotiations by ASEAN with Japan on 
services and investment. The negotiations for an FTA with Hong Kong, China have been 
completed. In 2012, negotiations were launched for a (16 -party) Regional Comprehensive 
Economic Partnership (RCEP) Agreement between ASEAN and its FTA partners.  
                                                                                                                                                  
13 These are (in addition to DS 511 and DS461): Australia - Certain Measures Concerning Trademarks and 
Other Plain Packaging Requiremen ts Applicable to Tobacco Products and Packaging (DS434, DS435, DS441, 
DS458, and DS467; complainants: Ukraine, Honduras, Dominican Republic, Cuba, and Indonesia, 
respectively).  
14 WT/DS396/15/Add.3; WT/DS403/15/Add.3, 18 January 2013.  
15 WT/DS396/AB/R; WT/D S403/AB/R, 21 December 2011.  
16 The AEC Blueprint 2025 consists of five "characteristics": Highly Integrated and Cohesive Economy; 
Competitive, Innovative, and Dynamic ASEAN; Enhanced Connectivity and Sectoral Cooperation; Resilient, 
Inclusive, People -Orien ted, and People -Centred ASEAN; and Global ASEAN. Viewed at: 
http://www.asean.org/wp -content/uploads/images/2015/November/aec -page/ASEAN -Community -Vision -
2025.pdf   
17 Based on W/120 classification, there are 155 subsectors, out of which 128 subsectors are under the 
purview of the ASEAN Economic Ministers, 17 subsectors under the purview of ASEAN Finance Ministers 
Meeting, 6 under the purview o f ASEAN Transport Ministers, and 4 subsectors under the purview of 
Coordinating Committee on Investments.  WT/TPR/S/36 8 • The Philippines  
 
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  2.3.2.2   Japan  
2.15.   The Philippines –Japan Economic P artnership Agreement (PJEPA) entered into force on 11 
December 2008, coinciding with the entry into force of the ASEAN FTA with Japan. It remains to 
date the Philippines' only bilateral FTA; it is more preferential with regard to goods, services and 
invest ment tha n the ASEAN FTA , according to the authorities.  
2.16.   On the Philippine side, the tariffs on about 66% of tariff lines were eliminated upon entry 
into force, and tariffs on about 32% of lines were scheduled for elimination over 4 to 10 years. 
From 2018, 9 8.6% of tariff lines will be duty -free; of the 115 lines still attracting tariffs at the end 
of the transition period, the highest rates will apply to vegetable products (at a rate of 47.2%). On 
services, the Philippines made commitments in 81 subsectors.  
2.3.2.3   European Free Trade Association (EFTA)  
2.17.   EFTA and the Philippines launched free trade negotiations in March 2015. The Philippines –
EFTA FTA was signed on 28 April 2016 in Bern.18 Ratification is still pending in the Philippines and 
Iceland, according to the authorities.  
2.18.    The Philippines will provide duty -free market access (based on different schedules for tariff 
elimination) on most industrial and fishery products from EFTA membe r States (Iceland, 
Liechtenstein, Norway, and Switzerland) ; a number of tariff lines are excluded from tariff 
liberalization. Furthermore, disciplines going further than the WTO rule book were agreed on 
export duties (i.e. the general elimination of export  duties, while retaining flexibility for timber), 
quantitative restrictions, subsidies and countervailing measures, safeguard measures, and 
modification of concessions. Agricultural market access was negotiated bilaterally. The Philippines 
has granted bila teral market access on products such as temperate fruits, mineral and aerated 
waters, food preparations, chocolate, cheese and wine, amongst others.  
2.19.   Regarding services, the FTA covers financial services; telecoms; maritime transport; energy 
services, and t he movement of natural persons. The Philippines will provide improved market 
access in those service sectors where investment and technical expertise from EFTA are deemed 
beneficial to the country (renewable energy, computer and related services , construct ion, 
environmental services, maritime transport, finance, amongst others).  
2.20.   The commitments regarding the movement of natural persons are tied to Philippine 
companies' fulfilling contracts to supply services – and not individuals seeking employment in the 
EFTA member States and vice versa. Through this FTA, the maintenance and repair of Swiss 
aircraft may be carried out in the Philippines (Mode 2).  Entry and the temporary stay of service 
suppliers from EFTA member States is also allowed without an economic n eeds test in the 
following categories: intra -corporate transferees (covering executives/managers and specialists); 
business visitors; contractual service suppliers; and installers and servicers of industrial machinery 
or equipment, or both. The latter must  be part of the purchase contract of the machinery or 
equipment and includes the contractual requirement to develop local skills through training.  
2.3.2.4   European Union  
2.21.   The Philippines has been a beneficiary of the GSP+ scheme of the European Union since 
25 Decem ber 2014.19 Trade negotiations between the European Union and the Philippines were 
launched on 22 December 2015. The first round of FTA negotiations was held in May 2016, 
covering trade in goods, SPS and TBT measures, rules of origin, services, investment, competition, 
intellectual property rights, trade and sustainable development, and dispute settlement. The 
second round was held in February 2017 covering trade in goods, SPS measures, rules of origin, 
customs and trade facilitation, services, investments, intellectual property rights, government 
procurement, trade and sustainable development, and legal and institutional issues.  
                                                
18 The Agreement can be viewed at: http://www.efta.int/free -trade/free -trade-agreements/philippines .   
19 See Commission Delegated Regulation (EU) No 1386/2014 of 19 August 2014. Viewed at:  http://eur -
lex.europa.eu/legal -content/EN/TXT/PDF/?uri=CELEX:32014R1386&from=EN .  WT/TPR/S/3 68 • The Philippines  
 
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  2.3.3   Other agreements and arrangements  
2.3.3.1   APEC  
2.22.   Since its creation in 1989, the 21 members of the Asia Pacific Economic Cooperation  (APEC) 
organization have adopted the principle of "open regionalism" without necessarily establishing a  
regional free trade  area. Trade liberalization at APEC level has been pursued through voluntary 
and non -binding Individual Action Plans (IAPs) that are intended to indicate how countries plan to 
achieve the targeted goal of free trade and investment (Bogo r Goals).20 
2.23.   APEC trade and investment initiatives with the participation of the Philippines include:  
a. APEC Environmental Goods List tariff reduction  – The Philippines has implemented its 
APEC commitment (within the 2015 timeline) to voluntarily reduce tariff  rates to 5% or 
lower on a list of 54 designated environmental goods.21 The tariff reductions are 
intended to promote regional trade in environmental goods, estimated by APEC at 
around US$300 billion within the region and US$500  billion globally.22 
b. Supply Ch ain Framework Action Plan (Phase 1)  – The APEC States set themselves a 
target aiming at a 10% improvement of supply chain performance in terms of time, cost 
and certainty over the period 2010 -2015. Towards this goal, APEC has implemented 
initiatives on tra nsparency; infrastructure; logistics; capacity; clearance; documentation; 
connectivity; regulations and standards; and transit.  
c. Supply Chain Framework Action Plan (Phase 2)  – In the second phase (2017 -2020), 
initiatives are being pursued on customs manage ment and procedures; transportation 
infrastructure; logistics services; regulatory cooperation; and regulatory infrastructure 
for e-commerce.  
2.24.   Furthermore, during the review period, the APEC Trade Repository, an online portal on APEC 
economies' trade and ta riff information, was developed by the DTI23, while the APEC Services 
Cooperation Framework provides long -term guidance on APEC's work on services.24 The Services 
Competitiveness Roadmap was adopted in 2016, which contains a concerted set of actions and 
mutually agreed targets to be achieved by 2025.  
2.3.3.2   GSP 
2.25.   As of October 2017, The Philippines is a beneficiary of the GSP schemes of: Australia, 
Belarus, Canada, the European Union, Japan, Kazakhstan, New Zealand, Norway, the Russian 
Federation, Switzerland, Turkey and the United States.25 
2.4  Investment Regime  
2.26.   The foreign investment regime of the Philippines is governed, inter alia , by the 1987 
Constitution and the Foreign Investments Act of 199126, which regulate the entry and 
establishment of foreign investors, and Exec utive Order No.  226 (or Omnibus Investment Code 
(OIC) of 1987), which stipulates investors' (national and foreign) eligibility for incentives. The 
                                                
20 APEC online information. Viewed at: http://www.apec.org/About -Us/How -APEC-Opera tes/Action -
Plans/IAP -Submissions . 
21 2012 AELM Statement Annex C – List of APEC Environmental Goods. Viewed at:  
http://www.apec.org/Meeting -Papers/Leaders -Declarations/2012/2012_aelm/2012_aelm_annexC . 
22 APEC online information. Viewed at: http://www.apec.org/Press/News -Releases/2016/0128_EG.as px. 
23 2015 APEC Ministerial Meeting (AMM) Statement. Viewed at: http://www.apec.org/Meeting -
Papers/Leaders -Declarations/2015/2015_aelm/2015_Annex%20B . 
24 2015 AELM Statement Annex B. Viewed at: http://www.apec.org/Meeting -Papers/Leaders -
Declarations/2015/2015_aelm/2015_Annex%20B . 
25 UNCTAD/ITCD/TSB/Misc.62/Re v.5, 1 February 2015. Viewed at: 
http://unctad.org/en/Pages/DITC/GSP/GSP -List-of-Beneficiary -Countries.aspx . 
26 "Foreign Investment Act of 1991, as amended by Republi c Act No. 8179. Viewed at: 
http://asean.org/storage/2016/08/P79_Foreign -Investments -Act-of-1991.pdf . WT/TPR/S/36 8 • The Philippines  
 
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  Foreign Investments Act covers all activities, except banking and other financial services.27 It 
provides for the establishment of a "regular" Foreign Investment Negative List (FINL) of 
areas/activities where FDI is limited (Annex A2[fdi]):  
a. List A – foreign ownership is prohibited or limited (in terms of foreign ownership caps) by 
mandate of the constitution and s pecific laws; and  
b. List B – foreign ownership is limited for reasons of security, defence, risk to health and 
morals, and protection of SMEs.  
2.27.   The Philippines continues to restrict foreign investment in a number of activities including 
agriculture, fisheries , telecom services, and public utilities, but it has also taken some liberalizing 
steps. In the area of professional services, the FDI restrictions in place at the time of the last 
Review have been eliminated (subject to certain exceptions and reciprocity) . The Philippines has 
also liberalized banking services.28 The remaining FDI restrictions are made public in a transparent 
manner through a consolidated negative list.  
2.28.   The FINL is subject to review every two years to reflect any new legislation amending or 
repealing laws affecting investment. Following the last TPR (March 2012), the ninth FINL was 
promulgated on 29 October 2012 (Executive Order No. 98); it entered into force on 13 November 
2012.29 The most recent (tenth) FINL was issued on 29 May 2015 by Exec utive Order No. 184 and 
entered into force on 13 June 2015.30 The authorities expect the eleventh FINL to be issued in 
2017.  
2.29.   At the last Review, Members noted "that the Philippines" economy is operating below 
potential and encouraged the Philippines to speed up reforms, further improve its business 
environment and liberalize its FDI regime in order to raise productivity and compete more 
successfully with low -cost neighbouring economies".31 Since the last Review, the Philippines has 
removed foreign ownersh ip restrictions in a number of sectors:  
a. At the time of the last Review, a lengthy list of professions (23) was restricted to 
Filipinos.32 Under the ninth FINL, new restrictions were imposed on foreign professional 
practitioners in real estate services, resp iratory therapy and psychology. However, the 
tenth FINL has liberalized the practice of professions by foreigners (albeit subject to 
reciprocity), with the exception of the professions in the pharmacy, radiologic and x -ray 
technology, criminology, forestry  and legal sectors.  
b. Under the ninth FINL, new restrictions in terms of a 49% foreign ownership cap were 
imposed on lending firms (i.e. those regulated by the Securities and Exchange 
Commission (SEC)).  
2.30.   Activities in which foreign ownership remains restricte d include the following:  
a. Public utilities  – According to Republic Act 9136 (Section 6, paragraph 3) "power 
generation shall not be considered a public utility operation. For this purpose, any person 
or entity engaged or which shall engage in power generati on and supply of electricity 
shall not be required to secure a national franchise". Electricity generation is thus not 
subject to foreign ownership limitation. However, the electricity transmission and 
distribution sectors continue to be subject to 40 -60% foreign ownership caps by virtue of 
                                                
27 Foreign investment in financial services is regulated by Bangko Sentral ng Pilipinas for banking, the 
Insurance Commission for insurance and the Securities and Exchange Commission for lending firms, 
investment houses and financing companies.  
28 Republic Act 10641, An Act Allowing the Full Entry of Foreign Banks in the P hilippines, Amending for 
the Purpose Republic Act No. 7721, approved 15 July 2014.  
29 NEDA online information. Viewed at: http://www.neda.gov.ph/wp -
content/uploads/2014/04/E O98withannex.pdf . 
30 Executive Order No. 184, 2015. Viewed at: http://www.sec.gov.ph/wp -content/uploads/2015/08/EONo. -
184-The-Tenth -Regular -Foreign -Investment -Negative -List.pdf . 
31 WTO online information. Viewed at: https://www.wto.org/english/t ratop_e/tpr_e/tp361_crc_e.htm . 
32 See Table AII.2 of the TPR of the Philippines (2012).  WT/TPR/S/3 68 • The Philippines  
 
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  being a public utility operation requiring franchise granted by Congress (Article XII, 
Section 11 of the 1987 Philippine Constitution).  
b. Telecommunications – Telecom services are deemed a public utility and foreign equity  in 
telecom companies (both basic and value -added) is limited constitutionally to 40%. 
Foreigners may not become executives or managers of telecoms firms and the number 
of foreign directors must be proportionate to the firm's aggregate share of foreign 
capital. Cross -ownership restrictions also apply: no entity can have a franchise in both 
telecommunications and broadcasting (radio or television), either through airwaves or by 
cable.  
c. Agriculture  – Under the Constitution, land ownership is limited to Filipin o citizens or 
corporations with at least 60% of the capital stock belonging to Filipino citizens. 
However, under the Investors' Lease Act (R.A. No. 7652), foreign investors may lease 
land for a period of up to 50 years, renewable for another 25 years maxim um, subject to 
conditions (social and economic contribution). There are also FDI restrictions with 
respect to the cultivation, processing and trade of rice and corn (Table A4.2).  
2.31.   The Philippines continues to encourage investment in targeted areas, which ar e listed in the 
Philippine Investment Priorities Plan (a three -year rolling plan), including manufacturing and 
agriculture. Incentives include duty -free importation of capital goods and a four -year tax holiday. 
The 2017 plan reflects the Government's objec tive to spread economic growth opportunities 
domestically and encourage especially micro, small and medium enterprises (MSMEs) to benefit 
from local and global value chains. The ten priority investment areas under the 2017 plan are 
based on the President’s  "Zero to 10 -point" Socio -Economic Agenda, AmBisyon Natin 2040, and 
the Philippine Development Plan 2017 -2022, and focus on competitiveness, skills development, 
technology upgrading, infrastructure modernization, and improvements in the overall business 
environment. With the theme, "Scaling -Up and Dispersing Opportunities,” the Plan includes more 
inclusive and innovation -driven activities. One of the strategies is through the Inclusive Business 
(IB) Model project wherein medium and large agribusiness and to urism enterprises are encouraged 
to engage micro and small enterprises as raw material suppliers or service providers. The BOI 
provides full assistance from pre - to post -establishment of investment activities in the country.  
2.32.   The National Competitiveness Council (NCC) (established in 2006) continues to work on the 
improvement of procedures for the entry and exit of business persons; trade facilitation; 
consistency of business rules and simplification of business procedures33; and harmonization of 
incentives . The "Project Repeal: Philippine Red Tape Challenge" is an initiative of the NCC, in 
collaboration with the Department of Trade and Industry, to change the way in which the 
government institutes policy and regulatory reforms. It is intended as a framework  for 
deregulation to induce regulatory reform by repealing laws, executive issuances, and department 
orders, with the objective of reducing the cost of doing business and attracting more FDI. The NCC 
is also coordinating the implementation of the National Logistics Master Plan (NLMP) which focuses 
on transportation and infrastructure projects.  
2.33.   The Philippines ranks 99th (out of 199 countries) in the World Bank's ease of doing business 
indicator for 2017 (up from 134th place in 2012).34 It has made, amongst o thers, anti -corruption 
reforms in its customs services by limiting person -to-person contacts and imposing heavy 
penalties on corrupt officials, thereby significantly reducing clearance times.35 The country’s 
ranking in Transparency International's Corruptio n Perception Index has improved from 135th in 
2012 to 101st place in 2016 (out of 176 countries).36 The Anti -Corruption Working Group (ACWG) 
under the NCC (in partnership with the Investment Ombudsman) coordinates efforts to roll -out 
and implement the Integ rity Management Programme (IMP).37 The creation of the position of 
Investment Ombudsman (under the Office of the Ombudsman) in 2014 aims at a speedier 
resolution of investor issues.  
                                                
33 The Business Name Registration System and the Philippine Business Registry System have been merged.  
34 World Bank, Doing Business Report  2017. Viewed at: http://www.doingbusiness.org/reports/global -
reports/doing -business -2017. 
35 World Bank, Doing Business Report 2017 . 
36 Transparency International online information. Viewed at: https://www. transparency .org/country/PHL . 
37 The IMP aims to reduce the level of corruption vulnerabilities at the department/agency level, ensure 
integrity in the public sector and improve public trust and confidence in government.  WT/TPR/S/36 8 • The Philippines  
 
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  2.34.   The Philippines has bilateral investment agreements with 35 countries (in force).38 The 
Philippines has 41 double taxation agreements in force39; since the last TPR, 5 DTAs took effect 
(with Kuwait, Germany, Nigeria, Qatar, and Turkey), and new DTAs were concluded (not yet in 
force) with Brunei Darussalam, Sri Lanka, Mexico and Sa udi Arabia.  
 
                                                
38 Argentina, Australia, Austria, Bahrain, Bangladesh, Belgium -Luxembourg, Cambodia, Canada, Chile, 
China, Czech Republic, Denmark, Finland, France, Germany, India, Indonesia, Italy, Japan (i.e. investment 
chapter in the PJEPA), Ku wait, Mongolia, Myanmar, Netherlands, Pakistan, Portugal, Republic of Korea, Russian 
Federation, Spain, Syria, Chinese Taipei, Thailand, Turkey, the United Kingdom, and Viet Nam.  
39 Australia , Austria , Bahrain , Bangladesh , Belgium, Brazil , Canada , China , Czech  Republic, Denmark , 
Finland , France, Germany , Hungary, India, Indonesia , Israel, Italy, Japan, Republic of Korea, Kuwait, Malaysia, 
Netherlands, New Zealand, Nigeria, Norway, Pakistan, Poland, Qatar, Romania, Russian Federat ion, Singapore, 
Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom, United States and 
Vietnam. Philippine Bureau of Internal Revenue online information. Viewed at: 
https://www.bir.gov.ph/index.php/international -tax-matters/international -tax-agreements.html . WT/TPR/S/3 68 • The Philippines  
 
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  3  TRADE POLICIES AND P RACTICES BY MEASURE  
3.1  Measures Directly Affecting Imports  
3.1.1   Customs procedures, valuation, and requirements  
3.1.  All importers must be registered with the Bureau of Internal Revenue for purposes of the 
Importer’s Clearance Certificate) and the Bureau of Customs (BOC).1 Registration fees are PHP 
1,000 for new applications and PHP 500 for renewals. Registrations are valid for three years. 
Applications have to be accompanied by: a mayor 's permit ; the applicant's VAT o r non -VAT 
certificate ; the taxpayer identification number  (TIN) c ard of the company and its principal officers; 
the registration or incorporation documents of the company; pictures with official signature at the 
back of directors and principal officers ; and the company's a udited financial statements and 
income tax declarations for the past three years . Occasional importers may  register under a Once -
A-Year-Importer scheme.  
3.2.  All imports with a dutiable value above PH P 10,000 must be  declared  electronically. Ho wever, 
hardcopies of import documents and attachments must be submitted to the Entry Processing Unit 
for verification.  The customs entry declaration form , which was changed to Single Administrative 
Documents (SAD) under Customs Memorandum Order (CMO) 29 -2015, must be accompanied by : 
the commercial invoice; a bill of lading or air waybill; a packing list; and a certificate of origin if 
applicable. Depending on the product, an import licence ( Section 3.1.5 ) or SPS or TBT certificate 
(Section 3.3.2 ) may also  be required.  
3.3.  Bureau of Customs' administrative order (AO) No. 243 of January 2010 makes pre -shipment 
inspection (PSI) mandatory for all bulk or break bulk cargo. PSI covers quantity, quality, and tariff 
classification. Six companies have been approved by the Bureau of Customs to provide this 
service. For other goods, no PSI is required.  
3.4.  The Customs Modernization and Tariff Act (RA No. 10863) of 30 May 2016 has the aim to 
modernize customs rules, expedite customs procedures, reduce opportunities for corrupt ion, and 
improve customs service delivery. The Act introduced more severe penalties for misclassification, 
undervaluation, and corrupt behaviour of officials. Total staff of the Bureau of Customs is 3,500.  
3.5.  Shipments are classified according to risk . Risk c riteria include country of origin and 
frequency of imports.  Goods in the  high risk "red lane" are subject to physical examination and 
documentary review ; this require s an average of 1 -2 days for clearance . The moderate risk "y ellow 
lane" (documentary revie w only)  require s an average of four hours for clearance . The BOC also 
uses a "blue lane" (SGL) for qualified importers to provide immediate clearance.2 According to the 
BOC, in 2017 about 5 0% of all consignments  were classified as red, followed by yellow  (30%), and 
blue (20%). 
3.6.  The Philippines has been applying the WTO Customs Valuation Agreement since 2001.3 
However, i t reserved the right , with no expir y date, to reverse the order of paragraphs 3 and 4 of 
Annex III  of the Agreement .4  
3.7.  A Valuation and Classification Review Committee (VCRC) is organized in every district port to 
solve valuatio n and classification disputes. The decision of the VCRC is appealable to the Central 
Valuation Classification Review and Ruling Committee (CVCRRC) within 15 da ys of receipt of the 
decision. The CVCRRC's decision is subject only to one motion for reconsideration, which needs to  
be filed within five working days of its receipt. If no motion is filed in time or if denied, the 
CVCRRC resolution becomes final. The aggriev ed importer m ay pay under "formal protest".  
                                                
1 Exceptions include importers in special economic z ones, public authorities , and institutions  with 
diplomatic st atus. 
2 To use the SGL an importer needs to:  be accredited by BOC; be a registered user of remote lodgement 
facilities ; have imported for at least one year;  be a regular importe r of the same type of products; and be 
willing to undergo voluntary audit.  
3 WTO document G/VAL/N/1/PHL/1, 5 October 2001 . 
4 WTO document G/VAL/2/Rev.24, 27 April 2007.  WT/TPR/S/36 8 • The Philippines  
 
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  3.8.  The Philippines accepted the Trade Facilitation Agreement on 27 October 2016 . It notified its 
category A commitments in August 2014.5 The authorities indicate that the notification of category 
B and C commitments  is under preparation.  
3.1.2   Rules of origin  
3.9.  The Philippines has notified the WTO that it does not have non -preferential rules of origin.6 
3.10.   The Philippines applies preferential rules of origin under its regional and bilateral trade 
agreem ents, i.e. Association of  Southe ast Asian Nations ( ASEAN -ATIGA ); ASEAN -Australia -New 
Zealand; ASEAN -China; ASEAN -India; ASEAN -Japan; ASEAN -Korea; and Philippines -Japan 
(Section 2.3.2 ). In general, a good is considered originating in a country if it is  wholly obtained or 
has underg one substantial transformation. Substantial transformation is defined as a change i n 
tariff classification, value -added threshold, and specific process, which may vary across 
agreements. For example, the ASEAN Free Trade Area confers origin status to goods  that have a 
regional  content of at least 40% of their f.o.b. value . Bilateral and regional cumulation is usually 
allowed.  
3.1.3   Tariffs  
3.1.3.1   Applied MFN tariffs  
3.11.   The Philippines' tariff comprises 10 ,813 lines at the HS  2017 eight-digit lev el (compared to 
8,299  in 201 1), with rates ranging from zero to 65%. The share of duty-free tariff lines  increased 
from 4.7% in 2011 to 12.6% (Table 3.1 ). Tariffs are levied on the c.i.f. value of import s. The 
Philippines does not apply variable levies or seasonal tariffs . The tariff  is set by an inter -agency 
committee led by DTI and adopted by Executive Order. It usually remains in force for five years. 
The current tariff was adopted in July 2017.  
Table 3.1 Structure of the MFN tariff schedule, 2011 and 2017  
  2017a 
 2011  HS12  HS17  
Total number of tariff lines  8,299  9,558  10,813  
Simple average rate (%)  6.4 6.8 7.6 
 HS 01 -24 10.4 10.5 10.3 
 HS 25 -97 5.7 6.0 7.1 
 WTO agricultural products  10.2 10.4 10.3 
 WTO non -agricultural products  5.8 6.2 7.2 
Duty free tariff lines (% of all tariff lines)  4.7 4.9 12.6 
Simple average of dutiable lines only  6.7 7.1 8.7 
Tariff quotas (% of all tariff lines)  0.9 0.8 0.7 
Non-ad valorem tariffs (% of all tariff lines)  0.0 0.0 0.0 
Domestic tariff "peaks" (% of all tariff lines)b 4.2 3.3 6.3 
International tariff "peaks" (% of all tariff lines)c 4.5 5.1 8.5 
Nuisance applied rates (% of all tariff lines)d 24.3 22.9 14.9 
Coefficient of variation  1.1 1.1 1.1 
a As of July.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as those exceeding 15%.  
d Nuisance rates are those greater than zero, but less than or equal to 2%.  
Note:  Calculations exclude in -quota rates. The 2011 tariff is based on HS07 and the 2017 tariff is based on 
HS12 and HS17 nomenclature. 123 tariff lines at 8 -digit level have more than one tariff rate; in this 
case the average tariff rates was used for the  calculations.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.12.   Cane sugar and rice receive the highest tariff protection , with rates of 65% and 50% 
respectively. 14.9% of tariff lines are nuisance tariffs,  and 41.9% carry a  tariff greater than zero 
                                                
5 WTO document WT/PCTF/N/PHL/1 , 1 August 2014.  
6 WTO do cument G/RO/78 , 10 November 2016 . WT/TPR/S/3 68 • The Philippines  
 
- 32 - 
 
  and up to 5% (Chart 3. 1). A greater share of duty -free lines and a reduction of nuisance tariffs  
would facilitate the Philippines integration into global value chains.  
Chart 3.1 Frequency distribution of MFN tariff rates, 2017  
 
Note:  Excluding in -quota rates.  
Source:  WTO Secretariat calculations, based data provided by the authorities.  
3.13.   The average applied MFN tariff was 7.6% in 2017, up from 6.4% in 2011.7 Tariffs average 
10.3% (10.2% in 2011 ) on agriculture (WTO definition ), and 7.2% on non -agricultural products 
(5.8% in 2011 ). Using ISIC (Revision 2) definition (Table 3.2), the least tariff protected sector is 
mining and quarrying (2. 2%), followed by manufacturing (7.7%), and a griculture (7.8%).  
Table 3.2 Summary analysis of Philippine's MFN tariff, 2017  
 Number 
of lines  Average (%)  Range 
(%) Coefficient of 
variation  Duty 
free 
(%) 
Total  10,813  7.6 0-65 1.1 12.6 
HS 01 -24 1,725  10.3 0-65 1.0 3.5 
HS 25 -97 9,088  7.1 0-30 1.1 14.3 
By WTO category       
WTO agricultural products  1,369  10.3 0-65 1.1 3.7 
 Animals and products thereof  152 21.8 0-45 0.8 7.9 
 Dairy products  45 2.8 0-7 0.9 15.6 
 Fruit, vegetables, and plants  356 10.1 0-40 0.9 1.1 
 Coffee and tea  43 18.8 3-45 1.0 0.0 
 Cereals and preparations  200 10.4 0-50 1.1 7.5 
 Oils seeds, fats, oil and their products  222 8.0 0-15 0.7 2.3 
 Sugars and confectionary  31 15.0 1-65 1.3 0.0 
 Beverages, spirits and tobacco  122 8.3 1-15 0.4 0.0 
 Cotton  5 2.6 1-3 0.3 0.0 
 Other agricultural products, n.e.s.  193 4.7 0-35 1.3 4.1 
WTO non -agricultural products  9,444  7.2 0-30 1.1 13.8 
 Fish and fishery products  437 9.2 0-15 0.4 2.1 
 Minerals and metals  1,554  5.2 0-20 0.8 9.1 
 Chemicals and photographic supplies  1,506  4.6 0-30 1.0 1.8 
 Wood, pulp, paper and furniture  557 6.5 0-30 0.8 9.3 
 Textiles  855 9.6 0-20 0.5 0.7 
 Clothing  351 14.7 1-15 0.1 0.0 
 Leather, rubber, footwear and travel 
goods  322 6.4 0-20 0.7 1.2 
 Non-electric machinery  1,329  2.1 0-15 1.7 47.7 
 Electric machinery  719 4.2 0-30 1.2 32.4 
                                                
7 While there has been no rise in tariff rates as such, this is due to the increase of number of tariff lines 
that came with the change in nomenclature from HS07 to HS12, as the number of tariff lines carrying high 
tariff rates increased over -proportionally . 
(12.6%)(41.9%)
(24.0%)
(13.0%)
(2.2%)(6.3%)
0%10%20%30%40%50%60%70%80%90%100%
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
Duty free >0%-5% >5%-10% >10%-15% >15%-20% >20%Chart 3.[TAR]  Frequency distribution of MFN tariff rates, 2017
Number of tariff lines
Cumulative %
Number of lines 
(% of total)
Source:  WTO Secretariat calculations, based data provided by the authorities.Note:   Excluding in -quota rates.  WT/TPR/S/36 8 • The Philippines  
 
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   Number 
of lines  Average (%)  Range 
(%) Coefficient of 
variation  Duty 
free 
(%) 
 Transport equipment  1,019  20.6 0-30 0.5 1.9 
 Non-agricultural products,  n.e.s.  751 4.5 0-15 1.0 18.6 
 Petroleum  44 0.1 0-3 4.6 95.5 
By ISIC sector       
 ISIC 1 - Agriculture, hunting and fishing  685 7.8 0-50 1.1 10.4 
 ISIC 2 - Mining  122 2.2 0-7 0.6 5.7 
 ISIC 3 - Manufacturing  10,005  7.7 0-65 1.1 12.8 
  Manufacturing excluding food processing  8,883  7.2 0-30 1.1 14.1 
 ISIC 4 - Electricity  1 0.0 0 0.0 100.0  
By stage of processing       
 First stage of processing  1,132  6.8 0-50 1.3 8.7 
 Semi-processed products  2,855  5.4 0-65 0.9 4.2 
 Fully processed products  6,826  8.7 0-45 1.0 16.7 
By HS section       
 01 Live animals and products  589 10.3 0-40 1.0 5.1 
 02 Vegetable products  491 10.1 0-50 1.1 3.7 
 03 Fats and oils  175 8.7 1-15 0.7 0.0 
 04 Prepared food, beverages and tobacco  470 11.3 0-65 0.9 2.6 
 05 Mineral products  218 1.8 0-7 0.9 29.4 
 06 Chemicals and products thereof  1,259  3.2 0-30 1.0 2.1 
 07 Plastics, rubber, and articles thereof  565 7.9 0-20 0.6 0.7 
 08 Raw hides and skins, leather, and its 
products  91 7.4 1-15 0.8 0.0 
 09 Wood and articles of wood  228 6.9 0-15 0.7 15.8 
 10 Pulp of wood, paper and paperboard  300 5.5 0-15 0.8 5.3 
 11 Textiles and textile articles  1,175  10.9 0-20 0.5 0.5 
 12 Footwear, headgear, etc.  84 9.7 1-15 0.6 0.0 
 13 Articles of stone, plaster, cement  250 7.2 0-15 0.6 4.0 
 14 Precious stones and metals, pearls  86 5.4 3-10 0.6 0.0 
 15 Base metals and articles thereof  1,035  5.5 0-20 0.9 10.6 
 16 Machinery, electrical equipment, etc.  2,133  2.8 0-30 1.5 42.8 
 17 Transport equipment  1,033  20.3 0-30 0.6 1.8 
 18 Precision equipment  326 2.0 0-10 1.1 28.0 
 19 Arms and ammunition  30 13.8 3-15 0.2 0.0 
 20 Miscellaneous manufactured articles  267 7.4 1-30 0.7 0.0 
 21 Works of art, etc.  8 8.1 7-10 0.2 0.0 
Note:  2017 data as of July. Tariff schedu le based on HS17 nomenclature.  
Source:  WTO Secretariat calculations, based on dat a received by the authorities.  
3.14.   On aggregate, the tariff displays mixed escalation, negative from first -stage processed 
products (average tariff rate of 6.8 %), to semi -finished goods (average rate of 5.4%), and positive 
from semi -finished to ful ly processed products (average 8.7 %). This structure is strongly 
influenced by the high tariffs on raw agricultural products and, to a lesser extent, by the tariff 
structure in certain industries. At a mo re disaggregate level (Chart 3. 2), positive tariff escalation is 
most pronounced in textiles an d leather, followed by wood and furniture, paper and printing, 
chemicals, and non -metallic mineral products, thereby providing higher levels of effective 
protection to those industries than that r eflected by the nominal rates. Escalation is positive from 
first-stage processed goods to semi -finished products, and negative from semi -finished to finished 
goods, in food, beverages and tobacco.  WT/TPR/S/3 68 • The Philippines  
 
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  Chart 3.2.Tariff escalation by 2 -digit ISIC industry, 2017  
 
n.a. Not ap plicable.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.15.   Fiscal income derived from tariffs increased from PHP 42,195 million in 2011 to PHP 59,413 
million in 2016.  
3.1.3.2   Tariff quotas  
3.16.   The Philippines has tariff quotas covering 80 tariff lines; this is equivalent to 0.7% of all 
lines. Products covered by tariff quotas include live swine, goats and poultry and meat thereof, 
potatoes, coffee, maize, rice, sugar, and coffee Table A3.1. The system for administering tariff 
quotas rema ins complex. Products subject to tariff quotas are also subject to import licences 
(Section 3.1.5).  
3.17.   For 34 tariff lines the out -of-quota rate is equal to the in -quota rate; there is effectively no 
tariff quota on these lines.  
3.18.   In 2005, t he Philippines was g ranted by the Committee on Market Access a seven -year 
extension , until 30 June 2012 , to maintain a quota on rice imports .8 In 2012, the Philippines was 
granted  another five -year extension  until 30 June 2017 .9 As at November 2017, the situation 
relating to rice imports was governed by Executive Order 23 of 24 May 2017 which extended the 
rice waiver until 30 June 2020 or until an amendment of the provisions governing rice tariffication 
is enacted.  
3.1.3.3   Bound rates  
3.19.   In the Uruguay  Round, the Philippines bound 65.2 % of all tariff lines  (63.7% are fully bound 
and 1.5% are partially bound) . Binding coverage varies substantially across the HS: all agricultural 
goods  and textiles are fully bound , while other sections , mainly industrial products, have either no 
or a low incidence of bound items. Products with unbound tariffs include certain automobiles, 
chemicals, plastics, vegetable textile fibres, footwear, headgear, fish, and paper.  
3.20.   The simple average bound rate is 25.7% (35 .5% on agricultural products (WTO definition) 
and 23.3% on non -agricultural goods ). All bound rates are ad valorem , and range from zero to 
80%.  
                                                
8 WTO documents G/MA/TAR/RS/99/Rev.1 , 27 September 20 06, and WT/Let/562, 8 February 2007.  
9 Country -specific quotas are laid down in WTO document WT/Let/1024 of 11 December 2014.  
n.a.n.a.
0%2%4%6%8%10%12%14%
31 32 33 34 35 36 37 38 39 Total
manuf.Chart 3.Tariff escalation by 2 -digit ISIC industry, 2017
Average applied rate
in manufacturing
(7.7%) First stage of processing
Semi-processed
Fully processed
n.a.       Not applicable.31   Food , beverages and tobacco      
32   Textiles and leather  
33   Wood and furniture      37   Basic metals
38   Fabricated metal products and machinery
39   Other manufacturing34   Paper, printing and publishing
35   Chemicals
36   Non -metallic mineral products
Source:  WTO Secretariat calculations, based on data provided by the authorities.WT/TPR/S/36 8 • The Philippines  
 
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  3.21.   The Philippines' goods schedule is still in HS 2002. The Philippines has requested a waiver 
from the General Cou ncil in order to implement domestically the recommended amendments to 
update to the Harmonized System nomenclature of HS 2007 and HS 2012.10 
3.1.3.4   Preferential tariffs  
3.22.   As at October 2017, the Philippines had  prefere ntial trading agreements with 15  partners: 
the o ther nine parties of ASEAN11, six countries that have negotiated agreements with ASEAN 
(Australia and New Zealand; China; Japan12; Republic of Korea;  and India) . 
3.23.   Preferential tariffs are lowest for imports from other ASEAN members, as over 99 per cent 
of tar iff lines in this agreement carry a preferential rate of zero. Imports from India face the 
highest average preferential duty, of 5.2%. For the other agreements, average preferential rates 
range between 0.6% and 2.7% (Table 3.3). Moreover, preferential rate s are always higher, on 
average, for agricultural products (WTO definition) th an for non -agricultural goods.  
Table 3.3 Summary analysis of the Philippines' preferential tariffs, 2017  
 Total  WTO agriculture  WTO  non-agriculture  
 Average  Duty 
free Average  Duty 
free Average  Duty 
free 
 (%) rates 
(%) (%) rates 
(%) (%) rates 
(%) 
MFN 7.6 12.6 10.3 3.7 7.2 13.8 
ASEAN Trade in Goods Agreement 
(ATIGA)  0.1 99.3 0.4 96.3 0.04 99.7 
ASEAN - Australia New Zealand FTA 
(AANZFTA)  0.6 94.2 1.7 90.8 0.4 94.7 
ASEAN - China FTA (ACFTA)  2.7 84.4 2.8 91.2 2.6 83.4 
ASEAN - India FTA (AIFTA)  5.2 12.6a 8.4 3.7 4.7 13.8 
ASEAN - Japan (AJCEPA)  2.1 65.8 1.5 46.5 2.2 68.6 
ASEAN - Korea, Rep. of FTA (AKFTA)  1.0 85.7 2.2 82.4 0.9 86.2 
Japan -Philippines EPA (JPEPA)  1.5 70.0 1.0 51.0 1.6 72.7 
Memorandum        
Japanb 1.4 70.2 1.0 51.0 1.4 72.9 
a Under the AIFTA 43.2% of all lines have a rate greater than zero, but less than or equal to 2% (so 
called nuisance rates).  
b Based on lowest rates taken from AJCEPA and PJEPA.  
Note:  2017 tariff schedule is based on HS17 nomenclature . Where the preferential tariff rate is higher than 
the applied MFN rate, the latter was used for the calculations.  
Source:  WTO Secretariat calculations, base d on data received by the authorities.  
3.1.3.5   Tariff concessions and exemptions  
3.24.   Sector -specific duty exemptions are provided f or inputs under specific laws. These include 
the Jewellery Industry Development Act of 1998 and the Philippine Fisheries Code of 1998.  
Exemptions are also granted upon fulfilment of particular conditions ( Table 3.4 ). In addition, the 
President may, upon NEDA's recommendation, allow any imports to enter duty free if in the 
"interest of national economic development".  The authorities indicate  that the system of 
concessions and exemptions is currently under review.  
3.25.   Revenue forgone under tariff and tax concessions is considerable. In 2016, it amounted to 
PHP 549 billion in customs duties and PHP 301 billion in VAT.  
                                                
10 WTO documents WT/L/997 and WT/L/998 of 12 December 2016.  
11 The other ASEA N members are Brunei Darussalam, Cambodia, Indonesia, Laos PDR, Malaysia, 
Myanma r, Singapore, Thailand and Viet N am. 
12 In addition to the ASEAN -Japan trade agreement, the Philippines has its own bilateral trade 
agreement with Japan.  WT/TPR/S/3 68 • The Philippines  
 
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  Table 3.4 Goods subject to a conditional duty exemption  
Product  Requirement  
Aquatic products  Caught or gathered by fishing vessels of Philippine 
registry  
Equipment used in the salvage of vessels or 
aircraft  Identification and the giving of a bond in an amount 
equal to one and one -half times the ascertained duties  
Cost of repairs, excluding the value of parts, made 
to vessels or aircraft registered in the Philippines  Proof that adequate facilities for such repairs do not 
exist in the Philippines; or that the vessel or aircraft 
was compelled during the trip to make such repairs  
Articles brought into the Philippines for repair, 
processing or reconditioning to be re -exported  A bond is in an amount equal to one and one -half 
times the ascertained duties, and that they are 
exported within 6 months from the date of import  
Medals, badges, and cups  Bestowed as trophies or prizes  
Personal and household effects belonging to 
returning residents  Items need to be formally declared before departure  
Overseas contract workers' used house appliances  Quantity is limited to one of each in a calendar year  
Articles used exclusively for public entertainment, 
and displayed in public expositions, or for 
competition exhibitions for prizes, and devices for 
projecting pictures  Examination and appraisal and the giving of a bond in 
an amount equal to one and one -half times the 
ascertained duties thereon, and provided that they are 
exported within 6 months from  the date of import  
Articles brought by foreign film producers directly 
and exclusively used for making or recording 
motion picture films in the Philippines  Examination and appraisal and the giving of a bond in 
an amount equal to one and one -half times th e 
ascertained duties, taxes and other charges thereon, 
and provided that they are exported within 6 months 
from the date of importation  
Films exposed outside the Philippines where the 
principal artists employed are Filipinos  Upon affidavit by the importer and identification that 
such these films had been previously exported  
Imports for the official use of foreign embassies 
and other foreign governmental agencies  Provided that those countries provide the same 
privileges to ag encies of the Philippines  
Containers to export locally manufactured cement, 
boxes for fresh fruits for export  Examination, issue of a bond of one and one -half 
times the ascertained duties, re -export within 6 
months  
Supplies for the "reasonable requirements" of a 
vessel or aircraft on a voyage or flight outside the 
Philippines  Any surplus of such supplies is dutiable  
Coffins or urns containing human remains, used 
personal effects of the deceased person  Value must not exceed PHP 10,000  
Samples of no commercial value and samples of 
medicines  Authorization by the Department of Finance, and in 
the case of medicines by the Department of Health  
Commercial samples  Value below PHP 10,000, payment of a bond of one 
and one -half times the ascer tained duties, re -export 
within 6 months  
Animals (except race horses) and plants for 
scientific, experimental, propagation, botanical, 
breeding, zoological, and national defence 
purposes  Import undertaken by an authorized institution. 
Animals imported for breeding purposes must be of a 
recognized breed. The National Economic and 
Development Authority must certify that these imports 
are necessary for economic development. The Bureau 
of Animal Industry of the Department of Agriculture 
needs to issue a per mit prior to import  
Educational, technical or cultural materials, 
children's books, globes, music  Certification by the Department of Education  
Philippine products exported from the Philippines 
and returned without any added value  Reimbursement of drawbacks  
Aircraft, equipment and machinery, spare parts, 
aviation gas, fuel, and other articles imported by, 
and for the use of, scheduled airlines  Provided that such articles are not locally available 
and are necessary for the proper operation of the 
scheduled airline  
Spare parts of foreign vessels or aircraft when 
imported as replacements for emergency repair  Proof that such spare parts are utilized to secure the 
safety of the vessel or aircraft  
Articles of easy identification exported for repair 
and subsequently re -imported  Proof that such articles cannot be repaired locally  
Trailer chassis imported by shipping companies for 
their exclusive use in handling containerized cargo  Posting of a bond of one and one -half times the 
ascertained duties  
Completely built units (CBUs)  Under the Motor Vehicle Development Programme, 
preferential tariff rates are available on imports of 
CBUs on the basis of equivalent foreign exchange 
earnings  
Inputs used by agriculture and fisheries 
enterprises  Items included in Executive Order No. 376 of 2004, 
certificate from the Department of Agriculture  
Capital equipment used by tourism establishments  Equipment to be used in medical and spa facilities  WT/TPR/S/36 8 • The Philippines  
 
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  Product  Requirement  
A 50% refund of the duty paid on petroleum  Imported for  the generation of electricity and the 
manufacturing of city gas  
A 99% refund on duties paid on imported fuel  Fuel used in domestic  vessels engaged in trade  
Imported articles donated to any registered relief 
organization to be donated to the needy  Certificate by the Department of Social Welfare and 
Development  
Importation by, and donations to, qualified 
entities in the interest of national economic 
development  Certification is by the National Economic and 
Development Authority (NEDA)  
Source : Information provided by the authorities.  
3.1.4   Other charges affecting imports  
3.26.   Most imports, like domestically produced goods, are subject to value -added tax. On 
imported goods, VAT is based on the c.i.f. value  plus customs duties and excise taxes.  
3.27.   The standard VAT rate is 12%. I tems exempt from VAT, whether imported or produced 
domestically, include: food products and livestock; agricultural inputs;  books, newspapers , and 
magazines; educational services; and vessels , aircraft, and parts thereof . VAT is zero -rated on s ale 
of power or fuel generated through renewable energy sources , and s ervices performed by 
subcontractors in processing goods for an enter prise whose export sales exceed  seventy percent of 
total annual production.  
3.28.   Fiscal income derived from VAT on im ports increased from PHP 220,254 million in 2011 to 
PHP 291,724 million in 2016.  
3.29.   Excise taxes are levied on alcohol ic beverages , tobacco products, automobiles, petroleum 
products, minerals, and goods defined as "non -essential", which essentially includes p erfumes  and 
jewellery (Table 3.5). Both specific and ad valorem  taxes are applied; in addition, tobacco products 
are subject to an inspection fee. Since 2013, imported and domestically produced alcoholic 
beverages are subject to the same tax rates.  
Table 3.5 Excise tax rates, 2017  
Product or product group  Tax rates  
I. ALCOHOL PRODUCTS   
A. DISTILLED SPIRITS, ad valorem  and specific tax   
1) AD VALOREM  TAX RATE - Based on the Net Retail Price (NRP) per proof 
(excluding the excise and value -added taxes);  and 20% 
2) SPECIFIC TAX - per proof litre  PHP 21.63a 
B. WINES, per litre of volume capacity   
1) Sparkling wines, where the NRP (excluding the excise and VAT) per bottle of 
750ml volume capacity, is:    Php500.00 or less  PHP 292.47a 
      More than Php500.00  PHP 818.90a 
2) Still wines and carbonated wines containing 14% of alcohol by volume or less  PHP 35.10a 
3) Still wines and carbonated wines containing more than 14% (of alcohol by 
volume) but not more 25% of alcohol by volume  PHP 70.20a 
4) Fortified wines containing more than 25% of alcohol by volume  Taxed as distilled spiritsa 
C. FERMENTED LIQUORS, per litre of volume capacity   
1) All liquors  PHP 23.50a 
2) If brewed and sold at small establishments, regardless of the NRP  PHP 32.76a 
II. TOBACCO PRODUCTS   
A. TOBACCO PRODUCTS, per kg   
1. Tobacco products  and preparations  PHP 2.05a 
2. Chewing tobacco unsuitable for use in any other manner  PHP 1.75a 
B. CIGARS, per cigar   
3. Cigars   
(a) Based on the NRP per cigar (excluding the excise and value -added taxes), and  20% 
(b) Per cigar  PHP 5.85a 
C. CIGARETTES, per pack  PHP 30.00a 
 INSPECTION FEES  
(1) Cigars  PHP 0.50 per thousand pieces  
(2) Cigarettes  PHP 0.10 per thousand pieces  
(3) Leaf tobacco  PHP 0.02 per kilogram  
(4) Scrap and other manufactured tobacco  PHP 0.03 per kilogram  
III. PETROLEUM PRODUCTS   
PRODUCT TYPE  TAX RATES  
Lubricating oils and greases,  and additives for lubricating oils and greases  PHP 4.50 per litre  WT/TPR/S/3 68 • The Philippines  
 
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  Product or product group  Tax rates  
Processed gas  PHP 0.05 per litre  
Waxes and petrolatum  PHP 3.50 per kilogram  
Denatured alcohol, if used for motive power  PHP 0.05 per litre  
Naphtha, regular gasoline or similar products  PHP 4.35 per litre  
Naphtha used as a raw material in petrochemical  production or as replacement 
fuel, in lieu of locally -extracted natural gas during the non -availability thereof  PHP 0.00 per litre  
Leaded premium gasoline  PHP 5.35 per litre  
Unleaded premium gasoline  PHP 4.35 per litre  
Aviation turbo jet fuel  and k erosene used as aviation fuel  PHP 3.67 per litre  
Kerosene , diesel and similar fuel oils having the same generating power  PHP 0.00 per litre  
Liquefied Petroleum Gas; if used for motive power  PHP 0.00 per litre  
Asphalt  PHP 0.56 per kilogram  
Bunker fuel oil and similar fuel oils having more or less the same generating power  PHP 0.00 per litre  
IV. MINERALS AND MINERAL PRODUCTS   
Coal and coke  PHP 10.00 per metric ton  
Mineral s and mineral products (non -metallic), quarry resources  2% of the actual market value  
Locally -extracted natural gas and liquefied natural gas  PHP 0.00 
Indigenous petroleum  3% of the international price  
V. AUTOMOBILES AND OTHER MOTOR VEHICLES  
Price from Php 0 to Php 600,000  2% 
Price from Php 600,000  to Php 1,100,000  PHP 12,000 + 20% in excess 
of PHP 600,000  
Price from Php 1,100,000  to Php 2,100,000  PHP 112,00 0 + 40% in excess 
of PHP 1,100,000  
Price over Php 2,100,000  PHP 512,000 + 60% in excess 
of PHP 2,100,000  
VI. NON -ESSENTIAL GOODS   
Perfumes and jewellery  20% 
a The specific tax rate is increased by 4% annually.  
Source:  Information provided by the authorities . 
3.30.   Imports continue to be subject to various customs fees an d charges for BOC services, such 
as import processing, refund processing, documentary stamp tax, and registration  fees 
(Section  3.1.1).  
3.1.5   Import prohibitions, restrictions, and licensing  
3.31.   The Philippines prohibits the importation of certain goods under the Tariff and Customs 
Code and  various other laws (Box 3.1 ). The list of products subject to an import prohibition has 
remained largely unchanged since the Philippines last TPR. T he Philippines notified its import 
prohibitions to the WTO.13 
Box 3.1 Prohibited imports, 2017  
A. Products specifically listed under Section 101 of the Tariff and Customs Code:  
Dynamite, gunpowder, ammunition and other explosives, firearms and weapons of war, and 
parts thereof, except when authorized by law;  
Articles containing matter advocating or inciting treason, rebellion, insurrection, sedition or subversion 
against the Government of the Philippines, or forcible resistance to any law of the Philippines, or 
containing any threat to take  the life of, or inflict bodily harm upon any person in the Philippines;  
Articles, negatives or cinematographic film, photographs, engravings, lithographs, objects, paintings, 
drawings or other representation of an obscene or immoral character;  
Articles,  instruments, drugs and substances designed, intended or adapted for producing unlawful 
abortion, or any printed matter which advertises or describes or gives directly or indirectly information 
where, how or by whom unlawful abortion is produced;  
                                                
13 WTO documents G/MA/QR /N/PHL/1, 21 May 2015, and G/LIC/N/3/PHL/12, 19 October 2016 . WT/TPR/S/36 8 • The Philippines  
 
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  Roulette  wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechanical devices 
used in gambling  or the distribution of money, cigars, cigarettes  or other articles when such distribution is 
dependent on chance, including jackpot and pinball  machines or similar contrivances, or parts thereof;  
Lottery and sweepstake tickets except those authorized by the Government, advertisements thereof, and 
lists of drawings therein;  
Any article manufactured in whole or in part of gold, silver or other pr ecious metals or alloys thereof, the 
stamps, brands or marks or which do not indicate the actual fineness of quality of said metals or alloys;  
Any adulterated or misbranded articles in violation of the "Food and Drugs Act";  
Marijuana, opium, or any other  narcotics or synthetic drugs, or any derivative or preparation thereof;  
Opium pipes and parts thereof, of whatever material.  
B. Used clothing and rags (RA No. 4653).  
C. Toy firearms and explosives (LOI No. 1264).  
D. Hazardous wastes (Section 24 of the IRR of RA No. 6969).  
E. Polychlorinated biphenyls, chlorofluorocarbons, halons, carbon tetrachloride and trichloroethane 
 (Section 5 of DENR Administrative Order 2004 -08). 
F. Right-hand drive vehicles (RA No. 8506).  
G. Infringing goods as defined under the Intellectual Prope rty Code and related laws.  
H. Brown and blue asbestos (DENR Administrative Order No.2/2000).  
I. Live piranhas, shrimps and prawns (Fisheries Administrative Orders No.126/1979 and 207/2001)  
J. Used motorcycle parts except engines (Executive Order No. 156).  
Source:  WTO documents  G/MA/QR/N/PHL/1, 21 May 2015, and G/LIC/N/3/PHL/12, 19 October 2016; and 
information provided by the authorities  The importation of used cars is allowed only for residents 
returning from abroad and limited to one vehicle per family. This effe ctively prohibits the commercial 
importation of used cars. The me asure has not been notified to the WTO.  The import of second -hand 
vehicles into the Subic Bay Free Port remains allowed provided these cannot be exported.  
3.32.   A vast range of goods is subject to licences or permits when imported ( Table 3. 6). For 
certain products, multiple permits or licences are required, and informal payments have been 
reported by the business community.14 The import licensing regime is regulated  mainly  by the 
Customs Modernization and Tariff Act of 30 May 2016. Import licensing is intended, inter alia , to 
safeguard public health, national security and welfare, and to meet international treaty obligations 
regulating certain products.  Costs for the licence or per mit depend on its validity period, the 
product, and import quantities; additional inspection fees may also apply.15 
Table 3.6 Goods subject to import permits or licensing  
Commodity  Government agency issuing 
permit/clearance  
Live animals, animal products, feeds and components thereof, 
veterinary biological products   Bureau of Animal Industry (BAI)  
Recyclable materials containing hazardous substances, cyanide 
and its compounds, asbestos, mercury and its compounds, 
ozone depleting substances, methyl bromide, certain chemicals 
under the Philippine Revised Priority Chemical List, new 
transformers, used computers and parts thereof, new chemicals  Department of Environment and Natural 
Resources (DENR) / Environ mental 
Management Bureau (EMB)  
Drugs, food products including ingredients and raw materials, 
cosmetics, pesticides, toys and child care articles, medical and 
health -related devices  Department of Health (DOH)/Food and 
Drugs Administration (FDA)  
Fishery products  Bureau of Fisheries and Aquatic Resources 
(BFAR)  
Colour reproduction machines with more than 2.400 
dots per inch  National Bureau of Investigation (NBI) 
and Cash Department of the Bangko 
Sentral ng Pilipinas (BSP)   
Optical and magnetic media, their manufacturing equipment; 
parts, accessories and manufacturing materials  Optical Media Board (OMB)  
                                                
14 ITC (2017).  
15 Registration fees and charges are listed in WTO document G/LIC/N/3/PHL/12, 19 October 2016 . WT/TPR/S/3 68 • The Philippines  
 
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  Commodity  Government agency issuing 
permit/clearance  
Fertilizers, pesticides and other chemical products that are 
intended for agricultural use  Fertilizer and Pesticide Authority (FPA)  
Used motor vehicles for personal use by returning residents, 
used trucks (excluding pick -up trucks), used buses, automotive 
and motorcycle replacement parts, used trucks for rebuilding 
purposes, used tyres  Department of Trade and Industry 
(DTI)/Fair Trade Enforcement  Bureau  
Used vehicles imported by the diplomatic corps, international 
organizations, and returning foreign service personnel  Department of Foreign Affairs (DFA)  
All commodities originating from Albania, Angola, Ethiopia, 
Laos, Libya, Mongolia, Mozambique, Myan mar, Nicaragua, and 
North Korea  Philippine International Trading 
Corporation (PITC)  
Ships, ship equipment and spare parts  Maritime Industry Authority  
(MARINA)  
Nuclear and radioactive materials  Philippine Nuclear Research Institute 
(PNRI)  
Legal tender Philippine notes and coins, checks, money order 
and other bills of exchange drawn in pesos against banks 
operating in the Philippines of an amount exceeding PHP 
50,000.00  
 
Bank notes, coins of precious metal other than gold and of non -
precio us metal not being legal tender, coin blank essentially of 
gold, coin blank essentially of steel, coin blank essentially of 
copper, coin blank essentially of nickel, coin blank essentially of 
zinc, coin blank essentially of tin, and coin blank essentially of 
aluminum  Bangko Sentral ng Pilipinas (BSP)  
Living plants; nursery stocks; seeds; fruits and vegetables; 
plant products; cultures of fungi, algae, mushrooms; grains and 
cereals  Bureau of Plant Industry (BPI)  
Coal and anthracite, whether or not pulverized, but not 
agglomerated  Department of Energy (DOE)/Energy 
Resource Development Bureau (ERDB)  
Wood products and chainsaws  DENR / Forest Management Bureau (FMB)  
Aircrafts and parts thereof  Civil Aviation Authority of the Philippines 
(CAAP)  
Lighting products  DENR and Department of Energy  
Donated articles  Department of Social Welfare and 
Development  
Radio transmitters and receivers, telecommunication 
equipment  National Telecommunications Commission 
(NTC)  
Gaming machines and equipment, playing cards,  Philippine Amusement and Gaming 
Corporation (PAGCOR)  
Narcotic drugs and substances  Philippine Drug Enforcement Agency 
(PDEA) and Dangerous Drugs Board 
(DBB)  
Firearms, parts thereof, ammunition, explosives a nd 
certain chemicals  Philippine National Police – Firearms and 
Explosives Office  
Sugar and preparations thereof  Sugar Regulatory Administration (SRA)  
Cement when imported by small -scale importers  Department of Trade and Industry  
Source:  WTO document G/LIC/N/3/PHL/12, 19 October 2016 , and information provided by the authorities . 
3.33.   Applications must generally be filed at least two we eks prior to the loading date. Licences 
may be granted immediately. Processing time for SPS licences usually takes between t hree and 
five days. Fees vary by -products and are collected by the agency granting the licence. In case of 
disapproval of an application, the applicant is informed of the reason and may make a written 
appeal for reconsideration.  
3.34.   Licensing procedures are also in place for products subject to tariff quotas (Section 3.1.3.2). 
For agricultural products, there are regular and special licences. Regular licences are issued 
annually for tariff quotas a t the start of the quota year. Special licences, which may be valid for 
less than a year, are issued for tariff quotas reallocated from the surrendere d volumes during the 
quota year, additional quotas created by government  and any remaining quota allocated on a  first-
come -first-serve basis. Processing of special licenc es takes about one month.  
3.35.   Licensees who use less than the quota utilization thresho ld (set at 80%) are penalized; 50% 
of their unused and unsurrendered quotas is deducted from their next quota -year all ocation on the WT/TPR/S/36 8 • The Philippines  
 
- 41 - 
 
  first instance; 75% on the second instan ce; and 100% on the third instance. The list of licensees 
and their corresponding allocations are published in two news papers of national circulation.  
3.36.   The Philippines replied to the questionnaire on import licensing procedures.16 
3.37.   Since its last TPR, the Phi lippines has also prohibited or restricted the importation of various 
products for sani tary or phytosanitary reasons (Section 3. 3.2). 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.38.   The Philippines has consolidated its regulatory framework for Anti-dumping, countervailing, 
and safeguard  measures under the Customs Modernization and Tariff Act (R.A. 10863  of 2016) . 
The existing legislation on these measures has been incorporated by reference, without any further 
amendments, into this Act. The inst itutional framework  remains unchanged since last Review . 
Initial a nti-dumping, countervailing and safeguards investigations are conducted by the DTI (for 
industrial goods) or the DA (for agricultural goods), upon request of private sector 
representatives17. Responsibility for the final determination of injury and imposition of duties lies 
with the Tariff Commission in cooperation with the DA  or the DTI. 
3.1.6.1   Anti-dumping and countervailing measures  
3.39.   The Anti -dumping Act of 199918 and its implementing rules and regulations19 continue to set 
forth the rules for the application of anti -dumping duties in the Philippines. S ince the last Review, 
the Philippines has notified the expiration of an anti -dumping measure on clear float glass f rom 
Indonesia.20 Furthermore, it has initiated three  anti-dumping investigations: on wheat flour from 
Turkey, resulting in the imposition of definitive duties; and on clear float glass and bronze  float 
glass from China, giving rise to the imposition of definitive  duties (Table 3.7) .21 
Table 3.7 Anti-dumping measures, 2012 -17 
Country  Product  Initiation of  
investigation  Provisional duty  Definitive 
duty Status  
 
Turkey  Wheat flour,   
HS 1101.00.10  7 June 201322 2 June 201423 9 January 201524 In force until 
2020 
China  Clear float glass 
and bronze float 
glass  
HS 7005.21; 
7005.29  20 May 2016  22 November  
201625 6 September 
2017 In force until 
2022 
Source:  WTO Secretariat . 
3.40.   The Countervailing Duty Act (RA 8751  of 7 August 1999 ) and its implementing rules and 
regulat ions remain in force26. The Philippines has not initiated any countervailing actions during 
the review period.27 
3.1.6.2   Safeguard measures  
3.41.   Safeguard actions continue to be governed by the Safeguard Measures Act of 200028 and its 
implementing rules and regulations. The Safeguard Measures Act also provides for the possibility 
                                                
16 WTO document G/LIC/N/3/PHL/12, 19 October 2016.  
17 While ex officio initiations are a lso possible, this has not happened yet.  
18 Republic Act 8752, 12 August 1999.  
19 Joint Administrative Order No. 1, 2000; and revised rules and regulations governing the conduct of 
investigation by the Tariff Commission, Commission Order No. 1, 21 June.  
20 WTO document G/ADP/N/223/PHL, 2 April 2012.  
21 WTO document s G/ADP/N/ 294/PHL,  7 February 2016, and G/ADP/N/300, 20 July 2017.  
22 WTO document G/ADP/N/244/PHL , 11 September 2012 . 
23 WTO document G/ADP/N/259/PHL, 1 August 2014 . 
24 WTO document G/ADP/N/265/PHL, 9 February 2015 . 
25 WTO document G/ADP/N/294/PHL, 7 February 2017.  
26 Joint Administrative Order No. 2, 2000.  
27 WTO document G/SCM/N/313/Add.1 , 21 April 2017.  WT/TPR/S/3 68 • The Philippines  
 
- 42 - 
 
  of imposing quantitative restrictions on agricultural products as a definitive  measure "where the 
tariff increase may not be sufficient to red ress or to prevent serious injury" .29 No such measure, 
however, has been implemented since 2000. Since the last Review, the Philippines has initiated 
two safeguard investigations: on newsprint, resulting in the imposition of definitive duties; and on 
galvan ized iron sheets and coils, which was terminated in 2015 with no measure being imposed 
(Table 3 .8). During the review period, the Philippines has extended duties on steel angle bars and 
testliner board. It has also invoked special agricultural safeguards  (SSG) on poultry meat 
(Section  4.1). 
Table 3.8 Safeguard measures, 2012 -17 
Product  Initiation of  
investigation  Provisional 
duty Definitive duty  Status  
Ceramics floor and 
wall tiles  
HS 6907.9000; 
6908.9000  28 May 2001 9 January 
2002 23 May 2002  
- Extension from 2005  
- Further extension from 
2008 Terminated 
in January 
2012 
Figured glass, and 
float glass  
HS 7003.1290; 
7003.1990; 7005.2190 
and 7005.2990  14 & 30 April 2003  13 October 
2003 7 June 2004 
-Extension from 2006  
-Extension from 2010  Terminated 
in October 
2013 
Steel angle bars  
HS 7216.21.00 and 
7216.50.10.  11 August 2008  
 
For extension:  
20 October 201430 18 May 2009  30 September 2009  
Extension from 201231 
Further extension from 
201532 In force  
until 23 
March 
201933 
Testliner board  
HS 4805.24.00; 
4805.25.10; and 
4805.25.90  16 November 2009  16 
September 
2010 3 August  2011 
- Extension from 201434 
- Further extension from 
201635 In force 
until 20 
June 202036 
Newsprint  
HS 4801.00.10 and 
4801.00.90  20 September 201337  
2 October 201438   
5 May 201539 In force 
until May 
201840 
Galvanized iron 
sheets and coils  27 September 201341   No measure was imposed42  
Source:  WTO Secretariat . 
3.1.6.3   Other measures  
3.42.   Under Section 714 of the Customs Modernization Tariff Act, the President may impose an 
additional duty of up to 100% on goods from any country that discriminates against Philippine 
                                                                                                                                                  
28 RA 8800, 19 July 2000.  
29 Safeguard Measures Act (Section 8), RA 8800, 19 July 2000. See also WTO  document 
G/SG/N/1/PHL/2, 9 July 2001.  
30 WTO document G/SG/N/6/PHL/7/Suppl.2, 1 December 2014.  
31 WTO document G/SG/N/11/PHL/7/Suppl.4; G/SG/N/14/PH L/7, 20 April 2012.  
32 WTO documents G/SG/N/10/PHL/6/Suppl.3; G/SG/N/11/PH L/7/Sup pl.5; G/SG/N/14/PHL/7/Suppl.1, 
4 August 2015.  
33 WTO document G/SG/N/10/PHL/6/Suppl.3; G/SG/N/11/PH L/7/Sup pl.5; G/SG/N/14/PHL/7/Suppl.1, 
4 August 2015.  
34 WTO document G/SG/N/8/PHL/8/Suppl.3; G/SG/N/10/PH L/7/Supp l.2; G/SG/N/11/PHL/9/Suppl.3, 
17 January 2014.  
35 WTO document G/SG/N/8/PHL/8/Suppl.4; G/SG/N/10/PH L/7/Supp l.3; G/SG/N/11/PHL/9/Suppl.4, 
27 September 2016.  
36 WTO document G/SG/N/8/PHL/8/Suppl.4; G/SG/N/10/PH L/7/Supp l.3; G/SG/N/11/PHL/9/Suppl.4, 
27 September 2016.  
37 WTO documents G/SG/N/6/PHL/9, 1 October 201 3; and G/SG/N/6/PH L/9/Suppl.1, 8 November 2013.  
38 WTO document G/SG/N/6/PHL/9/Suppl.3, 1 December 2014.  
39 WTO documents G/SG/N/8/PHL/9; G/SG/N/10/PH L/8/; G/SG/N/11/PH L/10, 21 May 2015 and 
G/SG/N/8/PH L/9/Corr.1; G/SG/N/10/PHL/8/Corr.1; G/SG/N/11/PH L/10/Corr .1, 25 August 2015.  
40 WTO documents G/SG/N/8/PHL/9; G/SG/N/10/PH L/8/; G/SG/N/11/PH L/10, 21 May 2015 and 
G/SG/N/8/PH L/9/Corr.1; G/SG/N/10/PHL/8/Corr.1; G/SG/N/11/PH L/10/Corr.1, 25 August 2015.  
41 WTO documents G/SG/N/6/PHL/10, 10  October  2013 and G/SG/N/6/PHL/10/Suppl.1, 
8 November  2013.  
42 WTO documents G/SG/N/9/PHL/2, 27 February 2015 and G/SG/N/9/PHL/2/Corr.1, 9 March 2015.  WT/TPR/S/36 8 • The Philippines  
 
- 43 - 
 
  exports.43 If discrimination persists or increases after the duty is imposed , the President may 
prohibit the importation of goods of that country or establish import quotas, if in the national 
interest. Although this measure has not been used during the period under review, it adds an 
element of uncertainty to the Philippines' tra de regime.  
3.2  Measures Directly Affecting Exports  
3.2.1   Customs procedures and requirements  
3.43.   Registration and documentation requirements for exporters are similar to those for  
importers ( Section  3.1.1). Only registered companies are allowed to export.44 All exports m ust be 
covered by an Export Declaration (ED), filed electronically with the BOC or through the One -stop 
Export Documentation Centre (OSEDC).45 The ED must be accompanied by a commercial invoice 
and a packing list, and, for certain products, by a permit (Sec tion 3.2.3). A certificate  of origin is 
required for exports under preferential arrangements . 
3.2.2   Minimum export prices  
3.44.   Minimum export prices on rice and corn have not been used since the 1990s.  
3.2.3   Export taxes, charges, and levies  
3.45.   Exports of plantation logs are subject to a tax of 20% on the f.o.b. value. No other products 
are subject to export taxes. No data was available on annual income from this tax.  
3.2.4   Export prohibitions, restrictions, and licensing  
3.46.   The Philippines prohibits or regulates  exports  on grounds of national interest, security, 
public health, food security and to fulfil the requirements of internat ional agreements (e.g. CITES).  
3.47.   Export prohibitions apply to certain  wildlife and plant species, gold from small -scale 
mining46, raw rattan, lo gs from naturally grown trees, and matured coconuts47.  
3.48.   Export restrictions and licences apply to a very wide range of products (Table 3.9). The 
elimination of restrictions and licensing requirements for some products would facilitate their 
exportation.  
3.49.   Exports of rice , corn, and sugar remain restricted. In order to ensure food security and price 
stability, these commodities may be exported only if there is a surplus, according to the 
authorities . Fish exports are also regulated on grou nds of domestic food s ecurity. Exports, when 
allowed, require a permit issued by the D OA. Permits are gr anted on a per -shipment basis. A 
sanitary certifica te must also be issued on a per -shipment basis. In addition, only fish products 
that have been processed in fish -processing  establishments certified by the BFAR as compliant 
with the Sanitation Standard Operating Procedures and  Hazard Analysis and Critical Control Point  
system, may be exported.  
                                                
43 The authorities define "discrimination" as the unequal treatment of Philippine trade vis-à-vis that with 
other countries i n the application of laws, administrative regulations and practices, customs procedures, duties 
and charges, and the classification of goods.  
44 Exporters must be registered through the Client Profiling Registration System (CPRS) of the BOC’s 
electronic to mobile (e2m) project.  
45 The OSEDC, located in Pasay City, houses under one roof different government agencies that are 
involved in the processing of export documents, including issuance of permits and  certificate s of origin. 
46 The export prohibition of gol d from small -scale mining is provided for under Section 17 of Republic 
Act No. 7076 (People’s Small -Scale Mining Act) of 27 June 1991 which states that "All gold produce by 
small-scale miners in any mineral area shall be sold to the Central Bank, or its du ly authorized representatives, 
which shall buy it at prices competitive with those prevailing in the world market regardless of volume or 
weight."  
47 The authorities indicate that this is "to sustain supply for local manufacturers of traditional coconut 
products".  WT/TPR/S/3 68 • The Philippines  
 
- 44 - 
 
  Table 3.9 Goods subject to export permits or licensing  
Regulated product  Regulating agency  Legal basis  
Legal tender Philippine notes and 
coins, checks, money orders and other 
bills of exchange drawn in pesos 
against banks operating in the 
Philippines in an amount exceeding 
PHP50,000.00  Bangko Sentral ng 
Pilipinas (BSP)  Manual of Regulations on Foreign Exchange 
Transactions as amended by BSP Circular No. 
922 (23 August 2016)  
Copper concentrates  Board of Investments 
(BOI)  Letter of Instruction No. 1387 (21 February  
1984)  
Live animals, their products and by -
products, veterinary feed premixes 
and biologics, laboratory specimens of 
animal origin, feeds and feed 
ingredients  Bureau of Animal 
Industry (BAI)  R.A. No. 9296 "The Meat Inspection Code of 
the Philippines";  
E.O. No. 338 of 2001 "Restructuring the 
Department of Agriculture";  
E.O. No. 292 "Administrative Code of 1987"  
DA A.O. No. 14, series of 2012  
Fish and aquatic products; additional 
rules apply to mud crabs, sea snakes, 
and certain shells  Bureau of Fisheries and 
Aquatic Resources 
(BFAR)  R.A. No. 8550 (The Philippine Fisheries Code of 
1998) Section 61(d)  
Plants, planting materials and plant 
products; pest specimens; wood 
packaging materials capable of 
harbouring plant pests  Bureau of Plant Industry 
(BPI) International Standards for Phytosanitary 
Measures No.15 "Guidelines for Regulating 
Wood Packaging Material in International 
Trade" (2002) with modifications to Annex I 
(2006);  
P.D. No. 1433 "Promulgating the Plant 
Quarantine Law of 1978 ";  
BPI Quarantine Admi nistrative Order No. 1 
series of 1981  
Used lead acid batteries  Environmental Manage -
ment Bureau (EMB)  R.A. No. 6969 "Toxic Substances Hazardous 
and Nuclear Wastes Control Act of 1990"  
Firearms, ammunitions and explosives  Firearms and Explosives 
Office, Philippine National 
Police (PNP -FEO) P.D. No. 1866 of 29 June 1983;  
R.A. No. 8294 "Act to amend Presidential 
Decree No. 1866"  
Bamboo, lumber, logs, poles, piles, log 
core and flitches/railroad ties 
produced from planted trees  Forest Management 
Bureau (FMB)  Revised Rules and Regulations Implementing 
Presidential Decree No. 930;  
P.D. No. 705 "Forestry Reform Code of the 
Philippines";  
DENR Administrative Order No. 1988 -34 
"Guidelines on Certificate of Timber Origin"  
Coffee  International Coffee 
Organizat ion Certifying 
Agency (ICO -CA) International Coffee Agreement (ICA 2007), 
Article 33   
Crushed or sized sand gravel and 
other unconsolidated materials  
Iron, manganese and chromium ore  
Mine wastes and mill tailings  
Unprocessed, raw or run -of-mine 
minerals of ores  Mines and GeoSciences 
Bureau (MGB)  R.A. No. 7942 "Philippine Mining Act of 1995";  
DENR Administrative Order No. 2008 -20; DENR 
Memorandum Order Nos. 2008 -04, 2009 -01 
and 2010 -07 
Grains and grain by -products  National Food Authority 
(NFA)  P.D. No. 4 "National Grains Authority Act" (26 
September 1972)  
Cultural properties such as 
archaeological and traditional 
ethnographic materials, antiques, 
historical relics, natural history 
specimens  National Museum (NM)  R.A. No. 10066 "National Cultural Heritage Act 
of 2009";  
R.A. No. 8492 "National Museum Act of 1998";  
R.A. No. 4846 "Cultural Properties Preservation 
and Protection Act" as amended  
Optical and magnetic media, their 
manufacturing equipment; parts, 
accessories and manufacturing 
materials  Optical Me dia Board 
(OMB)  R.A. No. 9239 "Optical Media Act of 2003"  
Terrestrial wildlife (live or preserved) 
and its by -products  Protected Areas and 
Wildlife Bureau (PAWB)  R.A. No. 9147 "Wildlife Resources Conservation 
and Protection Act of 2001"  
Radioactive materials  Philippine Nuclear 
Research Institute (PNRI)  R.A. No. 2067 "Science Act of 1958";  
R.A. No. 5207 "Atomic Energy Regulatory and 
Liability Act of 1968"  
Cane-based sugar and molasses  Sugar Regulatory 
Administration (SRA)  E.O. No. 18 "Creating A Sug ar Regulatory 
Administration" (28 May 1986)  
Source:  Philippine authorities.  
3.2.5   Export support and promotion  
3.50.   According to the authorities, no export subsidies were provided during the period under 
review.  Exports are exempted from goods and excise taxes.  WT/TPR/S/36 8 • The Philippines  
 
- 45 - 
 
  3.51.   The Center for International Trade Expositions and Missions (CITEM) is the export promotion  
arm of the DTI. It promotes goods  and services exports through trade fairs , missions and other 
activities.  For 2018, CITEM has an operating budget of PHP 315 million of  which PHP 232 million 
are public contributions.  
3.52.   The Export Marketing Bureau (EMB) is  the export  marketing agency of the DTI. It renders 
advisory services, conducts market information sessions, and undertakes profiling of selected key 
exports industries , including to foreign -owned companies. M ost of its work is geared toward 
crafting special studies and country trade regulations reports.  EMB's 2017 operating budget 
amounts to PHP 106 million.  
3.53.   The Foreign Trade Service Corps (FTSC) is a network of 30 trade r epresentatives or 
commercial attachés in 21 countries. It aims to facilitate relations between foreign and local 
businesses and to connect Philippine exporters with potential buyers abroad through business 
matching, and international networking with trade organizations.  
3.2.6   Export processing zones  
3.54.   The Philippine Economic Zone Authority (PEZA) has jurisdiction over all economic zones  
proclaimed under its mandate. Enterprises need to be exporters of manufactured products or of 
IT-enabled  services, and must physic ally locate their activi ty inside PEZA economic zones. 100%  
foreign ownership is allowed. Incentives include: income tax holiday (ITH) or exemption from 
corporate income tax for four to six years, extendable up to a maximum of eight years; after the 
ITH pe riod, payment of a special 5% tax on gross income, in lieu of all other taxes; exemption 
from duties and taxes on imported capital equipment, spare parts, supplies and raw materials; 
domestic sales allowanc e of up to 30% of total sales; exemption from expo rt taxes, wharfage fees; 
zero VAT rate on local purchases  that are directly related to the company's registered activity; 
exemption from payment of local government fees (e.g. Mayor's permit, business permit, health 
certificate fee, sanitary ins pection fee , and garbage fee); simplified import and export procedures; 
simplified employment of foreign nationals; and special visas for foreign investors and immediate 
family members.  
3.55.   As at October 2017, there were  376 economic zones operated by PEZA, of which 74 w ere 
manufacturing zones, 258 information technology parks and centres, 22 agro -industrial zones, 20 
tourism zones, and two medical tourism parks. Except for four zones, all zones and parks were 
developed and are maintained by private operators. As at July 2017, there were a total of 4,047 
enterprises operating in these zones of which 2,785 were foreign -owned (918 from Japan, 395 
from the U.S., and 303 from Korea).  Total employment in PEZA zones stood at 1,361,341 in July 
2017. Total investment in PEZA zones  from 1995 to September 2017 was PHP 3.6 trillion , while 
exports during the same period amounted to US$ 684.2 billion . 
3.2.7   Export finance, insurance, and guarantees  
3.56.   The Philippine Export -Import Credit Agency  (PhilEXIM),  attached to the Department of 
Finance,  is a public export credit and insurance agency.  It offers loans, guarantees and insurance 
to Filipino -owned companies.  
3.57.   Loans are available specifically for exporting SMEs.  Eligible companies must have been 
profitable for at least two years and have a minim um export volume of US$100,000 within the last 
six months. Short -term loans are for 180 days (360 days in exceptions) and cover up to 80% of 
the value of the shipment. Medium and long term loans are for up to seven years and an amount 
of up to PHP 50 milli on and also cover working capital. Loans are subject of a non -refundable 
application fee of PHP 10,000 plus GRT and a processing fee of 0.25% plus GRT of the approved 
loan amount.  
3.58.   Guarantees cover up to 90 % of the approved loan.  Applicants must pay an appl ication fee of 
PHP 100,000 plus Gross Receipts Tax (GRT), a processing fee of 0.125% plus GRT, and a 
guarantee fee of up to 2.5% plus GRT of the guaranteed amount. Any company registered in the 
Philippines is eligible for the programme. A special guarantee  program also exists for SMEs , with 
slightly different conditions and a maximum guaranteed loan amount of PHP 20 million.  WT/TPR/S/3 68 • The Philippines  
 
- 46 - 
 
  3.2.8   Export performance requirements  
3.59.   Certain t ax incentives provided by the B oard of Investments under the Omnibus Investment 
Code to expor ters of non-traditional goods48 are con tingent on export performance. The export 
performance requirement is higher for foreign -owned enterprises (70% of production) than for 
Philippine -owned companies (50%). According to the authorities, these provisions ar e currently 
under revision.  
3.3  Measures Affecting Production and Trade  
3.3.1   Standards and other technical requirements  
3.60.   The Bureau of Philippine Standards (BPS), a governmental body under the DTI, is the 
National Standards Body of the Philippines. It is responsible  for developing and promulgating 
Philippine National Standards (PNSs), including standards developed by other government 
agencies such as the Department of Agriculture (DA) and Department of Health (DOH).  The BPS 
has been actively involved in establishing mutual recognition agreements within APEC and ASEAN, 
and at the bilateral level. As a member of the International Organization for Standardization (ISO) 
and the International Electro -technical Commission (IEC), the BPS participates in the development 
of in ternational standards. The BPS is also the WTO National Enquiry Point and National 
Notification Authority.  
3.61.   The BPS has two methods of developing standards, the technical committee method and the 
fast track method.  Under the first method, PNSs are set by te chnical committees (consisting of 
academics, trade and industry associations, consumer groups, members of professional groups, 
research institutions, government agencies, and testing institutions), and are revised periodically. 
The fast track method  is use d to adopt  existing international or foreign standards. During a period 
of 60 days, stakeholders can comment on draft standards.  
3.62.   As of October  2017, there were 10, 091 PNSs; the share aligned with int ernational standards 
was 79.9%, up from 78.5% in October 2011. Where PNSs are not aligned with international 
standards , this is due mainly to long standing business practices, climatic conditions, the absence 
of specific international standards, and the need for higher requirements than international 
standards. The authorities underlined their objective to strongly increase the share of 
internationally aligned standards by 2022.  
3.63.   PNS are voluntary, unless declared mandatory through Department Administrative Orders 
(DAO). There are 72 mandatory  PNS (i.e. technical regulations), which apply, inter alia,  to: 
automotive and motorcycle batteries,  electrical wires and cables, fire extinguishers, household 
appliances, lighting fixtures, matches, medical equipment, Portland cement, pneumatic tyres, and 
sanitary ware.  These products are subject to local inspection to assess compliance. Importers of 
products covered by mandatory PNS are issued an Import Commodity Clearance (ICC) after the 
BPS has determined that imports meet the relevant Philippine standar d. Nevertheless, i mports, 
including those certified abroad as meeting international standards, may be subject to sample 
testing by BPS; non -compliant imports are denied entry. BPS also conducts random checks at 
retail outlets to ensure that imports consist ently meet Philippine standards.  
3.64.   The BPS implements two certification schemes, the Philippine Standard (PS) Quality Scheme 
and/or Safety Certification Scheme. Under these schemes, the BPS issues a licence to allow a 
company to affix the PS Quality or Safet y Mark to its products, after inspections to determine that 
such products meet the relevant PNS. For 73 products, certification is mandatory.49 Foreign 
companies may apply for PS Quality or Safety Certification through a BPS recognized counterpart. 
As of 1 October 2017, 373 foreign firms had been awarded the PS licences.  
3.65.   The Philippines Accreditation Bureau (PAB) is the national accreditation body of the 
Philippines. It covers the accreditation of inspection, testing and calibration laboratories and 
assesses  the conformance of laboratories' quality management systems with international 
                                                
48 These are defined as goods with an export value of less than US$ 5 million in the year 1968.  
49 This includes  air conditioners, batteries (automotive and motorcycle), brake fluids, cement, circular 
lamps, cooking ranges, electric fans, fire exting uishers, flat irons, fuses, LPG cylinders, lamps, lamp holders, 
and matches.  WT/TPR/S/36 8 • The Philippines  
 
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  guidelines.50 As at September 2017, PAB has accredited 243 conformity assessment bodies (76 
testing laboratories, 41 calibration laboratories, six medical laboratories, four ins pection bodies, 
and 16 certification bodies.  
3.66.   Between  October 2011 and October 2017 , the Philippines made 46 notifications to the WTO 
Committee on Technical Barriers to Trade.  
3.3.2   Sanitary and phytosanitary requirements  
3.67.   The Philippines has reformed its food saf ety regime based on a "farm -to-fork" approach to 
enhance food safety.51 However, the Philippines'  complex SPS -related import requirements for 
food remain largely unchanged. The Food Safety Act of 2013 is the first comprehensive food safety 
law and applies t o all food from "farm -to-fork", whether domestically produced or imported.  The 
implementing rules and regulations  entered into force on 20 February 2015.52 Both the Act and the 
implementing legislation were notified to the SPS Committee.53 
3.68.   Food safety policy  matters are overseen by the Food Safety Regulation Coordinating 
Board.54 SPS measures are developed and implemented by the Department of Agriculture (DA) 
and the Department of Health (DOH). The DA has ten regulatory agencies that implement 
measures to prot ect human, animal and plant health and life from pathogens, zoonotic diseases 
and pests entering primary agricultural products such as raw meat, and fresh fruits and 
vegetables. The Food and Drug Administration of the DOH develops and implements measures f or 
food additives, labelling of pre -packaged foods, dietary supplements, and food packaging, among 
others. The Department of the Interior and Local Government, and the Local Government Units, 
are responsible for the enforcement of food safety rules and reg ulations.  
3.69.   The scientific basis of the food safety regime has been strengthened , according to the 
authorities.  The new Act provides that SPS measures must be based, amongst others, on the 
principles of non -discrimination, scientific evidence, proportionalit y, precaution, traceability, and  
transparency .55 The principle of equivalence  is recognized.56 The responsibility for achieving the 
Food Safety Act's objectives is shared between the Government and the food business operators. 
New traceability requirements a pply along the food chain.57 
3.70.   The DA Bureau of Agricultur e and Fisheries Standards (BAFS) is in charge of developing 
food safety standards for agricultural and fishery products ; it follows the WTO TBT Annex 2 on 
Good Standardization Practice . The food safety  standards are mandatory ; they are either in the 
                                                
50 The BPS signs memoranda of understanding (MoUs) with foreign certification bodies to work jointly in 
assessing quality systems. It has MOUs with SIRIM QAS International (Malaysia) and DSN (Indonesia).  
51 In 2014, the Standards and Trade Development Facility (STDF) funded research on the 
implementation of SPS measures to facilitate safe trade in selected countries in South East As ia, including the 
Philippines. The objective  was to analy se how SPS measures are implemented for specific product s based on 
the provisions of the SPS Agreement and Codex, IPPC and OIE standards . The research also explored the 
transaction costs of SPS measures for rice and other field crops , certain meat products, and fisheries, and 
considered how improving compliance with WTO principles can facilitate trade and contribute to better health 
protection. In the SPS Committee, the Philippines reported that the recommendations resulting from STDF's 
work we re help ful in undertaking further reforms. The STDF's work was also used to inform collaboration 
between the International Finance Cooperation (IFC) and the Philippines Department of Agriculture to improve 
SPS import and export procedures. See also Van der  Meer, K. and M.  Marges (2014). Implementing SPS 
measures to facilitate safe trade in The Philippines. Country study conducted for the Standards and Tra de 
Development Facility, p.14. Viewed at: 
http://www.standardsfacility.org/sites/default/files/Implementing_SPS_Measures_to_Facilitate_Safe_Trade_Phi
lippines_Jun -2014.pdf . 
52 Joint DA -DOH Admi nistrative Order No. 201 5-0007 I mplementing Rules and Regulations of the Food 
Safety Act of 2013. Viewed at: http://extwprlegs1.fao.org/docs/pdf/phi154130.pdf  
53 WTO documents WTO/G/SPS/N/PHL/244, 20 December 2013 and WTO/G/SPS/N/PHL/244/Add.1, 1 
July 2015.  
54 The board is headed b y the Department of Health and the Department of Agriculture, and comprises 
the heads of the ir specialized regulatory agencies . 
55 Food Safety Act of 2013 , Section 27 , Article IV and Article VIII . 
56 The D epartment of Agriculture  and D epartment of Health maintain lists of countries with accepted 
SPS equivalency.  
57 See WTO document G/SPS/N/PHL/387, 6 September 2017.  The BFAR has implement ed a traceability 
system for wild caught, farmed fish and other aquatic products since 2014 (B FAR Administrative Circular 
No. 251). WT/TPR/S/3 68 • The Philippines  
 
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  form of Philippine National Standards (PNS), the standards of other countries, or Codex 
Alimentarius standards . As of September 2017, it had developed 202 standards (including food 
safety and quality standards, codes of practice, organic agriculture, and agriculture and fishery 
tools and equipment).  
3.71.   Sanctions for violations of the Food Safety Act include fines ranging from PHP 50,000 to 
500,000; imprisonment from 6 months to 6 years; and a permanent pr ohibition to re -enter the 
country in the case of foreigners. Importing agricultural products without SPS import clearance 
constitutes smuggling, which may carry penalties from 12 years to life imprisonment .58 
3.72.   A Rapid Alert System for Food and Feed (RASFF) was set up in April 2017.59 Once 
operational, it will enable the authorities to cooperate with the EU RASFF, the ASEAN RASFF and 
the International Network of Food Safety Authorities (INFOSAN) to respond quickly to food safety 
incidents and to file notificat ions to national contact points and exchange information on food 
safety incidents.  
3.73.   The main features of the import "accreditation" regime remain unchanged  (see Annex Table 
A3.2):  
a. All food products are subject to accreditation in the form of a certificate o f product 
registration issued by the competent agency of the Department of Agriculture  or 
Department of Health . 
b. Import consignments of food (other than processed and pre -packaged) require a permit 
("SPS import clearance") issued  by the Department of Agriculture. Prior to arrival, an 
Import Notification Document is required , on the basis of which the need for inspections, 
including lab testing,  is determined by the DA or the DoH . Inspections are risk -based; 
and according to the Food Safety Act are to take place prior to the assessment of 
customs duties and other charges  (specific guidelines are to be developed).  
c. All food establishments including importers and exporters must be "r egistered", 
"accredited" or licenced ("licence to operate"), depending on the product.  
3.74.   The D epartment of Agriculture and the D epartment of Health  have implemented an 
electronic system for licence  and permit  applications.60 Furthermore, the Philippines has l aunched 
an initiative to establish an enhanced (web -based) single window , which would incorporate the 
DA/DoH import accreditation requirements and the DA's process of issuing import clearances.  
3.75.   As noted in the last TPR, in some instances domestic supply is  taken into account when 
issuing import clearances.61 For example, fish products may be imported only if certified by the DA 
as necessary to achieve food security. According to an STDF study (2014), "some traders believe 
that quotas applied in licences and permits aim at control of markets, not protection of health".62 
3.76.   Since the last TPR, Members have not raised any Specific Trade Concern (STC) in the SPS 
Committee regarding the Philippine SPS measures. According to authorities, DA Administrative 
                                                
58 Republic Act (RA) No. 10845, the Anti -Agricultural Smuggling Act of 2016. Viewed at: 
http://www.lawphil.net/statutes/repacts/ra2016/ra_10845_2016.html . The implem enting rules and regulations 
entered into force in 2017 , see Customs Administrative Order 2,  2017, viewed at: http://customs.gov.ph/wp -
content/uploads/2017/05/CAO -2-2017.pdf  
59 The FDA is the agency in -charge of the PhilRASFF online platform  (philsraff.org) , as well as the 
National Contact Point, particularly the FDA Center for Food Regulation and Research.  
60 DA BAI Memorandum "Application and release procedure s for SPS import clearance", 
15 December  2016. Viewed at: http://www.bai.da.gov.ph/index.php/news -and-events/item/429 -application -
and-release -procedures -for-sps-import -clearance ; and  DOH FDA Circular 2016 -014. Viewed at  
http://www.fda.gov.ph/  
attachments/article/355437/FDA%20Circular%20No.%202016 -014.pdf  
61 TPR of the Philippines (2012).  
62 Van der Meer, K . and M.Marges  (2014). Implementing SPS measures to facilitate safe trade in the 
Philippines. Country study conducted for the Standards and Trade Devel opment Facility, p.14. Viewed at: 
http://www.standardsfacility.org/sites/default/files/Implementing_SPS_Measures_to_Facilitate_Safe_Trade_Phi
lippines_Jun -2014.pdf  WT/TPR/S/36 8 • The Philippines  
 
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  Order No. 22  of 2010, which was the matter of concern of STC 32063 (raised in 2011 by the 
United  States – Restrictions on imported fresh meat) was superseded by AO No. 5 and No. 6 of 
2012; the Philippines and the United States are engaging in a technical discussion on the results of 
the risk assessment conducted by the Philippines, which was the basis of the implementation of AO 
No. 5 and No. 6 of 2012.64 Import  consignments of meat must originate in a foreign meat 
establishment recognized by the Veterinary Administratio n and accredited in the Philippines.65 
According to the authorities, t he authority for the safety of processed or pre -packaged meat has 
been transferred from the National Meat Inspection Service (NMIS ) to the FDA but the operational 
transition is still ongo ing [as of October 2017].  Furthermore, in May 2015, the Philippines received 
recognition from the OIE as free from Foot and Mouth Disease without vaccination. The Philippines 
follows OIE guidelines on regionalization.  
3.77.   The Bureau of Plant Industry (BPI) under the Department of Agriculture is responsible for 
the safety of "plant food"66, as we ll as phytosanitary measures. The plant protection regime has 
remained  substantially unchanged  since the previous Review. It is governed by the Plant 
Quarantine Law 19 78, as elaborated , inter alia , by the Department of Agriculture Administrative 
Order 9, 2010 .67 The import guidelines for plants were amended by DA Circular No.4 of 2016.68 
The cost of carrying out i mport risk analysis , which was on a cost -sharing base, is b orne since 
2017 by the Philippine  Government.  All imported genetically -modified plant and plant products 
derived from the use of modern biotechnology require authori zation for commercial distribution in 
the country of origin, a biosafety permit and SPS imp ort clearance issued by the Bureau of Plant 
Industry.69 
3.78.   The Philippines has submitted over 200 notifications to the SPS Committee in the period 
from January 2012 to May 2017, including almost 100 emergency notifications and some 40 
withdrawn emergency measu res (most Members have less emergency measures than regular 
notifications). Most of the regular notifications concern food safety measures. The Department of 
Agriculture remains the national SPS enquiry point (as well as the National Notification Authority ). 
3.3.3   Labelling and marking requirements  
3.79.   The Consumer Act  (RA No. 7394) prescribes labelling requirements for imported and locally 
manufactured products . If an imported good is covered by mandatory certification of the BPS and 
certified to have passed the sta ndard prescribed by the BPS, the label must contain the Import 
Commodity Clearance (ICC) Mark or the PS Quality/Safety Mark if the manufacturer of the  product 
is a PS license holder . Domestically produced goods that are regulated by BPS must ha ve the PS 
Quality/Safety Mark.  The standards for labelling health products are prescribed by the Food and 
Drug Administration (FDA).  
3.80.   Consumer products, whether manufactured locally or imported, must indicate in their 
packaging the following minimum labelling requirements: registered brand name; registered 
trademark; registered business name and address of the manufacturer, importer, or re-packer of 
the product; general make or active ingredients; net quality of contents, in terms of weight; and, 
if imported, country of origin. DTI Department Administrative Order No. 01 of 2008 provides for 
mandatory translation into English or Filipino i n the product label or packaging.   
                                                
63 SPS IMS online information, http://spsims.wto.org/en/SpecificTradeConcerns/View/320  
64 See http://www.officialgazette.gov.ph/2012/01/12/da -administrativ e-order -no-5-s-2012/  and 
http://www.officialgazette.gov.ph/2012/01/12/da -administrative -order -no-6-s-2012/  
65 DA Administrative Circular No. 11, 2015. "List of  Countries and Foreign Meat Establishments (FME) 
Accredited to Export Meat and Meat Products into the Philippines", 10 June 2015. Viewed at: 
http:// www.bai.da.gov.ph/index.php/laws -issuances/administrative -order/category/101 -ao-2015 
66 The BPI has the mandate for the safety of those "plant food" items that are not regulated by 
commodity agencies (i.e. excluding rice, corn and other grains (NFA), coconu ts (Philippines Coconut Authority) 
and sugar (Sugar Regulatory Authority).  
67 Viewed at: http://pntr.gov.ph/data/legalbasis/DAAO92010.pdf  
68 WTO document G/SPS/N/PHL/371  of 30 May 2017.  
69 WTO document G/SPS/N/PHL/373. Joint  Department Circular No.1,2016. "Rules and regulations for 
the research and development, handling and use, transboundary movement, release into the environment, and 
management of genetically -modified plant and plant products derived from the use of modern biotechnology . 
Viewed at: http://www.dilg.gov.ph/PDF_File/issuances/joint_circulars/dilg -joincircular -
2016314_ 6198c59c0c.pdf  WT/TPR/S/3 68 • The Philippines  
 
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  3.81.   Articles that cannot be marked prior to shipment, such as crude substances, and products 
imported for private use and not for resale in their imported form, are exem pt from marking 
requirements. The packaging must be secu re and adapted t o tropical climatic conditions.  
3.3.4   Competition policy and price controls  
3.82.   Since the previous TPR in 2012, the Philippines has made visible achievements in 
developing its legal framework and institutions for competition policy. The landmarks inc lude the 
introduction of its first competition act in 2015 and the establishment of a competition authority, 
namely the Philippine Competition Commission (PCC), in 2016. Despite these efforts, the overall 
competition environment is still considered  weak du e to restrictive regulations on trade and 
investment, barriers to entrepreneurship and state control.70 
3.83.   After pending in Congress for 24 years, the P hilippine Competition Act (PCA)  (RA No. 
10667 ) was passed in June 2015 and came into effect in August 2015. The Act serves as the 
primary legal instrument concerning competition policy and has terminated the long fragmentation 
of competition legislation. Provisions in other laws, decrees, executive orders and regulations 
inconsistent with the PCA are repealed or  modified acc ordingly. Following the enactment  of the 
PCA, relevant rules, regulations and clarificatory notes on implementing the Act have also been 
issued. The most important ones include the 2016 Implementing Rules and Regulations of the PCA 
(the IRR) a nd the 2017 Rules of Procedure of the PCC. The PCA also applies to state -owned 
enterprises.  
3.84.   The PCA prohibits anti -competitive agreements and acts. It provides for per se violations, 
namely, (i) restricting competition as to price, or components thereof, o r other terms of trade; and 
(ii) fixing price at an auction or in any form of bidding including cover bidding, bid suppression, bid 
rotation and market allocation and other analogous practices of bid manipulation. Other anti -
competitive agreements which ha ve the object or effect of substantially preventing, restricting or 
lessening competition are also prohibited but subject to rule of reason. They include: (i) setting, 
limiting, or controlling production, markets, technical development, or investment; and (ii) dividing 
or sharing the market. The PCA also prohibits the abuse of dominant market position through 
engaging in various conducts that would substantially prevent, restrict or lessen competition. Such 
conducts include predatory pricing, imposing barri ers to entry in an anti -competitive manner, 
unfair exercise of monopsony power, among others.  
3.85.   In terms of merger and acquisition, the PCA requires that parties to a merger or acquisition 
agreement where the value of the transaction exceeds PHP 1  billion sh ould notify the PCC of such 
agreement. It prohibits merger and acquisition agreements that substantially restrict competition. 
The PCA gives the PCC the authority to prescribe other criteria that would trigger the notification 
requirement, e.g. increased m arket share in the relevant market in excess of minimum thresholds.  
Principal analytical techniques  and the enforcement policy are outlined in the 2016 Implementing 
Rules and Regulations of the PCA.71 A draft Merger Procedure is under preparation and curren tly 
available for public comments.72 
3.86.   The PCC was established as an independent institution in February 2016.73 Its main role is 
to ensure fair competition in the market for the benefit of consumers and businesses. The 
Commission is composed of one cabinet se cretary -level chairman and four commissioners. They 
serve for seven years without reappointment and enjoy security of tenure.  The PCC has original 
and primary jurisdiction over all competition -related issues.  
3.87.   The PCA has a built -in two -year transitory peri od, which ended on 8 August 2017, to allow 
affected parties to renegotiate agreements or restructure their businesses to comply with the 
provisions of the PCA. By mid -September 2017, the PCC has received a total of 26 queries and 
complaints about possible anti-competitive conduct in various industries. Three  of them have 
                                                
70 The Philippine Development Plan 2017-2022, v iewed at: http://pdp.neda.gov.ph/wp -
content/uploads/2017/01/PDP%202017 -2022-06-06-2017.pdf  
71 Befor e the effectivity of the IRR in 2016, merger and acquisition reviews were guided by the 
Guidelines on Mergers and Acquisitions which were superseded by the IRR as of the latter's effectivity.  
72 See: http://phcc.gov.ph/pcc -merger -procedure/  
73 Before the PCA was introduced, the Department of Justice had been designated as the competition 
authority on 9 June 2011.  WT/TPR/S/36 8 • The Philippines  
 
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  advanced to preliminary inquiry while another three have progressed to full administrative 
investigation . Most investigations related to power production, cement, professional health 
servic es, and garlic.  
3.88.   The PCC can impose a dministrative fines of up to PHP 250 million. This amount is subject to 
adjustment every five years. Decisions of the PCC are appealable to the Court of Appeals. The 
Court of Appeals and the Supreme Court may issue a tem porary restraining order, preliminary 
injunction or preliminary mandatory injunction against the PCC. Criminal penalties for prohibited 
anti-competitive agreements are imprisonment of two to seven years and a fine of PHP 50 million 
to PHP 250 million. The Office for Competition under the Department of Justice is tasked with 
undertaking prosecution of all criminal offenses.  
3.89.   The Mergers and Acquisitions Office (MAO) under the PCC is responsible for the review and 
investigation of mergers and acquisitions. It works under the guidance of the Implementing Rules 
and Regulations and has a maximum of 90 days to review a notification. Its findings are presented 
to the Commissioners and the Chairman for ruling. By mid -September 2017, the PCC has received 
114 notifications for mergers and acquisitions since its inception in February 2016, of which 36 are 
for global mergers. These notifications carry a total transaction amount of PHP 1.95 trillion. The 
PCC has approved 95 transactions. The top five sectors invo lved in the review according to value 
of transaction are manufacturing; financial and insurance activities; electricity, gas, steam, and 
air-con supply; administrative and support services; and information and communication.  
3.90.   The PCC also sets its sight on promoting a culture of competition through advocacy, 
capacity building and research. In coordination with the National Economic and Development 
Authority, the PCC has conducted the National Competition Policy Review, the result of which 
served as the basis  for crafting the competition chapter in the Philippine Development Plan 2017 -
2022 (PDP). Chapter 16 of the PDP elaborates on  the promotion of competition.  
3.91.   In connection with its mandate to issue advisory opinions, the PCC submitted to the 
Supreme Court an  amicus brief in 2016. The brief stated the PCC's opinion that the nationality -
based distinction in the grant of licences to construction companies hinders competition in the 
construction industry, creating an uneven playing field between local and foreign  contractors. The 
PCC also conducts market studies and market investigations, examining markets which may not be 
working well.  
3.92.   Competition provisions are included in several of the Philippines' regional trade agreements, 
such as the ASEAN -Australia New Zea land Free Trade Agreement, the ASEAN -Japan 
Comprehensive Economic Partnership Agreement, and the Philippines -Japan Economic Partnership 
Agreement.  
3.3.5   State trading, state -owned enterprises, and privatization  
3.93.   The Philippines has notified the N ational Food Auth ority (NFA) as a state -trading 
enterprise.74 The NFA has the exclusive authority to import rice , corn and other grains. It also has 
the sole authority to issue import quotas and import permits for rice.  
3.94.   State -owned enterprises, known in the Philippines as government -owned and controlled 
corporations (GOCC), are important  in the transport , infrastructure, communication , and housing  
sectors. There were 137 operational GOCCs as at April 2017.75 
3.95.   In 2014, total  assets of all GOCCs amounted to  PHP 6.07 trillion (about US$133 billion) . 
GOCCs are required to remit at least 50 % of their annual net earnings to the national 
Government ; in 2014, they remitted  PHP 24.37 billion (about US$541 million).  
3.96.   The GOCC Governanc e Act  of 2011  (R.A. No. 101409) aims  to address various problems 
experienced by GOCCs, including poor financial performance, weak governance structures , and 
unauthorized allowances. It  allows unrestricted access to GOCC account books and requires strict 
                                                
74 WTO document G/STR/N/4 -7/PHL, 24 September 2002.  
75 However, many of these companies are n ot-for-profit and include regional development organizations 
or regulatory agencies. The list of GOCCs is available online at: 
http://gcg.gov.ph/site/public_files/gcg1495439449.pdf  WT/TPR/S/3 68 • The Philippines  
 
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  compliance with accounting and financial disclosure standards; establishes the power to privatize, 
abolish, or restructure GOCCs without legislative action; and sets performance standards and 
limits on compensation and allowances. The Act also created the GOCC Commission on 
Governance (GCG) to formulat e and implement GOCC policies.  
3.97.   Presidential Proclamation No. 50 of 1986 remains the policy instrument that lays down the 
principles of privatization policy. The Privatization and Management Office (PMO) under the 
Department of Finance oversees the privatization programme. All receipts from the sale of assets 
are remitted to the National Treasury. The PMO collected revenues totalling PHP 766 million in 
2015 and PHP 302 million in 2016.  Sixty percent of the recei pts of the PMO are remitted to the 
special account of the Agrarian Reform Fund and 40% to the general fund. Other disposition 
entities, such as the National Development Company (NDC) and the Presidential Commission on 
Good Government (PCGG), also contribut e to the government’s revenues from privatization of 
assets.  
3.98.   Assets should be sold through public auction , and negotiated sale may be pursued only in 
case of a failed bid  process .76 Under R.A. No. 7886, a minimum of 10% of the sale of assets in 
corporate f orm are reserved for small local investors , to develo p the domestic capital market. 
Under R .A. No. 7661, the intended sale of public assets must be  published in at least three 
newspapers of general circulation for three consecutive days.  
3.3.6   Government procure ment  
3.99.   Government procurement accounts for about 10% to 11% of GDP. The Philippines  has been 
making efforts to establish an open, transparent and competitive government procurement regime 
and relevant reforms have been carried out since early 2000s. However,  despite the progress, 
there continues to be high risk of corruption in the system.77 The restriction on foreign suppliers' 
participation in the sector also remains as a concern. The Philippines is not yet a party or observer 
of the WTO Agreement on Governm ent Procurement (GPA). It has not included government 
procurement provisions or chapters in its free trade agreements with trading partners.  
3.100.   Government procurement in the Philippines is regulated by the Government Procurement 
Refor m Act (GPRA)78, its Implem enting Rules and Regulations (IRR), relevant resolutions, 
guidelines, opinions and procurement manuals developed by the Authority. During the period 
under review, the main development in the regime is the second revision of the IRR in 2016, which 
further s treamlined, standardized and clarified relevant procedures with a view to easing the 
procurement process and encouraging more suppliers to participate in government projects.79 The 
major changes in the revised IRR include, among others: (i) the clarificatio n of the concept of an 
indicative annual procurement plan to avoid unnecessary delay of project implementation; (ii) the 
simplification of the submission of eligibility documents by bidders; and (iii) reduction of the bid 
advertising cost by increasing the  thresholds for procurements that mu st be advertised in 
newspapers.80 
3.101.   The GPRA and the 2016 IRR cover all types of procurement of goods, services and 
construction works, including foreign -funded procurement unless otherwise stated by international 
treaties or agreements. All government agencies including local public  units and autonomous 
regions, state universities, public  corporations and public financial institutions must follow the 
GPRA and the IRR. Exemptions include financial and material assistance, pa rticipation in 
scholarships and trainings, and joint ventures with private entities.  
3.102.   The Government Procurement Policy Board (GPPB), an independent inter -agency body with 
private sector representation, is responsible for formulating the country's procureme nt policy and 
facilitating the implementation of relevant rules and regulations. It is also tasked to carry out the 
Government's public procurement reform agenda.  
                                                
76 Commission Audit Circular No. 89 -296. 
77 Department of Budget and Management of the Philippines:  http://www.dbm.gov.ph/?page_id=16070  
78 The Act  came into effect in January 2003 and consolidated previous legislation  on public  procurement . 
79 The previous version of the Implementing Rules and Regulations was enacted in 2009.  
80 The thresholds for goods  increased from PHP 2 million to PHP 10 million; for infrastructure projects , 
from PHP 5 million to PHP 15 mi llion; and for consulting services, from PHP 1 million to PHP 5 million.  WT/TPR/S/36 8 • The Philippines  
 
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  3.103.   In general, the Philippines maintains a decentrali zed procurement system under which 
each pro curing entity establishes its own Bids and Awards Committee. The Committee is 
responsible for the whole procurement process.  
3.104.   Nonetheless, since 2011 the Government directed all procuring entities to procure their 
common -use supplies and equipment from the Procurement Service of the Department of Budget 
and Management (PS -DBM) which serves as a fiscal management tool to maximize bulk buying 
capacity. The PS -DBM estimates that PHP 7  billion of savings have been achieved in the fiscal year 
2014-2015 due to the  utilization of this tool. The PS -DBM is now being tapped to procure for non -
commonly used supplies such as information and communication technology products and 
software. For government agencies, there is a website with a centralized electronic catalogue of 
common and non -common use goods, supplies, materials and equipment available.  
3.105.   Transparency, competitiveness, procedural uniformity, accountability and public monitoring 
are the main principles governing government procurement in the Philippines. Guided by these 
principles, open bidding is prescribed by the GPRA as the default procurement method and it is 
mandatory to advertise open bidding opportunities in at least one newspaper of general nationwide 
circulation. In 2016, 52% of the total value of contra cts was procured through open bidding. 
Alternative methods include limited source bidding, single source procurement, repeat order, 
shopping and negotiated procurement. They can only be resorted to in highly exceptional cases 
and need to be indicated in th e approved annual procurement plan.  
3.106.   Limited source bidding can be used for procurement of highly specialized types of goods 
and consulting services where only a few suppliers or consultants are known to be available. In 
such process, the procuring entity i nvites all suppliers or consultants appearing in the pre -selected 
list to bid. All procedures are the same as under competitive bidding except for the advertisement 
of invitation to bid/request for expression of interest.  
3.107.   Single source procurement is used  when the goods can be obtained only from the 
proprietary source due to its special nature. It does not require bidding documents and the 
supplier is simply asked to submit a price quotation or a pro -forma invoice together with the 
conditions of sale. The offer may be accepted immediately or after some negotiations.  
3.108.   Repeat order is a method of procurement of goods from the previous winning bidder when 
there is a need to replenish the goods procured under a contract previously awarded through 
competitive bid ding. Shopping is used for procurement of ordinary or regular office supplies and 
equipment not available in the Procurement Service when the procurement value d oes exceed 
relevant thresholds.81 Negotiated procurement method can be used following cases such  as two 
failed biddings and emergency cases, etc. Under this method, the procuring entity directly 
negotiates a contract with a technically, legally and financially capable supplier, contractor or 
consultant.  
3.109.   Each and every procurement above certain thresh olds starts with a mandatory internal 
pre-procurement conference, the purpose of which is to assess the readiness of the procurement.82 
To facilitate the organization of procurement and to prevent procuring entities from introducing 
restrictions that can li mit competition, the GPPB has developed generic procurement manuals and 
standard bidding documents. The use of these documents is mandatory in all government 
procurements. The standard bidding documents have been updated to their fifth edition in October  
2016. 
3.110.   The IRR allows procuring entities to require the bidders to pay for the bidding documents, 
but only to recover the cost of preparation and development. On 24 February 2012, the GPPB 
approved the Guidelines on the Sale of Bidding Documents, which presc ribe the maximum fee 
corresponding to the appropriate range of the approved budget for the project. These guidelines 
                                                
81 The thresholds for central government level procuring entities are PHP 1  million for procurement of 
ordinary or regular office supplies and equipment and PHP 200,000 for contingency . For the complete 
information on the thresholds, see the 2016 IRR, page 156, at: 
http://www.gppb.gov.ph/laws/laws/RevisedIRR.RA9184.pdf  
82 The threshold is PHP 2  million for goods , PHP 5 million for infrastructure projects  and PHP 1 million for  
consulting services.  WT/TPR/S/3 68 • The Philippines  
 
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  were issued to rationalize the fees and lessen the discretion of procuring entities in prescribing 
such fees.  
3.111.   The nationality requirement o f bidders continues to restrict wholly -owned foreign entities 
from participating in public procurement. For procurement of goods and consulting services, it 
requires that at least 60% of the interest of partnerships or the outstanding capital of corporatio ns 
belong to citizens of the Philippines. For infrastructure projects, it requires 75% Filipino ownership. 
Foreign bidders are only eligible to participate (i) when allowed under any treaty or international or 
executive agreement; (ii) when the foreign bid der is a citizen, corporation or association of a 
country whose laws or regulations grant reciprocal rights to citizens, corporations, or associations 
of the Philippines; (iii) when the goods sought to be procured are not available from local 
suppliers; or  (iv) when there is a need to prevent situations that defeat competition or restrain 
trade. Of the 930,557 award notices issued between 2012 and 2016, 524 contracts (0.05 per cent) 
were awarded to foreign suppliers.  
3.112.   To promote transparency and efficiency, the Philippine Government has mandated the use 
of electronic procurement in all procurement activities of all procuring entities. The Philippine 
Government Electronic Procurement System (PhilGEPS) was established for this purpose. All 
procuring entities ar e mandated to register and use the system in the conduct of procurement of 
goods, civil works and consulting services. All procurement opportunities, bid results, awards and 
other related information in the procurement must be posted in the system. This en ables the 
PhilGEPS to serve as the single portal for primary and definitive source of information on 
government procurement. The system also helps procuring entities cu t down their advertising 
costs.  
3.113.   Manufacturers, suppliers, distributors, contractors and  consultants are also required to 
register with the PhilGEPS and maintain a updated file of: (a) Registration Certificate; (b) 
Mayor’s/Business Permit or its Equivalent Document; (c) Tax Clearance; (d) Philippine Contractors 
Accreditation Board (PCAB) licen se and registration; and (e) Audited Financial Statements. For 
foreign bidders, these documents may be substituted by the appropriate equivalent documents 
issued by their own countries but translated into English. During bid submission or eligibility check , 
bidders are required to submit their PhilGEPS Certificate of Registration instead of the 
aforementioned documents. On 31 July 2017, the GPPB published a resolution to defer the 
mandatory submission of PhilGEPS Certificate of Registration to allow prospec tive bidders with 
additional time to register with the system.83 
3.114.   Bidders, at any stage of the procurement process, can question a decision of the procuring 
entity through filing a request for reconsideration. There are clear procedures for the filing of 
protests. If the BAC denies the request, a bidder may file a verified protest with the head of the 
procuring entity, accompanied by a non -refundable protest fee. The head of the procuring entity 
shall resolve the protest within seven calendar days from receip t thereof. The decision of the head 
of the procuring entity on the protest is final. The protest fee ranges from 0.75% of the approved 
budget for the contract when the budget is below PHP 50 million, to 0.1% of the approved budget 
when it is more than PHP 5 billion. Since 2016, requests for reconsideration can be filed without a 
fee. Between 2012 and 2016 there were 199 protests of which some 20% were given favourable 
consideration.  
3.115.   In April 2012, an Asian Development Bank study observed that this bidder ch allenge is 
neither independent nor objective.84 The fee requirement may discourage bidders from filing 
protest, particularly with respect to large value procurements. It recommended long -term 
alternatives to strengthen the independence of the protest body b y establishing an independent 
panel of experts to hear disputes, or the designation of the GPPB as the independent review panel. 
With respect to the designation of the GPPB as the independent review panel, reservations were 
raised by several sectors on the  GPPB’s independence and ability to act as a review panel, as it is 
primarily a policy -making body.  
                                                
83 See the resolution at: http://www.gppb.gov.ph/issuances/Circulars/Circular%20No.%2007 -2017.pdf  
84 Philippines Country Procurement Assessment Report 2012, viewed at: https://www.adb.org/sites/  
default/files/institutional -document/34079/files/philippines -country -procurement -assessment -report -2012.pdf  WT/TPR/S/36 8 • The Philippines  
 
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  3.3.7   Other measures  
3.116.   The Biofuels Act of 2006 (RA 9367) establishes local content requirements for gasoline, 
which must have a minimum content of locally produced  biofuel and biodiesel.  
3.117.   The Philippine International Trading Corporation (PITC) administers the Philipp ines' 
Countertrade Programme. Countertrade is mostly used as supplemental tool in connection with 
public procurement. Total completed countertrade transa ctions amounted to some US$14.5 million 
in 2016; most deals were carried out for the Philippines' armed forces.  
3.118.   The Philippines  maintain s reserve stocks for rice for food security purposes . The Strategic 
Rice Reserve, equivalent to at least 15 days of nati onal consumption, is maintained in public 
warehouses. In addition, the Rice Stock for Stabilization, also equivalent to at least 15 days of 
national consumption, has as an objective to stabilize prices and supply in deficit areas during lean 
periods.  
3.119.   The P hilippines  has never taken any measures for balance -of-payment purposes.  
3.3.8   Intellectual property rights  
3.3.8.1   General issues  
3.120.   The Philippines' legal framework on IPRs comprises mainly the Intellectual Property (IP) 
Code as amended and its implementing rules and regulations (R.A. No. 8293 of 1998), including 
patent, trade mark, and copyright laws. 85 
3.121.   The main institution responsible for implementing the IP Code is the Intellectual Property 
Office of the Philippines (IPOPHL). The National Committee on Intellectual Property Rights 
(NCIPR) , established in 2008 , has the objective to  strengthen both inter -agency collaboration and 
the enforce ment of IPRs.  
3.122.   The Philippines has signed various IPR conve ntions and treaties (Table 3.10 ). 
Table 3.10 Membership in international IPR conventions and treaties, 2017  
Name  Date of membership  
Paris Convention on the Protection of Industrial Property (1883)  27 September 1965  
Berne Convention for the Protection of Literary and Artistic Works (1886)  1 August 1951  
Convention establishing WIPO (1967)  14 July 1980  
Rome Convention for the Protection of Performers, Producers of 
Phonograms  and Broadcasting Organizations (1961)  25 September 1984  
Budapest Treaty on the International Recognition of the Deposit of 
Microorganism for Purposes of Patent Procedure (1977)  21 October 1981  
Patent Cooperation Treaty (1970)  17 August 2001  
WIPO Copyright Treaty  4 October 2002  
WIPO Performers and Phonograms Treaty  4 October 2002  
Source:  Information provided by the authorities.  
3.3.8.2   Patents  
3.123.   The term of a patent is 20 years from the filing date.  A patentable invention is "any 
technical solution of a problem in any field of human activity which is new,  involves an inventive 
step and is industrially applicable".  The Law lists non -patentable inventions (e.g. discoveries, 
scientific theories, and mathematical methods). In the case of drugs and medicines, the mere 
discovery of a new form or new property or new use of a known substance, or the mere use of a 
known process, are not patentable. Also excluded from patent protection are schemes, rules, and 
methods of performing mental acts, playing games or doing business, and computer programs; 
methods for the tr eatment of human or animal body by surgery or therapy and diagnostic methods 
                                                
85 Amendments include: (1) The Act Providing for the Protection of Layout -Designs (Topographies) of 
Integrated Circuits (R.A. No. 9150 of 2001); (2) the Universally Accessible Cheaper and Quality Medicines Act 
of 2008 (R.A. No. 9502 of 2008); and (3) The Act Amending Certain Provisions of Republic Act No. 8293 (R.A. 
No. 10372 of 2013).  WT/TPR/S/3 68 • The Philippines  
 
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  practiced on the human or animal body; and plant varieties or animal breeds or essentially 
biological process for the production of plants or animals.  
3.124.   Patent owners have the right  to assign, or transfer by succession the patent, to conclude 
licensing contracts for the patent, and to exclusively use the patented good or process.  However, 
the Law places some limitations on the patent rights86, and confers prior user right.87  
3.125.   Compulsory licensing may be granted without the patent owner's agreement on specific 
grounds, including:  national emergency, public interest, national security, nutrition, or health; or 
where a judicial or administrative body has determined that the patent  owner is exploiting the 
patent in an anti -competitive manner. Adequate compensation has to be paid to the right holder 
according to the circumstances of each case. No compulsory licences were granted between 2011 
and 2017.  
3.126.   The Universally Accessible Cheap er and Quality Medicines Act of 2008 (R.A. 9502 of 2008) 
allows parallel imports of patented drugs and medicines. This law also allows for the issuance of a 
special compulsory license  for the importation of patented drugs and medicines, which are 
primarily  for domestic consumption and are subject to the payment of adequate remuneration to 
the patent owner either by the exporting or importing country. The compulsory license also 
contains a provision directing the grantee of the license to exercise reasonable  measures to 
prevent the re -exportation of such products imported.  
3.3.8.3   Copyright and related rights  
3.127.   The IP Code protects original literary and artistic works, which include books and other 
writings, music, plays, visual arts, designs, technical drawings or wor ks, photographs, audio -visual 
and cinematographic works, advertisements, computer programs, and other literary, scholarly, 
scientific and artistic works. Derivative works, such as adaptations and other alterations of original 
works, and collections of work s or compilations of data, are also protected. Performances, sound 
recordings, and broadcasting organizations are granted neighbouring or related rights.  These 
works are protected by the fact of their creation and do not require registration.  However, the 
deposit of literary and artistic works at the National Library of the Philippines, or the Library of the 
Supreme Court for works in the field of law, is required only for the purpose of completing the 
records of the libraries. The IP Code stipulates an aut hor’s economic and moral rights.88 The 
author, and in case of works of joint authorship, the co -authors, are the original owners of the 
copyright over the work.  Particularly  for literary and artistic works, the general terms of protection 
is lifetime plus 5 0 years after the death of the author, but the duration may vary according to the 
kind of protected work.  
3.128.   Copyright protection afforded by the IP Code applies to works of authors who are nationals 
of or have their habitual residence in the Philppines; to a udio-visual works the producers of which 
have their headquarters or habitual residence in the Philippines; works of architecture erected in 
the Philippines or other artistic works incorporated in a building or other structure located in the 
Philippines; wo rks first published in the Philippines; and works published in another country but 
also published in the Philippines within 30 days irrespective of the nationality or residence of the 
authors. Protection is granted to national performers; foreign nationals  are protected only if 
performing in the  Philippines or if their performance is incorporated in a sound recording that is 
protected by the IP Code or the sound is carried by a broadcast protected under the IP Code. 
Protection for sound recordings is grante d if produced by nationals and first published in the 
Philippines. The provisions of the IP Code apply to broadcasts made by organizations 
headquartered in the Philippines, and broadcasts via transmitters situated in the Philippines. 
                                                
86 The patent owner has no right to prevent, inter alia , the use of a patented product, which has been 
put on the domestic market; the private and non-commercial use of such a product; and the use of a product 
for experiments or for use in the medical profession and by pharmacies.  
87 Any person, who  in good faith  was using the invention prior to the filing date or priority date of the 
application on which a  patent was later granted , has the right to continue using it.  
88 These consist of the exclusive right to carry out, authorize or prevent:   reproduction of the work;   
drama tization, translation, adaptation, abridgment, arrangement or other transformation of the work;   first 
public distribution of the original and each copy of the work by sale or other forms of transfer of ownership;   
rental of the original or a copy of the w ork;  public display of the original or a copy of the work;  public 
performance of the work;  and other communica tion to the public of the work . WT/TPR/S/36 8 • The Philippines  
 
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  National treatment is provided to performers, producers of sound recordings, and broadcasting 
organizations, by virtue of international conventions to which the Philippines is a party.  
3.129.   In March 2013, the amendments to the IP Code (R.A. No. 10372 of 2013) took effect and 
provide d for, among others, the establishment of a Bureau of Copyrights within the IPOPHL that is 
responsible for the accreditation of organizations that collect royalties for copyrighted works used 
for commercial purposes.  
3.130.    The Anti -Camcording Act (RA No. 10088 of 2010 ) prohibits and penalizes the use  of 
audiovisual recording devices for the unauthorized recording of films or their soundtracks in an 
exhibition facility.  
3.3.8.4   Trademarks  
3.131.   A trade mark must be registered in the Philippines to be protected against trademar k 
infringement. Well -known marks are similarly protected when these are declared as such by 
competent authorities. Marks that can be registered are visible signs capable of distinguishing 
goods and services. Applications for registration of a trade mark ar e filed with the IPOPHL Bureau 
of Trademarks. Pre -grant opposition and post -grant cancellation proceedings are available under 
the IP Code. Trade names or business names, whether registered or not, are protected against any 
subsequent use by a third party which is likely to mislead the public.  
3.132.   Protection of a trade mark is granted for ten years, and registration may be renewed 
(indefinitely ) for periods of ten years. All registered trade marks are published in the IPOPHL 
Gazette . Marks, with the exception of  collective marks, may be subject to licensing contracts.  
3.3.8.5   Utility models, industrial designs and layout designs  
3.133.   Registration with the IPOPHL Bureau of Patents is necessary to protect utility models, 
industrial designs, and layout designs.  An invention qual ifies for registration as a utility model if it 
is new and industrially applicable, while an industrial design may be registered if it is new or 
original.  Layout -designs must be original in order to be registered. A utility model registration 
expires seven  years after the date of the filing of the application without the possibility of renewal.  
Registration of an industrial design is for five years from the filing date of the application, which 
may be renewed for two consecutive periods of five years each.  Protection is granted to layout -
designs for a non -renewable period of ten years from the date of the first commercial exploitation, 
anywhere in the world, or from the filing date of the application, if the layout has not been 
previously exploited.  
3.3.8.6   Plant va rieties  
3.134.   The Philippine Plant Variety Protection Act (Republic Act No. 9168  of 2002) governs the 
protection of plant varieties. New plant varieties may be protected if they have been exploited in 
the Philippines for more than a year prior to the date of filing an application to the Department of 
Agriculture, Bureau of Plant Industry , or if they have been exploited in another countr y (where the 
application has been filed) for more than four years or, in the case of vines and trees, for more 
than six y ears prior to the filing date. A  plant is not considered new if it has been in the market 
five years pri or to the approval of the Act. Trees and vines are protected for 25 years , while other 
types of plants are gr anted protection for 20 years. The Bureau may grant c ompulsory licences or 
cancel protection on specific grounds , but this has not happened since 2011 . 
3.3.8.7   IP registration and enforc ement  
3.135.   During the period under review, applications and registrations for most types of IP have 
grown strongly (Table 3.11).  
Table 3.11 IP applications and registrations, 2011 -17 
 2011  2012  2013  2014  2015  2016  2017a 
Trademark applications  18,613  20,058  22,664  25,686  27,112  27,171  21,834  
 Resident (direct)  10,548  11,651  12,244  14,484  14,811  15,329  12,476  
 Non-resident (direct)  8,065  8,111  7,159  7,291  7,041  7,110  4,827  WT/TPR/S/3 68 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  2017a 
 Non-resident (Madrid system)  - 296 3,261  3,911  5,260  4,732  4,531  
Industrial designs applications  1,113  1,230  1,362  1,333  1,085  1,489  852 
 Resident  581 756 878 815 530 969 422 
 Non-resident  532 474 484 518 555 520 430 
Patent applications  3,160  2,981  3,096  3,290  3,341  3,098  1,948  
 Resident  190 180 208 263 300 254 149 
 Non-resident (Patent Cooperation 
Treaty)  2,716  2,577  2,668  2,877  2,853  2,601  1,595  
 Non-resident (direct)  254 224 220 150 188 243 204 
Copyright filings  167 616 714 676 649 919 600 
Copyright registrations  167 609 648 640 636 891 417 
Utility model applications  688 733 687 778 802 1,135  753 
 Resident  648 704 654 754 756 1,089  721 
 Non-resident  40 29 33 19 46 46 32 
a January – September.  
Source:  Intellectual Property Office of the Philippines.  
3.136.   The National Committee on Intellectual Property Rights (NCIPR)  coordinates enforcement 
efforts of the various institutions involved.89 It comprises the DTI as Chair, IPOPHL as Vice -Chair, 
and members from various other public institutions. Public information campaigns to educate 
businesses, consumers, judges, prosecutors, and government officers are organized by IPOPHL on 
its own, or in coordination with the NCIPR.   
3.137.   Sanctions  for infringements of IPRs are:  (i) for patents, administrative and civil cases may 
be filed, and repetitio n of the offence constitutes a criminal ac tion. Upon conviction, at the 
discretion of the court, an infringer may be imprisoned for six months to three ye ars or fined PH P 
100,000 to PH P 300,000; (ii) for trademarks, the courts may award damages, impose a p enalty of 
imprisonment from two to five years, or a f ine ranging from PHP 50,000 to PH P 200,000 ; (iii) for 
copyrights, fines and imprisonment depend upon the number of t imes the offence is committed; 
and (iv) for plant varieties, imprisonment for three to six years or fines of at least PH P 100,000 or 
up to three times the profit derived from the infringement are envisaged.  
3.138.   Enforcement efforts since 2012 include expediting the prosecution and adjudication of IPR 
cases, the establishment of a task force on pi racy, and the adoption of an Enforcement Action 
Plan. The total market value of seized counterfeited and pirated goods between 2011 and October 
2017 amounted to more than PHP 45 billion.  
3.139.   The Customs Modernization and Tariff Act (RA No. 10863) of 30 May 201 6 prohibits the 
importation or exportation of infringing goods. Upon reasonable cause, enforcement authorities 
may examine and search all types of consignment.  
3.140.   An amendment to the IP Code, RA No. 10372 of 28 February 2013, strengthens IPOPHL's 
enforcement powers with regard to visits to businesses engaging in IP violations. The amendment 
also introduces a secondary liability for persons who benefit from copyright infringements.  
                                                
89 Executive Order No. 736, 21 June 2008.  WT/TPR/S/36 8 • The Philippines  
 
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  4  TRADE POLICIES BY SE CTOR  
4.1  Agriculture  
4.1.1   Overview  
4.1.  Agriculture and forestry contributed 10.2% to GDP in 2016 and employed approximately 
23.8% of the labour force (Table A1.1). The large gap between output and employment is mainly 
due to the effect of agriculture's low labour productivity and subsistence (n on-marketed) 
production. The Philippines had about 11.3 million farmers in 2015. Agricultural production is 
dominated by small family farms (averaging 1.3 ha in 2012). The average farm size is smaller 
than three decades ago, primarily owing to a land refor m launched in the late 1980s 
(Comprehensive Agrarian Reform Program me, CARP).1 Legislation was passed during the review 
period with the aim, amongst others, of encouraging larger and more productive farm structures 
(Section 4.1.6).2 However, FDI in agricul ture remains subject to restrictions. Land ownership is 
limited to Filipino citizens; for corporations, foreign investment involving farm land ownership is 
limited to 40%. For rice and corn (and related products), a 40% foreign equity cap applies for 
produ ction (i.e. cultivation), milling, processing, purchasing or trading (except retailing) of these 
commodities (Section 2.4).  
4.2.  The Philippines ranks among the major producers of bananas, coconuts, rice, and pineapples.  
The gross value of agricultural producti on of the Philippines totalled US$28.2 billion in 2016, led by 
rice (22.5% of the total) and bananas (11.1%); livestock production (mainly pig meat and poultry 
meat) contributed about one -third of the total (Table A4.1). A member of the Cairns Group of 
agricultural exporting countries, the Philippines is a major exporter of coconut oil, copra oilcake 
and desiccated coconuts; bananas; and pineapples and pineapple products. On balance, the 
Philippines' imports of agricultural products substantially outstrip e xports, notably in 2016 
(US$10.6 billion and US$5.2 billion, respectively) (Tables A1.2 and A1.3).  
4.1.2   Market access  
4.1.2.1   Applied MFN tariffs  
4.3.  Applied MFN tariffs on agricultural products (WTO definition) averaged 10.3% in 2017, with a 
range from zero to 65% (Sectio n 3.1.3.1). The highest tariffs (out -of-quota tariffs) apply to raw or 
refined cane sugar (65%), corn (50%) and rice (50%).  
4.1.2.2   Tariff quotas  
4.4.  The Philippines has 14 tariff and other quota3 commitments for agricultural products.4 The 
administration of these com mitments was last notified to the Committee on Agriculture in 1998 
and to the Committee on Import Licensing in 2016.5 The principal tariff quota administration 
methods – licensing based on past import performance, combined with a first -come -first-served 
licence allocation – have not changed. However, for several of the tariff quota commitments, no 
tariff quotas have been implemented, since imports are allowed (in unlimited quantities) at the 
applied in -quota tariffs. Tariff quota fill rates were notified up  to calendar year 2015, with fill rates 
ranging from zero to 100% depending on the product.6  
4.5.  The tariff quota year runs from February to January, and licences are allocated twice per 
quota year. They are issued through a "systematic distribution procedure " combined with 
first-come -first-served  allocation  when quotas are underutilized. There is a beginning -year pool 
(annual commitment quantity plus unused quota volumes from the previous quota year), where 
                                                
1 Under CARP, original land owners are allowed a maximum of 5 hectare s, and CARP beneficiaries a 
maximum of 3 hectares.  
2 Sugarcane Industry Development Act, 2015; and Agricultural and Fisheries Mechanization Act, 2013 
(aimed at farm sizes of at least 50 ha).  
3 This refers to the minimum access opportunities for rice.  
4 In addition, the Philippines has opened an autonomous tariff quota for coffee (HS2101), see 
Table  A3.1.  
5 WTO documents G/AG/N/PHL/13, 9 April 1998 and G/LIC/N/3/PHL/12, 19 October 2016.  
6 WTO documents G/AG/N/PHL/43 & 47, 21 May 2014 and 29 September 2017 , respectively . WT/TPR/S/3 68 • The Philippines  
 
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  priority access is given to : (i) licensees that have  not surrendered any of their previous year 's 
quota allocation, and have utilized at least 80% of the previous year's allocation from the 
beginning -year pool and used 30% from the mid -year pool by the last working day of May; and (ii) 
qualified entrants (f irst-time licensees or licensees that failed to obtain  a quota share in the 
previous quota year). The mid -year pool is fed by surrendered quota allocations by end -May of 
each quota year. Any tariff quota volumes remaining in the beginning -year or mid -year pools are 
distributed to interested applicants on a first -come -first-served -basis. A special regime applies for 
rice (Section  4.1.5).  
4.1.2.3   Special safeguard  
4.6.  The Philippines has provided an SSG notification (Table MA:5) covering the calendar years 
2010-15. The price-based SSG was "reinstated" (activated) each year during 2010 -15 for poultry 
meat (HS 0207.1492) and also triggered every year.7 The volume -based SSG was not invoked 
during 2010 -15.8 
4.1.3   Domestic support  
4.7.  In the period under review, agricultural policy rem ained geared towards ensuring food 
security, in particular towards achieving self -sufficiency in rice, sugar and maize. The government 
policy on food security in 2011 -16 was guided by the Food Staples Sufficiency Program me, 
including its Rice Self-Sufficiency Roadmap. To achieve food security, three strategies and 
interventions were pursued: raising farm productivity and competitiveness; enhancing economic 
incentives and enabling mechanisms ; and managing food staples consumption. Current 
agricu ltural policy is based on a ten-point agenda, which includes a credit programme for farmers 
(see below); a livestock, dairy and poultry programme; and a government export marketing 
campaign for high -value crops.9  
4.8.  The institutional framework for implementi ng agricultur al policies in the Philippines is 
fragmented: key policies are implemented by the Department of Agriculture and its specialized 
agencies10; the Department of Agrarian Reform and the Department of Environment and Natural 
Resources (land reform);  and the National Food Authority (food security in rice and maize).  
4.9.  The main trade policy instruments remain unchanged: price support, input subsidies, 
insurance programmes , credit schemes, and buffer stocks , in addition to Green Box -type general 
services . The Philippines has yet to provide up -to-date domestic support notifications (the most 
recent year covered is calendar year 2010).11 The Philippines does not have a bound Total AMS 
commitment; domestic support is subject to a 10% de minimis  ceiling.  
4.10.   Accor ding to OECD estimates, the overall level of government support for farmers in the 
Philippines (PSE 12) ranged from US$6.3 billion to US 8.7 billion in 2014 -16 (Table 4.1). 13 The 
support has been overwhelmingly in the form of price support for a single commod ity – rice. Rice 
producers benefited from price support 14 in the magnitude of US$4.4 billion in 2016, out of a total 
level of support (PSE) of US$6.3 billion. None of the major crops or livestock benefit, in relative 
                                                
7 WTO document G/AG/N/PHL/44, 29 March 2016. The trigger prices were notified up -front in WTO 
document G/AG/N/PHL/27, 23 September 2002.  
8 AG-IMS ID 80063.  The authorities have clarified that, contrary to notification  G/AG/N/PHL/44, the 
volum e-based SSG was not imposed in 2015 on processed chicken (HS1202.3220).  
9 Department of Agriculture online information. Viewed at: http://www.da.gov.ph/ .  
10 The Sugar Regulatory Authority, the Philippines Coconut Autho rity, the Agriculture Credit Policy 
Council, the National Irrigation Administration (NIA), the Fertilizer and Pesticide Authority (FPA), the Philippine 
Crop Insurance Corporation  (PCIC), amongst others, are under the Department of Agriculture.  
11 WTO docume nt G/AG/N/PHL/42, 18 March 2013.  
12 PSE: total annual monetary transfers to farmers individually (not agriculture generally) from market 
price support, mainly through border measures but also food aid, export subsidies (calculated by the price gap 
between d omestic and border price), payments to farmers, and tax/fee reductions (revenue forgone). The 
percentage PSE is a useful indicator for comparisons over time and among countries, inter alia , because it 
eliminates the effect of inflation.  
13 OECD (2017), Agricultural Policies in the Philippines . Viewed at: http://www.oecd -
ilibrary.org/agriculture -and-food/title -agricultural -policies -in-the-philippines_9789264269088 -en.  
14 Market price support, as defined by the OECD, comprises all policy measures that raise the domestic 
price relative to the border price of the commodity concerned, including border measures (tariffs, tariff quotas, 
and other import restrictions), administered prices, and export subsidies.  WT/TPR/S/36 8 • The Philippines  
 
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  terms, from commodity -specific support a s high as that for rice – approximately 65% of farmers' 
gross receipts for rice in 2014 -16 were the result of government support policies (as per OECD 
Single Commodity Transfers). 15 However, about one third of all rice -producing households and 
well over two  thirds of all households were net buyers of rice, according to the Survey of Food 
Demand for Agricultural Commodities 2012 16; these farmers and households are unlikely to 
benefit from the high level of tariff protection and price support for rice.  
4.11.   The tot al support (PSE) of the Philippines (expressed as a share of gross farm revenues, 
also referred to as "percentage PSE") averaged 24.5% in 2014 -16, meaning that about a quarter 
of farmers' revenues were due to support policies. By comparison, the average le vel of support 
across the OECD countries was 18% in 2014 -16. Total budgetary expenditures for Philippine 
farmers were in the range of US$250 -450 million in 2014 -16. 
Table 4.1 OECD Producer Support Estimate (PS E) for the Philippines, 2014 -16 
(PHP million)  
 2014  2015  2016  
Total value of production at farm gate  1,432,627  1,370,485  1,390,387  
Producer Support Estimate (PSE) (1+2)  384,796  357,110  297,468  
(PSE in US$ million)  8,667.5  7,848.1  6,263.5  
Price Support (1), of which  373,731  336,829  280,058  
Rice 223,836  205,544  210,118  
Pig meat  55,611  65,480  57,068  
Poultry meat  30,906  35,391  34,078  
Payments to producers (2), of which  11,066  20,280  17,410  
(in US$ million)  249.3  445.7  366.6  
Production Support Services  (PSS) on the National Rice  
Programme (distribution of seeds and fertilizers)  594 2,143  2,002  
Philippine Crop Insurance Corporation payments for relief  
from natural disasters  1,184  1,300  1,600  
Maize - Provision of Agricultural Equipment  
and Facilities (PAEF)  556 1,203  1,093  
Philippine Coconut Authority programmes  (accelerated  
coconut planting and re -planting, fertilization, intercropping  
and hybridization)  1,899  3,257  1,018  
Percentage PSE (as a percentage of gross farm receipts, 
incl. (2))  26.7 25.7 21.1 
Nominal Protection Coefficient (NPC)  1.38 1.34 1.27 
Note:  PSE: total annual monetary transfers to farmers individually (not agriculture generally) from: market 
price support mainly through border measures but also food aid, export subsidies (calculated by the 
price gap between domestic and border price); payments to farmers; and tax/fee reductions 
(revenue forgone).  
 NPC: nominal protection coefficient, i.e. ratio between the average price received by producers and 
the border price.  
Source:  OECD PSE database. Viewed at: http://www.oecd.org/tad/agricultural -
policies/producerandconsumersupportestimatesdatabase.htm .  
Crop insurance  
4.12.   The Ph ilippine Crop Insurance Corporation (PCIC) under the Department of Agriculture is  
implementing insurance programmes for: (i) rice and corn; (ii) high -value crops; (iii) livestock; 
(iv) fisheries; (v) non -crop agricultural assets; and (vi) credit and life.17 The PCIC covers losses 
arising from natural disasters. The government expenditures were accordingly notified as Green 
Box "payments for relief from natural disasters".18 The PCIC administers two programmes : (i) a 
regular programme, whereby the premium cost  for so -called "borrowing farmers" (as opposed to 
self-financed farmers) is co -shared by the government (55%), and lending institutions and insured 
farmers (45%); and (ii) a special programme, whereby premiums are 100% subsidized. 
Government support (Gover nment Premium Subsidy – GPS) is through the allocation of an annual 
budget to the PCIC. The subsidy is provided in the form of matching grants (GPS) to cover the 
premium cost of the insurance for subsistence farmers. The subsidy has increased significantly  in 
                                                
15 The price support for maize was negative in 2015 and 2016  (i.e. pr oducers were implicitly taxed).  
16 Quoted in OECD ( 2017), p.34.  WT/TPR/S/3 68 • The Philippines  
 
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  recent years ( PHP2.943 billion in 2017, up from PHP1.6 billion in 2016, and PHP183.7 million in 
2012) (Table 4.1).  
Agricultural credit  
4.13.   The Agricultural Credit Policy Council under the Department of Agriculture oversees eight 
ongoing Agro -Industry Modernization Credit and Financing Program me (AMCFP) lending facilities 
for small farmers and fishermen, and one ongoing Agrarian Production Credit Program me (APCP) 
for agrarian reform beneficiaries (ARBs): (i) Production Loan Easy A ccess (PLEA) 
Program me/Program me for Unified Lending in Agriculture (PUNLA); (ii) Survival and Recovery 
(SURE) Assistance Program me; (iii)  LBP Agri -Financing Program me; (iv) PCFC Agri -Microfinance 
Program me II; (v) Cooperative Banks Agri -Lending Program me (CBAP) II; (vi) Sikat Saka 
Program me (SSP); (vii) Value Chain Financing Program me (VCFP); and (viii) Agrarian Production 
Credit Program me (APCP).19 The PLEA/PUNLA is a new special credit program me to address the 
financial needs of marginal and small farmers  and fisherfolk, offering non -collateralized loans at a 
6% annual interest rate in areas underserved by banks, according to the authorities.  
4.1.4   Export subsidies  
4.14.   The Philippines has notified the Committee on Agriculture that it did provide export 
subsidies du ring calendar years 2011 -13 and 2014 -15.20 The export subsidy notification for 2016 is 
outstanding. In line with its "significant exporter" status for fruit (G/AG/2/Add.1, 
16 October  1995), the Philippines has regularly notified the total exports of its maj or fruits 
(bananas, coconut oil, pineapples, mango, watermelon, coconuts and papaya).  
4.1.5   Rice  
4.15.   As a result of the Uruguay Round, the Philippines obtained the right to defer temporarily the 
tariffication of its import restrictions on rice (Special Treatment – Annex 5 of the Agreement on 
Agriculture). This exception allowed the Philippines to maintain quantitative restrictions (QRs) on 
rice imports for 10 years until 30 June 2005, together with a bound minimum access quota for 
rice; the out -of-quota tariff remai ned unbound. The special treatment was extended until 
30 June 2012, and subsequently the WTO General Council granted, upon request by the 
Philippines, a further extension until 30 June 2017.21 The Philippines agreed to tariffy the 
quantitative restrictions on rice upon the expiry of the waiver. According to the authorities, the 
House of Representatives is currently [October 2017] reviewing a consolidated bill that would allow 
for tariffication of the QR on rice22, and the Philippine executive branch is workin g closely with both 
Houses of Congress in the finalization of the bill, as the President ordered the passage of the rice 
tariffication law to be expedited.  
4.16.   Under the 2012 WTO Waiver, a number of concessions were agreed upon for rice:  
i. MFN in -quota tariff to be reduced from 40% to 35%;  
ii. out-of-quota tariff to remain at 50% from 2014 to 2017;  
iii. minimum access volume increased from 350,000 ton nes to 805,200 ton nes23;  
                                                                                                                                                  
17 The crop insurance coverage is based on the cost of the production inputs of the insured crops  (not 
the market value  of the crop) . 
18 WTO document G/AG/N/PHL/42, 18 March 2013.  
19 The AMCFP and APCP lending facilities, including terminated/completed program mes have granted 
PHP14.55 billion in terms of loans to 277,134 small farmers and fisherfolk  from 2003 to 2016 .   
20 WTO documents G/AG/N/PHL/45 and PHL/46, 31 March 2016 and 25 July 2017.  
21 WTO document WT/L/932, 25 July 2014.  
22 "An Act Replacing the Quantitative Import Restric tions on Rice with Tariffs, Amending for the Purpose 
Republic Act 8178, as Amended by Republic Act No. 9496, Further Amended by Republic Act No. 10848, 
entitled: 'An Act Replacing Quantitative Import Restrictions on Agricultural Products, Except Rice, with Tariffs, 
Creating the Agricultural Competitiveness Enhancemen t Fund, and for Other Purposes'."  
23 Covering tariff item numbers (HS Code) 1006.10 00 (rice in the husk, paddy and rough), 1006.20 00 
(husked (brown) rice), 1006.30 00 (semi -milled or wholly mil led rice, whether or not polished or glazed), and 
1006.40 00 (broken rice).  WT/TPR/S/36 8 • The Philippines  
 
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  iv. increased country -specific allocations (totalling 755,200 ton nes, with 50, 000 ton nes 
for others).  
4.17.   In addition, the Philippines offered tariff concessions on several other agricultural products, 
including butter, buttermilk, cheese, poultry meat, and oilseeds. Executive Order No. 23 of 
22 May 2017 extended the 2012 waiver -relate d tariff concessions on rice and other commodities 
until 30 June 2020, or until such time as a law relating to rice tariffication has been enacted, 
whichever comes first.24 Thus, as of October 2017, the Philippine rice import regime is governed 
by the statu s quo.  
Quota administration  
4.18.   The Philippines is a major producer of rice, with a paddy harvest ranging from 18  to 
19 million  tonnes in 2012 -16. It is also a major (net) importer of rice, with imports in the range of 
365,000 ton nes (2013) to 1.867 million tonnes (2014), which on the high end was well beyond the 
minimum access commitment (Table A4.3).  
4.19.   The National Food Authority ( NFA), as the grains trading arm of the Government (STE), 
holds a statutory monopoly on the  import and export  of rice, with the pr erogative of allocat ing the 
import quota to local farmers.25 The Agricultural Tariffication Act (Republic Act 8178) provides that 
"In the exercise of this power, the Council after consultation with the Office of the President shall 
first certify to a shorta ge of rice that may occur as a result of a short -fall in production, a critical 
demand -supply gap, a state of calamity or other verified reasons that may warrant the need for 
importation" (Section 6.1, para . 2); this requirement does not apply to the impor tation of rice 
equivalent to minimum access commitments under the WTO. Exports are restricted by law, and 
require a certificate of surplus issued by the DA and approved by the NFA Council (Presidential 
Decree No. 4, as amended).  
4.20.   Oversight of the NFA was tr ansferred in 2014 from the Department of Agriculture 
(Inter -Agency Committee on Rice) to the Office of the Presidential Assistant for Food Security and 
Agricultural Modernization (OPAFSAM). The creation of OPAFSAM also paved the way for the 
establishment o f the Food Security Committee (FSC) on rice, chaired by the NEDA under the 
Special Order No.  3 of 2015. In 2016, the NFA was among several other agencies of the 
government placed under the supervision of the Office of the Cabinet Secretary through an 
execu tive order.  
4.21.   Since  1995, the NFA has implemented an import quota regime through the annual opening 
of minimum access opportunities to the intended beneficiaries. In the period 1995 -2005, there 
were no imports by the farmers' organization/sector and rice im ports were mainly carried out by 
the private sector and the NFA. The private sector volume within the minimum access quota is 
fixed by the NFA. Imports of minimum access volumes  by the private sector have increased 
steadily from 2011, except in 2013 (due t o high world market prices for rice).  From 2008 -16, 
private sector imports were subject to equalization fees for the purpose of equalizing or 
approaching the prevailing domestic prices of rice, but this mechanism has been discontinued. In 
2017, applicant -importers under the minimum access volume ( MAV) scheme  are charged a non -
refundable processing fee of PHP50,000 to cover administrative and pre -evaluation charges. The 
minimum access quota is allocated to qualified applicants on a pro -rata basis, with a cap  of 
20,000  t per applicant; applicants must meet a 95% substantial compliance criterion (95% arrival 
of the allocated quota) to remain eligible for the next quota year.  
4.22.   Most rice imports are sourced from other ASEAN countries.26 In-quota imports (minimum 
access volume) are subject to an applied MFN rate of 35%, equal to the ATIGA tariff rate; 
out-of-quota imports are subject to an applied MFN rate of 50%, while imports from ASEAN 
countries benefit from the preferential ATIGA rate of 35%. Out -of-quota  imports  are carried out 
exclusively by the NFA via open tender or government -to-government transaction (there are no 
country -specific allocations).   
                                                
24 Viewed at: http://www.officialgazette.gov.ph/downloads/2017/04apr/20170427 -EO-23-RRD.pdf.  
25 Presidential Decree No. 4 as amended by PD Nos. 699 and 1485.  
26 Thailand and Viet Nam each have of country -specific quota of 293,100 tonnes.  WT/TPR/S/3 68 • The Philippines  
 
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  Table 4.2 Determination of in -quota and out -of-quota imports of ric e 
In-quota imports (minimum access quota)  Out-of-quota imports  
The Food Security Committee (FSC) in its regular 
quarterly meeting makes a recommendation to the 
NFA Council for the schedule of opening of the 
minimum access quota, including the schedule of 
arrival of rice imports, which should not coincide with 
the country's main/dry paddy harvest pattern.  The FSC conducts an evaluation of the country's 
supply -demand situation and outlook every quarter 
or as needed. The FSC Chair then submits and 
presents a report to the NFA Council regarding the 
result of the assessment/evaluation, including the 
probable volume of rice import requirements in case 
of a deficit situation.  
The NFA Council evaluates and deliberates the FSC 
recommendation and submits the Council 's 
consensus/decision for approval by the President.  The NFA Council chaired by the Cabinet Secretary 
convenes a meeting to evaluate the FSC report and 
acts on the recommendation for importation. The 
Cabinet Secretary then reports to the President for 
the approved volume of importation.  
Once the NFA Council has approved and certified the 
opening of the minimum access quota on an annual 
basis, the NFA drafts the guidelines and administers 
the minimum access quota importation. Rice imports 
by the private sec tor are issued with the import 
permit to serve as evidence/documentation for the 
legal arrival of rice stocks.  Once the NFA Council has certified the approved 
volume for rice import, the NFA carries out the 
physical importation, either through government -to-
government procurement or by open tender in 
accordance with the GP Law (RA  9184).  
 
Price support and procurement  
4.23.   The Philippines maintains a complex system of price and consumer support for rice. The 
support is provided through a combination of trade policy instruments: restricted imports via a rice 
quota, a producer support price scheme , where  the administered price is considerably higher than 
the duty -paid import price , and which is  underpinned by targeted NFA purchases (procurement) 
and buffer stock s of rice; which  is then sold for local consumption at subsidized prices.  
4.24.   As part of its mandate to ensure food security and the stabilization of the supply and price 
of rice and corn, the NFA intervenes as buyer of last resort in the markets for palay ri ce and (to a 
limited extent) corn.27 The NFA's operations include the buying/procurement of paddy on a 
nationwide scale at a fixed government support price. Procurement of paddy is undertaken from 
individual farmers and farmers' organizations, although farm ers are free to sell their harvest 
through other channels. According to the authorities, the NFA only procures in the domestic 
market when the prevailing farm gate price of paddy significantly drops to a level that would 
deprive the farmers of earning a mo dest income for their produce. The volume of procurement 
depends on the magnitude of production and the prevailing market situation. The production 
eligible to receive the support price has not exceeded 6% of total rice production since 1995; in 
2012-16, it ranged from zero to 2% (Table A4.3), owing to high domestic prices for rice.  
4.25.   According to the authorities, the support price is set at a level that guarantees 
farmer -producers reasonable returns in their palay production investments/expenses, taking into  
account the cost of paddy production; inflation rate; prevailing situation and outlook on the 
domestic/global rice market; income of rice/corn farmers relative to farmers of other crops; cost of 
end-product to consumers; and the government's capability to  implement. The Inter -Agency 
Committee (IAC) on Rice was abolished (Special Order No. 3 Series of 2015) and replaced by the 
Food Security Committee (FSC) on Rice headed by the National Economic Development Authority.  
The FSC on Rice conducts a periodic review and evaluation of the support price, while the NFA 
Council deliberates on the need for any increase with either a recommendation for the approval of 
the new pricing policy to the President or referral of the matte r to the FSC on Rice for further 
studies/re -evaluation. For the period 2012 -2017, the nationwide support price was set at 
PHP17.00/kg (plus PHP0.30/kg cooperative development incentive fee, PHP0.20/kg delivery 
incentive & PHP0.20/kg drying incentive). Acco rding to the OECD, the NFA support prices of 
2012-14 were US$403/t, US$400/t and US$383/t, respectively, resulting in price gaps (price 
support) vis -à-vis import parity prices (at farm gate) in excess of 100%.28 
4.26.   The NFA acts as a seller of last resort whene ver the commercial prices of rice are perceived 
to go beyond the reach of the consuming public. The NFA sells rice to accredited  
                                                
27 NFA procurement of corn was 623,000 t in 2012; and in the range of 1,400 t to 12,500 t in 2013 -16. 
The procurement price is PHP12.30/kg of yellow corn and PHP13/kg of white corn (plus incentives as for rice).  
28 OECD (2017), p. 117.  WT/TPR/S/36 8 • The Philippines  
 
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  retailers/wholesalers at a two -tiered and subsidized government release price for milled rice: 
(i) wholesale price (mandatory p rice at which NFA rice is sold to licensed and accredited retailers 
only, PHP25/kg milled); (ii) retail price (mandatory price at which NFA rice is sold directly to 
end-consumers and non -retailers, PHP27/kg).29 The agency has focused its distribution of ric e to 
deficit areas and the provinces classified under the Accelerated and Sustainable Anti -Poverty 
Program me (ASAPP) for the Human Development and Poverty Reduction Cabinet Cluster 
(HDPRCC). The release prices of rice were also increased to approach near m arket levels to reduce 
the agency's financial losses.  
Buffer stock scheme  
4.27.   The NFA is the custodian of the government rice buffer stock scheme for food security and 
stabilization purposes, which comprises: (i) a year -round 15 -day Strategic Rice Reserve (SRR ) in 
government depots for food security purposes in times of calamities and emergencies; and (ii) a 
30-day government rice buffer stock (GRBS), inclusive of the 15 -day SRR. The Agency resorts to 
domestic procurement to meet the 30 -day buffer, which should  be available and strategically in 
place by 1 July of each year (this buffer is within the food security benchmark of an ideal -90 day 
national rice buffer stock policy). At any time, however, the NFA must have a strategic rice reserve 
that is sufficient  to meet the 15 -day supply. If the volume of local paddy procurement is 
inadequate to meet the 30 -day buffer stock supply taking into account the situation and outlook of 
the domestic and global rice market, the government resorts to rice importation. As the NFA's 
paddy procurement in recent years amounted to less than 2% of the annual rice crop, rice imports 
were necessary in order to meet buffer stock requirements (117,000 t in 2016, down from 
228,000 t in 2015).  
4.28.   The subsidy for the operation of NFA's paddy p rocurement was PHP4.25 billion in CY 2016; 
it procured 117,000 ton nes, valued at PHP2.02 billion.  The subsidy covers the cost of 
procurement, incentives, milling, storage and losses, warehousing, drying, insurance and the 
"social cost".  
4.1.6   Sugar  
4.29.   Sugarcane ran ks among the top five crops (Table A4.1). Crop  year 2016/17 (September to 
August) set a 38 -year record with a production of 2.5 million ton nes of raw sugar, while the 
2015/16 harvest of 2.2 million metric ton nes was adversely affected by El Niño. The sugar  industry 
produces sugar, bioethanol and power as major products.  At present, there are 27 operational 
sugar mills and 11 sugar refineries.30 
4.30.   The Sugarcane Industry Development Act of 2015 (RA 10659) provides mandated 
programmes and budgetary appropriations , following decades without government support for 
infrastructure development and other measures, according to the authorities. The new measures 
include a block farming programme (implemented since 2012 and institutionalized in 2016), aimed 
at consolidatio n of small farms to a minimum of 30 -50 ha; covering subsidies for machinery, 
seeds, lime and organic fertilizers; 64,000 farmers with less than 5 ha are eligible.  The "socialized 
credit" programme is designed to support crop financing, farm mechanization a nd other farm 
support services , providing subsidized interest rates to small farmers and farm service providers.  
Infrastructure development is also funded under the law , covering inter alia  the construction of all -
weather farm -to-mill roads and bridges, an d loading ports. Total subsidies amounted to 
PHP1.9 billion in 2016 and PHP1.51 billion in 2017, of which: block farming ( PHP324.7 million and 
PHP300.0 million, respectively); socialized credit ( PHP324.7 million and PHP300 million, 
respectively) and infrastructure development ( PHP914.4 million and PHP557.2 million, 
respectively).  
4.2  Fisheries  
4.31.   The Philippine archipelago ( with an area of over 2.2 million km2) ranks among the top -10 
fishing nations.31 The fisheries sector is nonetheless relatively small in t erms of its contribution to 
                                                
29 The cost recovery pri ce for paddy procured at PHP17/kg lies around PHP34/kg milled rice.  
30 One sugar mill is registered with the Sugar Regulatory Authority (SRA) as producer of muscovado 
sugar (2,000 -3,000 hectares).  
31 FAO online information. Viewed at: http://www.fao.org/fishery/statistics/en  [August 2017].  WT/TPR/S/3 68 • The Philippines  
 
- 66 - 
 
  GDP (1.6% in 2016) and employment (3.1%). Fisheries production shows a downward trend 
across all subsectors ( commercial, municipal, and aquaculture ); aquaculture  accounts for over half 
of production  (Chart 4.1) . 
Chart 4.1 Fish production and trade, 2011 -16 
 
Source:  Philippine Statistics Authority, Fisheries Statistics of the Philippines.  
4.32.   In 2016, fish production dropped sharply by 6.3% in volume and 4.5% in value as 
compared to 2015, mainly due to the effects of El Niño (dry spell) and a fishing ban that was 
placed on some species by the Western and Central Pacific Fisheries Commission.32 The Philippines 
is a net exporter of fish and fish products. The three major export items/spe cies (tuna, seaweed, 
shrimp/prawn) accounted for 59% of the total export volume and 56% of the total export value in 
2016.33 The European Union  was the biggest market for Philippine fish exports (22% of the total 
value), followed by the United States (20%),  Japan (17%) and Hong Kong, China (13%) in 
2016.34 Imports of fish and fishery products have grown strongly over the last five years (18.9% 
annually), mainly destined for  further processing (canning) for export, leading to a continuous 
decline in the  trade surplus in fish since 2013 (Chart 4.1).35  
4.33.   The legal framework for fisheries governance has been strengthened since the last Review. 
The Fisheries Code (RA 10654) was revised in 2015, through amendment of the Fisheries Code 
(RA 8550) of 1998.36 Stricter rule s apply, inter alia , in the areas of vessel licensing and 
monitoring, and illegal, unreported and unregulated (IUU) fishing. There are several violations 
under the amended Fisheries Code that were  not found in the old Code, and the penalties are 
higher. The Fisheries Code of 2015 also clarifies the mandate of the Bureau of Fisheries and 
Aquatic Resources (BFAR) of the Department of Agriculture (DA) as the law enforcing body 
(RA 10654 , Section 65).  
                                                
32 Philippine Statistics Authority, "Fisheries Situationer, January -December 2016", 24 January 2017. 
Viewed at: https://psa.gov.ph/content/fisheries -situationer -january -%E2%80%93 -december -2016; and 
information provided by the authorities.  
33 Philippine Statistics Authority, Fisheries Statistics of the  Philippines, Volume 25, 2014-16. 
34 Information provided by the authorities of the Philippines.  
35 Encarnacion Emilia S. Yap and Amor G. Diaz  (2015) , "Status of Philippine Fisheries Trade and 
Marketing" , December 2015.  
36 Republic Act No. 10654, Bureau of Fisheries and Aquatic Resou rces online information. Viewed at: 
http://www.bfar.da.gov.ph/BFAR_ANNOUNCEMENT?id=43 .  
210215220225230235240245250
4.04.14.24.34.44.54.64.74.84.95.05.1
2011 2012 2013 2014 2015 2016-30-20-10010203040506070
2011 2012 2013 2014 2015 2016Trade balance
Volume in million tonnesValue in PHP 
billion
(right -scale) (Million tonnes) (PHP billion) (PHP billion)Production by volume and value Trade peformanceChart 4. [Philippines] Fish production and trade, 2011 -16
Philippine Statistics Authority, Fisheries Statistics of the Philippines. Source:Exports
ImportsWT/TPR/S/36 8 • The Philippines  
 
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  4.34.   Market access for foreign fishing vessels in Philippine wa ters is restricted. Foreign fishing 
vessels must comply with port state measures, including, inter alia , prior notification of port entry; 
use of designated ports; restrictions on port entry and landing or transhipment of fish; catch and 
other documentatio n requirements; and port inspections (RA 10654, Section 42). For tuna catch, 
transhipments and landings by foreign vessels are permitted in only one port (Davao).37 
Philippine -flagged fishing vessels in waters beyond the national jurisdiction require author ization 
from the DA -BFAR for transhipment through the Philippines, in order to comply with commitments 
under international conventions and agreements (RA 10654 , Section 42). Under the Constitution 
and the Fisheries Code, fishermen must be Filipino citizens ; the use and exploitation of fishery and 
aquatic resources is reserved for Filipinos; and foreign equity in the operation of commercial 
fishing is capped at 40% (Table A2.2).  
4.35.   The Philippines does not have any bilateral fishing agreements.38 Fishing outsid e the 
Philippine waters is coordinated by Regional Fisheries Management Organizations (RFMOs), such 
as the Western and Central Pacific Fisheries Commission (WCPFC). Under the Conservation 
Management Measures (CMM) adopted by WCPFC39, Philippine -flagged vess els had access, under 
strict conditions40, to the high seas, the so -called "High Sea Pocket 1 (HSP1)".41 The CMM on HSP1 
expired in December 2017, but negotiations for extension  are under way, according to the 
authorities. Under the new Fisheries Code, the s cope of application has been extended to areas 
governed by a RFMO.  
4.36.   The fisheries sector enjoys relatively high tariff protection, with tariffs on fish and fish 
products averaging 9.2% (ranging from 1% to 15%) (Chapter 3.1.3). However, owing to free 
trade a greements (except for India), most imports are duty -free or subject to nuisance tariffs. The 
Philippines has bound only 5.1% of its fishery tariff lines, leaving flexibility for autonomous 
increases of the applied MFN rates. Fish caught in the high seas by  Philippine -flagged vessels is not 
subject to import duties and taxes, provided the catch is landed in designated fish landings or 
ports (RA 10654 , Section 32).  
4.37.   The tariff exemptions on imports of fishery inputs, machinery and equipment (granted from 
2005 as per Executive Order 376 of 22 October 2004) expired in 2015. Duty and tax rebates on 
fuel (as per Executive Order 209) have also expired. The Philippine Fisheries Development 
Authority has the mandate to manage, develop and operate regional fish ports, cold storage and 
ice plants (as per Executive Order No. 722 of 8 February 1982).  
4.3  Energy  
4.3.1   Fuels  
4.38.   The Department of Energy (DOE) is the line ministry for the energy sector. It is mandated 
"to prepare, integrate, coordinate, supervise and control all plans, pro grams, projects and 
activities of the Government relative to energy exploration, development, utilization, distribution 
and conservation ". 
4.39.   The DOE formulated the Philippine Energy Plan (PEP) 2017 -40, which establishes a 
comprehensive roadmap to ensuring su stainable, secure, sufficient and accessible energy. The 
Plan covers renewable energy, fossil fuels, downstream oil and natural gas, alternative fuels, 
power development, and energy efficiency and conservation. It also identifies the sector's priority 
infrastructure projects.  
4.40.   The DOE regularly holds Philippine Energy Contracting Rounds (PECRs), a bidding process to 
award contracts for the exploration of local fossil fuels. PECRs for petroleum cover a total of 16 
                                                
37 Western Central Pacific Fisheries Commission, "Annual Report to the Commission Part 1: Information 
on fisheries, research, and statistics", 3 -11 August 2016.  
38 The Philippines has a b ilateral agreement with Papua New Guinea  concerning c atch certification and 
certification of traceability . 
39 Conservation and Management Measure s. Viewed  at: https://www.wcpfc.int/conservation -and-
management -measures .   
40 DA-BFAR Fisheries Administrative Order 245 . 
41 HSP1 is bounded by the exclusive economic zones or EEZs of the Feder ated States of Micronesia, the 
Republic of Palau,  Indonesia, and Papua New Guinea.  WT/TPR/S/3 68 • The Philippines  
 
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  sedimentary basins, representing an area of over 700,000 km2, with a combined potential of 
4.8 billion barrels of oil equivalent. As of end -December 2016, the DOE awarded  24 petroleum 
service contracts (SCs) and 75 coal operating contracts (COCs), including the 7 COCs awarded in 
December 2014 as a r esult of the fifth PECR.  According to the authorities, the Philippine National 
Oil Company (PNOC), a government -owned -and-controlled oil company, does not have special 
privileges with regard to the PECRs. During the process of a PECR for petroleum, PNOC Ex ploration 
Corporation (PNOC -EC) is given the option to farm out up to a 10% participating interest in the 
contract; the authorities noted that participation is entirely on a commercial basis.  
4.41.   There are four major oil fields in the country: Nido, Matinloc, North Matinloc, and Galoc . 
Total domestic oil production reached 2.01 million barrels in 2016, decreasing from 2.33 million 
barrels in 2011. This was primarily due to the natural depletion of the reservoir in the Galoc field. 
To meet demand, the Philippine s also imports 35.8 million barrels of crude oil. According to the 
DOE, about 86% of oil imports were sourced from the Middle East, and the Russian Federation 
supplied about 8%.  
4.42.   There are two local refiners (Petron and Pilipinas Shell) . As of June 2017, total crude 
processed was 36.6 million barrels, down from 39.6 million barrels in June 2016. Refinery 
utilization during the same period also decreased from 76.3% to 70.5%. The drop may be due to 
the extended maintenance shutdown and tur n-around schedule of the local refineries. 
Consequently, local petroleum refinery production output decreased by 7.1%. In the first half of 
2017, the average refining output was 0.2 million barrels per day. Diesel oil  remains the dominant 
refined output of  local refineries (37% of total output), followed by g asoline  (25%), and 
kerosene/avturbo (7%).  
4.43.   According to the DOE, t otal demand for refined  products for the first half  of 2017 was 
81.1 million barrels , up from 79 million barrels in the  first half of 2016. Imports met 60% of the 
total demand. Over the same period, imports of refined products amounted to 48.6 million barrels, 
up from 44.4 million barrels one year before. Among all imports, diesel oil accounted for 40% of all 
fuel imports, gasoline for 18%,  and LPG for 14%.   
4.44.   Distribution of petroleum products has been fully liberalized since the passage of the 
Downstream Oil Industry Deregulation Act (R A 8479) in 1998 . According to the DOE, as of end -
2016, there were 264  companies , with a total investment va lue of  PHP 52.73 billion.  In the 
distribution subsector, major oil companies (Petron Corp., Chevron Philippines,  and Pilipinas Shell 
Petroleum Corp.) accounted for 58% of the market.  
4.45.   Malampaya gas field is the main source of gas and condensate , producing 99% of the 
country's gas . In 2016, total gas production was recorded a s 140.5 billion standard cubic feet , 
while the associated condensate reached 4. 2 million barrels.  The gas from Malampaya already 
fuels three major power plants, and provides feedstock fo r compressed natural gas -powered 
buses.  
4.46.   Natural gas is a key component of the Government's fuel diversification programme, and is 
considered one of the most viable and cleanest alternatives to oil, particularly for use in power 
generation. In October 2017,  the DOE circulated its draft Rules and Regulations Governing the 
Philippine Natural Gas Industry to stakeholders for comments. This draft policy aimed to create a 
liberalized market, encourage investment in the gas sector, and transform the Philippines in to a 
liquefied natural gas (LNG) trading and trans -shipping hub in the Asian Pacific region.  
4.47.   Semirara  produc es 99% of the country 's total coal . Production  reached 12.1 million metric 
tonnes (MMT)  in 2016, up from 7.6 MMT in 2011. The increase in production was attributed to the 
expansion of operations by Semirara Mining and Power Corporation. Coal is mainly used to fuel 
power plants for electricity generation.  
4.48.   The biofuel industry in the Philippines has seen a rapid ex pansion. The Biofuel Act 
(RA 9367) set forth the mandatory requirements for using locally sourced biofuels: a minimum 
volume of 10% bioethanol must be blended in the gasoline sold in the country; for diesel, the 
minimum volume is 2%. The Act clearly requir es that bioethanol must first exhaust domestic WT/TPR/S/36 8 • The Philippines  
 
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  sources, and the volume of imported equivalent must not exceed the extent of the shortage as 
determined by the National Biofuel Board.42 
4.49.   Consumption of bio ethanol  continued to outstrip domestic supply, due to i nsufficient 
production capacity. In 2016, about 40% of total demand for bioethanol was met by 
domestically  produced products (118.9 million litres).  As of end-2016, there were 11 biodiesel and 
10 bioethanol production facilities in the country. Biodiesel p roduction reached 225.9  million litres, 
while bioethanol production reached 230.2  million litres . In 2016,  the DOE  approved three biofuel 
production facilities: Emperador Distillers, Inc. , with a total annual rated capacity of 66 million 
litres of bioethan ol; Bio Renewable Energy Ventures Inc. and Archemicals Corporation  with total 
annual rated capacity of 90 million litres of biodiesel.  
4.3.2   Electricity  
4.50.   The electricity sector in the Philippines is considered fairly liberalized in the region. The 
Energy Regulato ry Commission (ERC), under the Department of Energy, is the regulator for the 
sector. With the implementation of the PEP 1999 -2008, the Philippines liberalized its power 
generation and "retail supply" markets through the enactment of the Electric Power Ind ustry 
Reform Act (RA 9136) in June 2001. As of end -2016, the country' s total installed capacity reached 
21,423  MW, while dependable capacity stood at 1 9,097  MW. 
4.51.   Power generation remains highly dependent on traditional fossil fuels. As for the install ed 
capacity , in December 2016, 34.6% was powered by coal, 17.2% by natural gas, and 14.8% by 
oil. In terms of generation,  coal power plants generated  48% of total electricity supply 
(43,303  GWh),  natural gas plants 22%, and oil power plants 6%.  During the pe riod under review, 
a number of new projects were under construction or were commissioned. As of end -2016, a total 
of 2,189 MW installed capacity had been added to the grid.  
4.52.   Renewable energy (geothermal, hydro, wind, biomass , and solar ) makes up the rest of  the 
installed capacity of the country (accounting for about 34.3%). The DOE issued the National 
Renewable Energy Programme (NREP), with the aim of diversifying and expanding renewable 
energy. Under the NREP, the Philippines aims to double the 2010 install ed capacity of renewable 
energy sources by 2030, which implies an increase from 5,438 MW in 2010 to 15,304 MW in 2030.  
4.53.   As of end-June 2017 , the DOE had awarded 831 Renewable Energy Service Contracts  
(RESCs ), with an aggregate potential capacity of 21,938  MW. Among the awarded projects, 
hydropower accounts for the largest potential capacity (13,419.7  MW), followed by solar 
(5,181.7  MW) and wind (2,381.5 MW) . 
4.54.   There are three regional grids in the country: Luzon , Visayas , and Mindanao . All three are 
owned an d managed by the National Grid Corporation of the Philippines. Currently, Luzon and 
Visayas grids are interconnected through a 440 MW submarine high voltage direct current cable. 
The project to link the grids of Visayas and Mindanao is still ongoing and ex pected to be completed 
by end -2020.  
4.55.   As part of the electricity liberalization programme, the Energy Regulatory Commission (ERC) 
established competitive wholesale electricity spot markets (WESM) for three regional grids: the 
one for Luzon was established i n June 2006, for Visayas in December 2010, and for Mindanao in 
June 2017. Stakeholders, including power generation companies, electricity retailers, as well as 
transmission and distribution companies, must be registered to become a WESM member and 
trade el ectricity in the spot market. The market is administered by an independent and non -profit 
body.43  
4.56.   In order to encourage development of renewable energy, a Feed-In Tariff (FIT)  system was 
introduced, and became operational in August 2010. FIT is a non -fiscal incentive scheme that 
offers guaranteed payment at a fixed rate for electricity sales for qualified renewable energy 
producers; it is administered by the ERC. The authorities indicated that FIT rates will be adjusted 
periodically in order to maintain a b alance between an acceptable rate of return for producers and 
                                                
42 Article 5.2, the Biofuel Act.  
43 For details of trading procedures and pricing rules, see the Wholesale Electricity Spot Market Rules. 
Viewed at: https://www.doe.gov.ph/sites/default/files/pdf/downloads/w_e_s_m.pdf .  WT/TPR/S/3 68 • The Philippines  
 
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  end-use pricing for consumers; but new rates are applied only to the projects approved and 
operational after the new rates are promulgated. Currently, the FIT rate for solar power is 
PHP 8.69/KW h, for wind power PHP  7.40/KWh, for biomass PHP  6.59/KWh, and for hydropower 
PHP 5.87/KWh.  
4.57.   There is limited FIT capacity, known as the installation target. In addition to adjusting FIT 
rates, the ERC periodically reviews the installation targets under FIT . For instance, the installation  
target for FIT preference for solar power was increased ten -fold from 50 MW in 2012 to 500 MW in 
2016; for wind power by 100% from  200 MW to 400 MW.  
4.58.   In order to qualify for the FIT scheme, producers must meet certain eligibility criteria and 
obtain a certificate of eligibility from the DOE.44 Once the applications have been vetted, 
certificates of eligibility are issued on a first -come -first-served basis, regardless of the size of the 
project. Some observers argue that this competition to access FIT preferences will push out 
smaller firms that are traditionally drivers of renewable energy in new markets. As of 30  June 
2017, the DOE issued certificate s of eligibility to the ERC for a total capacity of 1,079.6  MW for 50 
projects . 
4.59.   The Government also provides a number of tax incentives for renewable energy producers 
(Section 3.[incentive]).  
4.60.   Retail of electricity is liberalized; however retailers must obtain a congressional franchise. 
Retail tariffs must be approved by the ER C. During the period under review, the ERC also issued a 
number of circulars to ensure competition in the market.  
4.4  Manufacturing  
4.61.   Manufacturing accounted for 25% of GDP, and employed about 8% of the labour force 
during the period under review. Its value adde d grew at least 5% on a year -on-year basis. The 
manufacturing sector mainly comprises: food and beverages, furniture and fixtures, electronics, 
chemicals, petroleum refining, and motor vehicles (Table 4.3). Most industries mainly supply the 
domestic market , except the electronics industry whose products are mostly for export. This is due 
to high production and logistics costs, compared to its regional competitors.  
Table 4.3 Gross value added in the manufacturin g sector, 2011 -16 
(PHP billion, constant price based on 2000)  
 2011  2012  2013  2014  2015  2016  
Gross value added  1,324.3  1,395.7  1,538.9  1,666.5  1,761.0  1,884.3  
 Of which %  
Food manufacturers  37.3 38.1 36.1 35.6 34.3 34.6 
Beverage industries  4.4 4.3 3.8 4.4 4.1 4.2 
Tobacco manufacturers  0.4 0.3 0.3 0.3 0.3 0.3 
Textile manufacturers  2.3 2.2 1.7 1.8 1.8 1.6 
Wearing apparel  2.1 2.8 2.2 1.9 1.8 1.7 
Footwear and leather and 
leather products  0.4 0.4 0.5 0.4 0.4 0.4 
Wood, bamboo, cane and 
rattan articles  1.0 1.0 0.9 0.8 1.0 1.1 
Paper and paper products  1.1 1.0 0.8 0.8 0.9 0.9 
Publishing and printing  0.6 0.6 0.5 0.9 1.0 1.0 
Petroleum and other fuel 
products  3.8 3.5 2.8 3.0 2.8 2.6 
Chemical and chemical 
products  6.9 6.8 12.0 11.5 12.5 12.9 
Rubber and plastic 
products  1.6 1.6 1.5 1.5 1.4 1.7 
Non-metallic mineral 
products  2.5 2.7 2.7 2.4 2.5 2.2 
Basic metal industries  2.0 1.5 2.0 2.0 2.0 2.6 
Fabricated metal products  1.1 1.0 0.9 1.2 1.2 1.2 
                                                
44 Details are set forth in the Guidelines for the Selection Process of Renewable Energy Projects under 
Feed-In Tariff System and t he Award of Certificate for Feed -In Tariff Eligibility.  WT/TPR/S/36 8 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  
Machinery and equipment 
except electrical  1.5 1.5 1.4 1.6 1.8 2.1 
Office, accounting and 
computing machinery  1.3 1.5 1.4 1.4 1.2 1.5 
Electrical machinery and 
apparatus  2.5 2.6 2.2 2.1 2.1 2.2 
Radio, television and 
communication equipment 
and apparatus  18.3 17.1 17.0 16.6 17.7 16.2 
Transport equipment  2.2 2.4 1.7 1.7 1.8 2.1 
Furniture and fixtures  3.0 3.8 5.0 5.7 5.1 4.8 
Miscellaneous 
manufactures  3.7 3.2 2.6 2.4 2.3 2.1 
Source:  Information provided by the authorities.  
4.62.   Based on Comtrade  data, manufactured goods accounted for 84.2% of total merchandise 
exports in 2016. The Philippines' main exports were machinery and transport equipment, such as 
electronic integrated circuits, office machinery and telecommunications equipment, other elect rical 
machines, and automotive products. In the same year, manufactured goods accounted for 75.8% 
of merchandise imports, principally office machines and telecommunications equipment, as well as 
transport equipment. Manufacturing also attracted the largest  share of FDI into the country 
(Section 1). In general, there are no restrictions on foreign investment in the manufacturing 
sector.  
4.63.   In 2016, the simple average applied tariff on manufactured products (ISIC definition) was 
6.7%, with tariffs ranging from z ero to 65%. The products receiving the highest tariff protection 
include cane sugar (with an applied tariff of 65%), rice and beet sugar (50%), and automotives, 
motorcycles, and waste materials (30%). For non -food processing manufacturing, the tariff 
structure exhibits a pattern of tariff escalat ion. Tariff quotas apply to 49 tariff lines, representing 
0.6% of the total tariff.  
4.64.   A variety of incentives  are offered to assist manufacturing industries. According to a number 
of industrial censuses and surveys b y the Philippine Statistics Authority (PSA), the top industries in 
terms of utilizing the incentive measures  provided by the Government , such as special grants , tax 
exemption s, and tax privilege s, are p arts and accessories for motor vehicles and their engi nes, 
electronic components , and textiles.  
4.65.   The electronics industry comprises mainly semiconductors, electronic data processing 
equipment, office equipment, telecommunications equipment, automotive and industrial 
electronics, and consumer electronics . Most of these industries are foreign -owned. According to 
the PSA, the electronics industry continues to be the largest employer in the manufacturing sector, 
and generates the highest production output.  
4.66.   During the period under review, the Philippines began to specialize in automotive electronics 
such as advanced driver systems, safety measures, cameras, entertainment systems and other 
interactive features, leaving Philippine -based manufacturers well placed to supply inputs to other 
assembly hubs in the region. As most tariffs between ASEAN members became zero -rated, a 
number of international companies are able to use the Philippines as a gateway to access other 
ASEAN members.  
4.67.   Government assistance to the automotive sector is channelled through the Motor Vehicle 
Development Programme (MVDP). The objective of the Programme is to encourage domestic 
automobile production by imposing low tariffs (between zero and 1%) on motor vehicle 
components, and high tariffs on finished automobiles and motorcycles ( between 15 % and  30%).  
The authorities note that the provisions under the MVDP are currently under review.  
4.68.   A common challenge facing the manufacturing sector is high production costs as a result of 
an inadequate infrastructure. These costs are related to both the transport network (i.e. 
insufficient land, sea, and air connectivity) and the electricity sector (i .e. lack of capacity and high 
prices). The authorities noted that a number of measures have been taken to address concerns 
from the business community regarding the infrastructure, including transport and electricity. For WT/TPR/S/3 68 • The Philippines  
 
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  instance, the Department of Trade and Industry (DTI) and the Department of Public Works and 
Highways (DPWH) launched the DTI -DPWH Convergence Roads Leveraging Linkages for Industry 
and Trade (ROLL IT) Program me in 2016, with the aim  of develop ing infrastructure projects that 
will connect t o key manufacturing and economic areas  in the country ; as of November 2017 , there 
were 229 road project proposals nationwide.  
4.5  Services  
4.5.1   Financial services  
4.5.1.1   Banking  
4.69.   The BSP Monetary Board is the Philippines' principal regulator for the banking sector; it 
supervises banks' operations , and exercises regulatory powers over quasi -banks45 including their 
subsidiaries and affiliates engaged in allied activities.46 The Bangko Sentral ng Pilipinas ( BSP) has 
some overlapping responsibilities with the Securities and Excha nge Commission  (SEC) with respect 
to non -bank financial institutions (e.g. financing companies or investment houses ) with a quasi -
banking licen ce.47  
4.70.   During the review period, the Philippines took measures to liberate its banking sector. From 
15 July 2014 o nwards, the Full Entry of Foreign Banks  Act (RA 10641) allows 100% foreign 
ownership of banks in the Philippines. Under this Act, foreign persons can now own 100% locally 
incorporated subsidiaries, or 100% of the voting shares of an existing domestic bank;  BSP must 
ensure at least 60% of the resources or assets of the entire Filipino banking system are held by 
domestic banks.  The Act also abolishes restrictions on the licensing of branches of foreign banks 
with respect to the entry period, total number of e ntrants, and location of sub -branches. The 
authorities expected that, by allowing foreign banks entry into the Philippines, this would also 
bring their clients looking for investment opportunities, and would encourage more competition in 
the sector, which would, in turn, benefit all consumers.  
4.71.   Since the launch of the ASEAN Economic Community (AEC) in December 2015, the 
Philippines now allows foreign banks from ASEAN member States to operate in the country, 
enjoying the same benefits as domestic banks. BSP and the Central Bank  of Malaysia signed a 
bilateral agreement in April 2017 that allows qualified ASEAN banks (QABs) to enter each other's 
market. The status of QAB is granted by the sectoral regulator of the home country. There were no 
banks granted QAB s tatus by BSP, or QABs from Malaysia operating in the Philippines at the time 
of drafting this report. The authorities indicated that negotiations of bilateral agreements on QABs 
have been initiated with Indonesia and Thailand.  
4.72.   The authorities noted that b oth domestic and foreign banks are subject to the same 
regulatory requirements. The authorities further noted that f oreign banks are also given the right 
to participate in foreclosure proceedings and take possession of the mortgaged property , similar to 
domestic banks.  However, the title to the mortgaged property may not  be transferred to a foreign 
bank; foreign banks therefore have a maximum period of five years within which to transfer the 
said property to qualified Filipino  nationals. Foreign banks enter ing the Philippine banking system 
through the establishment of a branch are allowed to establish five sub -branches in locations of 
their choice.  
4.73.   Banks in the Philippines may take one of a number of forms. Universal banks are 
commercial banks that have expanded functions, such as performing the activities of investment 
houses , investing in non -allied enterprises48, and owning up to 100% of  saving  banks, rural bank s, 
                                                
45 Quasi -banks engage in borrowing funds through issuing, endorsing, or accepting deposit substitutes 
for re -lending or purchasing receivables and other obligations (WTO, 2005).  
46 In the proposed amend ment to the Central Bank Act, the bill envisaged expanding BSP's regulatory 
powers over the payments and settlement systems including financial market infrastructure.  The amendment 
bill is still pending in Congress.  
47 BSP, the Securities and Exchange Comm ission  (SEC),  the Insurance Commission (IC),  and the 
Philippine Deposit Insurance Corporation (PDIC) coordinate their respective supervisory actions through the  
platform of the Financial Sector Forum . 
48 A list of what constitutes a non -allied undertaking is provided in the Manual of Regulations for Banks. 
Viewed at: http://www.bsp.gov.ph/regulations/reg_MORB.asp . WT/TPR/S/36 8 • The Philippines  
 
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  or allied financial  or non -financial enterpr ises, or  51% of insurance companies.  Commercial banks 
may do likewise, but they may not own insurance companies , and their equity in other non-bank 
financial institutions (e.g. leasing and credit -card companies) is capped at 40%.  Saving banks or 
thrift ban ks comprise savings and mortgage banks, as well as private developm ent banks. Rural 
and cooperative banks provide basic banking services in neighbourhoods.  
4.74.   At end -June 2017, there were 593 banks with more than 10,000 branch offices. The 
banking sector is d ominated by private domestically owned institutions.  While rural and 
cooperative banks are significant in numerical terms49 (i.e. 493 out of 593) , universal and 
commercial banks togethe r account for around 90%  of total bank assets (Table 4.4). 
Table 4.4 Banking sector structure, December 2016  
Bank type  Number  Total assets (PHP billion)  
Universal and commercial banks  42 12,881.5  
Private  39 10,863.9  
- domestic  17 9,785.2  
- foreign  22 1,078.7  
State owned  3 2,017.6  
Thrift banks  58 1,137.0  
Rural banks  467 205.6  
Cooperative banks  26 18.1 
Total  593 14,242.2  
Source:  Information provided by the authorities.  
4.75.   Among the universal and commercial banks, three domestic private banks controlled 42% of 
the total assets of the sector as of end -June 2017: BDO (18.1%), Metrobank (12.6%), and BPI 
(11.1%). There were 25 foreign banks operating in the Philippines, accounti ng for less than 10% 
of total assets at end -June 2017. Among these 25 foreign banks, 20 entered the country as foreign 
bank branches while the other five were locally incorporated as subsidiaries; most foreign banks 
originated from Chinese Taipei and the R epublic of Korea.  
4.76.   There are three government -owned banking institutions in the Philippines : the Developmen t 
Bank of the Philippines (DBP),  the Land Bank of the  Philippines (LBP),  and Al Amanah Islamic 
Investment Bank of the Philippines (AAIIBP). Together,  these account for 14.2 % of the total assets 
of the banking sector. The DBP and the LBP provide commercial banking services as well as 
development financing. The AAIIBP is the only bank in the Philippines authorized to offer Islamic 
banking. It is also lic ensed to perform both commercial and investment banking services.  
4.77.   The Philippines has fully implemented the Basel III risk -based capital adequacy framework 
since January 2014.50 This framework is applied to all universal and commercial banks as well as 
quasi-banks. Under the new requirement, minimum capital ratios are set as  6% Common Equity 
Tier 1 (CET1) ratio, 7.5 % Tier 1 ratio , and 10 % Total Capital Adequacy Ratio (CAR). The capital 
conversation buffer (CCB) is 2.5%. Branches of foreign banks are subject to equivalent 
requirements, effective from 21 November 2014.51 According to the authorities, the risk -based 
CAR of universal and commercial banks was recorded at  15.3% on a solo basis , and 16.0% on a 
consolidated basis as of end -June 2017.   
4.78.   As of end -June 2017, 493 rural and cooperative banks had combined asset s of 
PHP 223.7  billion which accounted for 1.6 % of the Philippine banking system. The number of rural 
and cooperative banks significantly dropped from 692 in end -June 2009 to 493 in end -June 2017. 
According to the authorities, t he decline could be attributed to the mergers and consolidations of 
banks to improve financial strength, enhance viability, strengthen management and governance, 
and expand market reach.  
                                                
49 Rural and cooperative banks  usually have only  one branch.  
50 On 15 January 2013, BSP issued Circular No. 781 providing  the implementing guidelines on the 
revised risk -based capital adequacy framework particularly on the minimum capital and disclosure 
requirements. Minimum buffers com posed of CET1 capital have been required of systemically important banks 
starting January 2017 , and are expected to be fully complied with by January 2019 . 
51 RA 10641 de -recognized the " Net Due to Head Office " as a component of the capital  of foreign bank 
branches . Under RA 16041, t he capital of a foreign bank branch shall be composed of: permanently assigned 
capital , undivided profits, and  accumulated net earnings which is composed of unremitted profits not yet 
cleared by BSP for outward remittance and los ses in operations.  WT/TPR/S/3 68 • The Philippines  
 
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  4.79.   On 15 February 2016, the BSP  Monetary Boa rd issued Circular 902 which gradual ly lifts the 
moratorium on the granting of licen ces for the establishment of new banks . The implementation of 
the Circular is in two phases : the initial phase is e xpected to be completed by  end-2017, during 
which  existin g saving  banks may apply for a licen ce to convert into a universal or commercial 
bank;  the second phase will commence on 1 January 2018 when all locational restrictions on the 
granting of new bank licen ces shall be fully lifted.  
4.80.   On 24 May 2013, a new law ( RA 10574) allowing the infusion of foreign equity in the capital 
of rural banks entered into force. Under this Act, non -Filipino citizens may own, acquire or 
purchase up to 60 % of the voting share of a rural bank, and  these non -Filipino citizens may 
become  members of the Board of Directors , proportional to the share they possess . 
4.81.   Similarly, the restrictions on foreign equity in financing companies and investment houses 
was relaxed by the  Act Amending Investment Restrictions in Specific Laws Governing Adjust ment 
Companies, Lending Companies, Financing Companies and Investment Houses Cited in the Foreign 
Investment Negative List and for Other Purposes  (RA 10881 ). The Act provides that  lending 
companies, financing companies and investment houses may be wholly  owned by foreign 
nationals. Similar to the privilege granted to foreign banks, a financing  company with more than 
40% foreign -owned share s may bid on, and take part in , any sale of land , and,  as a consequence 
of such mortgage, avail of enforcement proceedi ngs, take possession  of, and transfer their rights 
to qualified Filipino  nationals for a period not exceeding five years from actual possession.  The 
implementation regulations and rules for RA 10881 are in the process of drafting.  
4.82.   Traditionally, banks in t he Philippines are primarily exposed to large domestic corporations. 
As of end -June 2017, 54% of outstanding domestic bank loans were extended to financial and 
non-financial private corporations .52 Following the recent expansion in infrastructure constructi on 
projects, banks are also expanding their lending to the Government through the PPPs. Meanwhile, 
the share of household loans in banks' lending portfolios has risen since 2010. Most retail lending 
was for real estate and automobiles, reflecting the econo mic improvement during the same period 
of time.  
4.83.   As of end -June 2017, the total loan portfolio (TLP) stood at PHP  8,022 billion, growing by 
18% on a year -on-year basis. Despite the continued loan growth, the loan quality of the banking 
system remained satis factory. The non -performing loan (NPL) ratio was 1.9% and the non -
performing asset (NPA) ratio was 1.8%. The banking system continued to provide a sufficient 
buffer for credit losses, as evidenced by a high NPL coverage ratio of 114.3% and NPA coverage 
ratio of 79.6%. The net profit of the banking system stood at PHP  82.3 billion for the first half of 
2017, up by PHP  3.1 billion from PHP  79.2 billion for the period ended June 2016.  
4.84.   The Credit Information Corporation (CIC) began to operate in 2016. The CIC i s a state -run 
credit history bureau. Before this, there was a private credit bureau in the Philippines.53 The 
operation of the CIC will facilitate information sharing among banks and private credit bureaux, so 
as to ensure that banks have a better borrower risk profiling system.  
4.85.   The Philippine Deposit Insurance Corporation (PDIC), under the Ministry of Finance, is 
responsible for determining insured deposits, providing deposit insurance, conducting bank 
examinations independently or in coordination with the BSP, examining deposit accounts in failing 
banks, acting as receiver in the event of a bank's failure, and, under certain conditions, providing 
support to banks that are in danger of closing. PDIC provides the maximum deposit insurance 
coverage of PHP 500,000 per depositor per bank. The PDIC's Deposit Insurance Fund (DIF) stood 
at approximately PHP  130.0 billion as of 31 December 2016.54  
                                                
52 Private corporations are composed of financial and non -financial corporations.  Financial corporations 
are private corporations that are primarily engaged in financial intermediation or in auxiliary financial activities 
that are closel y related to financial intermediation but are not classified as banks. Non -financial corporations 
are private corporations whose principal activity is the production of goods or non -financial services for sale.  
53 In 2011, five large banks in the Philippine s (BDO, Metrobank, BDI, Citibank, and HSBC) partnered 
with the US credit agency TransUnion to establish a private credit bureau.  
54 Commission on Audit  online information .  Viewed at: https://www.coa.gov.ph/index.php/gov -t-
owned -and-or-controlled -corp-goccs/2016/category/6370 -philippine -deposit -insurance -corporation .  WT/TPR/S/36 8 • The Philippines  
 
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  4.86.   Regarding financial innovation, BSP follows three principles to develop its regulatory 
environment, namely: risk-based an d proportionate regulation , active multi -stakeholder 
collaboration , and consumer protection . These principles are implemented through a test -and-
learn approach, referred  to as the "regulatory sandbox". BSP has applied the "sandbox" to a 
number of cases suc h as G -Gash/Smart Money and Lendr Solut ion. The authorities are of the view 
that the test-and-learn approach  enables the regulator to craft appropriate regulations that aim to 
promote financial technology innovation while mitigating technology -related risk s. 
4.5.1.2   Insurance  
4.87.   The Insurance Commission (IC) remains the sector regulator for insurance services, whose 
responsibilities include licensing operators, market surveillance, claims and complaints 
adjudication, and approving insurance premiums and products. IC a lso regulates and supervises 
the pre -need and health maintenance organizations sector.55  
4.88.   The main legislation on insurance services is the Insurance Code. It was amended on 
15 August  2013. The amendment tightened the prudential and solvency requirements for both 
domestic and foreign companies, and strengthened the regulatory power of the Commi ssion. The 
authorities noted that the amended Code aligned the Philippine law with global development in the 
insurance sector.  
4.89.   As per the amended Insurance Code, all insurance companies authorized to do business in 
the Philippines are require d that risks must first be offered "to other companies similarly 
authorized to do business in the Philippines in such amounts and under such arrangements as 
would be consistent with sound underwriting practices ".56  
4.90.   As of end -2016, 98 insurance companies wer e operating in the Philippines, with an 
insurance penetration rate of 1.6%. The authorities are of the view that the small size of the 
insurance market is, inter alia , attributed to a lack of priority being placed on insurance products 
by citizens, and a l ow financial literacy level among low -income households.  
4.91.   Companies must obtain a licence (Certificate of Authority) from the IC prior to 
commencement of business. There are no restrictions on the form of business that foreign 
companies may operate in the country (i.e. branches, subsidiaries, or joint ventures), nor are 
there limits on foreign equity participation.57 A company is considered a foreign company if more 
than 40% of its equities are owned by non -Filipinos. At the end of 2016, there were 18 foreig n 
companies in the Philippine insurance market, accounting for 55.1% of total premiums (Table 4.5).  
According to the authorities, since the entry into force of the amended Insurance Code, all 
companies have been subject to the same regulatory requirements,  regardless of ownership.  
Table 4.5 Insurance market structure, 2011 -16 
Insurance company type  2011  2012  2013  2014  2015  2016  
Composite  4 4 4 4 4 4 
Domestic  3 3 3 3 3 3 
Foreign  1 1 1 1 1 1 
Life 30 29 26 27 26 27 
Domestic  22 22 20 21 19 18 
Foreign  8 7 6 6 7 9 
Non-life 81 76 70 67 66 66 
Domestic  73 69 63 60 59 58 
Foreign  8 7 7 7 7 8 
Professional reinsurer  1 1 1 1 1 1 
Domestic  1 1 1 1 1 1 
Total  116 110 101 99 97 98 
Source:  Information provided by the  authorities.  
                                                
55 Insurance Commission online information, "Mandates, Objectives, and Functions". Viewed at: 
https://www.insurance.gov.ph/about/mandates -objectives -and-functions/ .  
56 Article 224, the Insurance Code  
57 The World To p 200 companies requirement set forth in IC Order No. 100 -94 was abolished  when the 
amended Insurance Code entered into force . WT/TPR/S/3 68 • The Philippines  
 
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  4.92.   The authorities noted that all insurance companies, irrespective of ownership, are subject to 
the same capitalization, minimum paid -up capital, and net worth requirements. Pursuant to the 
amended Insurance Code and IC Circular Letter 2015 -02-A, there is a minimum capitalization 
requirement of PHP  1 billion for new insurance companies. Existing companies must have a net 
worth58 of PHP  500 million by end -2016, and PHP  1.3 billion by end -2022. For new reinsurance 
companies, the capitalization requ irement is PHP  3 billion, of which at least 50% must be paid -up 
capital  and the remain der contributed surplus, which in no case shall be less than PHP 400 million; 
existing reinsurance companies must have a net worth of PHP  2.25 billion by end -2016, and 
PHP 3 billion by end -2022.59 
4.93.   A branch of a foreign company, or foreign reinsurance company, must deposit with the IC 
approved securities valued at the amount equal to the minimum paid -up capital required of their 
domestic counterparts. The Philippines maintai ns security funds of PHP  5 million each for life 
companies and non -life companies. Insurance companies make a one -time contribution to this 
fund in an amount proportional to their net worth during the year of assessment.  The security 
funds are used for pay ments to claimants and reinsurance companies in the event of insolvency of 
an authorized insurance company.  
4.94.   Taxes levied on life insurance companies include a 2% premium tax, and a documentary 
stamp tax (for insurance policies over PHP  100,000) which range s from PHP  10 to PHP  100 
depending on the premium of the insurance.  Life insurance companies are subject to 12% VAT on 
their management fees, rental income and other income from services pursued independently of 
insurance business. Premiums are not subject  to VAT. However, non -life insurance is subject to 
12% VAT and a  documentary stamp tax of 12.5% of the premium value. A fire services tax is 
applied to non -life insurance companies at 2% of all premiums, excluding re -insurance premiums 
for the sale of fire , earthquake and explosion hazard insurance. Local governments also impose a 
levy on non -life insurance companies at a rate of 0.5% on their annual gross receipts.60 
4.95.   The National Reinsurance Corporation of the Philippines (NRCP) is a domestic reinsurer for 
domestic and regional clients; 25.7% of the NRCP is owned by the Government through the 
Government Service Insurance System (GSIS).  Reinsurance companies doing business in the 
Philippines are required to cede to the NRCP at least 10% of outward reinsurance  placements.61 
Reinsurance services may be obtained from abroad upon the authorization of the IC. The reinsurer 
must have a resident agent registered with the IC.  
4.96.   Under the Property Insurance Law (RA 656), the GSIS has responsibility for administering 
the G eneral Insurance Fund, which provides insurance coverage for government assets and 
properties.62 As of end -2016, the total risks underwritten by the GSIS amounted to 
PHP 1.98 billion.  
4.97.   All pre -need companies63 (including health maintenance organizations)64 are now regulated 
by the IC. Under the Pre -Need Code (RA 9829), new pre -need companies must have a minimum 
paid-up capital of PHP  100 million; for existing companies, the amounts may be lower depending 
on the number of different plans sold. Companies must  also make monthly deposits into a trust 
fund for each pre -need plan in order to ensure that the benefits promised under the contract may 
be met. There are no restrictions on foreign equity participation in pre -need companies.  
                                                
58 The net worth of a foreign insurance company must be its net worth in the Philippines.  
59 Reinsurance companies here refers to the insurance companies authorized to transact solely 
reinsurance business.  
60 The gross receipts include receipts derived from interest, commissions and discounts from lending 
activities, income from financial leasing, dividends, rental income on property and profit from exchange or sale 
of property, and insurance premium s. 
61 Presidential Decree No. 1270, Section 4. Viewed at: http://www.chanrobles.com/presidentia l 
decrees/presidentialdecreeno1270.html . 
62 The GSIS's main responsibility is to provide social security benefits to Government employees.  
63 The pre -need companies  provide payments in times of need for memorial or burial services, education 
or pensions; the y partially compete with insurance  companies in the market.  
64 A health maintenance organization (HMO) is an entity that provides or arranges for the provision of 
pre-agreed or designated health care services to its enrolled members for a fixed pre -paid fee  for a specific 
period of time through the use of a network of selected health care providers. Pursuant to the Executive Order 
No. 192 (s.2015), the IC took over the regulatory power on HMOs from the Department of Health.  WT/TPR/S/36 8 • The Philippines  
 
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  4.98.   Insurance intermediaries such as brokers and agents are also subject to licensing 
requirements by the IC . Licensing requirements also apply to individuals in various insurance -
related jobs.  As of 13 October 2017, the insurance sector employed more than 80,000 licensed 
agents (Table 4 .6). Foreign nationals residing in the Philippines are allowed to be a licensed agent, 
subject to the same requirement as Filipino agents.  
Table 4.6 Numbers of licensed agents, October 2017  
Agent type  Licence  type Number  
General  Life 66 
Non-life 94 
Ordinary  Life 32,269  
Non-life 10,548  
Microinsurance life  78 
Microinsurance non -life 8 
Variable  37,396  
Total  80,459  
Source:  Information provided by the authorities.  
4.5.2   Telecommunications  
4.99.   The legal framework of the telecommunications sector remained largely unchanged since 
the last Review of the Philippines.  The Public Telecommunications Policy Act (RA 7925) remains the 
main law governing the sector. The National Telecommunications Commission (NTC) i s the line 
agency for the sector, responsible for administering the provisions of the Act . Pursuant to the 
Department of Information and Communication Technology Act (RA 10844) enacted in May 2016, 
the Department of Information and Communication Technology  (DICT) is responsible for 
overseeing the policy development in the telecommunications sector.  
4.100.   Telecommunications in the Philippines is  entirely private -sector driven.  In 20 16, the 
Philippines was ranked 107th out of 1 75 territories  in the ITU's ICT Develo pment Index.65 During 
the period under review, mobile penetration was on an increasing trend, while fixed -line 
penetration remained largely stable. The mobile penetration rate has exceeded 100% since 2012. 
More notably, Internet usage in the Philippines has  experienced rapid growth since 2011. Internet 
is now used by 55.5% of individuals, compared to 29% in 2011. Fixed broadband penetration 
sharply increased from 1.88% in 2011 to 5.46% in 2016 (Table 4.7).  
Table 4.7 Selected telecommunications indicators, 2011 –16 
 2011  2012  2013  2014  2015  2016  
Fixed telephone subscriptions ('000)  3,556  3,493  3,149  3,093  3,224  3,836  
Fixed telephone subscriptions per 
100 inhabitants  3.74 3.61 3.20 3.09 3.17 3.71 
Mobile -cellular telephone subscriptions ('000)  94,190  101,978  102,824  111,326  117,838  113,000  
Mobile -cellular telephone  subscriptions per 
100 inhabitants  99.09  104.45  104.50  111.22  115.75  109.17  
Internet users (%)  29 36.2 48.1 49.6 53.7 55.5 
Fixed  broadband subscriptions ('000)  1,797  2,147  2,573  2,900  4,870  5,649  
Fixed  broadband subscriptions per 
100 inhabitants  1.88 2.22 2.61 2.9 4.78 5.46 
Wireless broadband total subscriptions ('000)  .. .. .. .. .. .. 
Wireless broadb and total subscriptions per 
100 inhabitants  .. .. .. .. .. 41.58 
.. Not available.  
Source:  ITU online information . Viewed at: www.itu.int/en/ITU -D/Statistics/Pages/stat/default.aspx ; and 
information provided by the authorities.  
4.101.   Telecoms services are regarded as a public utility, and foreign equity in telecoms 
companies (both public (i.e. basic) and value added) is limited, by the Constitution as well as the 
Public Service Act, to 40%. The  authorities indicated that, according to a Department of Justice 
opinion, if the service is not provided directly to consumers or the public, then the 40% limit does 
                                                
65 The ICT Development Index compri ses 11 indicators covering ICT access, use, and skills. Viewed at: 
http://www.itu.int/net4/ITU -D/idi/2016/ . WT/TPR/S/3 68 • The Philippines  
 
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  not apply. Foreigners may not become executives or managers of telecoms firms, and the nu mber 
of foreign directors must be proportionate to the firm's aggregate share of foreign capital.  
4.102.   Basic telecoms services providers must obtain prior approval from both Houses of 
Congress to become a "congressional franchise". This requirement is applied t o basic telecoms 
services of local exchange operators , inter-exchange carriers , international carriers , mobile radio 
services , and radio paging services.  A franchise may be granted for a maximum period of 50 
years, renewable. In practice, franchises have g enerally been granted for 25 years.  In addition to 
the "congressional franchise", services providers may apply for an "administrative franchise" from 
the NTC. As of end -October 2017, all but one telecoms services providers are "congressional 
franchised" co mpanies.  
4.103.   Franchised companies must then apply to the NTC for Certificates of Public Convenience 
and Necessity (CPCN) in order to provide the relevant services. A CPCN specifies geographical 
area, type or classification of activities, regulations for provid ing the services and, in some cases, 
the rates chargeable.  A public hearing will be organized by the NTC prior to its decision on issuing 
a CPCN.  
4.104.   Currently, there are nine franchised companies operating public chunk lines, while 58 
operators are franchised on local loops. Fixed -line services are dominated by two providers: the 
Philippine Long Distance Telephone Company (PLDT) and Globe Telecom. Monopoly might exist in 
the market of local exchange; the authorities noted that operators must fulfil t heir franchise 
conditions when providing local exchange services. There are 10 franchised operators of cellular 
services.  
4.105.   Value -added telecoms services providers need not obtain a franchise, but are required to 
register with the NTC.  
4.106.   Value -added services m ay be provided by franchised public telecoms services  providers,  
provided they do not discriminate against other value -added services providers with respect to 
rates or deny them equitable access to their facilities. In addition , the value -added services t hey 
offer may not be cross -subsidized from their utility operations.  
4.107.   The Public Telecommunications Policy Act requires NTC to allocate spectrum to the "best 
qualified" provider(s).  In general, spectrum is allocated to applicants, subject to an annual 
spect rum fee. The authorities  indicated that applicants were pre -qualified, based on a set of 
criteria relating to their track record, roll -out plan, and schedule rates for their services. This was 
followed by an auction in the event of there being more qualifi ed applicants than available 
spectrum blocks. According to the authorities, the annual spectrum fee is not used to finance the 
operation of the NTC, but to finance communication and information technology infrastructure 
(e.g. free WiFi in public spaces).  
4.108.   The NTC sets tariffs for telecoms providers. However, if a service has sufficient competition 
to ensure fair and reasonable rates or tariffs, the NTC may exempt the service from its rate or 
tariff regulations. The authorities did not clarify the criteria u sed to determine "sufficient 
competition", or which providers' tariffs are currently regulated.  
4.109.   In June 2017, the DICT issued a National Broadband Plan. The Plan will serve as a 
blueprint for improving the telecoms infrastructure and promoting an open acce ss network in the 
country. The Plan also calls for regulatory reforms so as to enhance investment in the sector.66  
4.5.3   Transport  
4.5.3.1   Aviation  
4.110.   The legal and institutional framework for air transport remained largely unchanged during 
the period under review. The Civil Aeronautics Board (CAB), under the Department of 
                                                
66 Department of Information and Communications Technology (2017). National Broadband Plan: 
Building Infrastructures for a Digital Nation. Viewed at: http://www.dict.gov.ph/wp -
content/uploads/2017/06/National -Broadband -Plan.pdf .  WT/TPR/S/36 8 • The Philippines  
 
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  Transportation, is responsible for licensing domestic (through franchising) and international 
airlines, and regulating competition within the sector. The Civil Aviation Authority of the Philippines 
(CAAP), also under the Department of Transportation, has responsibility for the regulation of the 
technical, operational, safety, and security aspects of aviation. The CAAP provides air navigation 
services in the airspace of the Philippines.  
4.111.   Cabotage in the Philippines is reserved for Filipino carriers, i.e. foreign equity in a 
domestically licenced airline may not exceed 40%. There are no provisions on requirements 
regarding  crews' nationality/residency on domestic flights . Government -financed air transport of 
cargo is reserved for Filipino carriers, however, in practice, the Fair Trade Enforcement Bureau 
(FTEB) , under the Department of Trade and Industry , may issue waivers  when there are no Filipino 
carriers available on the specific route or time.  
4.112.   Anyone wishing to provide air transport services as a Filipino carrier must obtain two 
separate authorizations from the Department of Transportation: a licence o f operation from the 
CAB concerning economic authority, and a permit from the CAAP concerning safety -related 
matters. The CAB has statutory authority to preserve competition in the sector. In this regard, it is 
responsible for eliminating rate discriminati on, unfair competition, and deceptive practices, and for 
approving airline mergers.67  
4.113.   Philippine Airlines (PAL) is the flag carrier, serving a large number of international 
scheduled routes. There are three other major Filipino airlines operating internati onal as well as 
domestic routes. With regards to domestic routes, there are no specific legal provisions limiting 
cabotage to domestically licensed airlines. However, granting exclusive rights to carriers may 
create an adverse effect on competition.  
4.114.   In principle, Executive Order 29 of 2011 authorizes the Philippines' negotiators68 to offer in 
a bilateral air services agreement (ASA) up to fifth freedom rights to all airports except the Ninoy 
Aquino International Airport (NAIA), and to do so without imposing  restrictions on frequency, 
capacity, or type of aircraft. However, most bilateral ASAs in force are restrictive, covering only 
third and fourth freedoms. All ASAs require substantial ownership, effective control of the airline 
and dual approval of tariffs . In addition, capacity is generally predetermined, with a few 
exceptions. On the other hand, multiple -designation is the general rule. Currently, there are 68 
ASAs in force.  
4.115.   For ASAs already in force, the CAB has the authority to grant foreign air carrie rs increased 
frequencies and capacities beyond the terms of the relevant ASA. These increases must be 
approved by the President, and may have conditions attached, including that they may apply only 
for a specific period of time.  
4.116.   Effective from March 2013, the Income Tax Exemption to International Carriers Act 
(RA 10378) repealed the 3% Common Carriers Tax (CCT) and a 2.5% Gross Billings Tax on 
carriers.  
4.117.   There are 85 a irport s in the country, 11 of which are international airports and 34 serve 
domestic sched uled services. NAIA is the main airport for international flights, approaching its full 
capacity. As per CAAP regulations, airports may be state - or privately owned. There are 102 
privately owned airports, mainly used for air -taxi services.  
4.118.   The operation a nd management of airports may be fully carried out by the airport's 
owners, or partly or wholly by a third party through outsourcing and management contracts. The 
Mactan -Cebu Airport and NAIA are managed by the Mactan -Cebu International Airport Authority 
(MCIAA) and the Manila International Airport Authority (MIAA), respectively ; both airport 
authorities are government -owned and controlled companies . The management and operation of 
Caticlan  Airport has been privatized. All other airports are managed and operated by the CAAP.  
                                                
67 Executive Order 219. Viewed at: http://www.cab.gov.ph/mandates/item/executive -order -no-219-
1995?category_id=86 .  
68 Bilateral air services agreements (ASAs) are negotiated by the Philippine Air Negotiating Panel and/or 
the Philippine Air Consultation Panel (together known as the Philippines Air Panels). The Philippine Air 
Negotiating Panel is responsible for negotiatio ns to conclude ASAs, and the Philippine Air Consultation Board is 
responsible for any succeeding negotiations.  WT/TPR/S/3 68 • The Philippines  
 
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  4.5.3.2   Maritime  
4.119.   The Maritime Industry Authority (MARINA), under the Department of Transportation, has 
overall responsibility for the regulation and development of the four mar itime sectors in the 
Philippines (domestic and overseas shipping, shipbuilding/ship repair, and maritime manpower).69 
MARINA develops sectoral  policies, regist ers and licences ships and personnel, and  franchises 
carriers for domestic routes . The Philippine Coast Guard is responsible for matters concerning 
safety and security for domestic and international shipping.  
4.120.   MARINA is responsible for registering vessels under the Philippine Register of Ships. Only 
Filipino nationals or domestic companies70 may register  vessels. The Chief Executive and Chief 
Operating Officers must be citizens or permanent residents of the Philippines. Moreover, the crew 
must be 100% Filipino. Ships are registered to provide either domestic or international shipping. 
As of 30 June 2017, there were 14,351 Philippine -registered ships involved in the domestic 
transport of cargo and passengers (representing 2,580,418.5 gross tonnes), and 117 Philippine -
registered ships engaged in international voyages (2,413,534 gross tonnes).  
4.121.   As per the Dome stic Shipping Development Act (RA 9295), domestic shipping (i.e. 
cabotage) is reserved for Philippine -registered ships. MARINA grants certificates to domestic 
shipping operators . Foreign participation in domestic shipping may be through joint ventures with  
up to 40% ownership. Foreign vessels, under a special permit granted by MARINA, may provide 
cabotage services when no domestic vessel is available or suitable to provide the service required, 
and the public interest warrants  it. As of September 2017, MARI NA granted 242 special permits to 
foreign vessels.  
4.122.   There is a Memorandum of Understanding  (MoU), effective on 2 November 2007,  on 
Establishing and Promoting Efficient Integrated Sea Linkages among the governments of Brunei 
Darussalam, Indonesia, Malaysia,  and the Philippines. According to this MoU, the participating 
parties will grant temporary exclusive rights to vessels from one another to operate on a route 
that no existing shipping services operate. Currently, a Philippine vessel under this temporary 
exclusive right is operating a route between Zamboanga (Philippines) and Sandakan (Malaysia).  
4.123.   Under the Foreign Ships Co -Loading Act (RA 10668), effective 21 July 2015, international 
relays are now possible in the Philippines. Foreign ships may carry goods  that are bound for 
international trade between inter -island domestic ports; the goods for international relays must be 
unloaded by another foreign vessel calling at that port, en route  to the port of final destination.  
Foreign vessels are not allowed to c arry goods not bound for international trade and passengers 
between domestic ports.  
4.124.   Similar to air transport, government cargos transported by sea are reserved  for Philippine -
registered vessels. An exemption may be obtained from the FTEB if suitable Philip pine-flagged 
vessels are unavailable at reasonable freight rates within a reasonable period.  
4.125.   The Philippine Ports Authority (PPA) is responsible  for administering  most state -owned 
ports. Under the jurisdiction of the PPA, 17 ports serve international trade71 and 3 ports handle 
foreign transhipment cargos. The principal port is Manila Port (Table A4. 4).72 In September 2014, 
under Executive Order 172, the Philippines designated Batangas  Port and Subic Bay Free Port as 
extensions to Manila Port for international trade during congested times and in emergency cases. 
The authorities state that the Philippines offer s port services on a non -discriminatory basis to all 
international traffic . 
                                                
69 On 13 March 2014, MARINA was designated, through RA 10635, as the single maritime administration 
responsible for implementing and enforcing the  1978 International Convention on Standards of Training, 
Certification and Watchkeeping for Seafarers.  
70 Companies that are at least 60% Filipino -owned  are considered domestic companies.  
71 Government -owned ports that serve international trade are: South Ha rbour (Manila); Manila MICT; 
Limay; Batangas; Legazpi; Puerto Princesa; Dumaguete; Iloilo; Cagayan de Oro; Iligan; Nasipit; Surigao; 
Davao; General Santos; Tagbilaran; Tacloban; and Currimao . The ports that handle foreign transhipment 
cargos are: Currimao,  Salomague, and the MICT. There are five other ports which traditionally handle domestic 
trade that have begun to handle international trade: Coron, Ozamis, Ormoc, Calapan, Tabaco and Pasacao.  
72 Manila Port comprises the North Harbour (mainly handling dom estic trade), and the South Harbour 
and the MICT, handling foreign trade.  WT/TPR/S/36 8 • The Philippines  
 
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  4.126.   The PPA grants concession contracts to the private sector for port management and 
operations for some of its major ports: the Manila International Container Terminal ( MICT) is 
managed by International Container Terminals Services , Inc.; Manila South Harbour and Batangas 
Port are managed by Asian Terminals , Inc.; and Manila North Harbour is managed by Manila North 
Harbour Port , Inc. A concession contract is usually for 25 years. As is the case for shipping, foreign 
participation in port management is capped at  40% ownership. According to the authorities, cargo 
handling services in various PPA ports ha s been privatized , and PPA -owned passenger terminal 
buildings in various ports are also being operated by private entities .  
4.127.   Private companies may apply to the PPA  for a licence to finance, develop, construct, and 
operate ports.73 Foreign equity in port ownership is limited to 40%. While the port facility and 
back-up area of the port may be privately owned, the foreshore area belongs to the State.  
4.128.   All Philippine ves sels must be repaired , altered, reconditioned, converted and  dry docked 
at domestic shipyards or ship -repair facilities registered with MARINA.  Exemptions apply, subject 
to a waiver from MARINA, such as when emergency repairs are required overseas, when re pairs or 
work cannot be accommodated by Philippine shipyards, or when the Philippines is not a port of 
call. There are no foreign equity limits in shipbuilding or ship repair.  
4.129.   The Philippines has a significant maritime manning industry. In March 2014, MAR INA 
became the single maritime administration responsible for the implementation and enforcement of 
the 1978 International Convention on Standards of Training, Certification, and Watchkeeping for 
Seafarers, and related international agreements and covenant s. The authorities indicated that this 
step was taken to address the concerns from other stakeholders such as the European Maritime 
Safety Agency, and to ensure the standards for Filipino seafarers are compliant with the 
international ones. Furthermore, th e Seafarers Protection Act (RA 10706) entered into force on 
26 November  2015. The Act aims to promote and protect the welfare of Filipino seafarers from 
unscrupulous individuals who take advantage of the plight and wellbeing of the seafarers.  
4.5.4   Tourism  
4.130.   In 20 16, the tourism sector contributed 8.6% to GDP and 12.8% to employment. Tourist 
arrivals to the Philippines reached 5.97 million in 2016, increasing by 11% compared to 2015. The 
top five sources of tourist arrivals were Korea (the Republic of), China, Japa n, the United States, 
and Chinese Taipei. Since 9 November 2014, the Philippines has offered 30 -day tourist visa 
waivers to nationals from 157 countries.74 Furthermore, the Philippines provides 14 -day visa -free 
entry for Indian nationals if they have a vali d visa (or a permanent resident permit) from Australia, 
Canada, Japan, the Schengen  area, Singapore, the  United Kingdom, or the United States.  
4.131.   Tourism is considered to be central to the Philippines' social and economic development. 
The sectoral policies ar e set forth in a six -year National Tourism Development Plan (NTDP) by the 
Department of Tourism. The current NTDP is the NTDP 2016 -2022, succeeding the NTDP 2011 -
2016. According to the authorities, the NTDP aims to develop a global competitive, 
environment ally sustainable and socially responsible tourism industry that promotes inclusive 
growth through employment generation and equitable income distribution.  
4.132.   The authorities indicated that the main bottleneck to tourism development includes 
uncompetitive tour ist destinations and products, infrastructural weaknesses, and weak tourism 
governance. To address these concerns, the Department of Tourism has identified  12 strategic 
programmes, in its NTDP 2016 -2022, covering areas of, inter alia,  transport infrastruct ure, travel 
facilitation, tourism investments and business environment, product development, marketing, 
human resources and services standards, as well as quality standards.  
4.133.   Notwithstanding the importance the Government attaches to growth, significant mark et 
access and barriers to foreign investment remain in the tourism sector . 100% foreign equity is 
allowed in accommodation facilities . However, lands may be leased to foreign investors only for a 
period of 50 years, renewable once for not more than 25 years. For tourism projects, private land 
may only be leased to foreigners for investments of a minimum of US$5 million . Minimum paid -up 
                                                
73 The construction of the port must conform to the overall national port development plan.  
74 Executive Order 408.  WT/TPR/S/3 68 • The Philippines  
 
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  capital for 100% foreign -owned  restaurants is US$2.5 million; otherwise foreign ownership is 
limited to 40%.75 
4.134.   The Touri sm Act developed the concept of a Tourism Enterprise Zone (TEZ). A TEZ benefits 
from a number of tax incentives, including an income tax holiday for up to 12 years, 5% tax on 
gross income in lieu of national taxes, duty-free imported capital goods and equi pment , exemption 
from VAT and excise on imported goods for TIEZA -registered activities, and tax credit equivalent 
to national taxes paid on local goods and services for activities in TEZs.  The Act provides the 
criteria for designation as a TEZ.76 Applicatio ns for designation must be made to the Tourism 
Infrastructure and Enterprise Authority (TIEZA), and be accompanied by a development plan. The 
minimum required investment in order to benefit from incentives is US$5 million; however, 
exemptions may be grante d.77 As of end -2015, TIEZA has implemented 52 tourism infrastructure 
projects.  
4.135.   During the review period, the Department of Tourism took steps to enhance the business 
environment of the sector. The efforts, through a number of initiatives and projects with other 
stakeholders, included cutting regulatory red tape through the Regulatory Impact Assessment 
Programme, improving road access to priority tourist destination areas, and enhancing 
inclusiveness of local communities in the tourism sector.  
4.5.5   Professional s ervices  
4.136.   The Philippines Professional Regulation Commission (PRC) has responsibility for regulating 
and licensing 43 professions (except the legal profession), which it does through its sector -specific 
Professional Regulatory Boards (PRBs) and the respectiv e profession -specific laws.78  
4.137.   Practice of all professions in the Philippines is limited to Filipino citizens, except in cases 
prescribed by law. However, the Labour Code provides that non -resident aliens may be admitted 
to the Philippines to supply a servi ce after it has been determined that a competent and willing 
Filipino is not available at the time of application.  Moreover, the Philippines Professional Regulation 
Commission Modernization Act allows the PRC, upon the recommendation of the professional 
regulatory body concerned, to approve the licensing and registration of foreign professionals, with 
or without examination, when substantially the same requirements for licensing and registration 
for the profession exist in the respective country, and on the  basis of reciprocal treatment.  
4.138.   Licences or special temporary permits may be granted to: foreign professionals under 
reciprocity and other international agreements ; consultants engaged in foreign -assisted 
government projects ; employees of foreig n private f irms or institutions;  or health professionals 
engaged in time -limited humanitarian missions.  
4.139.   The Philippines included specific commitments on professional services in its regional and 
bilateral trade agreements, i.e. the ASEAN Framework Agreement on Servi ces (AFAS) , the ASEAN -
Australia –New Zealand Free Trade Area (AANZFTA) , the ASEAN –Korea Agreement on Trade in 
Services (AK –ATS), the ASEAN –China Free Trade Area (ACFTA) , and the bilateral FTA between the 
Philippines and Japan (Table A4.5) . To facilitate t he implementation of these commitments, mutual 
recognition arrangements/agreements  (MRAs)  were developed for engineering services , nursing 
services , architectural services,  surveying, medical practitioners , dental practitioners,  and 
                                                
75 No foreign equity is allowed if specialty restaurants are not part  of hotel facilities.  
76 See Chapter IV(A) of the Tourism Act of 2009.  
77 Projects with less than US$5 million may be invested in a Cultural Heritage Tourism Zone or an 
Eco-tourism Zone if TIEZA  deems it sufficient for the purposes, requirements and nature of the tourism project 
to be undertaken.  Details for granting incentives are set forth in the Tourism Act of 2009, and its associated 
regulations.  
78 The 43 regulated professions are: accountancy; aeronautical engineering; agricultural engineering; 
agricult ure; architecture; chemical engineering; chemistry; civil engineering; criminology; customs brokers; 
dentistry; electrical engineering; electronics engineering; environmental planning; fisheries; forestry; geodetic 
engineering; geology; guidance counsellin g; interior design; landscape architecture; librarians; master 
plumbers; mechanical engineering; medical technology; medicine; metallurgical engineering; midwifery; 
mining engineering; naval architecture and marine engineering; nursing; nutrition and diete tics; optometry; 
pharmacy; physical therapy and occupational therapy; professional teachers; psychology; radiologic and x -ray 
technology; real estate service; respiratory therapy; sanitary engineering; social workers; and veterinary 
medicine.  WT/TPR/S/36 8 • The Philippines  
 
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  accountancy services .79 Under the MRA among ASEAN members on Engineering and Architectural 
Services, the Philippines began  registration in 2014. Registration for a ccountancy is also set to 
commence once its Monitoring Committee is established.  
4.140.   Legal practitioners are regulated b y the Supreme Court. To practice as a lawyer in the 
Philippines, one must pass the Supreme Court  Philippine Bar Examination . Candidate s for the bar 
examination  must acquire a p rofessional degree in law from a recognized la w school in the 
Philippines or  from a foreign law school  that has been accredited by the Philippine Government , 
and a bachelor's degree (with academic credits in required subjects) from a recognized college or 
university in the Philippines or abroad. Lawyers must be Filipino citizens and r esidents.  
                                                
79 The health -related MRAs identified five areas of mobility (limited practice, expert visits, education and 
training, humanitarian missions and research) where cross -border movement of practitioners is contemplated.  WT/TPR/S/3 68 • The Philippines  
 
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  5  APPENDIX TABLES  
Table A1. 1 Basic economic and social indicators,  2011 -16 
 2011  2012  2013  2014  2015  2016  
Real GDP at market price 
(US$ million, 2010 prices)  136,452.9  149,311.1  159,039.8  161,402.3  167,026.4  171,109.3  
Real GDP at market price (pesos 
billion, 2010 prices)  5,910.2   6,305.2  6,750.6  7,165.5  7,600.2   8,126.4  
Current GDP at market price 
(US$ million)  224,142.9  250,092.1  271,836.2  284,584.8  292,773.8  304,905.6  
Current GDP at market price 
(Pesos billion)  9,708.3  10,561.1  11,538.4  12,634.2  13,322.0  14,480.7  
GDP per capita at current market 
price (US$)  2,352.5  2,581.8  2,760.3  2,842.9  2,878.3  2,951.1  
GDP by economic activity, at constant 2010 prices  (%age change)  
Agriculture  2.6 2.8 1.1 1.7 0.1 -1.3 
Agriculture and forestry  4.4 3.6 1.2 2.1 0.6 -0.6 
Fishing  -4.3 -0.4 0.7 -0.2 -1.8 -4.3 
Mining and quarrying  7.0 2.2 1.2 12.1 -1.5 3.2 
Manufacturing  4.7 5.4 10.3 8.3 5.7 7.0 
Construction  -9.6 18.2 9.6 7.2 11.6 13.7 
Electricity, gas and water  0.6 5.3 4.7 3.7 5.7 9.8 
Services  5.6 7.0 7.3 6.1 6.8 7.5 
Trade and repair of motor 
vehicles  3.4 7.6 6.2 5.8 7.1 7.2 
Transport, storage, and 
communication  4.3 6.9 6.0 6.5 8.0 5.9 
Financial intermediation  5.2 8.2 12.6 7.2 6.1 7.6 
Real estate and business 
activities  8.4 6.4 8.9 8.0 7.1 8.9 
Public administration and defence  1.9 5.7 2.7 4.1 1.2 7.2 
Other services  5.6 7.3 5.2 4.0 8.3 7.3 
GDP by economic activities, at current prices (%)  
Agriculture  15.4 14.4 13.7 13.8 12.5 11.8 
Agriculture and forestry  13.1 12.2 11.6 11.9 10.8 10.2 
Fishing  2.3 2.2 2.1 1.9 1.8 1.6 
Mining and quarrying  1.8 1.4 1.2 1.3 1.0 1.0 
Manufacturing  25.6 25.0 24.9 25.1 24.5 24.0 
Construction  6.5 7.3 7.6 7.7 8.3 8.9 
Electricity, gas and water  4.1 4.3 4.2 4.1 4.0 3.8 
Services  46.6 47.6 48.4 48.1 49.7 50.5 
Trade and repair of motor 
vehicles  21.2 21.5 21.9 21.6 22.1 22.3 
Transport, storage, and 
communication  7.8 7.8 7.7 7.6 7.8 7.7 
Financial intermediation  8.5 8.8 9.3 9.5 9.7 9.8 
Real estate and business 
activities  13.8 14.0 14.5 14.8 15.6 16.0 
Public administration and defence  5.0 5.3 5.1 4.8 4.7 4.9 
Other services  11.4 11.7 11.7 11.4 11.9 12.0 
Share of sector in total employment  
Agriculture   33.0  32.2 31.0 30.5 29.2 26.9 
Agriculture and forestry   29.0  28.4 27.4 26.9 25.7 23.8 
Fishing   3.9  3.8 3.7 3.6 3.4 3.1 
Mining and quarrying  0.6  0.7 0.7 0.6 0.6 0.5 
Manufacturing  8.3  8.3 8.3 8.3 8.3 8.3 
Construction  5.6  5.9 6.2 6.7 7.0 8.2 
Electricity, gas and water  0.4  0.4 0.4 0.4 0.3 0.4 
Services  52.1  52.6 53.4 53.5 54.6 55.6 WT/TPR/S/36 8 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  
Trade and repair of motor 
vehicles   ..  18.3 18.6 18.8 18.9 19.6 
Transport and storage   ..  7.0 7.2 6.9 7.2 7.4 
Accommodation and food service 
activities  3.0  4.2 4.2 4.4 4.4 4.3 
Information and communication   ..  0.9 0.9 0.9 1.0 0.9 
Financial and insurance activities   ..  1.2 1.2 1.3 1.3 1.3 
Real estate   ..  0.5 0.5 0.4 0.5 0.5 
Professional, scientific and 
technical activities   ..  0.5 0.5 0.5 0.5 0.5 
Administrative and support 
service activities   ..  2.5 2.7 2.8 2.9 3.4 
Public administration and 
defence; compulsory social 
security     5.0  5.2 5.2 5.1 5.4 5.3 
Education     3.2  3.2 3.2 3.2 3.3 3.2 
Human health and social work 
activities      1.2  1.2 1.2 1.2 1.3 1.2 
Arts, entertainment and 
recreation   ..  0.9 0.9 0.9 0.9 0.9 
Other services     7.8  7.2 7.1 7.0 7.1 7.1 
.. Not available.  
Source:  Philippine Statistics Authority online information; IMF elibrary -Data online information.   WT/TPR/S/3 68 • The Philippines  
 
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  Table A1. 2 Merchandise exports by group of products, 2011 -16  
 2011  2012  2013  2014  2015  2016  
Total exports (US$ billion)  48.0 52.0 56.7 61.8 58.6 56.3 
 % of total exports  
Total primary products  19.8 17.2 21.3 20.8 15.1 14.5 
 Agriculture  11.3 9.8 11.4 11.2 8.7 9.2 
 Food 10.2 8.9 10.4 10.2 7.7 8.4 
   4223 - Coconut (copra) oil and its fractions  3.0 2.0 1.8 2.2 1.9 2.0 
   0573 - Bananas (including plantains), fresh or dried  1.0 1.2 1.7 1.8 0.8 1.1 
 Agricultural raw material  1.0 0.8 1.0 1.0 0.9 0.8 
 Mining  8.5 7.5 9.9 9.6 6.4 5.3 
 Ores and other minerals  2.7 2.6 4.5 5.5 3.6 2.9 
   2841 - Nickel ores and concentrates  0.9 1.3 1.8 2.8 1.3 1.0 
   2831 - Copper ores and concentrates  0.7 0.4 1.7 1.5 1.2 0.9 
 Non-ferrous metals  2.9 2.4 1.7 1.1 1.4 1.1 
 Fuels 2.9 2.4 3.8 3.0 1.3 1.3 
Manufactures  57.9 81.7 78.0 78.6 84.1 84.2 
 Iron and steel  0.4 0.5 0.3 0.2 0.2 0.2 
 Chemicals  3.9 3.7 4.1 3.6 2.8 2.8 
 Other semi -manufactures  5.8 6.2 8.5 7.2 6.5 6.6 
   6353 - Builders' joinery and carpentry of wood, 
 including cellular wood panels, assembled 
 parquet panels, shingles and shakes  3.5 4.1 5.3 4.7 4.7 4.9 
 Machinery and transport equipment  41.4 59.6 55.7 57.6 64.6 64.5 
 Power generating machines  0.0 0.9 0.4 0.6 0.5 0.3 
 Other non -electrical machinery  1.3 3.7 2.9 3.0 2.3 2.0 
  Agricultural machinery and tractors  0.0 0.0 0.0 0.0 0.0 0.0 
 Office machines & telecommunication equipment  27.3 36.1 36.2 37.5 43.8 45.1 
   7764 - Electronic integrated circuits and 
microassemblies  9.6 18.0 19.3 19.5 23.7 25.6 
   7527 - Storage units, whether or not presented 
 with the rest of a system  3.2 3.0 4.9 6.0 4.6 5.5 
   7763 - Diodes, transistors and similar  semiconductor 
devices; photosensitive  semiconductor devices 
(including photovoltaic  cells, whether or not 
assembled in modules or  made up into panels); light -
emitting diodes  5.3 5.1 4.3 4.7 5.1 4.1 
   7599 - Parts and accessories (other than covers, 
 carrying cases and the like) suitable for use solely 
 or principally with the machines of subgroups 
 751.1, 751.2, 751.9 and group 752  3.0 3.0 3.5 3.6 3.3 3.1 
   7526 - Input or output units for automatic data-
 processing machines, whether or not presented 
 with the rest of a system and whether or not 
 containing storage units in the same housing  0.5 3.2 1.6 1.6 3.3 2.8 
   7649 - Parts and accessories suitable for use  solely 
or principally with the apparatus of division  76 0.7 0.9 1.0 1.0 1.4 1.7 
 Other electrical machines  6.7 12.6 11.7 10.6 11.7 11.0 
   7731 - Insulated (including enamelled or 
 anodized) wire, cable (including co -axial cable) 
 and other insulated electric conductors, whether 
 or not fitted with connectors; optical fibre cables 
 made up of individually sheathed fibres, whether 
 or not assembled with  2.4 3.0 3.2 3.5 3.9 4.0 
   7712 - Other electric power machinery; parts of 
 the electric power machinery of group 771  2.6 3.6 3.4 2.5 2.6 2.8 
   7725 - Electrical apparatus for switching or 
 protecting electrical circuits, or for making 
 connections to or in electrical circuits (e.g., 
 switches, relays, fuses, surge suppressors, plugs, 
 sockets, lamp -holders, junction boxes) for a 
 voltage not exceeding 1,000  0.9 0.8 1.0 1.3 1.1 1.1 
   7786 - Electrical capacitors, fixed, variable or 
 adjustable (pre -set) 0.1 0.3 0.8 0.8 1.0 1.0 WT/TPR/S/36 8 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  
 Automotive products  4.6 3.1 3.0 2.8 2.6 2.7 
   7843 - Other parts and accessories of the motor 
 vehicles of groups 722, 781, 782 and 783  4.3 2.7 2.6 2.4 2.2 2.3 
 Other transport equipment  1.5 3.2 1.4 3.1 3.8 3.5 
   7932 - Ships, boats and other vessels (other than 
 pleasure craft, tugs, pusher craft, special -purpose 
 vessels and vessels for breaking up)  1.3 2.0 0.9 2.4 2.6 1.8 
   7929 - Parts, n.e.s. (not including tyres, engines 
 and electrical parts), of the goods  of group 792  0.0 0.2 0.3 0.4 0.9 1.3 
 Textiles  0.4 0.3 0.3 0.4 0.3 0.3 
 Clothing  2.9 3.1 2.8 3.0 2.5 1.9 
 Other consumer goods  3.1 8.3 6.4 6.7 7.2 8.0 
   8746 - Automatic regulating or controlling 
 instruments and apparatus  0.1 0.4 0.2 0.6 0.7 0.9 
Other  22.4 1.0 0.7 0.5 0.8 1.3 
   9710 - Gold, non -monetary (excluding gold ores 
 and concentrates)  1.1 0.9 0.6 0.5 0.8 1.2 
Source:  UNSD, Comtrade database (SITC Rev.3).  WT/TPR/S/3 68 • The Philippines  
 
- 88 - 
 
  Table A1. 3 Merchandise imports by group of products, 2011 -16  
 2011  2012  2013  2014  2015  2016  
Total imports (US$ billion)  63.7  65.3   65.7   67.7   70.2   85.9  
 % of total imports  
Total primary products  34.3 35.9 34.7 34.5 25.9 23.9 
 Agriculture  11.0 11.1 10.9 12.8 12.3 12.3 
 Food 10.3 10.4 10.2 12.2 11.7 11.6 
   0412 - Other wheat (including spelt) and 
 meslin, unmilled  1.5 1.5 1.3 1.4 1.4 1.2 
   0813 - Oilcake and other solid residues 
 (except dregs), whether or not ground or 
 in the form of pellets, resulting from the 
 extraction of fats or oils from oil -seeds, 
 oleaginous fruits and germs of cereals  0.9 1.1 1.2 1.4 1.0 1.1 
   0989 - Food preparations, n.e.s.  0.9 0.9 1.0 1.0 1.0 1.1 
 Agricultural raw material  0.7 0.6 0.7 0.6 0.6 0.7 
 Mining  23.3 24.8 23.8 21.7 13.6 11.6 
 Ores and other minerals  1.7 2.1 2.2 0.6 0.7 0.7 
 Non-ferrous metals  1.5 1.1 1.0 1.1 1.1 1.2 
 Fuels 20.1 21.6 20.6 20.1 11.8 9.7 
   334 - Petroleum oils and oils obtained  from 
bituminous minerals, other than  crude  5.8 7.6 8.0 8.6 4.8 4.6 
   3330 - Petroleum oils and oils obtained  from 
bituminous minerals, crude  12.4 11.7 10.1 9.4 5.6 3.4 
   3212 - Other coal  1.0 1.2 1.2 1.1 0.9 1.2 
Manufactures  49.9 63.6 64.8 64.9 73.6 75.8 
 Iron and steel  2.3 2.3 2.4 2.8 2.9 4.0 
 Chemicals  10.6 10.3 9.9 11.0 10.1 10.1 
   5429 - Medicaments, n.e.s.  0.9 1.0 1.1 1.0 1.2 1.1 
 Other semi -manufactures  4.0 4.1 4.5 4.8 5.5 5.7 
 Machinery and transport equipment  28.3 42.2 42.9 40.8 49.0 49.0 
 Power generating machines  0.5 0.5 0.8 1.0 1.1 1.2 
 Other non -electrical machinery  5.1 5.4 5.3 5.2 6.6 7.3 
   7285 - Parts, n.e.s., of the machines and 
 mechanical appliances of headings 
 723.48, 727.21 and 728.41 through 
 728.49  0.9 0.8 0.7 0.6 0.9 1.3 
  Agricultural machinery and tractors  0.1 0.1 0.1 0.2 0.3 0.2 
 Office machines & telecommunication 
 equipment  12.9 24.5 22.8 20.7 27.5 23.8 
   7768 - Piezoelectric crystals, mounted;  parts, 
n.e.s., of the electronic  components of 
group 776  0.6 9.0 10.8 11.9 14.5 8.7 
   7764 - Electronic integrated circuits and 
 microassemblies  6.5 7.5 5.3 2.8 5.0 5.6 
   7599 - Parts and accessories (other than 
 covers, carrying cases and the like) 
 suitable for use solely or principally with 
 the machines of subgroups 751.1, 751.2, 
 751.9 and group 752  2.6 4.8 3.3 2.7 3.0 3.9 
   7649 - Parts and accessories suitable for 
 use solely or principally with the 
 apparatus of division 76  1.2 1.4 1.1 1.0 1.4 1.8 
   7643 - Transmission apparatus for radio-
 telephony, radio -telegraphy, radio -
 broadcasting or television, whether or 
 not incorporating reception apparatus or 
 sound -recording or reproducing 
 apparatus  0.6 0.5 0.8 0.7 1.0 1.2 
 Other electrical machines  3.9 3.7 3.8 3.9 4.5 4.9 WT/TPR/S/36 8 • The Philippines  
 
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   2011  2012  2013  2014  2015  2016  
   7725 - Electrical apparatus for switching 
 or protecting electrical circuits, or for 
 making connections to or in electrical 
 circuits (e.g. switches, relays, fuses, 
 surge suppressors, plugs, sockets, lamp -
 holders, junction boxes) for a voltage not 
 exceeding 1,000  0.7 0.7 0.6 0.6 0.7 0.8 
   7731 - Insulated (including enamelled or 
 anodized) wire, cable (including co -axial 
 cable) and other insulated electric 
 conductors, whether or not fitted with 
 connectors; optical fibre cables made up 
 of individually sheathed fibres, whether 
 or not assembled with  0.5 0.5 0.6 0.6 0.7 0.8 
 Automotive products  3.8 4.7 4.7 4.7 5.9 7.7 
   7812 - Motor vehicles for the transport of 
 persons, n.e.s.  2.0 2.6 2.6 2.5 3.3 4.6 
   7821 - Motor vehicles for the transport of 
 goods  0.6 0.7 0.7 0.7 0.7 1.2 
 Other transport equipment  2.0 3.3 5.5 5.4 3.4 4.0 
   7924 - Aeroplanes and other aircraft, 
 mechanically -propelled (other than 
 helicopters), of an unladen weight 
 exceeding 15,000 kg  0.5 1.7 3.4 3.0 0.9 1.1 
   7851 - Motor cycles (including mopeds) 
 and cycles fitted with an auxiliary motor, 
 with or without side -cars; side -cars 0.4 0.4 0.4 0.6 0.8 0.9 
   7929 - Parts, n.e.s. (not including tyres, 
 engines and electrical parts), of the 
 goods of group 792  0.3 0.3 0.7 0.7 0.6 0.8 
 Textiles  1.3 1.2 1.4 1.3 1.2 1.4 
 Clothing  0.3 0.4 0.4 0.5 0.6 0.5 
 Other consumer goods  3.0 3.3 3.3 3.7 4.3 5.1 
Other  15.8 0.5 0.4 0.6 0.4 0.2 
   9710 - Gold, non -monetary (excluding  gold 
ores and concentrates)  0.0 0.0 5.5 0.0 0.0 3.9 
Source:  UNSD, Comtrade database (SITC Rev.3).  WT/TPR/S/3 68 • The Philippines  
 
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  Table A2. 1 WTO notifications by the Philippines, 2012 -17 
Products 
covered/ 
subject  Description of notification  Document title  Date 
AGREEMENT ON AGRICULTURE  
Notifications under Articles 10 and 18.2 
Export subsidies  No export subsidies from 2008 to 
2010 G/AG/N/PHL/41  6/2/2013  
Domestic support  Covers 2005 to 2010  G/AG/N/PHL/42  18/3/2013  
Imports under 
tariff quotas  Covers 2005 to 2012  G/AG/N/PHL/43  21/5/2014  
Special 
safeguards  SSGs on imports of poultry and 
related products  G/AG/N/PHL/44  29/3/2016  
Export subsidies  No export subsidies from 2011 to 
2013 G/AG/N/PHL/45  31/3/2016  
AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE GATT 1994 (ANTI -DUMPING)  
Notifications under Article 16.4  
Clear float glass 
from Indonesia  Expiration of AD duty on 7/12/11  G/ADP/N/223/PHL  2/4/2012  
Wheat flour from 
Turkey  Investigation initiated  
Provisional measures  
Definitive measures  
Review  
Definitive duties  
Review. Definitive AD duties  
Review. Definitive AD duties  G/ADP/N/244/PHL  
G/ADP/N/259/PHL  
G/ADP/N/265/PHL  
G/ADP/N/272/PHL  
G/ADP/N/280/PHL  
G/ADP/N/286/PHL  
G/ADP/N/294/PHL  11/9/2013  
1/8/2014  
9/2/2015  
27/8/2015  
12/2/2016  
12/9/2016  
7/2/2017  
Clear float glass 
and bronze float 
glass from China  Provisional measures  G/ADP/N/294/PHL  7/2/2017  
Annual and semi -
annual reports  Reports on preliminary and final  
anti-dumping actions  G/ADP/N/223/Add.1  
G/ADP/N/230/Add.1  
G/ADP/N/237/Add.1  
G/ADP/N/245  
G/ADP/N/252/PHL  
G/ADP/N/257  
G/ADP/N/258  
G/ADP/N/266  
G/ADP/N/287  
G/ADP/N/293  
G/ADP/N/300/PHL  20/4/2012  
12/10/2012  
10/4/2013  
26/7/2013  
12/3/2014  
23/5/2014  
19/6/2014  
18/12/2014  
23/6/2016  
13/12/ 2016 
20/7/2017  
AGREEMENT ON IMPORT LICENSING PROCEDURES  
Notifications under Articles 1.4 (a) and 8.2 (b) 
Licensing 
legislation  For a range of products, including 
food, health, energy and oil 
products, vehicles, and firearms.  G/LIC/N/1/PHL/2  
G/LIC/N/1/PHL/3  
G/LIC/N/1/PHL/4  
G/LIC/N/1/PHL/5  14/8/2013  
5/2/2014  
7/9/2015  
17/10/2016  
Notifications under Article  5.1-5.4 
Licensing of 
firearms and 
ammunition  Enactment of the "Comprehensive 
Firearms and Ammunition 
Regulation Act"  G/LIC/N/2/PHL/1  8/11/2016  
Licensing of 
imported drugs  Enactment of the "Dangerous Drug 
Board" Regulations, 2015  G/LIC/N/2/PHL/2  9/11/2016  
Notifications under Article 7.3  
Licensing of 
import -regulated 
products  Import permits/clearances.  G/LIC/N/3/PHL/9  
G/LIC/N/3/PHL/10  
G/LIC/N/3/PHL/11  
G/LIC/N/3/PHL/12  8/2/2013  
6/2/2014  
7/9/2015  
19/10/2016  WT/TPR/S/36 8 • The Philippines  
 
- 91 - 
 
  Products 
covered/ 
subject  Description of notification  Document title  Date 
AGREEMENT ON SAFEGUARDS  
Notifications under Article 12.1 and Article 9, footnote 2  
Steel angle bar  Reduction of safeguard duty  
 
 
 
Extension of safeguard duty  
 
 
Investigation on extension of 
safeguard duty  
 
Extension of safeguard duty  G/SG/N/8/PHL/7/Suppl.3;  
G/SG/N/10/PHL/6/Suppl.2;  
G/SG/N/11/PHL/7/Suppl.3.  
 
G/SG/N/11/PHL/7/Suppl.4;  
G/SG/N/14/PHL/7.  
 
G/SG/N/6/PHL/7/Suppl.2.  
 
G/SG/N/10/PHL/6/Suppl.3;  
G/SG/N/11/PHL/7/Suppl.5;  
G/SG/N/14/PHL/7/Suppl.1  9/1/2012  
 
 
 
20/4/2012  
 
 
1/12/2014  
 
4/8/2015  
Ceramic floor and 
wall tiles  Reduction of safeguard duty; list of 
developing countries exempt  G/SG/N/11/PHL/1/Suppl.5;  
G/SG/N/14/PHL/1/Suppl.5  9/1/2012  
Float glass  Reduction of safeguard duty; list of 
developing countries exempt  
 
Reduction of safeguard duty  G/SG/N/11/PHL/8/Suppl.1;  
G/SG/N/14/PHL/6/Suppl.1.  
 
G/SG/N/11/PHL/8/Suppl.2;  
G/SG/N/14/PHL/6/Suppl.2.  10/1/2012  
 
 
2/11/2012  
Testliner board  Reduction of safeguard duty; list of 
developing countries exempt  
 
 
 
 
 
Extension of safeguard duty  
 
 
 
Extension of safeguard duty  
 G/SG/N/8/PHL/8/Suppl.2 & Corr.1;  
G/SG/N/10/PHL/7/Suppl.1 & Corr.1;  
G/SG/N/11/PHL/9/Suppl.2 & Corr.1  
 
G/SG/N/8/PH L/8/Suppl.3;  
G/SG/N/10/PHL/7/Suppl.2;  
G/SG/N/11/PHL/9/Suppl.3.  
 
G/SG/N/8/PHL/8/Suppl.4;  
G/SG/N/10/PHL/7/Suppl.3;  
G/SG/N/11/PHL/9/Suppl.4  18/4/20 12, 
20/04/ 2012 
 
 
 
 
 
17/1/2014  
 
 
 
27/9/2016  
Newsprint  Investigation initiated  
 
 
No provisional measure  
 
Investigation initiated  
 
Imposition safeguard duty; 
exemption for newsprint to print 
school textbooks. List of 
developing countries exempt  G/SG/N/6/PHL/9 and Suppl.1  
 
 
G/SG/N/6/PHL/9/Suppl.2  
 
G/SG/N/6/PHL/9/Suppl.3  
 
G/SG/N/8/PHL/9 & Corr.1;  
G/SG/N/10/PHL/8 & Corr.1; 
G/SG/N/11/PHL/10 & Corr.1  1/10/2013,  
8/11/2013  
 
6/10/2014  
 
1/12/2014  
 
21/5/2015, 
25/8/2015  
 
Galvanized iron 
and pre -painted 
sheets and coils  Investigation initiated  
 
 
Investigation terminated. No 
safeguard duty  G/SG/N/6/PHL/10 and Suppl.1  
 
G/SG/N/9/PHL/2 & Corr.1  10/10/2013,  
8/11/2013  
 
27/2/ 2015, 
9/3/2015  
SPS AGREEMENT  
Notifications under Article  
Food & feed 
safety; veterinary 
and phytosanitary 
measures  Regular notifications  
Emergency notifications  
Withdrawal measures  G/SPS/N/PHL/206 -
G/SPS/N/PHL/ 218 
G/SPS/N/PHL/219 -
G/SPS/N/PHL/ 244 
G/SPS/N/PHL/245 -
G/SPS/N/PHL/ 261  
G/SPS/N/PHL/262 -
G/SPS/N/PHL/ 315 
G/SPS/N/PHL/316 -
G/SPS/N/PHL/ 374 
G/SPS/N/PHL/348 -
G/SPS/N/PHL/ 375 2012 
 
2013 
 
2014 
 
2015 
 
2016 
 
2017 WT/TPR/S/3 68 • The Philippines  
 
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  Products 
covered/ 
subject  Description of notification  Document title  Date 
AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
Notifications under Article 25.11  
Semi-annual 
reports on CV 
duties  
 No CV duties from 2011 to 2016  
1 July -31 December  2011 
1 January -30 June 2012  
1 July -31 December 2012  
1 January -30 June 2013  
1 July -31 December 2013  
1 January -30 June 2014  
1 July -31 December 2014  
1 January -30 June 2015  
1 July -31 December 2015  
 
1 January -30 June 2016  
1 July -31 December 2016   
G/SCM/N/235/Add.1  
G/SCM/N/242/Add.1  
G/SCM/N/250/Add.1  
G/SCM/N/259/Add.1  
G/SCM/N/267/Add.1  
G/SCM/N/274/Add.1  
G/SCM/N/281/Add.1  
G/SCM/N/289/Add.1  
G/SCM/N/298/Add.1 and Rev.1  
G/SCM/N/305/Add.1  
G/SCM/N/313/Add.1   
24/4/2012  
12/10/2012  
10/4/2013  
18/10/ 2013 
15/4/2014  
17/10/2014  
24/4/2015  
22/10/2015  
22/4/2016  
25/10/2016  
21/10/2016  
21/4/2017  
AGREEMENT ON TECHNICAL BARRIERS TO TRADE  
Notifications under Articles 2.9.2; 2.10.1; 5.6.2  
Certification of 
products  Guidelines for certification of 
various products  G/TBT/N/PHL/160 -162 
G/TBT/N/PHL/163 -177 
G/TBT/N/PHL/178 -187 
G/TBT/N/PHL/188 -193 
G/TBT/N/PHL/194 -196 
G/TBT/N/PHL/197 
G/TBT/N/PHL/197/Add.1 
G/TBT/N/PHL/198 
G/TBT/N/PHL/190/Add.1  
G/TBT/N/PHL/199 G/TBT/N/PHL/200  2012 
2013 
2014 
2015 
2016 
2017 
AGREEMENT ON TRADE FACILITATION  
Notifications under Article X.3  
Category "A"  
commitments   WT/PCTF/N/PHL/1  
WT/PCTF/N7PHL/1/Corr.1  1/8/2014  
18/9/2014  
GENERAL AGREEMENT ON TRADE IN SERVICES  
Notification under Article V:7(a) of the GATS  
RTA ASEAN, Australia and New Zealand   S/C/N/545/Add.1; WT/REG284/N/2  9/5/2012  
Notification under Article V:7(a) of GATS  
RTA ASEAN Services Agreement  S/C/N/822  24/8/2015  
GATT 1994  
Invocation of Article XXVIII:5  
Modification of 
schedule  Reservation of rights (2015 to 
2018)  G/MA/304  
 18/11/2014  
 
Notification pursuant to the decision on notification procedures for QRs (G/L/59/REV.1)  
Quantitative 
restrictions  Notification for 2015-2016 G/MA/QR/N/PHL/1  21/5/2015  
Notification under Paragraph 4(a) of the Enabling Clause (GSP)  
RTA  ASEAN –India WT/COMTD/N/35/Add.1  31/5/2012  
Source:  WTO Secretariat.  
 
 WT/TPR/S/36 8 • The Philippines  
 
- 93 - 
 
  Table A2. 2 Tenth foreign investment negative list, May 2015   
Tenth foreign investment negative list, May 2015  
I. LIST A: FOREIGN OWNERSHIP IS LIMITED BY MANDATE OF THE CONSTITUTION AND SPECIFIC 
LAWS  
A. No foreign equity  
1. Mass media except recording  
2. Practice of professions  
a. Pharmacy  
b. Radiologic and x -ray technology  
c. Criminology  
d. Forestry  
e. Law  
3. Retail trade enterprises with paid-up capital of less than US$2,500,000  
4. Cooperatives  
5. Private security agencies  
6. Small -scale mining  
7. Utilization of marine resources in archipelagic waters, territorial sea, and exclusive economic zone as well 
as small -scale utilization of n atural resources in rivers, lakes, bays, and lagoons  
8. Ownership, operation, and management of cockpits  
9. Manufacture, repair, stockpiling, and/or distribution of nuclear weapons  
10. Manufacture, repair, stockpiling, and/or distribution of biological,  chemical, and radiological weapons 
and anti -personnel mines  
11. Manufacture of firecrackers and other pyrotechnic devices  
B. Up to 20% foreign equity  
12. Private radio communications network  
C. Up to 25% foreign equity  
13. Private recruitment, whether for local or overseas employment  
14. Contracts for the construction and repair of locally funded public works except:  
a. Infrastructure/development projects covered in RA 7718; and  
b. Projects which are foreign funded or assisted and required to  undergo international competitive 
bidding  
15. Contracts for the construction of defence -related structures  
D. Up to 30% foreign equity  
16. Advertising  
E. Up to 40% foreign equitya 
17. Exploration, development, and utilization of natural resources  
18. Ownership of private lands  
19. Operation of public utilities  
20. Educational institutions other than those established by religious groups and mission boards  
21. Culture, production, milling, processing, trading, except retailing, of rice and corn a nd acquiring, by 
barter, purchase, or otherwise, rice and corn and the by -products thereof  
22. Contracts for the supply of materials, goods, and commodities to government -owned or controlled 
corporation, company, agency, or municipal corporation  
23. Facility operator of an infrastructure or a development facility requiring a public utility franchise  
24. Operation of deep -sea commercial fishing vessels  
25. Adjustment companies  
26. Ownership of condominium units  
LIST B: FOREIGN OWNERSHIP IS LIMITED FOR REASONS OF SECURITY, DEFENCE, RISK TO HEALTH 
AND MORALS, AND PROTECTION OF SMALL - AND MEDIUM -SCALE ENTERPRISES  
Up to 40% foreign equity  
1. Manufacture, repair, storage, and/or distribution of products and/or ingredients requiring Philippine 
National Police (PNP) clearance:  
a. Firearms (handguns to shotguns), parts of firearms and ammunition therefore, instruments or 
implements used or intended to be used in the manufacture of firearms  
b. Gunpowder  
c. Dynamite  
d. Blasting supplies  
e. Certain ingredients used in making explosives  
f. Telescopic sights, sniper scope, and other similar devices  WT/TPR/S/3 68 • The Philippines  
 
- 94 - 
 
  Tenth foreign investment negative list, May 2015  
2. Manufacture, repair, storage, and/or distribution of products requiring Department of National Defence 
(DND) clearance:  
a. Guns and ammunition for warfare  
b. Military ordinance and parts thereof (e.g. torpedoes, depth charges, bombs, grenades, missiles)  
c. Gunnery, bombing, and fire control systems and components  
d. Guided missiles/missile systems and components  
e. Tactical aircraft (fixed and rotary -winged), parts and components thereof  
f. Space vehicles and component system  
g. Combat vessels (air, land, and naval) and auxiliaries  
h. Weapons repair and maintenance equipment  
i. Military communications equipment  
j. Night vision equipment  
k. Stimulated coherent radiation devices, components, and accessories  
l. Armament training devices  
m. Others as may be determined by the Secretary of the DND  
3. Manufacture and distribution of dangerous drugs  
4. Sauna and steam bathhouses, massage clinics, and other like activities regulated by law because of 
risks posed to public health and morals  
5. All forms of gambling except those covered by investment agreements with PAGCOR  
6. Domestic market enterprises with paid -in equity capital of less t han the equivalent of US$200,000  
7. Domestic market enterprises which involve advanced technology or employ at least 50 direct 
employees  
a Lending companies regulated by SEC are allowed to have up to 49% foreign equity participation; 
financing companies and investment houses regulated by SEC up to 60%; and reciprocity 
requirements were eliminated in the Tenth FINL.  
Source:  Executive Order No. 184, 2015. Viewed at: http://www.sec.gov.ph/wp -
content/uploads/2015/08/EONo. -184-The-Tenth -Regular -Foreign -Investment -Negative -List.pdf .  
 WT/TPR/S/36 8 • The Philippines  
 
- 95 - 
 
  Table A3. 1 In quota and out -of-quota tariff rates, 2017  
HS Code  Description  In quota 
rate (%)  Out-of-quota 
rate (%)  
01039100  Live swine, weighing less than 50 kg  30 35 
01039200  Live swine, weighing 50 kg or more  30 35 
01042090  Goats other than pure -bred breeding animals  30 40 
01051190  Fowls of the species Gallus domesticus, other than 
breeding, weighing not more than 185 g  35 35 
01051290  Turkeys, other than breeding, weighing not more than 
185 g 35 40 
01051390  Ducks, other than breeding, weighing not more than 185 g  35 40 
01051490  Geese, other than breeding, weighing not more than 185 g  35 40 
01051510  Guinea fowls, breeding, weighing not more than 185 g  35 40 
01051590  Guinea fowls, other than breeding, weighing not more than 
185 g 35 40 
01059491  Other fowls of the specie Gallus domesticus , weighing not 
more than 2 kg  35 40 
01059499  Other fowls of the specie Gallus domesticus , weighing 2 kg 
or more  35 40 
01059910  Other breeding ducks, weighing more than 185 g  35 40 
01059920  Other ducks, weighing more than 185 g  35 40 
01059930  Other breeding geese, turkeys and guinea fowls, weighing 
more than 185g  35 40 
01059940  Other geese, turkeys and guinea fowls, weighing more than 
185 g  35 40 
02031100  Meat of swine, fresh or chilled; carcasses and half -
carcasses  30 40 
02031200  Meat of swine, fresh or chilled; hams, shoulders and cuts 
thereof, bone -in 30 40 
02031900  Meat of swine, fresh or chilled; other  30 40 
02032100  Meat of swine, frozen; carcasses and half -carcasses  30 40 
02032200  Meat of swine, frozen; hams, shoulders and cuts thereof, 
bone-in 30 40 
02032900  Meat of swine, frozen; other  30 40 
02045000  Meat of goats  30 35 
02071100  Meat and edible offal, of fowl of the species gallus 
domesticus:  not cut in pieces: fresh or chilled  40 40 
02071200  Meat and edible offal, of fowl of the species gallus 
domesticus:  not cut in pieces: frozen  40 40 
02071300  Meat and edible offal, of fowl of the species gallus 
domesticus:  cuts and offal: fresh or chilled  40 40 
02071410  Meat and edible offal, of fowl of the species gallus 
domesticus:  cuts and offal: frozen wings  40 40 
02071420  Meat and edible offal, of fowl of the species gallus 
domesticus:  cuts and offal: frozen thighs  40 40 
02071430  Meat and edible offal, of fowl of the species gallus 
domesticus:  cuts and offal: frozen liver  40 40 
02071499  Meat and edible offal, of fowl of the species gallus 
domesticus:  cuts and offal: frozen other  40 40 
02072400  Meat and edible offal, of turkey: not cut in pieces: fresh or 
chilled  40 40 
02072500  Meat and edible offal, of turkey: not cut in pieces: frozen  20 20 
02072600  Meat and edible offal, of turkey: cuts and offal: fresh or 
chilled  40 40 
02072710  Meat and edible offal, of turkey: cuts and offal: frozen 
livers  40 40 
02072791  Meat and edible offal, of turkey: cuts and offal: frozen 
other  5 5 
02072799  Meat and edible offal, of turkey: cuts and offal: frozen 
other  20 20 
02074100  Meat and edible offal, of ducks, not cut in pieces, fresh or 
chilled  40 40 
02074200  Meat and edible offal, of ducks, not cut in pieces, frozen  40 40 
02074300  Meat and edible offal, of ducks, fatty livers, fresh or chilled  40 40 
02074400  Meat and edible offal, of ducks, other, fresh or chilled  40 40 
02074500  Meat and edible offal, of ducks, other, frozen  40 40 
02075100  Meat and edible offal, of geese, not cut in pieces, fresh or 
chilled  30 40 WT/TPR/S/3 68 • The Philippines  
 
- 96 - 
 
  HS Code  Description  In quota 
rate (%)  Out-of-quota 
rate (%)  
02075200  Meat and edible offal, of geese, not cut in pieces, frozen  40 40 
02075300  Meat and edible offal, of geese, fatty livers, fresh or chilled  40 40 
02075400  Meat and edible offal, of geese, other, fresh or chilled  40 40 
02075500  Meat and edible offal, of geese, other, frozen  40 40 
02076000ex  Meat and edible offal, of guinea fowls, fresh or chilled, not 
cut into pieces  30 40 
02076000ex  Meat and edible offal, of guinea fowls, other  40 40 
07019010  Potatoes, fresh or chilled other than seed: chipping 
potatoes  3 40 
07019090  Potatoes, fresh or chilled other than seed: other than 
chipping  40 40 
09011110  Coffee, not roasted: not decaffeinated: arabica WIB or 
Robusta OIB  30 40 
09011190  Coffee, not roasted: not decaffeinated: other  30 40 
09011210  Coffee, not roasted: decaffeinated: arabica WIB or Robusta 
OIB 40 40 
09011290  Coffee, not roasted: decaffeinated: other  40 40 
09012110  Coffee, roasted: not decaffeinated: unground  40 40 
09012120  Coffee, roasted: not decaffeinated: ground  40 40 
09012210  Coffee, roasted: decaffeinated: unground  40 40 
09012220  Coffee, roasted: decaffeinated: ground  40 40 
09019010  Coffee husks and skins  40 40 
09019020  Coffee substitutes containing coffee  40 40 
10059090  Maize (corn) other than seed and popcorn  35 50 
10061090  Rice in the husk (paddy or rough), other than suitable for 
sowing  35 50 
10062010  Husked (brown ) rice, Thai Hom Mali rice  35 50 
10062090  Husked (brown) rice, other  35 50 
10063030  Semi or wholly milled rice, glutinous rice  35 50 
10063040  Semi or wholly milled rice, Thai Hom Mali rice  35 50 
10063091  Semi or wholly milled rice, other: parboiled rice  35 50 
10063099  Semi or wholly milled rice, other  35 50 
10064010  Broken rice, of a kind used for animal feed  35 50 
10064090  Broken rice, other  35 50 
17011200  Raw sugar not containing added flavouring or colouring 
matter: beet sugar  50 50 
17011300  Raw sugar not containing added flavouring or colouring 
matter: cane sugar  50 65 
17011400  Raw sugar not containing added flavouring or colouring 
matter: cane sugar  50 65 
17019100  Other - containing added flavouring or colouring matter  50; 1a 50; 1a 
17019910  Other - refined sugar  50; 1a 65; 1b 
17019990  Other sugar  50 65 
21011110  Extracts, essences and concentrates of coffee: instant 
coffee  30 45 
21011190  Extracts, essences and concentrates of coffee: other  30 45 
21011210  Preparations with a basis of extracts (..) or with a basis of 
coffee  30 45 
21011291  Preparations with a basis of extracts (..) or with a basis of 
coffee  30 45 
21011292  Preparations with a basis of extracts (..) or with a basis of 
coffee  30 45 
21011299  Preparations with a basis of extracts (..) or with a basis of 
coffee  30 45 
a Imports containing over 65% by dry weight of sugar are at 50%, others are at 1% (Executive 
Order  295).  
b Imports containing over 65% by dry weight of sugar are at 65%, others are at 1% (Executive 
Order  295).  
Source:  Data provided by the authorities of the Philippines.  WT/TPR/S/36 8 • The Philippines  
 
- 97 - 
 
  Table A3. 2 SPS accred itation requirements   
Department of 
Agriculture (DA)  Production and post -
harvest stages of food 
supply   
Bureau of Animal 
Industry (BAI)  
http://www.bai.da.
gov.ph/   Fresh food derived from 
animals  
 
 Feed  
 
 Live animals    Food: 
Certificate of 
product 
registration 
(CPR); and  
Licence to 
operate ( LTO); 
and SPS import 
clearance 
(SPSIC )  
 
  Feed:  
Certificate of 
Feed Product 
Registration 
(CFPR ); Licence 
to operate 
(LTO); SPS 
import clearance 
(SPSIC )  
 
  Live animals:  
Certificate of 
Registration 
(COR); and  SPS 
import clearance 
(SPSIC ); and 
quarantine 
declaration   DA Administrative Order No. 8, 
Series of 2008 (Rules and 
Regulations Governing the 
Importation of Agricultural and 
Fish and Fishery/Aquatic Products, 
Fertilize rs, Pesticides and Other 
Agricultural Chemicals, Veterinary 
Drugs and Biological Products into 
the Philippines)  
 
 DA Administrative Order No. 9, 
Series of 2010 
http://pntr.gov.ph/data/legalba sis/
DAAO92010.pdf  
 
  "The Animal Welfare Act", 2013 
(Republic Act 8485, amended by 
R.A. No.  10631) and its revised 
implementing rules and regulations 
http://www.bai.da.gov.ph/ index.p
hp/laws -issuances/republic -act  
 
   Republic Act No. 1556, series of 
1956 (Livestock and Poultry Feeds 
Act) 
 
 
National Meat 
Inspection Service 
(NMIS) 
http://nmis.gov.ph/  
 Fresh meat   NMIS Licence To 
Operate ( LTO) 
and accreditation 
process for meat 
importers ( BOC 
& NMIS ) 
 
 Good Standing 
Certificate  
 
 BAI-SPS import 
clearance 
(SPSIC ) 
 
 BOC veterinary 
quarantine 
inspection ( BOC 
& BAI -NVQSD ) 
 
 NMIS inspection 
at the cold 
storage ("second 
border")   "The Meat Inspection Code of the 
Philippines", 2012 (Republic Act 
No. 10536: An Act Amending 
Republic Act No. 9296 
http://nmis.gov.ph/attachments/ar
ticle/561/RA.10536 -web.pdf  
http://nmis.gov.ph/attachments/ar
ticle/563/irr_ra9296.pdf  
http://nmis.gov.ph/index.php/repu
blic-act 
 
 Implementing rules and 
regulations of the Meat Inspection 
Code DA Circular No.1, 2014 
http://nmis.gov.ph/attachments/ar
ticle/967/DA -
Department%20Circular%20no.%2
001%20series%202014%20IRR_2.
pdf 
 
 DA Administrative Circular No.2, 
2016 (LTO) and LTO guideline, 
http://nmis.gov.ph/attachments/ar
ticle/1107/AC.02.2016.pdf  
 
 DA Administrative Order No.9, 
2013 
http://nmis.gov.ph/attachments/ar
ticle/525/AO.09.2013.pdf  
 
 DA Administrative Order No. 26  WT/TPR/S/3 68 • The Philippines  
 
- 98 - 
 
  Department of 
Agriculture (DA)  Production and post -
harvest stages of food 
supply   
Bureau of Fisheries 
and Aquatic 
Resources ( BFAR )  
https://www.bfar.d
a.gov.ph/index.jsp  Fish and fishery/aquatic 
products   "Registration and 
Licence"  
 
 SPS import 
clearance 
(SPSIC ) 
 
 Hazard Analysis 
and Critical 
Control Point 
(HACCP ) 
requirements  
 
 International 
Health Certificate 
issued by country 
of origin  
  Fisheries Code, 2015 (Republic Act 
10654, amending R.A. 8550) 
https://static1.squarespace.com/st
atic/55930 a68e4b08369d02136a7/
t/572105922b8ddeb9fbebdad5/14
61781909286/IRRofRA10654_with
+Annex.pdf  
 
 Fisheries Administrative Order 
(FAO) No. 1958, Series of 2000, an 
Rules Governing Importation of 
Fresh, Chilled and Frozen Fishery 
Products  
 
 Fisheries General Memorandum 
Order No. 02, Series of 2007 
(Guidelines for Accreditation of 
Imports of Fresh, Chilled and 
Frozen and Fishery/Aquatic 
Products)  
Bureau of Plant 
Industry ( BPI) 
http://www.bpi.da.
gov.ph/  
 Plants, plantin g materials 
and plant products   No pest risk:  
Plant Quarantine 
Services 
Certification 
(PQSC ) or FDA 
Certificate of 
Product 
Registration 
(CPR); and 
Phytosanitary 
Certificate or 
equivalent 
certificate from 
origin  
 
 Pest risk:  
Certificate of 
Registration 
(COR); and 
Phytosanitary 
certificate ( PC); 
and SPS Import 
Clearance 
(SPSIC ) 
(shipment within 
20 days for fresh 
products and 60 
for other 
products)   DA Circular No. 4, 2016, Guideline 
on the importation of plants, 
planting materials and plant 
products for commercial purposes. 
WTO document G/SPS/N/PHL/371  
 
 DA Quarantine Administrative 
Circular No. 01, Series of 2014 
(Guidelines for Categorization of 
Commodities of Plant Origin)  
 
 Department of Agriculture 
Administrative Order No. 9, Series 
of 2010 (Departmen t of Agriculture 
Administrative Order No. 8, Series 
of 2009, As  amended) 
http://pntr.gov.ph/data/legalbasis/
DAAO92010.pdf  
 
 BPI Quarantine Administrative 
Order No. 1, Series of 1981 (Rules 
and Regulations to Implement 
Presidential Decree No. 1433 
entitled "Promulgating the Plant 
Quarantine Law of 1978, Thereby 
Revising and Consolidating Existing 
Plant Quarantine Laws to Further 
Improve and Strengthen the Plant 
Quarantine Service of the Bureau 
of Plant Industry)  
 
 Presidential Decree No. 1433 
(Promulgating the Plant Quarantine 
Law of 1978, Thereby Revising and 
Consolidating Existing Plant 
Quarantine Laws to Further 
Improve and Strengthen the Plant 
Quarantine Service of the Bureau 
of Plant Industry ) WT/TPR/S/36 8 • The Philippines  
 
- 99 - 
 
  Department of 
Agriculture (DA)  Production and post -
harvest stages of food 
supply   
Bureau of 
Agriculture and 
Fisheries Standards 
(BAFS ) 
http://www.bafps.d
a.gov.ph/  Food safety standards, incl. 
organic food   Organic product 
certification and 
organic entity 
certificate   Organic Agriculture Act of 2010  
(Republic Act No. 10068) 
http://pntr.gov.ph/data/legalbasis/
DAAO92010.pdf  
DA Circular No. 5, 2015 – Revised 
Rules and Regulations on the 
Registration of Organic Fertilizer 
Producers  
 
 DA Circular No.5, 2016 on labelling 
requirements  
Department of 
Health (DoH)  Processed and pre -packaged 
food   
Food and Drug 
Administration 
Center for Food 
Regulation 
Research FDA 
(CFRR) 
http://www.fda.gov
.ph/fda -
corner/center -for-
food-regulation -
research  
  Processed or pre -
packaged food  
 
 Food additives  
 
 Food supplements, 
veterinary medicines  
  Certificate of 
product 
registration 
(CPR); and  
 
 Licence to 
Operate ( LTO) 
  FDA Circular No. 29, 2014, 
amended by FDA Administrative 
Order No.  3, 2016 
http://www.fda.gov.ph/attachment
s/article/209495/FDA%20Circular
%20No.%202014 -
029.pdfhttp://www.fda.gov.ph/att
achments/article/303720/Administ
rative%20Order%20No.%202016 -
0003.pdf  
 
 Food and Drug Administration Act 
of 2009 (Republic Act No. 9711) 
http://www.fda.gov.ph/attachment
s/article/29052/RA%209711 -
BFAD%20Strengthening%20Law.p
df 
Note:  With respect to imports of " raw materials, ingredients and additives"  [for processing], a certificate of 
product registration (CPR) and a licence to operate (LTO) issued by the FDA are required from the 
Bureau of Customs (FDA Circular No. 4, 2014), http://www.fda.gov.ph/issuances -2/food -laws-and-
regulations -pertaining -to-all-regulated -food-products -and-supplements/food -fda-circular/145863 -
fda-circular -no-2014-004 
Source:  WTO Secretariat.  
 WT/TPR/S/3 68 • The Philippines  
 
- 100 - 
 
  Table A4. 1 Value of agricultural production, 2012 -16 
 2012  2013  2014  2015  2016  
Total (PHP billion)  1,179.4  1,226.6  1,366.3  1,302.0  1,341.5  
Crops (PHP billion)  797.1  814.6  927.0  854.8  880.7  
 (% of  total value production)  
Rice, paddy  24.8  25.7  27.7  23.9  22.5  
Banana  9.1  9.6  9.6  10.5  11.1  
Coconut  7.5  6.7  7.7  7.3  8.0  
Corn 8.0  7.3  7.4  7.1  6.4  
Sugarcane  3.6  3.3  3.0  3.3  3.4  
Pineapple  1.5  1.4  1.4  1.6  1.7  
Mango  1.7  1.6  1.4  1.6  1.7  
Cassava  1.3  1.5  1.2  1.1  1.2  
Other  10.1  9.4  8.5  9.3  9.5  
Livestock and poultry (PHP 
billion)  382.3  412.0  439.3  447.2  460.8  
 (% of total value production)  
Pig 14.8  15.7  14.9  15.9  15.7  
Chicken  10.6  10.9  10.6  11.2  11.1  
Chicken eggs  3.2  3.1  2.9  3.3  3.4  
Cattle  1.8  1.8  1.7  1.9  1.9  
Dairy  0.05  0.05  0.05  0.1  0.1  
Other  2.0  3.0  4.0  5.0  6.0  
Source:   Philippine Statistics Authority, Selected Statistics on Agriculture 2016; and Performance of Philippine 
Agriculture, October -December 2016.  WT/TPR/S/36 8 • The Philippines  
 
- 101 - 
 
  Table A4. 2 Tariff quota administration   
Product  HS code  TRQ 
commitment  
(mt)  TRQ administration  Applied 
MFN 
in-quota 
tariff  Applied 
MFN out -
of-quota 
tariff  
Live horses 
(head)  0101 57 TRQ not implemented  3-7% n.a. 
Live bovine 
animals  
(head)  0102 
 20,340  TRQ not implemented  0-3% n.a. 
Swine  
(head)  0103.91.00  
0103.92.00  2,570  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  30% 35% 
Goats  
(head)  0104.20.90  82,290  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  30% 40% 
Poultry  
(head)  0105.12.90  
0105.13.90  
0105.14.90  
0105.15.10  
0105.15.90  
0105.94.91  
0105.94.99  
0105.99.10  
0105.99.20  
0105.99.30  
0105.99.40  
 9,513,540  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  35% 40% 
Beef 0201 5,570  TRQ not implemented  10% n.a. 
Pork 0203 54,210  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  30% 40% 
Goat meat  0204.50.00  1,120  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  30% 35% 
Poultry 
meat 0207 23,490  TRQ not implemented  
_______________  
Except:  
HS0207.51.00  
HS0207.60.00ex  
where:  
Past import performance  
(F-C-F-S for unused TRQ 
allocations)  5-40% 
 
 
30% n.a. 
 
 
40% 
Potatoes  0701.90  1,550  TRQ not implemented  
_______________  
Except:  
Chipping potatoes 
(HS0701.90.10)  
where:  
Past import performance  
(F-C-F-S for unused TRQ 
allocations)  40% 
 
 
 
3% n.a. 
 
 
 
40% 
Sugar  1701 64,050  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  
_________  
Except:  
HS1701.12.00  
HS1701.91.00exa 
HS1701.91.00exb 
Where: applied  in-quota tariff 
regime  50% 
 
 
 
 
50% 
50% 
1% 65% 
 
 
 
 
n.a. 
n.a. 
n.a. WT/TPR/S/3 68 • The Philippines  
 
- 102 - 
 
  Product  HS code  TRQ 
commitment  
(mt)  TRQ administration  Applied 
MFN 
in-quota 
tariff  Applied 
MFN out -
of-quota 
tariff  
Coffee  0901 5.9 TRQ not implemented  
__________  
Except  
HS0901.11.10  
HS0901.11.90  
Past import performance  
(F-C-F-S for unused TRQ 
allocations)  40% 
 
 
30% n.a. 
 
 
40% 
Corn 1005.90.90  216,940  Past import performance  
(F-C-F-S for unused TRQ 
allocations)  35% 50% 
Rice 1006.20  
1006.30  
1006.40  805,200  National Food Authority 
import monopoly  35% 50% 
n.a. Not applicable.  
Source:  WTO Secretariat.  WT/TPR/S/36 8 • The Philippines  
 
- 103 - 
 
  Table A4.3 Rice imports and procurement, 2012 -16  
(000 t onnes)   
 Total rice 
imports  of which:  
rice imports 
by NFA  of which:  
rice imports 
by private 
sector  Domestic 
procurement 
of rice by 
NFA Total rice 
production  Domestic 
procurement  
(in % of rice 
production)  
2012 692 119.8  572.2  360.9  18,032  2.0 
2013 365 298 67 365.6  18,439  2.0 
2014 1,867  1,567  300 26.5 18,968  0.1 
2015 1,780  1,200  580 228.0  18,150  1.3 
2016 1,238  597 641 117.0  17,627  0.7 
Source:  Philippine Statistics Authority and National Food Authority.  
  
  WT/TPR/S/368 • The Philippines  
 
- 104 - Table A4. 4 Cargo throughput, by port, 2011 -16 
(million tonnes)  
Port 2011  2012  2013  
Cargo  Domestic  Foreign  Cargo  Domestic  Foreign  Cargo  Domestic  Foreign  
Manila/Northern Luzon  40,947,280  16,456,571  24,490,709  41,938,241  16,113,642  25,824,599  42,536,744  16,127,079  26,409,665  
North Harbor  13,768,284  13,768,284  0 13,576,032  13,543,444  32,588  14,074,091  14,074,091  0 
South Harbor  8,467,330  1,780,361  6,686,969  8,380,491  1,482,220  6,898,271  7,526,390  891,274  6,635,116  
M.I.C.T.  18,689,936  888,315  17,801,621  19,966,465  1,074,172  18,892,293  20,919,293  1,147,386  19,771,907  
Limay  21,730  19,611  2,119  15,253  13,806  1,447  16,970  14,328  2,642  
San Fernando  0 0 0 0 0 0 0 0 0 
Southern Luzon  2,061,888  1,659,984  401,904  2,179,809  1,793,968  385,841  2,383,704  1,895,744  487,960  
Batangas  776,714  489,800  286,914  849,957  573,148  276,809  964,158  634,586  329,572  
Calapan  3,815  3,815  0 3,368  3,368  0 2,982  2,982  0 
Legazpi  526,269  411,423  114,846  454,116  345,084  109,032  508,939  361,195  147,744  
Puerto Princesa  755,090  754,946  144 872,368  872,368  0 907,625  896,981  10,644  
Lucena  0   0   0   
Masbate  0   0   0   
Visayas  4,800,879  4,478,629  322,250  4,954,702  4,638,793  315,909  5,195,833  4,862,412  333,421  
Dumaguete  425,408  422,815  2,593  488,889  488,889  0 504,028  504,028  0 
Iloilo 2,467,137  2,172,820  294,317  2,430,821  2,149,186  281,635  2,550,531  2,260,653  289,878  
Ormoc  351,629  351,629  0 364,791  363,308  1,483  376,505  376,505  0 
Banago  28,238  28,238  0 40,465  40,465  0 8,217  8,217  0 
Tacloban  567,342  542,002  25,340  642,720  609,929  32,791  613,881  570,338  43,543  
Tagbilaran  961,125  961,125  0 987,016  987,016  0 1,142,671  1,142,671  0 
Nothern Mindanao  6,527,748  5,995,940  531,808  6,598,559  6,208,312  390,247  6,848,171  6,236,228  611,943  
Cagayan de Oro  3,890,385  3,383,470  506,915  4,110,752  3,833,784  276,968  4,231,754  3,991,656  240,098  
Iligan  286,120  282,120  4,000  365,066  282,583  82,483  589,780  303,914  285,866  
Nasipit  1,343,947  1,343,947  0 1,070,739  1,056,007  14,732  997,943  983,045  14,898  
Ozamiz  662,647  662,647  0 704,976  702,896  2,080  658,970  658,739  231 
Surigao  344,649  323,756  20,893  347,026  333,042  13,984  369,724  298,874  70,850  
Southern Mindanao  9,520,005  5,327,873  4,192,132  9,569,141  5,652,764  3,916,377  9,546,830  5,820,685  3,726,145  
Cotabato  7,351  7,351  0 4,989  4,989  0 262 262 0 
Dapitan  276,377  271,269  5,108  335,048  324,635  10,413  344,166  344,166  0 
Davao  5,429,221  2,097,907  3,331,314  5,173,447  2,219,908  2,953,539  5,015,251  2,347,528  2,667,723  
General Santos  2,276,087  1,468,983  807,104  2,341,901  1,452,995  888,906  2,523,675  1,500,967  1,022,708  
Zamboanga  1,530,969  1,482,363  48,606  1,713,756  1,650,237  63,519  1,663,476  1,627,762  35,714  
Total  63,857,800  33,918,997  29,938,803  65,240,452  34,407,479  30,832,973  66,511,282  34,942,148  31,569,134  
   
  WT/TPR/S/368 • The Philippines  
 
- 105 - Port 2014  2015  2016  
Cargo  Domestic  Foreign  Cargo  Domestic  Foreign  Cargo  Domestic  Foreign  
Manila/Northern Luzon  41,849,611  15,684,111  26,165,500  46,926,109  19,865,792  27,060,317  54,469,615  24,381,010  30,088,604  
North Harbor  15,233,360  15,233,360  0 19,774,547  19,774,417  130 24,326,403  24,326,403  0 
South Harbor  5,095,732  0 5,095,732  5,439,549  10,807  5,428,742  6,560,222  0 6,560,222  
M.I.C.T.  21,430,567  405,015  21,025,552  21,573,324  0 21,573,324  23,255,594  0 23,255,594  
Limay  89,952  45,736  44,216  138,689  80,568  58,121  327,395  54,607  272,788  
San Fernando  0 0 0 0 0 0 0 0 0 
Southern Luzon  3,513,275  2,164,503  1,348,772  4,569,886  2,879,081  1,690,805  5,518,842  3,245,145  2,273,697  
Batangas  2,045,858  880,948  1,164,910  2,374,978  955,985  1,418,993  2,876,267  1,036,560  1,839,707  
Calapan  7,703  7,703  0 30,602  30,602  0 67,524  61,963  5,560  
Legazpi  549,618  368,652  180,966  586,000  360,604  225,396  834,965  496,518  338,447  
Puerto Princesa  910,096  907,200  2,896  1,114,298  1,068,379  45,919  1,267,426  1,177,442  89,983  
Lucena  0   207,974  207,974  0 249,257  249,257  0 
Masbate  0   256,034  255,537  497 223,404  223,404  0 
Visayas  6,072,645  5,682,907  389,738  6,616,002  6,089,902  526,100  7,243,546  6,469,273  774,273  
Dumaguete  552,909  552,909  0 664,439  664,439  0 690,524  677,486  13,038  
Iloilo 2,988,204  2,621,697  366,507  3,347,648  2,902,041  445,607  3,574,575  2,950,526  624,049  
Ormoc  440,862  440,862  0 458,478  455,178  3,300  443,443  440,180  3,263  
Banago  46,821  38,705  8,116  12,236  6,736  5,500  346,143  346,143  0 
Tacloban  757,071  741,956  15,115  761,973  714,626  47,347  740,716  660,499  80,217  
Tagbilaran  1,286,778  1,286,778  0 1,371,228  1,346,882  24,346  1,448,144  1,394,438  53,706  
Nothern Mindanao  7,267,829  6,805,324  462,505  8,234,036  7,401,383  832,653  9,201,097  7,967,000  1,234,097  
Cagayan de Oro  4,641,131  4,317,729  323,402  5,251,979  4,700,835  551,144  5,934,760  5,038,168  896,592  
Iligan  398,952  299,448  99,504  575,042  320,224  254,818  589,661  309,837  279,824  
Nasipit  1,050,860  1,032,129  18,731  1,170,241  1,157,766  12,475  1,286,942  1,275,240  11,702  
Ozamiz  825,732  825,732  0 831,055  831,055  0 959,254  928,173  31,082  
Surigao  351,154  330,286  20,868  405,719  391,503  14,216  430,479  415,583  14,897  
Southern Mindanao  8,377,650  5,809,163  2,568,487  9,242,787  6,256,817  2,985,970  9,842,290  6,233,932  3,608,358  
Cotabato  0 0 0 0 0 0 0 0 0 
Dapitan  308,533  308,533  0 331,546  331,546  0 373,529  373,529  0 
Davao  3,888,112  2,448,440  1,439,672  4,186,925  2,626,177  1,560,748  4,209,801  2,521,391  1,688,410  
General Santos  2,340,466  1,321,559  1,018,907  2,690,210  1,367,953  1,322,257  3,129,616  1,410,550  1,719,066  
Zamboanga  1,840,539  1,730,631  109,908  2,034,106  1,931,141  102,965  2,129,344  1,928,462  200,882  
Total  67,081,010  36,146,008  30,935,002  75,588,820  42,492,975  33,095,845  86,275,389  48,296,360  37,979,029  
OTP Currimao  161,824  161,824  0 180 180 0 73 73 0 
OGP Salomague  0 0 0 0 0 0 0 0 0 
Source:  Information provided by the authorities.  
 WT/TPR/S/3 68 • The Philippines  
 
- 106 - 
 
  Table A4. 5 Specific commitments on professional services undertaken in FTAs  
 
AFAS  
AANZFTA  
AK-ATS 
ACFT A 
Philippines -
Japan  
All subsectors of professional services  X X X X X 
Legal (861)  - - - - - 
Accounting, auditing and bookkeeping (862)       
 - Accounting  - X - - - 
 - Auditing Services including financial auditing and accounting 
review (86211, 86212)  X - - - X 
 - Other accounting services (86219)  - - - X - 
 - Bookkeeping services, except tax returns (86220)  X - - - - 
Taxation (863)  X - - - - 
Architectural (8671)  X - - - X 
Engineering (8672)       
 - Aeronautical engineering  - - - - X 
 - Agricultural engineering  - - - - X 
 - Chemical engineering  - - - - X 
 - Civil engineering  X X - - X 
 - Mechanical engineering  X X - - X 
 - Sanitary engineering  X X - - X 
 - Electrical engineering  - - - - X 
 - Naval architecture and marine engineering  - - - - X 
 - Metallurgical engineering  X X - - X 
 - Electronics engineering  X - - - X 
 - Mining engineering  X - - - X 
 - Geodetic engineering  X - - - X 
Urban planning and landscape architectural (8674)       
 - Urban (environmental) planning (86741, 91123)  X - - - X 
 - Landscape architectural (86742)  X X - - X 
Medical and dental (9312)       
 - Medicine (9312**)  - - - - X 
 - Dentistry (9312**)  - - - - X 
 - Optometry  - - - - X 
 - Medical Technology  - - - - X 
 - Radiologic Technology  - - - - X 
Veterinary (932)  - - - - X 
Services provided by midwives, nu rses, physiotherapists and 
para-medical personnel (93191)       
 - Nursing (93191**)  - - - - X 
 - Midwifery (93181**)  - - - - X 
 - Physical and occupational therapy (93191**)  - - - - X 
Other services       
 - Criminology  - - - - X 
 - Chemistry  - - - - X 
 - Forestry  - - - - X 
 - Librarianship  - - - - X 
 - Merchant marine professional  - - - - X 
 - Master plumber  - - - - X 
 - Social work  - - - - X 
 - Agriculture  - - - - X 
 - Fisheries  - - - - X 
 - Interior design  - X - - X 
 - Geology  - - - - X 
 - Professional teachers  - - - - X 
 - Customs brokerage  - - - - X 
Note:  X represents commitment; - represents no commitment.  
Source:  Information provided by the authorities.  
 
__________