The Philippines WT/TPR/S/261 
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  III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs registration, documentation, procedures, and valuation 
1. Importers need to be registered with the Bur eau of Customs (BOC) under the authority of the 
Department of Finance1 (fees of PHP 1,000 in the case of new applications and PH P 500 for renewal).  
The BOC has automated its core processes thr ough the Electronic-to-Mobile (E2M) system to 
streamline the payment and clearance pr ocesses at the Bureau of Customs.2 
2. Importers (or customs brokers) are required to  lodge an import entry electronically through 
the E2M system.3  However, they must submit hardcopies of  import documents and attachments to the 
Entry Processing Unit for verification.  In general,  all imports must be accompanied by a formal 
customs entry declaration form that can be su bmitted electronically through the E2M system;  
commercial invoice;  bill of lading (or air waybill fo r cargo shipments);  packing list;  certificate of 
origin (if required);  and import licence (if required)  (section (iv) below).  Imports must be marked 
with their country of origin in an official Phili ppine language.  Once all re gulations and requirements 
are met and duties and fees paid, goods are released via electronic notification. 
3. Product-specific documentation is also required for some imports, including SPS certificates 
(section (vi)(b) below).4  Moreover, certain imports are subject to mandatory certification 
(section (vi)(a) below), while some imports ar e strictly prohibited (section (iv) below). 
4. Shipments continue to be classified according to  risk:  a high risk "red lane" (subject to 
physical examination and documenta ry review;  requires an average of 1-2 days for clearance);  a 
moderate risk "yellow lane" (documentary review;  requires an average of four hours for clearance);  
and a low-risk "green lane" (not subject to any doc umentary review or physical inspection;  requires 
an average of two hours for clearance).  The BOC al so uses the "super green lane" (SGL) for qualified 
importers, to provide immediate clearance.5  According to information provided by the BOC, in 2010, 
60% of all imports were classified as yellow, follo wed by red (23%), green (10%), and SGL (7%).  
                                                      
1 Exceptions include importers in special economic zones, the Govern ment, its agencies and bodies, 
foreign embassies, and international organizations with diplomatic status and/or recognized by the Government, such as the Asian Development Bank and the World Health Organization. 
2 The E2M system allows customs officers and tr aders to handle most of their transactions 
electronically (e.g. from customs d eclaration to cargo manifests and tr ansit documents).  It replaced the 
Automated Customs Operating System.  The E2M does not deal with permits/licences issued by other 
government agencies. 
3 The lodgement of electronic entry is available in all ports and sub-ports nationwide. 
4 These agencies include the Philippine Coconut Authority, the International Coffee Organization 
Certifying Agency, the Bureau of Fisheries and Aquatic Resources, the Department of Environment and Natural 
Resources for logs and timber, the Bureau of Plant Industry, and the Sugar Regulatory Administration.  
5 To use the SGL an importer needs to:  be accredited by BOC;  be a registered user of remote 
lodgement facilities and holder of a certificate of registratio n;  have actively imported for at least one year at the 
time of filing the application;  be a regular importer of the same type of product(s);  and be willing to undergo voluntary audit.  Shipments qualify for SGL treatment only when they are in the list of possible imports (i.e. do 
not contain prohibited articles);  are either freely importable commodities or , if regulated, are covered by a 
continuing import authority issued by the concerned government agency; and are subject to taxes and duties.  WT/TPR/S/261 Trade Policy Review 
Page 26 
  
  5. Under ASEAN, the Philippines is required to implement a "national single window" in order 
to expedite both intr a and extra-ASEAN trade.6 
6. In 2001, the Philippines adopted the transaction value as the basis for calculating the dutiable 
value of imports.7  The Philippines no longer maintains a transition period to apply the computed 
value method.8  It reserved the right (with no expiry date) to  reverse the order of paragraphs 3 and 4 of 
Annex III.9 
7. A Valuation and Classification Review Committee (VCRC) is organized in every district port 
to solve valuation and classification disputes.10  The decision of the VCRC is appealable to the 
Central Valuation Classification Review and Ruling Committee (CVCRRC) within 15 days of receipt 
of the decision.  The CVCRRC's decision is subjec t only to one motion for reconsideration, which 
should be filed within five working days of its recei pt.  If no motion is filed in time or if denied, the 
CVCRRC resolution becomes final.  The aggrieved importer may pay under "formal protest".  In the 
Port of Manila, an annual average of 100 valuati on/classification disputes have been referred to the 
VCRC since 2005. 
8. The Philippines discontinued preshipment inspection on 31 March 2000.11  Nonetheless, in 
case of bulk and break-bulk cargoes a load port survey /discharge port survey is required under the 
Bulk and Break-Bulk Enhancement Progr amme implemented as from June 2010. 
9. The Philippines is a member of the World Cust oms Organization (WCO).  It acceded to the 
WCO's Revised Kyoto Convention in June 2010 but with certain reservations, including full adoption 
of post-entry auditing.  It has been suggested th at the Tariff and Customs Code of the Philippines 
(TCCP) needs to be revised to achieve full complian ce with the Convention's provisions;  this is being 
deliberated in Congress. 
(ii) Rules of origin 
10. The Philippines has notified the WTO that it does not have non-preferential rules of origin.12 
11. The Philippines applies preferential rules of origin under its regional and bilateral trade 
agreements, i.e. Association of Southeast Asia n Nations (ASEAN-ATIGA);  ASEAN-Australia-New 
Zealand;  ASEAN-China;  ASEAN-India;  ASE AN-Japan;  ASEAN-Korea;  and Philippines-Japan 
(Chapter II(2)).  In general, the basic rule is  a product wholly obtained or that has undergone 
substantial transformation in the country of export.  Substantial transformation is defined as a change 
in tariff classification, value-added threshold, a nd specific process, which vary across agreements.  
                                                      
6 The national single window is a computer system by means of which trader s/brokers can acquire, 
electronically, all the necessary supp orting licences/clearances/permits for imports and exports declarations 
from their own premises, without having to physically visit the relevant issuing agencies. 
7 If the transaction value cannot be determined, substitute methods provided for in the WTO Agreement 
on Customs Valuation may be used (WTO document G/VAL/N/1/PHL/1, 5 October 2001).  For a description of 
the challenges faced by customs officials to adopt th e transactions value and how they overcame these 
challenges, see the case study by Ramon L. Clarete.  Available at:  http://www.wto.org/English/res_e/booksp_e/ 
casestudies_e/case37_e.htm. 
8 According to the authorities, the computed value method was never used. 
9 WTO document G/VAL/2/Rev.24, 27 April 2007. 
10 All resolutions of the VCRC are signed by the District Coll ector as Chairman. 
11 WTO document G/VAL/W/63, 31 March 2000. 
12 WTO document G/RO/69, 3 February 2010. The Philippines WT/TPR/S/261 
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  For example, it confers origin status under the ASEAN Free Trade Area to  goods that have an 
ASEAN content of at least 40% of their f.o.b. value.  
(iii) Tariffs, other duties, and taxes 
(a) MFN applied tariff structure  
12. Goods imported into the Philippines may be subj ect to customs tariffs, excise duties, VAT, 
and various customs fees and charges for BOC serv ices (section (g) below).  The Philippines conducts 
a full review of its tariff every five years to assist business sectors in their long-term strategic plans.  
Two comprehensive reviews have been carried out sin ce the last TPR of the Philippines:  in 2007, the 
tariff rates of several products were modified13;  and a review was recently concluded as part of the 
Government's assessment of its economic policy and line with its tariff commitments in the WTO and 
under preferential agreements.14 
13. Under Sections 401 and 402 of the TCCP (as amended), concerned parties may request the 
Tariff Commission to conduct public hearings/cons ultations on proposed tariff modifications.  In 
addition, in the interests of the economy, general welfare, and/or national security, the President may 
raise, reduce or remove import duties (including classification changes) upon the recommendation of 
the National Economic and Development Authority (NE DA).  Rates may be lowered, or raised to a 
maximum of 100% ad valorem , in one or several stages;  this could breach bindings, thereby 
undermining predictability.  Nonetheless, the author ities maintain that WTO bindings have not been 
breached. 
14. With the adoption of the 2007 ASEAN Harm onized Tariff Nomenclature (the AHTN 
Protocol)15, the Philippines' tariff was simplified and now comprises 8,299 lines at the HS eight-digit 
level (compared with 10,688 in 2004) , with rates ranging from zero to  65%.  The share of duty-free 
imports increased from 3.7% in 2004 to 4.7% in  2011 (Tables III.1 and AIII.1).  Rice and sugar 
receive the highest tariff protection.  All tariffs (levied on the c.i.f. value of imports) are ad valorem, 
which enhances transparency.  Overall, 56.3% of ta riff lines are within the range >0-5% (Chart III.1). 
Table III.1  
Tariff structure, 2004 and 2011  
(% unless otherwise indicated)  
MFN applied rate  
Final bound ratea   2004 2011  
Simple average 7.4 6.4 25.7 
Agricultural products (HS01-24) 10.6 10.4 37.0 
Industrial products (HS25-97) 6.9 5.7 23.2 
WTO agricultural products 10.3 10.2 35.6 
WTO non-agricultural products 7.0 5.8 23.3 
Duty-free tariff lines (% of all tariff lines) 3.7 4.7 4.8 
Simple average rate of dutiable lines only 7.7 6.7 26.9 
Table III.1 (cont'd) 
                                                      
13 Executive Order No. 574 of 4 November 2006. 
14 The President issued Executive Order No. 61 of 201 1, which will enter into force after publication. 
Some of the main changes include merging of tariff lines and reduction of tariff duties.  
15 The transposition was from HS2002/AHTN2004 to HS2007/AHTN2007.  The AHTN follows the 
six-digit commodity classification codes of the World Customs Organization's Harmonized System (HS) adding 
two more digits to the codes for subheadings used acro ss ASEAN.  It applies to in tra and extra-ASEAN trade. WT/TPR/S/261 Trade Policy Review 
Page 28 
  
  MFN applied rate  
Final bound ratea   2004 2011  
Tariff quotas (% of all tariff lines) 0.6 0.9 .. 
Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.0 0.0 
Domestic tariff "peaks" (% of all tariff lines)b 5.1 4.2 0.1 
International tariff "peaks" (% of all tariff lines)c 7.5 4.5 82.8 
Overall standard deviation of tariff rates 7.9 7.1 12.4 
Coefficient of variation of  tariff rates 1.1 1.1 0.5 
Nuisance applied rates (% of all tariff lines)d 21.5 24.3 0.0 
Total number of tariff lines 10,688 8,299 5,967 
Ad valorem  rates 10,688 8,299 5,967 
Duty free 392 391 299 
.. Not available. 
a Final bound rates are based on the 2004 tariff schedule (HS02 no menclature).  Calculations on bound averages are based on 
5,938 fully and 29 partially bound rates (representing 58.6 % of the total tariff).  When using the 2002 tariff schedule, the b inding 
coverage rises from 58.6% to 64.9% becau se of the difference in the number of tariff lines, i.e. 5,640 in 2002 and 10,688 in 20 04. 
b Domestic tariff peaks are defined as those exceed ing three times the overall average applied rate. 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance applied rates are those greater th an zero, but less than or equal to 2%. 
Note: The 2004 tariff is based on HS02 nomencla ture;  the 2011 tariff is based on HS07. 
 Calculations for averages are based on national ta riff line level (8-digit), ex cluding in-quota rates. 
Source:  WTO Secretariat calculations, based on data provided by the authorities. 
(4.7)(56.3)
(22.4)
(12.0)
(1.6)(0.1)(1.5)(0.2)(1.0)(0.1) (0.1) (0.02)
0102030405060708090100
05001,0001,5002,0002,5003,0003,5004,0004,5005,000
0 >0-5 >5-10 >10-15 >15-20 >20-25 >25-30 >30-35 >35-40 >40-45 >45-50 >50
Figures in parentheses indicate the share of total lines.  Calculations exclude in-quota rates.
WTO Secretariat calculations, based on data provided by the authorities.Chart III.1
Breakdown of import duty rates, 2011
Number of tariff lines
Note:
Source :Per cent
Number of lines 
Cumulated percentage (right-hand scale)
 The Philippines WT/TPR/S/261 
 Page 29 
 
 
  15. The simple average applied MFN rate is 6.4% (down from 7.4% in 2004).  Tariffs average 
10.2% (10.3% in 2004) on agriculture (WTO definition16), and 5.8% on non-agricultural products (7% 
in 2004).  Using ISIC (Revision 2) definition (Table III.2), the least tariff protected sector is mining 
and quarrying (2.4%), followed by manufacturing (6.4%), and agriculture (7.7%).  
Table III.2 
Philippines' tariff summary, 2011  
  Number of 
lines Average 
(%) Range (%) Standard 
deviation Duty free 
(%) 
Total 8,299 6.4 0-65 7.07 4.7 
      
By WTO category 
WTO agricultural products 1,145 10.2 0-65 11.4 0.2 
Animals and products thereof 125 22.9 1-45 17.1 0.0 
Dairy products 35 3.5 1-7 2.5 0.0 
Fruit, vegetables, and plants 295 9.9 1-40 8.9 0.0 
Coffee and tea 40 16.9 3-45 17.2 0.0 
Cereals and preparations 152 11.1 0-50 11.8 1.3 
Oils seeds, fats, oil and thei r products 181 7.2 1-15 5.6 0.0 
Sugars and confectionary 28 14.7 1-65 18.3 0.0 
Beverages, spirits and tob acco 104 8.5 1- 15 3.7 0.0 
Cotton 5 2.6 1-3 0.9 0.0 
Other agricultural products 180 4.5 1-35 6.0 0.0 
WTO non-agricultural products  7,154 5.8 0-30 5.9 5.4 
Fish and fishery products 206 8.7 1-15 4.2 0.0 
Minerals and metals 1,263 4.9 0-17.5 4.3 5.5 
Chemicals and photographic supp lies 1,213 4.2 0-30 4.4 0.7 
Wood, pulp, paper and furniture 381 6.1 0-22.5 5.0 5.8 
Textiles 696 9.3 0-20 4.9 0.4 
Clothing 254 14.8 1-15 1.6 0.0 
Leather, rubber, footwear and travel goods 270 6.6 0-15 4.4 0.7 
Non-electric machinery 1,188 2.4 0-20 3.0 9.4 
Electric machinery 559 4.2 0-22.5 4.7 16.1 
Transport equipment 413 13.8 1-30 11.2 0.0 
Non-agricultural products 677 4.6 0-15 4.1 9.2 
Petroleum 34 1.2 0-3 1.4 55.9 
      
By ISIC sector 
ISIC 1 - Agriculture, hunting and fishing 474 7.7 0-50 8.9 3.4 
ISIC 2 - Mining 112 2.4 0-7 1.5 0.9 
ISIC 3 - Manufacturing 7,713 6.4 0-65 7.0 4.8 
Manufacturing excluding food processing 6,859 5.8 0-30 5.9 5.4 
Table III.2 (cont'd)  
                                                      
16 WTO definition of agriculture:  HS Chapters 01-24 less fish and fishery products (HS 0301-0307, 
0509, 051191, 1504, 1603-1605 and 230120) plus some selected products (HS 290543, 290544, 290545, 3301, 
3501-3505, 380910, 382311-382319, 382360, 382370, 382460, 4101-4103, 4301, 5001-5003, 5105-5103, 5201-
5203, 5301 and 5302). WT/TPR/S/261 Trade Policy Review 
Page 30 
  
    Number of 
lines Average 
(%) Range (%) Standard 
deviation Duty free 
(%) 
By stage of processing 
First stage of processing 885 6.7 0-50 9.2 2.5 
Semi-processed products 2,163 4.9 0-65 5.1 3.4 
Fully processed products 5,251 7.0 0-45 7.3 5.6 
      
By HS section 
01  Live animals and products 344 10.6 1-40 11.8 0.0 
02  Vegetable products 391 10.4 0-50 11.9 0.5 
03  Fats and oils 150 7.5 1-15 5.7 0.0 
04  Prepared food, beverages a nd tobacco 386 11.5 1-65 10.0 0.0 
05  Mineral products 197 2.2 0-7 1.5 13.2 
06  Chemicals and products thereof 1,098 3.3 0-30 3.4 0.8 
07  Plastics, rubber, and articles thereof 392 7.2 0-15 4.8 0.5 
08  Raw hides and skins, leather, and products thereof 84 7.1 1-15 5.8 0.0 
09  Wood and articles of wood 136 7.3 0-15 4.8 10.3 
10  Pulp of wood, paper and pa perboard 224 4.7 0-15 4.2 3.6 
11  Textiles and clothing  928 10.7 0- 20 5.0 0.3 
12  Footwear, headgear, etc. 63 9.5 1-15 5.4 0.0 
13  Articles of stone, plaster, cement 185 7.0 0-15 4.7 1.1 
14  Precious stones and metals, pearls, articles thereof 75 5.2 3-10 3.2 0.0 
15  Base metals and articles thereof 825 5.2 0-17.5 4.5 7.3 
16  Machinery, electrical equipment, etc. 1,805 2.9 0-22.5 3.7 12.9 
17  Transport equipment 427 13.5 1-30 11.2 0.0 
18  Precision equipment 339 2.5 0-10 2.0 9.1 
19  Arms and ammunition 28 13.5 3-15  2.9 0.0 
20  Miscellaneous manufactured articles 212 7.1 1-22.5 4.6 0.0 
21  Works of art, etc. 10 7.6 7-10 1.3 0.0 
Note: Calculations for averages are based on national tariff line level (8-digit), excluding in-quota rates. 
Source : WTO Secretariat calculations, based on data provided by the authorities. 
16. On aggregate, the tariff displays mixed escalation, negative from first-stage processed 
products (average tariff rate of 6.7%), to semi-finished goods (ave rage rate of 4.9%), and positive 
from semi-finished to fully processed products (average 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 more disaggregate level (Chart III.2), positive tariff escalation is most pronounced in 
textiles and leather, followed by wood and furnitu re, paper and printing, ch emicals, and non-metallic 
mineral products, thereby providing high er levels of effective protection to those industries than that 
reflected 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. 
 The Philippines WT/TPR/S/261 
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n.a.n.a.
0.02.55.07.510.012.515.0
Food,
beverages and
tobaccoTextiles and
leatherWood and
furniturePaper printing
and publishingChemicals Non-metallic
mineral
productsBasic metals Fabricated
metal productsand machineryOther
manufacturingPer centChart III.2
Tariff escalation by 2-digit ISIC industry, 2011
n.a.
Note:
Source :Not applicable.
Calculations exclude in-quota rates.
WTO Secretariat calculations, based on data provided by the authorities.Average applied rate in manufacturing
(6.4%)First stage of processing
Semi-processed
Fully processed
 
(b) Bound tariff 
17. In the Uruguay Round, the Philippines bound 58.6% of all tariff lines.17  Binding coverage 
varies substantially across the HS:  sections includi ng vegetables, fats and oils, prepared foods, and 
textiles, are fully bound while others, including main ly industrial products, have either no or a low 
incidence of bound items.18  Greater coverage of bindings could increase tariff predictability.   
18. The simple average bound rate is 25.7%, i. e. 35.6% on agricultural products (WTO 
definition) and 23.3% on non-agricultural goods (Table III.1).  All bound rates are ad valorem , and 
range  from zero to 80%.  The overall average MFN app lied tariff, at 19.3 percentage points lower 
than the simple average bound rate, presents an el ement of uncertainty as it gives the authorities 
considerable scope to raise applie d tariffs, which further undermines predictability.  According to the 
authorities, the gap also provides so me flexibility to policymakers.  
                                                      
17 Based on the 2004 tariff schedule (HS02 nomenclature).  On the basis of the 2002 tariff schedule the 
binding coverage rises from 58.6% to 64.9% because of the difference in the number of tariff lines, i.e. 5,640 in 2002 and 10,688 in 2004. 
18 Products with unbound tariffs include certain auto mobiles, chemicals, plastics, vegetables textile 
fibres, footwear, headgear, fish, and paper. WT/TPR/S/261 Trade Policy Review 
Page 32 
  
  (c) Tariff quotas 
19. Tariff quotas represent 0.9% of total tariff lines (0.6% in 2004) (Table III.1).  On 
15 June 2007, under Executive Order No. 627, the Phili ppines reduced the in-quota tariff rate on rice 
from 50% to 40%, and MFN rates were reduced on cer tain agricultural products (i.e. mechanically 
deboned meats) to compensate WTO Members fo r the seven-year extension granted (until 
30 June 2012) for the special treatment on rice (Chapter IV(1)(i)(a)).19   
20. Tariff quotas, ranging from 30-50% (in-quota rates) and 35-65% (out-of-quota rates), have 
remained relative stable during the period under revi ew (Table AIII.2).  Cane and sugar beet lines 
have the highest rates, both in-quota (50%) and out-of quota (65%), followed by rice.  However, 
several are inoperative following the lowering of th e out-of-quota rate to equal the in-quota rate.20  
The system for administering tariff quotas still seems  complex (section (v) belo w), and this may deter 
imports.21  A substantial number of tariff quotas are regular ly unfilled;  more recently there have been 
no tariff-quota imports of sugar and potatoes, while  utilization for coffee and corn (maize) has been 
less than three quarters. 
(d) Variable levies and seasonal tariffs  
21. No variable levies or seasonal tariffs have b een applied since 1999, but provisions for their 
introduction still exist.22 
(e) Concessional entry and exemptions 
22. Sector-specific duty exemptions are provided for inputs under specific laws.23  G e n e r a l  
exemptions are also granted upon fulfilment of part icular conditions (Table III.3).  In addition, the 
President may, upon NEDA's recommendation, allow any imports to enter duty free if in the "interest 
of national economic development". 
(f) Tariff preferences 
23. The Philippines has preferential trading agreements  with 15 partners: the other nine parties of 
ASEAN24, and six countries that have negotiated ag reements with ASEAN (Australia and New 
Zealand;  China;  Japan25;  Korea (Rep. of), and India).  In 2011, the average preferential tariff (on all 
products) under these agreements ranged from 0.1% (ASEAN common effective preferential 
agreement) to 5.8% (agreement between ASEAN a nd India), i.e. below the simple average applied 
MFN rate of 6.4% in all cases (Table III.4).  Moreover, preferential rates are always higher, on average, for agricultural products (WTO definition) than for non-agricultural goods.  The Philippines 
                                                      
19 The minimum access volume for rice also increased from 238,940 tonnes du ring June 2000 to 
June 2005 to 350,000 tonnes from July 2005 to 30 June 2012 (WTO documents G/MA/TAR/RS/99/Rev.1, 
27 September 2006 and WT/Let/562, 8 February 2007). 
20 Includes certain items of poultry meat, coffee beans, and potatoes. 
21 For a description of the administration of tariff quotas, see WTO (2005), Box III.2. 
22 WTO (2005). 
23 These include the Agriculture and Fisheries Mode rnization Act of 1997, the Jewellery Industry 
Development Act of 1998, and the Philippine Fisheries Code of 1998. 
24 The other ASEAN members are Brunei Darussal am, Cambodia, Indonesia, Laos PDR, Malaysia, 
Myanmar, Singapore, Thailand and Viet Nam. 
25 In addition to the ASEAN-Japan trade agreemen t, the Philippines has its own bilateral trade 
agreement with Japan. The Philippines WT/TPR/S/261 
 Page 33 
 
 
  is committed to achieving free trade by specific dates under some of these agreements 
(Chapter II(2)(ii) and Table AII.1). 
Table III.3 
Goods subject to a conditional duty exemption, 2011 
Product Requirement 
Aquatic products (e.g. fish, crustaceans, molluscs, marine 
animals, seaweeds, fish oil, roe) Caught or gathered by fishing vessels of Philippine registry 
Equipment for the use in the salvage of vessels or aircraft Upon identification and the giving of a bond in an amount equal to 
one and one-half times the ascerta ined duties, taxes, and other 
charges thereon 
Cost of repairs, excluding the value of parts, made in foreign 
countries used in vessels or aircra ft registered in the Philippines Upon 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 Philippi nes for repair, processing or 
reconditioning to be re-exported Provided that a bond is given in an  amount equal to one and one-half 
times the ascertained duties, taxes, and other charges thereon, and 
that they are exported within 6 months from the date of import 
Medals, badges, and cups Bestowed as trophies or prizes, or those received or accepted as 
honorary distinction 
Personal and household effects bel onging to returning residents 
of the Philippines Items need to be formally declared and listed before departure and 
identified under oath before the Collector of Customs 
Overseas contract workers' used house appliances Qu antity 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 Upon examination and appraisal a nd the giving of a bond in an 
amount equal to one and one-half times  the ascertained duties, taxes, 
and other charges thereon, and provided that they are exported 
within 6 months from the date of import 
Articles brought by foreign fi lm producers directly and 
exclusively used for making or recording motion picture films in 
the Philippines Upon examination and appraisal a nd the giving of a bond in an 
amount equal to one and one-half tim es the ascertained duties, taxes 
and other charges thereon, and provided that they are exported 
within 6 months from the date of importation 
Photographic and cinematographi c films, undeveloped, exposed 
outside the Philippines by Filipi no citizens or by companies of 
Philippine register where the principal actors and artists 
employed for the production are Filipinos Upon affidavit by the importer and identification that such exposed 
films are the same films previous ly exported from the Philippines 
Imports for the official use of  foreign embassies and other 
foreign governmental agencies Provided that those countries provide the same privileges to the 
corresponding agencies of the Philippines 
Containers, holders, and other similar receptacles of any material 
including kraft paper bags to export locally manufactured 
cement, and corrugated boxes for ba nanas, pineapples, and other 
fresh fruits for export Upon examination and appraisal a nd the giving of a bond in an 
amount equal to one and one-half tim es the ascertained duties, taxes 
and other charges thereon, and th at they are exported within 6 
months from the date of import 
The necessary supplies for the "reasonable requirements" of a vessel or aircraft on a voyage or  flight outside the Philippines Any surplus of such supplies arriving from foreign ports or airport is 
dutiable 
Coffins or urns containing human remains, bones or ashes, used 
personal and household effects of the deceased person  Value must not exceed PHP 10,000 
Samples of no commercial value an d samples of medicines used 
to introduce new products to the Philippine market  Import must be authorized by the De partment of Finance, and in the 
case of medicines by the Department of Health 
Commercial samples  The value of each consignment should not exceed PHP 10,000 and 
upon the giving of a bond in an amount equal to one and one-half 
times the ascertained duties, taxes, and other charges thereon, and 
provided that they are exported within 6 months from the date of import 
Animals (except race horses) and plants for scientific, 
experimental, propagation, botani cal, breeding, zoological, and 
national defence purposes Import must be undertaken by order of an authorized institution.  
Animals imported for breeding purposes must be of a recognized 
breed.  The National Economic and Development Authority must 
certify that these animals and plants are necessary for economic development.  The Bureau of Anim al Industry of the Department of 
Agriculture needs to issue a permit prior to import 
Table III.3 (cont'd)  WT/TPR/S/261 Trade Policy Review 
Page 34 
  
  Product Requirement 
Economic, educational, techni cal, vocational, scientific, 
philosophical, historical, cultu ral materials books and/or 
publications (subject to specification for advertising space), 
dictionaries and encyclopaedias, children's pictures/drawings/ or 
colouring books, globes, music printed or manuscript, etc. Certification is required from  the Department of Education   
  
Philippine products e xported from the Philippines and returned 
without any added value or  any other improvement Any article upon which drawback had been allowed should upon 
re-import be subject to a duty equal to the amount of the drawback 
Aircraft, equipment and machinery, spare parts, aviation gas, fuel 
and oil, and any other articles or  supplies imported by and for the 
use of scheduled  airlines operating under Congressional franchise  Provided that such articles are not  locally available in reasonable 
quantity, quality, and price and are necessary for the proper 
operation of the scheduled airline 
Spare part of vessels or aircraft  of foreign registry engaged in 
foreign trade when brought into the Philippines as replacements 
for emergency repair Upon proof to the Collector of Customs that such spare parts shall be 
utilized to secure the sa fety of the vessel or aircraft, to enable it to 
continue its voyage or flight 
Articles of easy identification e xported from the Philippines for 
repair and subsequently re-imported Upon proof that such articles cannot be repaired locally 
Trailer chassis when imported by shipping companies for their 
exclusive use in handling containerized cargo Posting of a bond in an amount e qual to one and one-half times the 
ascertained duties, taxes, and other charges due 
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 to be used by agriculture and fisheries en terprises Items need to be included in Annex B of Executive Order No. 376 
of 2004 which  implements Secti on 1 of R.A. No. 9281 (Reinstating 
the Effectiveness of Tax Incentives of Section 109 of the Agriculture 
and Fisheries Modernization Act of 1997 up to 2015) and require a certificate of eligibility or accreditation from the Department of 
Agriculture and its agencies  
Capital equipment to be used by tourism establishments  Equipment to be used only in medical and spa facilities  
A 50% refund of the duty paid on petroleum oils, oils obtained 
from bituminous materials, and crude oils If imported by non-electric utilities and sold directly or indirectly, in 
the same form or after proce ssing, to electric utilities for the 
generation of electricity and for the manufacturing of city gas 
A 99% refund on duties paid on imported fuel Fuel must be used in domestic  vessels engaged in trade 
Imported articles donated to any duly registered relief 
organization to be donated to the needy The Department of Social Welfar e and Development needs to certify 
that an accredited institution imports the goods 
Importation by and donations to qua lified entities in the interest 
of national economic developm ent (TCCP Section 105, last 
clause of the last paragraph) consisting of essential machinery 
and equipment, contraceptives or other goods subject to certain conditions Certification is required by th e National Economic and Development 
Authority (NEDA) 
Source : Information provided by the authorities. 
(g) Other duties, fees, and taxes  
24. Most imports, like domestically produced goods, are subject to a VAT rate of 12% (increased 
from 10% in January 2006).26  Exempt items include:  agricultural and marine food products;  
agricultural inputs;  books, newspapers, and magazi nes;  and passenger and/or cargo vessels of more 
than 5,000 tons.  VAT is zero-rated on the sale and purchase of bio-organic products and coal, and 
petroleum products. 
 
                                                      
26 R.A. No. 9337 of May 2005. The Philippines WT/TPR/S/261 
 Page 35 
 
 
  Table III.4 
Summary analysis of the Philippines' sel ected preferential tariff averages, 2011 
MFN  ASEAN AK AC AANZ AI AJ PJ 
No. of Applied CEPA FTA FTA FTA FTA CEPA EPA 
Description lines (%) (%) (%) (%) (%) (%) (%) (%) 
Total 8,299 6.4 0.1 2.0 2.1 1.8 5.8 3.1 2.3 
HS 01-24 1,271 10.4 0.5 4.4 4.3 4.2 9.9 6.3 4.7 
HS 25-97 7,028 5.7 0.1 1.6 1.7 1.3 5.1 2.5 1.9 
By WTO category 
WTO Agriculture 1,145 10.2 0.5 4.8 4.1 4.3 9.8 6.2 4.7 
Animals and products thereof 125 22.9 0.9 13.3 13.4 12.8 21.8 14.3 12.4 
Dairy products 35 3.5 0.0 0.0 3.5 1.5 3.3 2.4 2.1 
Fruit, vegetables and plants 295 9.9 0.0 3.8 5.1 3.7 9.4 5.9 3.3 
Coffee and tea 40 16.9 0.0 12.5 1.9 8.5 16.8 11.1 10.8 
Cereals and preparations 152 11.1 2.3 5.2 3.9 5.2 10.4 8.0 6.5 
Oil seeds, fats and oils and their 
products 181 7.2 0.0 4.2 0.2 1.8 7.1 3.8 3.2 
Sugar and confectionary 28 14. 7 5.5 11.3 10.4 10.6 14.1 12.2 8.3 
Beverages, spirits and tobacco 104  8.5 0.0 0.5 0.7 2.1 8.1 4.6 3.5 
Cotton 5 2.6 0.0 0.0 0.0 0.0 2.6 0.0 0.0 
Other agricultural products 180 4.5 0.0 1.4 1.8 0.9 4.4 1.6 1.2 
WTO Non-agriculture (incl. petroleum) 7,154 5.8 0.1 1.6 1.8 1.4 5.2 2.6 2.0 
WTO Non-agriculture (excl. petroleum) 7,120 5.8 0.1 1.6 1.8 1.4 5.2 2.6 2.0 
Fish and fishery products 206 8.7 0.0 1.0 3.7 2.3 7.8 4.7 2.9 
Minerals and metals 1,263 4.9 0.0 0.9 0.5 1.6 4.4 2.7 2.5 
Chemicals and photographic supplies 1,213  4.2 0.0 1.4 1.4 1.4 3.9 2.0 1.6 
Wood, pulp, paper and furniture 381 6.1 0.0 0.8 0.5 1.5 5.3 3.0 2.9 
Textiles 696 9.3 0.0 1. 3 2.7 2.5 7. 8 1.8 0.5 
Clothing 254 14.8 0.0 5.2 3.2 4.9 13.0 1.3 0.0 
Leather, rubber, footwear and travel 
goods 270 6.6 0.0 0.6 1.4 1.2 5.7 3.2 3.1 
Non-electric machinery 1,188 2.4 0.0 0.3 0.4 0.2 2.1 0.8 0.7 
Electric machinery 559 4.2 0.0 0.8 0.7 0.6 3.7 2.1 2.0 
Transport equipment 413 13.8 0.0 10.9 12.4 1.4 13.4 11.5 7.2 
Non-agriculture articles 677 4.6 0.5 0.7 0.6 0.7 4.0 1.8 1.7 
Petroleum 34 1.2 0.0 1.2 1.2 0.4 1.2 0.4 0.4 
By ISIC sectora 
Agriculture and fisheries 474 7.7 0.1 2.4 4.0 2.5 7.3 4.1 2.6 
Mining 112 2.4 0.0 0.3 0.4 0.7 2.3 0.7 0.6 
Manufacturing 7,713 6.4 0.1 2.0 2.0 1.7 5.8 3.1 2.4 
Manufacturing excluding food processing 6,859 5.8 0.1 1.6 1.7 1.3 5.2 2.6 2.0 
By HS section 
01  Live animals and products 344 10.6 0.3 3.6 6.8 4.3 9.8 6.0 4.5 
02  Vegetable products 391 10.4 0.9 5.8 5.5 4.7 10.0 6.5 4.5 
03  Fats and oils 150 7.5 0.0 4.8 0.2 1.9 7.4 3.9 3.4 
04  Prepared food, beverages and  tobacco 386 11.5 0.4 3. 7 2.4 4.5 10.8 7.2 5.6 
05  Mineral products 197 2.2 0.0 0.5 0.6 0.5 2.1 0.6 0.6 
Table III.4 (cont'd) WT/TPR/S/261 Trade Policy Review 
Page 36 
  
  MFN  ASEAN AK AC AANZ AI AJ PJ 
No. of Applied CEPA FTA FTA FTA FTA CEPA EPA 
Description lines (%) (%) (%) (%) (%) (%) (%) (%) 
06  Chemicals and products thereof 1,098 3.3 0.0 0.4 0.4 0.5 3.0 1.1 0.8 
07  Plastics, rubber, and articles 
 thereof 392 7.2 0.0 3.4 3.6 3.3 6.6 4.4 3.8 
08  Raw hides and skins, leather  products 84 7.1 0.0 0.9 0.0 1.7 6.2 3.8 3.8 
09  Wood and articles of wood 136 7.3 0.0 0.7 0.6 1.7 6.0 3.1 3.2 
10  Pulp of wood, paper and  paperboard 224 4.7 0.0 0.3 0.4 1.1 4.3 2.4 2.3 
11  Textiles and clothing 928 10. 7 0.0 2.3 2.8 3. 1 9.1 1.5 0.2 
12  Footwear, headgear, etc. 63 9.5 0.0 0.8 4.3 2.9 8.1 5.5 5.2 
13  Articles of stone, plaster, cement 185 7.0 0.0 1.5 1.2 2.5 6.2 3.7 3.4 
14  Precious stones and metals 75 5.2 0.0 0.5 0.0 0.8 4.5 1.8 1.8 
15  Base metals and articles thereof 825 5.2 0.0 1.0 0.4 1.7 4.7 3.2 2.9 
16  Machinery, electrical equipment, 
 etc. 1,805 2.9 0.0 0.4 0.4 0.3 2.6 1.2 1.1 
17  Transport equipment 427 13.5 0.0 10.6 12.1 1.4 13.1 11.2 7.0 
18  Precision equipment 339 2.5 0.0 0.1 0.0 0.0 2.4 0.2 0.2 
19  Arms and ammunition 28 13. 5 13.1 13.5 13.5 4.4 11.6 8.8 7.6 
20  Miscellaneous manufactured 
 articles 212 7.1 0.0 1.0 0.3 1.4 6.0 3.8 3.7 
21  Works of art, etc. 10 7.6 0.0 0.0 0.0 0.6 7.6 1.0 0.6 
By stage of processing 
First stage of processing 885 6.7 0.4 2.4 3.4 2.4 6.4 3.5 2.5 
Semi-processed products 2,163 4.9 0.1 1.2 1.3 1.5 4.4 1.7 1.2 
Fully-processed products 5,251 7.0 0.1 2.3 2.2 1.8 6.3 3.6 2.8 
a ISIC (Rev.2) classification, excluding electricity (1 line). 
Note: Calculations exclude in-quota rates. 
 ASEAN - ASEAN common effective preferential agreement; 
 AK - ASEAN-Korea Free Trade Agreement; 
 AC - ASEAN-China Free Trade Agreement.  AANZ - ASEAN-Australia New Zealand Free Trade Agreement; 
 AI - ASEAN-India Free Trade Agreement; 
 AJ - ASEAN-Japan Comprehensive Economic Partnership Agreement;  PJ - Philippines-Japan Econo mic Partnership Agreement. 
Source:  WTO Secretariat calculations, base d on data provided by the authorities;  and Philippine Tariff Commission 
 Online information.  View ed at:  http://www.tariffco mmission.gov.ph. [12 August 2011]. 
25. Imports continue to be subject to various cust oms fees and charges for BOC services, such as 
import processing, refund processing, documentary stamp tax, and registration fees.  These fees range 
from PHP 250 to PHP 3,000.  In addition, f ees for laboratory tests range from PHP 500 to 
PHP 2,500.27 
26. Excise taxes are levied on alcohol products, au tomobiles, jewellery, minerals, perfumes, 
cigarettes, and petroleum (Table AIII.3).  Despite ef forts to reform the excise tax regime, few changes 
have been achieved since 1999.  In late 2011, exci se tax rates on tobacco and alcohol products were 
increased.28  Imported distilled spirits are subject to  higher excise taxes than those produced 
                                                      
27 The BOC laboratory is not operational; tests are being outsourced to other laboratories. 
28 This is expected to generate additional revenue of PHP 58.5 billion in 2012, rising to 
PHP 65.6 billion in 2014.  Economist Intelligence Unit (2011). The Philippines WT/TPR/S/261 
 Page 37 
 
 
  domestically.  In March 2010, the United States requested the establishment of a WTO panel on 
"Philippines-Taxes on Distilled Spirits" (Chapter II(2)(i)).29 
(iv) Import prohibitions, restrictions, licensing, and quotas  
27. Imports of certain goods are prohibited under th e Tariff and Customs Code and various other 
laws (Table III.5).  In general, imports of dangerous chemicals that are an unreasonable risk to health 
or the environment are restricted or prohibited.   Imports of chlorofluorocarbons (CFCs), halons, 
carbontetrachloride (CTC), and trichl oroethane were allowed until 2009. 
Table III.5 
Prohibited imports, 2011 
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 ther eof, except when authorized by  
law; 
Written or printed articles in any form containing any matter advocating or inciting treason, re bellion, insurrection, sedition  or 
subversion against the Government of the Ph ilippines, or forcible resistance to any la w of the Philippines, or containing any t hreat to 
take the life of, or inflict bodily ha rm upon any person in the Philippines; 
Written or printed articles, negatives or  cinematographic film, photogr aphs, engravings, lithographs , objects, paintings, drawi ngs 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 matte r which 
advertises or describes or gives directly  or indirectly information where, how or by whom unlawful abortion is produced;  
Roulette wheels, gambling outfits, loaded dice, marked cards, machines, apparatus or mechani cal devices used in gambling or the 
distribution of money, cigars, cigarettes  or other articles when such distribution is dependent on chance, including jackpot a nd pinball 
machines or similar contrivances, or parts thereof; 
Lottery and sweepstake tickets except those authorized by the Philippine Government, ad vertisements thereof, and lists of drawi ngs 
therein; 
Any article manufactured in whole or in part of gold, silver or other precious 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 of food or drug in  violation of the provisions of the "Food and Drugs Act"; 
Marijuana, opium, or any othe r narcotics or synthetic drugs which are or may hereafter be declared  habit forming by the President of 
the Philippines, or any compound, manufactured salt, derivative, or  preparation thereof, except when imported by the Government  of 
the Philippines or any person duly authorized by the Dangerous Drugs Board, for medical purposes only; 
Opium pipes and parts thereof, of whatever material;  and 
All other articles and parts thereof, whose importation is prohibited by laws and regula tions issued by the competent authority  (as 
amended by Presidential Decree No. 34). 
B. Used clothing and rags (RA No. 4653). 
C. Toy firearms and explosives, which, even if dissimilar in other aspects, are replicas in appear ance, measurements, colour and 
 parts as its genuine counterpart fi rearms and explosives (LOI No. 1264). 
D. Hazardous wastes, even in transit into  the Philippine territorial limits (Section 24 of the IRR of RA No. 6969). 
E. Polychlorinated biphenyls, chlorofluorocarbons, halons, carbont etrachloride and trichloroethane (Section 5 of DENR 
 Administrative Order 2004-08). 
Source:  WTO document, G/LIC/N/3/PHL/8, 7 February 2011;  and informa tion provided by the authorities.  
28. Fish products may be imported only when the importation has been certified as necessary by 
the Department of Agriculture to atta in food security (section (vi)(b) below). 
29. Imports of used vehicles (except certain buses, trucks, and special purpose vehicles) were 
banned in December 2002, including into free ports.  The Supreme Court (SC) upheld this decision in 
February 2006.  Nonetheless, the SC allows the use, storage, trade, and export of second-hand 
vehicles within the Subic Bay Free Port provided these cannot be exported. 
                                                      
29 WTO document WT/DS403/series. WT/TPR/S/261 Trade Policy Review 
Page 38 
  
  30. The import licensing regime is regulated by the Tariff and Customs Code of 1978 
(Presidential Decree No. 1464), as amended, and Appendix 2 of the Manual of Regulations on 
Foreign Exchange Transactions.30  Import licensing is intended, inter alia , to safeguard public health, 
national security and welfare, and to meet interna tional treaty obligations regulating certain products 
(Table III.6). 
31. The Philippines' licencing syst em remains complex, and fees vary by product and are 
collected by the agen cy granting the licence.31  There are non-automatic, automatic, and special 
licencing systems.  Under the non-automatic licensi ng system, only persons, firms, and institutions 
registered as bona fide importers, domestic users, breeders, producers, traders, etc. are eligible to 
apply for licences;  only the Government or its entities/agencies may import certain products (e.g. 
rice, which is largely state-traded (Chapter IV(1)(i)).   Under the automatic system, all persons, firms, 
and institutions, are eligible to apply for licence as long as they meet the basic requirements/criteria.  
For certain imports, persons or firms must be regist ered.  According to the authorities, this system 
aims to ensure that only qualified applicants are granted licences.32   
Table III.6 
Goods subject to regulation/import licensing 
Commodity  Government agency/issu ing permit/clearance  
Essential chemicals & controlle d precursors;  and dangerous 
drugs (ketamine, pseudoephedrine, oripavine, and amineptine) Philippine Drug Enforcement Agency (PDEA) and Dangerous 
Drugs Board (DDB) 
Cyanide and cyanide compounds, mercury and mercury compounds, asbestos,  and other ozone depleting 
substances Department of Environment and Natural Resources (DENR) / 
Environmental Management Bureau (EMB) 
Semi-synthetic antibiotics (all form and salts of ampicillin, amoxicillin, and cloxacillin) 
Wheat Flour 
Iodized Salt Department of Health (DOH)/Food and Drugs Administration 
(FDA) 
Coal and lignite, whether or not pulverized, but not 
agglomerated Department of Energy (DOE)/Energy Resource Development 
Bureau (ERDB) 
Colour reproduction machines National Bureau of I nvestigation (NBI) and Cash Department of the 
Bangko Sentral ng Pilipinas (BSP)   
Chlorates, nitrates and nitric acid Philippine Na tional Police (PNP)/Explosives Management Branch 
(EMB) 
All fertilizers, pesticides and other chemical products 
that are intended for agricultural use Fertilizer and Pesticide Authority (FPA) 
Table III.6 (cont'd) 
                                                      
30 Issued under Circular No. 645 of the BSP of 3 February 2009, as amended by Circular No. 698 of 
5 November 2010.  
31 The products and the registration fees or charges are listed in WTO document G/LIC/N/3/PHL/8, 
Annex D, 7 February 2011. 
32 This section is based mainly on WTO document G/LIC/N/3/PHL/7, 27 October 2009. The Philippines WT/TPR/S/261 
 Page 39 
 
 
  Commodity  Government agency/issu ing permit/clearance  
Used motor vehicle under the no-dollar import programme that is 
owned and for personal use by a re turning resident or immigrant 
with a gross vehicle weight (GVW) not exceeding 3,000 kilograms (kgs.) and must be left-hand drive 
Used trucks excluding pick-up trucks with GVW of 2.5 – 6 tons 
Used buses with GVW of 6 – 12 tons  Brand new/Used automotive replacement parts and brand new 
motorcycle replacement parts [Note:  All used motorcycle parts 
(except engine), including brand new motorcycle replacement chassis and frame, are not allowed for importation.]  
Used trucks for rebuilding purposes such as truck chassis, engine, 
body and cabin/cowl, transmission/drivelines, axles (front and rear) or steering system  
Used tyres 
Used motor vehicle importati on through donation by local 
government units 
Importation by all instrumentalities of the government Department of Trade and Industry (DTI)/Bureau of Import Services 
(BIS) 
Used vehicles for the use of an official of the 
Diplomatic Corps Department of Foreign Affairs (DFA) 
 
All commodities originati ng from the following 
socialist and centrally planned economy countries (Albania, Angola, Ethiopia, Laos, Libya, Mongolia, 
Mozambique, Myanmar, Nicaragua, and North Korea) Philippine International Trading Corporation (PITC) 
Ships  
High speed craft  Ship's Equipment/spare Parts 
Spare parts of foreign flagship s undergoing emergency repair Maritime Industry Authority 
(MARINA) 
 
Atomic energy materials Philippine Nuclear Research Institute (PNRI) 
Legal tender Philippine currency in excess of PHP 10,000 
Bank notes, coin of precious metal other than gold and of non-
precious metal not being legal tende r, 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 aluminium Bangko Sentral ng Pilipinas (BSP) 
Rice National Food Authority (NFA) 
Vessels or watercraft 
Marine engines, spare parts a nd other marine related products MARINA 
Wildlife – live, by-products and its derivatives  DE NR / Protected Areas and Wildlife Bureau (PAWB) 
Chainsaws DENR / Forest Management Bureau (FMB) 
Recyclable materials containing hazardous substances 
(i.e., scrap metals, solid plastic materials, electronic 
assemblies, used oil,  fly ash and used lead-acid batteries) DENR / EMB 
Chemicals under the Philippine Revised Priority 
Chemical List (PCL) which are subject to PCL Compliance Certificate
a: DENR / EMB 
a Antimony pentachloride;  arsenic compounds;  benzene;  bery llium compounds;  cadmium compounds;  chlorinated ethers;  1,4-
chlorobenzene;  chloroform; chloropi crin;  chromium compounds;  1,2-dibromoethane;  0-dichlorobenzene;  1,4-
dichlorobenzene;  1,2-dichloroethane;  diethyl sulfate;  1,2-diphenylhydrazine; ethylene dibromide;  ethylene oxide; 
formaldehyde;  glutaraldehyde;  hhxachlorobenzene;  hexach loroethane;  hydrazine;  3-hydroxyphenol;  lead compounds; 
mercaptobenzothiazole (MBT);  mercaptan, perchloromethyl;  meth yl chloride;  methylenechloride;  mirex;  pentachlorophenol;  
perchloroethylene;   phenic acid;  phosgene ;  phthalic anhydride;  polybrominated bi phenyls;  selenium;  tributyltin;  and viny l 
chloride. 
Source : WTO document G/LIC/N/3/PHL/8, 7 February 2011, and information provided by the authorities. 
32. Some licences are issued for a particular ship ment only, with a validity period adequate to 
cover the import process.  Others are issued with a validity period identical to that of the period WT/TPR/S/261 Trade Policy Review 
Page 40 
  
  granted on the quota held.  Validity ranges from one  month to one year and may be renewable upon 
written application.  Licences are in the name of the applicant-importer and are non-transferable.  
Import permit/clearance/authority is issued upon compliance with the conditions/requirements 
imposed. 
33. Different licensing procedures are in place for non-quota goods and for products subject to 
quotas.  For non-quota goods, applications must be f iled at least two weeks prior to the loading date, 
where there is no quantitative limit on importa tion of products.  Licences may be granted 
immediately.  In case of denial or disapproval of an  application, the applicant is informed of the 
reason for disapproval and may make a written appeal for reconsideration. 
34. For products subject to quotas, there are licences for non-agricultural and agricultural 
products.  For non-agricultural products, quotas are granted on the basis of an importer's past 
performance in relation to historical growth in sale.   For agricultural products, there are regular and 
special licences.  Regular licences ar e issued annually for tariff quotas at the start of the quota year.  
Special licences, which may be valid for less than a year, are issued for quotas reallocated from the 
surrendered volumes during the quota year, additional quotas created and allocated by government 
and any remaining quota allocated on a first-come-first-serve basis.  Processing of special licences 
takes about one month.  
35. Licensees who use less than the quota utilization threshold (set at 80%) are penalized;  50% 
of their unused and unsurrendered quot as is deducted from their next quota-year allocation on the first 
instance;  75% on the second instance;  and 100% on th e third instance.  The lis t of licensees and their 
corresponding allocations are published in two newspapers of national circulation.33  
36. The rice quota was to be phased out by 2005, but the Philippines was granted a seven-year 
extension (until 30 June 2012) in the WTO.34  The Inter-Agency Committee on Rice and Corn, led by 
the Department of Agriculture, determines rice quotas.  Imports of rice are allowed to the extent of the 
annual shortfall in production, wh ich substantially exceeds the Phili ppines' minimum access volumes 
committed under the WTO.35  The National Food Authority (NFA), a state-trading enterprise, 
maintains the sole right to import rice (secti on (3)(iii) below and Chapter IV(1)(i)(a)).   
(v) Contingency trade remedies  
(a) Anti-dumping and countervailing measures 
37. No major changes have been made to the le gislative and institutional framework for anti-
dumping and countervailing measure since the Phili ppines' last TPR.  The legislative framework 
comprises:  the Antidumping Act36 and its Implementing Rules and Regulations37;  Revised Rules and 
                                                      
33 According to the authorities, governments and expo rt promotion bodies of exporting countries may 
have access to this information. 
34 WTO documents G/MA/TAR/RS/99/Rev.1, 27 September 2006, and WT/Let/562, 8 February 2007. 
35 According to the authorities, rice imports were about 4-7 times the annual quota during 2005-10. 
36 R.A. No. 8752, 12 August 1999, effective 4 September 1999. 
37 Joint Administrative Order No. 01 (IRR of R.A. No. 8752, 3 July 2000);  took effect on 
10 July 2000. The Philippines WT/TPR/S/261 
 Page 41 
 
 
  Regulations that Govern the Conduct of Antidumpi ng Investigation by the Tariff Commission (TC)38;  
and Countervailing Duty Act39 and its Implementing Rules and Regulations.40 
38. The anti-dumping/countervailing legislation is ad ministered by the Department of Trade and 
Industry (DTI) for non-agricultural products, a nd the Department of Agriculture (DOA) for 
agricultural goods.  After ensuring that applications  comply with documentary requirements, they 
determine whether a prima facie case exists to  conduct a preliminary investigation regarding 
provisional measures.  The TC conducts the formal (fi nal) investigations and reports its decision on 
whether to impose definitive anti-dumping/count ervailing duties to the DTI/DA, which issues a 
Department Order.41 
39. Anti-dumping/countervailing duties are effectiv e for five years and may be extended 
following a further determination of their continui ng need.  This review may be initiated by any 
interested party or by the TC before the sunset date  (i.e. the fifth year).  If the conditions requiring the 
imposition of anti-dumping/countervailing duty have ceased, the TC should recommend it be lifted.  
The authorities indicate that this has always been the case.   
40. Since its last TPR in 2005, the Philippines has initiated three anti-dumping investigations (13 
cases over 1999-03)42, with one definitive measure applied agai nst clear float glass from Indonesia.  It 
has not initiated any counter vailing actions since 1999. 
(b) Safeguard measures 41. No significant changes have been made to th e legislative and institutional framework for 
safeguards during the period under review.  The le gislative framework comprises:  the Safeguard 
Measures Act
43 and its Implementing Rules and Regulations44;  and Rules and Regulations Governing 
the Conduct of Formal Investigation by the TC.45  It provides for the imposition of general safeguards, 
a quantitative restriction on agricultural products, and a special safeguard on agricultural goods.46 
42. Domestic producers of "like or directly competitive products" or producers whose collective 
output constitutes a major proportion of total produ ction may file petitions for the imposition of a 
general safeguard.47  The DTI/DOA must determine whether a prima facie case exists to initiate a 
preliminary general safeguard investigation.48  The TC conducts formal sa feguard investigations and 
addresses requests for the extension and re-appli cation of safeguard measures, their reduction, 
modification and/or termination.  Under the Safeguards Measures Act, interested parties are allowed a 
five-day comment period. 
                                                      
38 Tariff Commission Order No. 00-01. 
39 R.A. No. 8751, 7 August 1999;  took effect on 31 August 1999. 
40 Joint Administrative Order No. 02 (IRR of R.A. No. 8751, 18 September 2000);  took effect on 
25 September 2000. 
41 This is described in WTO (2005). 
42 Related to clear float glass (Indonesia), sodium tripolyphosphates (China), and mosquito coil 
(Indonesia). 
43 R.A. No. 8800, 19 July 2000. 
44 Joint Administrative Order No. 03 (IRR of R.A. No. 8800, 4 October 2000). 
45 Tariff Commission Order No. 00-02. 
46 This is described in WTO (2005). 
47 The President, the House or Senate Committee on Agriculture, the House or Senate Committee on 
Trade and Commerce, and the DTI or DOA may also file petitions. 
48 The procedures for preliminary and definitive general safeguard measures are described in WTO 
(2005). WT/TPR/S/261 Trade Policy Review 
Page 42 
  
  43. For agricultural products, the authorities may a pply a quantitative restriction where increasing 
the tariff is considered insufficient to redress or pr event serious injury.  However, this option has not 
been used as no general safeguard has been  imposed on agricultural goods since 1999. 
44. A special safeguard may be imposed on specifi c agricultural goods marked in the Philippines 
Schedule when the imported volume exceeds its trigger le vel or when the actual c.i.f. price falls below 
a trigger price level.49  A petition to impose a special safeguard measure may be filed with the DOA 
by any interested party;  or the DOA may self-initia te the imposition of a special safeguard measure.  
The DOA must verify whether, in a given year, the commodity's cumulative imports have exceeded 
its trigger volume or (not concurrently), whet her its c.i.f. price is below its trigger price.50  Special 
safeguards may be maintained for one year and may not be used concurrently with a general 
safeguard measure.  During the period under review , the Philippines imposed a special safeguard on 
frozen chicken (Chapter IV(1)(i)).51 
45. Since 2001, the Philippines has initiated nine  safeguard cases, imposing seven definitive 
measures against all countries (except for products originating from developing countries and separate 
customs territories with de minimis  importation as determined by the DTI)  (Table III.7).  Once a 
safeguard has been terminated, the TC evaluates the effectiveness of the actions taken by the domestic 
industry to adjust to import competition.  Since no saf eguard actions have been terminated, to date no 
such evaluations have been made. 
(c) Other measures 46. The President may impose an additional ad valorem  duty not exceeding 100% on goods 
partly or wholly originating in or transported in  a vessel of any country that discriminates against 
Philippine exports.
52  If discrimination persists or increases after the duty is imposed, the President 
may prohibit the importation of goods originating in or transported in vessels of that country, if in the 
national interest.  This measure has not b een used during the period under review.  
Table III.7 
Definitive safeguard measures in force, 2011 
Product  Initiation of 
Investigation  Provisional duty  Definitive duty  Status 
 
Ceramics floor 
and wall tiles  28 May  2001 9 January  2002 
BOC CMC No. 4-2002 23 May  2002 
BOC CMC No. 168-2002 Safeguard duty extended for three 
years on 12 January 2005 
Extended for another 4 years (final 
extension, on 14/02/ 2008) 
Table III.7 (cont'd) 
                                                      
49 See WTO document G/SG/N/1/PHL/2, 9 July 2001 for goods eligible for special safeguards. 
50 Injury determination is not an element in the im position of special safeguard measures.  If a special 
safeguard is to be imposed because of an increase in  import volumes, the duty may not exceed one third of the 
product's out-of-quota tariff rate.  However, if the safeguard is based on price, the duty imposed is based on the difference between the c.i.f price and the trigger price. 
51 In the wake of a series of typhoons in 2009, the DOA temporarily lifted the special safeguard for 
5,000 tonnes of imported chicken under HS 0207.1492. 
52 The authorities define "discrimination" as the unequal treatment of Philippine trade vis-à-vis  that 
with other countries in the application of laws, administrative regulations and practices, customs procedures, 
duties and charges, and the classification of goods. The Philippines WT/TPR/S/261 
 Page 43 
 
 
  Product  Initiation of 
Investigation  Provisional duty  Definitive duty  Status 
 
Glass mirror  14 April 2003 13 October 2003 
BOC CMO No. 24-2003 7 June 2004 
BOC CMO No. 16-2004 Safeguard duty extended for three 
years on 08/12/2006 
During the second year of the 
extension period, DTI Order 
01/09/2008 suspended  imposition of duty until AGC resumes 
operation 
Figured glass  14 April 2003 13 October 2003 
BOC CMO No. 24-2003 7 June  2004 
BOC CMO No. 16-2004 Safeguard duty extended for three 
years on 08/12/2006 
During the second year of the 
extension period, DTI Order of 10/12/2007 suspended imposition 
of duty for figured glass until AGC 
resumes operation 
DTI Order of 13/01/2010 extended 
for another 4 years (final 
extension) but the imposition of the measure is still suspended until 
AGC resumes operation. Lifting of 
the suspension will be based on the results of TC's monitoring review 
Clear float glass  30 April 2003 13 October 2003 
BOC CMO No. 24-2003 7 June  2004 
BOC CMO No. 16-2004 Safeguard duty extended for three 
years on 08/12/2006 
Extended for another 4 years (final 
extension) on 22/02/2010 
Tinted float Glass  30 April 2003 13 October 2003 
BOC CMO No. 24-2003 7 June , 2004 
BOC CMO No. 16-2004 Safeguard duty extended for three 
years on 08/12/2006 
Extended for another 4 years (final 
extension) on 22/02/2010 
Steel angle 
bars  11 August 2008 18 May 2009 
BOC CMO No. 21-2009 30 September 2009 
BOC CMO No. 42-2009 n.a. 
Testliner 
board  16 November 
2009 16 September 2010 
BOC-CMC No. 177-
2010 3 August  2011 
BOC-CMO 29-2011 n.a. 
n.a. Not applicable. 
Source: Information provided by the authorities. 
(vi) Standards and other technical requirements 
(a) Standards, technical requirements, and certification 
47. The Bureau of Product Standards (BPS), a governmental body under the DTI, is responsible 
for developing and implementing Philippine Nati onal Standards (PNSs), and is the WTO-TBT 
national inquiry point.53  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 Electrotechnical Commission (IEC), 
BPS participates in the developmen t of international standards. 
48. PNSs are based on international standards wh enever appropriate.  However, not all are 
aligned with international standards, due main ly to "long standing business practices", climatic 
conditions, no specific international standards, and th e need for higher requirements than international 
                                                      
53 At end October 2011, the Philippines had made more than 150 notifications to the WTO Committee 
on Technical Barriers to Trade. WT/TPR/S/261 Trade Policy Review 
Page 44 
  
  standards.  At end-October 2011, there were 7, 547 PNSs;  the share aligned with international 
standards had increased to 78.5% , from 75.7% in October 2004.54  
49. PNSs are voluntary, unless declared mandatory through Department Administrative Orders 
(DAO).  At end-October 2011, there were 85 mandatory  PNSs (i.e. technical regulations).55  Importers 
of products covered by mandatory PNSs are issu ed an Import Commodity Clearance (ICC) once the 
BPS has determined that imports meet the releva nt Philippine national st andard.  Nevertheless, 
imports, including those certified abroad as meeting in ternational 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 consis tently meet Philippine standards.   
50. BPS implements the Philippine Standard (PS) Quality Scheme, and the Safety Certification 
Scheme and the ICC Certification Scheme.  Under the PS scheme, the BPS issues a licence allowing a company to affix the PS Quality and/or Safety Mark to its products, after inspec tions to determine that 
the products meet the relevant PNS.
56  The BPS enforces/implements a maintenance scheme for its PS 
Quality and/or Safety Mark licensees by regular ly monitoring and conduc ting annual surveillance 
audits of licensed products.  Foreign companies ma y apply for PS Quality and Safety Certification 
through a BPS recognized counterpart national stan dards body or an inspection and/or certification 
body.  At end-October 2011, 1,045 firms had been awarded the PS Mark, of which 95 were from Indonesia, Japan, Malaysia, and others. 
51. In 2006, the Philippine Accreditation Office (P AO) was established as a separate body from 
BPS to handle the accreditation of certification b odies, inspection bodies, testing and calibration 
laboratories, and medical laboratories.
57  The PAO replaced the BPS Accreditation Scheme (BAS) 
and Laboratory Accreditation Scheme (BPS-LAS) as  the national accreditation body.  It operates 
under the supervision of the DTI Undersecretary fo r Consumer Welfare and Trade Regulation Group.  
At end-October 2011, the PAO had accredited 5 cer tification bodies for Quality Management System, 
Environmental Management System,  and Hazardous Analysis Critical Control Point;  148 testing 
laboratories;  20 calibration laboratories;  4 medical laboratories;  and 2 inspection bodies.58 
(b) Sanitary and phytosanitary measures 
52. The Department of Agriculture (DA) remains the national enquiry point to the WTO.59  
The Philippines has made some 200 notificatio ns to the WTO Committee on Sanitary and 
Phytosanitary Measures, covering an array of measures, including imposition of temporary import 
                                                      
54 For a description on how standards are set and revised, see WTO (2005). 
55  Mandatory standards apply, inter alia,  to:  automotive and motorcycle batteries,  electrical wires and 
cables, fire extinguishers, household appliances, lighting fixtures, matches, mechanical equipment, Portland 
cement, pneumatic tyres, and sanitary ware.  These product s are subject to local inspec tion to assess compliance.  
56 As of October 2011, 85 products were covered by the PS Mark, including air conditioners, batteries 
(automotive and motorcycle), brake fluids, cement, ci rcular lamps, cooking ra nges, electric fans, fire 
extinguishers, flat irons, fuses, LP G cylinders, lamps (circular/fluorescent), lamp holders, and matches. 
57 Department Administrative Order No. 04 of 2006. 
58 PAO is a signatory member of:  the Pacifi c Accreditation Cooperation Multilateral Recognition 
Arrangement (PAC MLA) for Quality Management Systems and Environmental Management Systems;  International Accreditation Forum Multilateral Recognition Arrangement (IAF MLA) for Quality Management 
Systems and Environmental Management Systems;  Asia Pacific Laboratory Accreditation Cooperation Mutual 
Recognition Arrangement (APLAC MRA) for Testing and Calibration;  and International Laboratory Accreditation Cooperation Mutual Recognition Arrangem ent (ILAC MRA) for Testing and Calibration (DTI 
online information.  Viewed at:  http://www.dti.gov.ph/index.php?p=609). 
59 WTO document G/SPS/ENQ/26, 11 March 2011. The Philippines WT/TPR/S/261 
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  restrictions, on grounds of food safety, animal h ealth, and plant protection, and their termination.60  
The Philippines is member of the Codex Alimen tarius Commission, the International Plant 
Convention (IPPC), and the World Orga nization for Animal Health (OIE).61 
53. Imports of agricultural products, live animals, plants, fish, their products and by-products 
must be accompanied by a sanitary, phytosanitary or health certificate from the country of origin, and 
are subject to inspection upon arrival.62  An additional import permit is  required for meat and meat 
products, fish and fish products, and for all agricu ltural products.  The Bureau of Animal Industry 
(BAI), the Bureau of Fisheries and Aquatic R esources (BFAR), and the Bureau of Plant Industry 
(BPI), all under the DA, issue these permits, generally taking into account only SPS regulations.  
However, in some cases domestic supply is also co nsidered.  For example, fish products may be 
imported only when certified by the DA as necessary to attain food security.  Packaged food imports 
may be confiscated unless registered with  the Food and Drug Administration (FDA).63 
54. All meat and meat products require a Forei gn Meat Inspection Certificate signed by an 
authorized veterinarian.  Such imports are also  subject to inspection and require a Veterinary 
Quarantine Clearance issued by th e BAI prior to shipment.  Imports of meat must originate in a 
foreign meat establishment recognized as an exportin g entity by the Veterinary Administration and 
accredited in the Philippines.64  The importation of live animals and meat products is allowed as long 
as SPS requirements are complied with.  The Philippi nes prohibits imports from certain countries on 
grounds of Avian Influenza65, Foot and Mouth Disease66, and Bovine Spongiform Encephalopathy.67 
55. Wildlife (live, by-products, derivatives and/ or stuffed products) products are under import 
restrictions/prohibitions.68  Each shipment requires a permit or licence issued by th e Protected Areas 
and Wildlife Bureau (PAWB) or the Department of Environment and Natu ral Resources (DENR) 
Regional Offices.  Wildlife imports are also subject to issuance of veterinary (for animal products) and/or phytosanitary (for plant products) certificates from the BAI and the BPI.  
56. Imports of fish products are highly regulated; if  allowed, each shipment requires a permit or 
licence issued by the BFAR.  Fish imports are subject to a physical examination and microbiological 
analysis upon arrival.  If deemed safe, a Fishery Sa nitary and Phytosanitary Certificate is issued to 
release imports.
69  Imports of live exotic species and live shrimp and prawn are restricted on the basis 
of an import risk analysis.70  In 2007, the import restriction on pacific white shrimp was lifted from 
                                                      
60 WTO document G/SPS/N/PHL/series. 
61 WTO document G/SPS/GEN/49/Rev.10, 4 March 2010. 
62 Administrative Order No.18 of 2000. 
63 WTO (2005). 
64 WTO (2005). 
65 Afghanistan;  Albania;  Austria;  Azerbaijan;  Bangladesh;  Benin;  Bosnia and Herzegovina; 
Bulgaria;  Cambodia;  Canada (Manitoba);  China (P.R.);  Chinese Taipei;  Côte d'Ivoire;  Croatia;  Czech 
Republic;  Denmark;  Egypt;  France;   Georgia;  Germany;  Greece;  Ha iti;  Hong Kong, Chin a;  Hungary;  
India; Indonesia;  Iran;  Iraq;  Israel;  Japan;  Kazakhstan;  Korea (Rep. of);  Laos PDR;  Lebanon;  
Liechtenstein; Mongolia;  Myanmar;  Nepal;  Niger;  Pakistan;  Paraguay;  Poland;  Portugal;  Romania;  
Russian Fed.;  Kingdom of Saudi Arabia;  Serbia;  Sl ovakia;  Slovenia;  Spain;  Sweden;  Switzerland;  
Thailand;  Togo;  Turkey;  Ukraine;  United Kingdom;  and Viet Nam. 
66 Bulgaria;  China (P.R.);  Egypt;  Hong Kong, China;  Chinese Taipei;  Korea (Rep. of);  and 
Lebanon. 
67 Liechtenstein;  Portugal;  Spain;  Switzerland;  and United Kingdom. 
68 Department of Environment and Natural Resources Administrative Order No. 55 of 2004. 
69 Fisheries Administrative Order No. 195 of 1999. 
70 Fisheries Administrative Order No. 207 of 2001, and Order No. 221 of 2003. WT/TPR/S/261 Trade Policy Review 
Page 46 
  
  certified breeding facilities;  and, in 2009, the im port restriction on broodstock and post-larvae of 
specific pathogen free/specific pathogen resist ant black tiger shrimp was also removed.71 
57. Plants and plant products to be used as food,  feed or processing may be imported only after 
approval by the BPI;  requirements vary by pro duct.  Some products require only an SPS certificate 
while others are also subject to insp ection and verification upon arrival.   
58. All imported plants and plant produc ts of GM origin must be authorized by the BPI and must 
be accompanied by a certificate of GMO content issu ed by an authorized body from the country of 
origin or by an accredited laboratory.72  The BPI issues an Approval Registry for plants and plant 
products that have undergone an approval process.  These plants require only an import permit and/or 
phytosanitary certificate for re lease from Customs.  The BPI randomly checks imported plant 
products to assess GM content, particularly fo r commodities known to be genetically modified 
overseas.   
59. Prohibited/restricted fruits, vegetables, plants, and plant products are listed in Tables AIII.4 
and AIII.5. 
(c) Labelling and marking requirements 
60. The Philippines continues to prescribe minimu m labelling requirements for all imported and 
locally manufactured products as specified in the Consumer Act.73  If an imported good is covered by 
mandatory certification of the BPS and certified to  have passed the standard prescribed by the BPS, 
the label must contain the Import Commodity Clearance (ICC) Mark or PS Quality/Safety Mark if the manufacturer of the product is a PS license holder .  Domestically produced goods, regulated by BPS, 
must have the PS Quality/Safety Mark.  Articles that  cannot be marked prior to shipment, such as 
crude substances, and products impor ted for private use and not for resale in their imported form, are 
exempt from marking requirements.
74  In 2008, the DTI issued mandatory parallel translation in 
English or Filipino language on the product label or packaging.75 
(vii) Government procurement 
61. No major changes have been made to the gove rnment procurement regime in the Philippines 
since its previous TPR.  The regime basically comprises:  the Government Procurement Reform Act 
(GPRA)76, its revised implementing rules and regulations , and related subordinate legislation.  It 
regulates all government procurement, including purchases by government-owned corporations, of 
goods, services, infrastructure projects, and consulting services, regardless of the source of funds, whether local or foreign.  Government procur ement represents a major economic activity, amounting 
                                                      
71 Fisheries Administrative Order No. 230 of 2009. 
72 WTO document G/SPS/N/PHL/41, 22 April 2002. 
73 These include the registered trade or brand name, the registered trade mark, the registered business 
name, the address of the manufacturer, importer or re-packer in the Philippines, the general make or active 
ingredients, the net quantity of contents, an d the country of manufacture, if imported. 
74 WTO (2005). 
75 Department Administrative Order No. 01 of 2008. 
76 The GPRA (R.A. No. 9184 of 10 January 2003) replaced over 100 laws, rules, and regulations, with 
a single unified regime.  The Philippines WT/TPR/S/261 
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  to PHP 121 billion per year on average during 2004-07,  i.e. around 3% of GD P and 15% of the total 
budget.77 
62. The Government Procurement Policy Boar d (GPPB) handles all procurement matters 
affecting the national interest.  All government agencies are mandated to procure their common-use 
supplies from the Procurement Se rvice-Department of Budget a nd Management (PS-DBM).  The 
GPRA has anti-corruption provisions, such as penalti es and sanctions (administrative, civil, and 
criminal), with a minimum penalty of six years in prison.  Nonetheless, corruption, inefficiency and 
disorganization still exists and, according to one est imate, an average of 20-30% of every contract 
goes to leakages, or about PHP 30 billion annually.78  As a result, a public awareness campaign and a 
professionalization programme are being implemented.79  Moreover, the Procurement Transparency 
Board was established in September 2007 to eval uate, comment on, record, and monitor contracts 
entered into by the various procuring entities (e .g. national government agencies, government-owned 
and/or controlled corporations (GOCCs), government financial in stitutions, state-universities and 
colleges, and local government units) invol ving an amount of PHP 100 million and above.80  
Procurement opportunities, results thereof, and ot her related information must be posted on the 
Philippine Government Electronic Procurem ent System (PhilGEPS) bulletin board. 
63. Each procuring entity must establish a single Bids and Awards Committee (BAC).81  Prior to 
issuing an invitation to bid, the BAC must hold a pre-procurement conference;  however, this is 
optional for contracts below PHP 2 million for g oods, PHP 1 million for consulting services, and 
PHP 5 million for infrastructure projects.  The aim of  the pre-procurement conference is to assess the 
readiness of the procuring entity to procure, includi ng the determination of availability of funds and 
compliance of the relevant documents with the GPRA.82 
64. The GPRA incorporates most international procurement practices, including competitive 
bidding as a default mode, the mandatory use of sta ndard bidding documents, as  well as an electronic 
procurement system (since 2001), which has enhanced  transparency/efficiency and reduced costs.  
Nevertheless, some features of the GPRA have been criticized83:  (i) imposition of an approved budget 
for the contract (ABC), which sets a price bid ceiling and limits foreign-funded contracts84;  
(ii) absence of an independent complaints review  body;  and (iii) eligibility screening, which has 
contributed to the low number of competing bi dders (an average of three per contract). 
                                                      
77 World Bank (2008). 
78 World Bank (2008). 
79 For example, the certification of  procurement professionals by the Civil Service Commission.  In 
2007, a Sub-Working Group on Procurement was established under the auspices of the Philippine Development Forum Working Group on Governance and Anti-Corruption. 
80 Executive Order No. 662. 
81 The BAC advertises and/or posts the invitation to bid, conducts pre-procurement and pre-bid 
conferences, determines the eligibility of prosp ective bidders, receives and ev aluates bids, un dertakes post-
qualification proceedings, and recommends  the award of contracts to the head of the procuring entity.  It may 
also recommend the use of alternative procurement methods. 
82 See WTO (2005). 
83 World Bank (2008). 
84 Any bids that are above the ABC are automatically re jected.  The authorities' rationale for this rule is 
that it has helped contain the incidence of corrupt and collusive activities.  However, it limits international 
bidding since international firms face higher costs than  local ones and ABC does not always take this into 
account. WT/TPR/S/261 Trade Policy Review 
Page 48 
  
  65.   Competitive bidding is the default method of pr ocurement;  alternative methods may be used 
only in highly exceptional cases and upon approval by the procuring entities.85  There is no threshold 
for public/competitive bidding.  The alternative proc urement methods are:  limited source bidding 
(selective bidding);  direct contracting (single-sour ce procurement);  repeat order;  and negotiated 
procurement (e.g. shopping and low-value procurement86).  In all instances, the procuring entity must 
ensure that the "most advantageous price" for the Government is obtained.  According to the 
authorities, the bid with the lowest cost to the G overnment is deemed to be the bid with the "most 
advantageous price". 
66. The Philippines' procurement regime allows for the participation of foreigners.  For 
procurement of goods, they may be eligible:  (i) when provided for under any Treaty or International 
or Executive Agreement87;  (ii) when the foreign supplier is a citizen, corporation or association of a 
country included in Annex "I" of the laws or re gulations issued by the GPPB granting reciprocal 
rights or privileges;  and (iii) when the goods s ought are not available from local suppliers.  For 
infrastructure projects, foreigners may be eligible to participate when provided for under any Treaty or International or Executive Agreement.
88  For consulting services, foreigners may be hired if 
Filipino consultants do not have the expertise to render the service required, as determined by the 
Head of the procuring entity. 
67. Nevertheless, foreigners' partic ipation in the procurement of goods remains restricted, and 
seems to depend upon the source of the funds for the project and the domestic availability of the 
procured goods and services.  The Constitution provides for a strong preference to procure 
domestically.  It requires the State to give pref erence to qualified Filipinos (section 10), and to 
promote the preferential use of Filipino labour, dom estic materials, and locally produced goods, as 
well as to adopt measures that help make them  competitive (section 12).  For example, the 
Government continues to procure official uniforms containing Philippine tropical fabrics as well as 
footwear and leather goods manufactured in the Philippines as a means to support local industries (Chapter IV(2)).  For foreign-assisted projects, overseas firms may bid, but there is a 15% price 
preference for domestic suppliers.
89  For other procurement projects, such as those funded 
domestically, only firms with at least 60% or 75% Filipino ownership or interest, depending on the 
type of procurement, may participate.  However, if the goods are not available locally, or where there 
is a need to prevent unfair competition, fore ign suppliers may be invited to participate.90  In addition, 
in the interest of efficiency and timely delivery of  goods, the procuring entity may give preference to 
the purchase of domestically produced and manufactur ed goods, supplies, and materials that satisfy 
the specified or desired quality.   
68. The Philippines is neither a signatory nor an observer to the WTO Plurilateral Agreement on 
Government Procurement. 
                                                      
85 These methods are described in WTO (2005), Table III.5. 
86 Shopping can be used in case of unforeseen contingency and in case of procurement of common-use 
supplies not available from PS-DBM.  The threshold for shopping and small value procurement is PHP 500,000. 
87 Section 4 of R.A. No. 9184 and its implementing rules and regulations. 
88 Section 4 of R.A. No. 9184 and its implementing rules and regulations. 
89 The 15% price preference for domestic suppliers applies only when the procurement rules identified 
for the foreign-assisted project allow the application of such preference. 
90 The foreign firm must originate in a country that gives the Philippines the same privileges. The Philippines WT/TPR/S/261 
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  (viii) Local-content requirements 
69. In 2007, the Philippines introduced mandatory incorporation of locally sourced biofuel into 
gasoline and diesel (Chapter IV(1)(i)). 
70. In 2000, the Philippines abolished the requirement for soap and detergent manufacturers to use 
at least 60% of locally produced input  (cocochemical surfactant).91  
71. In 2003, the Philippines eliminated the follo wing local content and foreign exchange 
balancing requirements:  Car Development Programme, Commercial Vehicle Development Programme, and Motorcycle  Development Programme.
92   
72. Executive Order No. 776 of 1982 allows the importation of semi-synthetic antibiotics only in 
quantities and types not produced in the Philippines.  It is no longer implemented, since the local 
company Chemfields was closed in the mid-1990s;  there is no local manufacturer of semi-synthetic 
antibiotics.93  
(ix) Other measures 
73. The Philippine International Trading Corporation (PITC) administers the Philippines' 
Countertrade Programme.94  From its inception in 1989 until 2010, the PITC administered 
countertrade transactions valued at US$436.5 milli on (including debt-for-goods arrangements).  The 
key beneficiaries were exports (e.g. agriculture products, metals, fertilizers, rubber, coconut-based 
products, handicraft, and garments) and services (e.g. engineering, information technology, 
accounting, legal, project mana gement, and public relations).95 
74. On 12 April 2010, the Food Terminal Incorporat ed, under the NFA, was authorized to include 
pork in its commodity coverage of basic food ite ms, to stabilize its supply and prices through, 
inter alia , limiting pork imports to 5,000 tonnes.96 
75. The Philippines does not apply any sanctions othe r than those adopted by the United Nations 
Security Council, or regional organizations of which it is member.  The authorities indicate that no 
agreements have ever been conclude d with foreign governments or fore ign firms to restrict exports to 
the Philippines.  It does not maintain any com pulsory reserve stocks, and has never taken any 
measures for balance-of-payment purposes. 
                                                      
91 The use of hard surfactants is pr ohibited due to environmental concer ns but soft surfactants that are 
not necessarily coconut-based are allowed (R.A. No. 8970 of 2000). 
92 WTO documents G/TRIMS/N/1/PHL/1, 25 April 1995 and G/C/38, 24 October 2003. 
93 All imports of semi-synthetic antibiotics are, inter alia , required to pass the National Single Window 
prior to FDA recommendations for release at the port of entry, subject to the BOC regulations. 
94 Executive Order No. 120 of 1993.  The programme involves the purchase or importation by the 
Government of foreign capital equipment, machinery, prod ucts, technology, supplies, and services worth at least 
US$1 million. 
95 PITC, a government-owned and controlled corporation (GOCC), was created in 1973 under 
Presidential Decree No. 252 to trade with socialist and other centrally-planned economy countries.  On 25 January 1977, PITC was given a broader mandate to be the prime mover in the expansion of Philippine trade 
worldwide.  Since then, it has also been involved, inter alia , in exports, EXIM servi ces, countertrade/special 
trading arrangements, bulk importatio n, procurement for government institutions, marketing, and dealerships. 
96 All imports are eligible for application of the Tax Expenditure Subsidy Scheme. Outstanding 
volumes not allocated under the minimum access volume pert aining to pork are distributed to the private sector 
on the basis of the Philippines' minimum access commitments (Executive Order No. 875). WT/TPR/S/261 Trade Policy Review 
Page 50 
  
  (2) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation 
76. Registration and documentation requirements for ex porters are similar to those for importers 
(section (1)(i) above).97  Regulated exports require export clearance (section (iv)(a) below);  
certificates of origin are required for exports under preferential arrangements;  and other permits and 
licences may be required for exports th at are regulated or prohibited. 
(ii) Export taxes 
77. Only plantation (non-native) logs are subj ect to an export tax (20% of f.o.b.).98  T h e  
authorities indicate that the export tax on non-native l ogs is imposed to ensure an adequate, stable, 
and sustainable supply of domestic timber.  Howe ver, export taxes are distorting and implicitly 
subsidize downstream processors by providing logs  at below world prices, thereby encouraging 
domestic value added, which may be an inefficient u se of resources if this is reliant on the subsidy.  
The authorities indicate that revenue from the export tax is minimal. 
(iii) Minimum export prices  
78. Minimum export prices continue to apply for rice and corn; according to the authorities, they 
are generally based on world prices.  Minimum export prices could have similar economic effects to 
export taxes.  
(iv) Export prohibitions, restrictions, and licensing 
(a) Export prohibitions and restrictions 
79. Prohibited and regulated exports include endangered wildlife species and live animals 
(Table AIII.6).  Textiles and clothing are no longer regulated following the removal of export quotas 
in 2005.  The authorities indicate that exports of  naturally growing timber are also banned for 
environmental reasons.  Exports are prohibited or regulated on grounds of national interest, security, 
and public health, and to fulfil the requirements of  international agreements  and conventions (e.g. 
CITES).  Regulated exports require prior export clearance from the relevant government agencies. 
80. Exports of rice, corn, and sugar remain restrict ed.  In order to ensure food security and price 
stability, these commodities may be ex ported only if there is a surplu s, according to the authorities.  
Fish exports are also regulated on grounds of domest ic food security.  Exports, when allowed, require 
a permit issued by the DOA.  Permits are granted on a per-shipment basis.  A sanitary certificate must 
also be issued on a per-shipment basis.  In additio n, 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. 
                                                      
97 Exporters are not required to be registered with  the BOC but with other accrediting offices such as 
Philexport and DTI. 
98 The regulatory agency is the DENR, and implementation is by the Department of Finance.  Under 
Section I of Executive Order No. 26 of 1986. The Philippines WT/TPR/S/261 
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  (b) Export quotas  
81. The President may, when recommended by NEDA, impose an export quota on any good, 
taking into account factors such as the domestic demand, the world price, and the preferential treatment granted to Philippine exports by foreign governments.
99 
82. Exports of sugar are subject to bilateral restraints, for example,  the Philippines is allocated a 
sugar export quota by the United States. 
(v) Export operations of state enterprises 
83. Rice and corn exports remain controlled by the NFA.  The private sector is allowed to export 
rice and corn only for market testing and research purposes. 
(vi) Export support 
(a) Export subsidies and assistance 
84. According to the authorities, no export subs idies were provided during the period under 
review. 
85. Under Executive Order No. 554 of 2006, fees a nd charges were eliminated on export 
clearances, inspections, permits, certificates and other documentation requirements, except those 
imposed by specific laws or arrangements.100  It is still being implemented with the aim of improving 
competitiveness. 
86. In response to the global economic crisis of late 2007, in 2008, the Philippine Government 
allotted a portion of its Economic Stimulus Fund to  fund training assistance for laid-off workers and 
provided financial assistance to exporters and small and medium-sized enterprises (SMEs).  The Fund 
was eliminated on 31 December 2010.101 
(b) Duty and tax concessions 
87. The Motor Vehicle Development Programme  (MVPD), under Executive Order No. 156 of 
2002, provided, inter alia , for the removal by 30 June 2003 of  export-balancing and local-content 
requirements.102  In June 2010, under Executive Order No. 877-A, the MVDP was revised, inter alia , 
to promote domestic automobile production, spur exports , and make the Philippines a regional hub for 
auto parts and components.  Some of the key f eatures of the new MVPD are:  (i) favours local 
completely knocked-down (CKD) auto parts and components against imports103;  (ii) tightens the rules 
                                                      
99 Philippine Tariff Commission (2001), Volume I - Section 515.  However, according to the 
authorities, Section 515 does not apply. 
100 Excluded from the scope of Ex ecutive Order No. 554 are, for ex ample, export fees and charges 
resulting from import quotas (e.g. sugar) in other countrie s;  items banned for exports;  exports of logs, copper, 
and coffee;  and those covered by international agreements to which the Philippines is a signatory.  
101 Business support organizations, local government units, and industry associations were the main 
channels of this part of the Fund. 
102 The MVPD under Executive Order No. 156 is explained in WTO (2005), pp 89-90. 
103 Various incentives are provided to encourage local assembly, such as low tariffs on components.  
A 1% tariff applies to CKD kits imported by MVPD-registe red participants, excluding CKDs of alternative fuel 
vehicles, which are duty-free.  In addition, vehicle im ports are subject to 12% VAT, and progressive excise 
taxes based on the vehicle price. WT/TPR/S/261 Trade Policy Review 
Page 52 
  
  on imports of used engines, which in the past were  freely importable;  (iii) continues the prohibition 
on imports of used motor vehicles;  (iv) takes advantage of regional trade agreements104;  (v) creates 
the Motor Vehicle Industry Council105;  and (vi) establishes an industry fund to promote R&D and 
upgrading of equipment and facilities.  The new MV PD will enter into force after adoption of the 
implementing rules and regulations.  
88. The Export Development Act (EDA) still prov ides for corporate tax credits for annual 
increases in export revenues.106  Nonetheless, according to the authorities, it has never been 
implemented due to administrative and budgetary cons traints.  Currently, an amendment to the EDA 
is being considered.  Under the Om nibus Investment Code (OIC), which is administered by the Board 
of Investments (BOI), tax incentives are available to producers of non-traditional exports and for 
activities that support exporters.  
Drawbacks 
 
89. Duties paid on imported materials used to ma nufacture or process exports may be fully 
refunded following exportation.  Exports must take  place within one year of importing the materials, 
and the BOI must certify upon importation that locally produced competitive substitutes were 
unavailable.107 
Customs Bonded Manufacturing Warehouse (CB MW) Scheme and bonded smelting warehouses 
 
90. The CBMW Scheme allows for the tax-free and duty-free importation of raw materials used 
to manufacture goods exported within one year.108  The importer must post a re-export bond 
equivalent to the assessed taxes and duties.  A sim ilar scheme exists for ores and crude metals, which, 
if used to manufacture exports, may be impor ted into a bonded smelting warehouse free of duty.109 
Export processing zones (EPZs) 
 
91. The Philippine Economic Zone Authority (PEZA ) has jurisdiction over all economic zones 
proclaimed under its mandate.  Enterprises need to be exporters of manufac tured products or of 
IT-enabled services, and must physically locat e their activity inside PEZA economic zones.  
100% foreign ownership is allowed.  Incentives in clude:  income tax holiday (ITH) or exemption 
from corporate income tax for four years, renewable for a maximum of eight years;  after the ITH period, payment of the special 5% tax on gross in come, in lieu of all national and local taxes;  
exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw 
materials;  domestic sales allowance of up to 30% of total sales;  exemption from export taxes, 
wharfage dues, imposts, and fees;  zero VAT rate on local purchases, including telecommunications, electricity, and water;  exemption from payment of local government fees (e.g. Mayor's permit, 
business permit, health certificate fee, sanitary insp ection fee, and garbage fee);  simplified import and 
                                                      
104 Japan and ASEAN nations benefit from duty-free tariffs on CKDs. 
105 The Council consists of nine government representatives and four industry representatives. 
106 The tax credit is 2.5% for a 5% increase in annual  export revenue, 5% for a 10% increase, 7.5% for 
a 15% increase, and 10% for increases above 15%.  Enterprises earning at least 50% of their normal operating 
revenue from exports are entitled to incentives from the Board of Investments and the Philippine Economic 
Zone Authority. 
107 Philippine Tariff Commission (2001), Volume I - Section 106. 
108 Philippine Tariff Commission (2003), Volume II - Section 2002. 
109 Philippine Tariff Commission (2003), Volume II - Section 2005. The Philippines WT/TPR/S/261 
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  export procedures;  employment of foreign nationa ls;  and special visas for foreign investors and 
immediate family members. 
(vii) Export performance requirements 
92. Tax incentives provided by the BOI under the Omnibus Investment Code (OIC) to non-
traditional exporters are contingent on export pe rformance.  The export performance requirement is 
higher for foreign-owned enterprises (70% of production) than for Philippine-owned companies 
(50%).  According to the Export Development Act (EDA), enterprises generating at least 50% of 
normal operating revenue from  exports are entitled to incentives under the EDA. 
(viii) Export finance, insurance, and guarantees 
93. The Trade and Investment Development Corporation of the Philippines (TIDCORP, also 
known as the Philippine Export-Import Credit Agency, or PhilEXIM), is the government export-credit 
agency attached to the Department of Finance, and under the supervision of the BSP (central bank).  It 
aims to stimulate exports of goods and services by  facilitating access to credit, especially for SMEs, 
and to boost employment.  TIDCORP provides expor ters with loans, guarantees, insurance, and 
technical cooperation, and pre-shipment export finance guarantees (PEFG) to SMEs.110  T h i s  h a s  
improved access to credit by providing an alternative to the traditional collate ral required by banks.  
The Corporation also provides a post-shipment risk guarantee (PERG) in case exporters are not paid.  
TIDCORP's Term Loan Guarantee Programme (TLGP) covers medium- and short-term loans extended to SMEs for the acquisition of fixed assets and/or for use as working capital.  Guarantee and 
credit facilities are also ava ilable to large exporters (assets above PHP 100 million).
111  TIDCORP 
also offers export credit insurance (E CI) to Philippine-based exporters.  This is designed to allow 
exporters to provide credit to buyers by insuring them against non-payment by foreign customers due 
to commercial and political risks. 
(ix) Export promotion and marketing assistance 
94. The Center for International Trade Expositions and Missions (CITEM), an export promotion 
agency under the DTI, promotes the Philippines' pr oducts and services worldwide through trade fairs 
and missions and other export promotion progr ammes and activities held locally and abroad.112  
95. The Bureau of Export Promotion (BETP), also an export promotion agency under the DTI, 
provides various assistance and services to the local exporting community.  It renders frontline advisory services, conducts market information se ssions, undertakes profiling of selected key exports 
industries, and extends support to regional offices pert inent to trade matters.  In doing so, it is the lead 
agency for export-related business matching sessions, whic h could either be in the form of servicing 
trade inquiries or conducting trade missions.  Backed  by an on-line database, most of its research 
work is geared toward crafting special studies, co untry trade regulations reports, and other export 
development and promotion projects. 
                                                      
110 This guarantee covers 90% of loans taken by SMEs to finance pre-shipment working capital. 
111 For example, TIDCORP's General Facility Progra mme (GFP) guarantees up to 100% of their loans 
to finance exports, manufacturing, and services rendered to promote exports and import-substitution industries. 
112 Other marketing assistance provided include the Catalog-Online, an exclusive virtual showroom of 
Philippine export products and services, and CITEM Tr ade Opportunities Programme (CTOP), which is a trade 
referral system for foreign buye rs and Philippine exporters. WT/TPR/S/261 Trade Policy Review 
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  (3) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Incentives 
96. The Philippines has a long history of providing in centives (mainly tax) to selected activities.  
The main strategy has been to channel investment s into sectors considered desirable for meeting key 
objectives, such as generating exports  and employment.  Thus, the incentive system attempts to direct 
investments into eligible priority areas, a form of selective government intervention.113 
97. Incentives are regulated by the Omnibus Investment Code (OIC) of 1987 (as amended) with 
implementing rules and regulations.114  In general, under the OIC, only enterprises that are registered 
with the BOI, and produce non-traditional exports or ar e engaged in a sector listed in the Investment 
Priorities Plan (IPP) are entitled to tax exemptions a nd to some non-tax incentives.  However, even if 
the activity is not listed in the IPP, an enterprise ma y be eligible to receive incentives if it exports at 
least 70% of production (foreign-owned enterprises), or  50% (Filipino-owned enterprises, i.e. at least 
60% domestic equity).  In 2011, the IPP included:  (a) "contingency list", i.e. projects and/or activities 
affected by the global economic crisis115;  (b) "regular list", i.e. 9 priority investment areas116;  (c) 
"export activities", i.e. manufacture of export products /services, and activities in support of exporters;  
(d) "mandatory list", i.e. activities that require th eir inclusion in the IPP as provided for under existing 
laws117;  and (e) "Autonomous Region of Muslim Mindanao (ARMM) list".118 
98. The tax incentives available under the OI C to BOI-registered firms include, inter alia :  4-6 
year corporate tax holidays depending upon the enterprise type and project location119;  tax credit for 
taxes and duties paid on raw materials, supplies,  and semi-manufactured products used in the 
manufacture of exports;  and tax credits for breedin g stocks and genetic materials.  BOI-registered 
firms located in less developed areas may be e ligible to claim up to a full tax deduction for 
infrastructure expenditure and labour costs of hired wo rkers.  Other tax incentives  are also available to 
regional headquarters and regional operating headquarte rs located in the Philippines, and under some 
44 special investment incentives laws.120 
                                                      
113 WTO (2005). 
114 Executive Order No. 226. 
115 Projects that at least retain investments and either maintain the current number of workers, reinstate 
laid-off workers to equal their pre-crisis number, or in crease the current number of workers.  This list also 
covered new projects of micro and small enterprises pursuant to R.A. No. 9501.  BOI (2010). 
116 These are:  agriculture/agri-business and fisheries;   infrastructure;  manufactures;  business process 
outsourcing;  creative industries;  strategic activities;  green projects; disaster prevention, mitigation and 
recovery projects;  and R&D and innovation. 
117 Revised Forestry Code (PD No. 705); Mining Act (R.A. No. 7942);  Book Publishing Industry 
Development Act (R.A. No. 8047);  Downstream Oil Industry Deregulation Act of 1998 (R.A. No. 8479); 
Ecological Solid Waste Management Act of 2000 (RA No. 9003);  Clean Water Act of 2004 (R.A. No. 9275); 
Magna Carta for Disabled Persons (R.A. No. 7277);  Renewable Energy Act of 2008 (R.A. No. 9513);  and Tourism Act of 2009 (R.A. No. 9593). 
118 These are:  export activities; agriculture/agri-busi ness/aquaculture and fisheries; basic industries; 
consumer manufactures;  infrastructure and services; industrial service facilities;  engineering industries; 
energy-related activities;  trade and investment enterpri ses located in the East ASEAN Growth Area;  tourism, 
health and education services and facilities;  and halal industry. 
119 Enterprises are classified as "pioneer", "non- pioneer" or "expanding".  A pioneer enterprise 
introduces new technology to the Philippines, engages in agriculture, forestry or mining to pursue national 
goals, or produces non-conventional fuels or equipment utilizing such energy sources.   
120 See WTO (2005). The Philippines WT/TPR/S/261 
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  99. Over the last decade, the Government has been  attempting to reform the tax incentives system 
by rationalizing and harmonizing over 100 investment incentives laws under one law.121  This would 
list the priority areas and the incen tives to be granted to investors registered with the various 
investment promotion agencies.  According to th e authorities, the proposed incentive system would 
be:  (a) highly focused to ensure that only t hose economic activities in which the country has a 
comparative advantage are promoted;  (b) effici ent enough to promote both optimal allocation of 
resources and neutrality in terms of use of the lim ited resources;  (c) time-bound to ensure viability of 
the investing firm;  and (d) simple enough to admini ster and monitor to address revenue leakages.   
100. Certain initiatives have been taken recently to pr omote a more convenient system of applying 
for registration, reporting, and receiving incentives:   (i) exemption from application and registration 
fees for micro enterprises and 75% reduction in appli cation and registration fees for small enterprises;  
(ii) reduced application fees for incentives;  (iii)  one-day processing of application for registration vis-
à-vis  the regular 20 working days processing time from official acceptance of the application;  
(iv) exemption from the 25% minimum equity require ment to finance registered projects for  micro 
and SMEs;  and (v) simplified application requirements for incentives. 
(a) Non-tax incentives 
101. BOI-registered enterprises investing in sectors listed in the IPP also benefit from non-tax 
incentives.  They may employ foreign nationals in supe rvisory, technical or advisory positions for five 
years from date of registration.122  In addition, they may import equipment on consignment for a 
period of ten years from their date of registrati on, subject to posting a re-export bond, and may 
operate bonded manufacturing/trading warehouses.  They also benefit from simplified customs 
procedures to import equipment, spare parts, raw materials, and to export.123 
Small and medium-sized enterprises (SMEs) 
 
102. The SME sector is considered the backbone of the economy.124  In 2011, it comprised 99.6% 
of all registered firms and employed three quarters of the labour force.  In principle, SMEs are 
reserved to Philippine nationals.  However, foreign participation is  allowed if the enterprise uses 
advanced technology (as determined by the Departme nt of Science and Technology (DOST)), directly 
employs at least 50 employees, and has a minimum paid-up capital of US$100,000.  The Barangay Micro Business Enterprise Act of 2002, provides incentives to promote the establishment of micro 
business enterprises.  These include income tax ex emptions, exemption from the coverage of the 
Minimum Wage Law, access to a special cred it window, and training and marketing assistance 
programmes.  Local governments are also encouraged  to reduce or exempt such enterprises from local 
taxes, fees, and charges. 
                                                      
121 Over the last decade, Congress has been deliberating on various bills to rationalize the fiscal 
incentives structure, but has failed to approve final legislati on for the President to sign.  It is currently discussing 
House of Representatives Bill No. 4152, which aims to rationalize the grant and administration of fiscal 
incentives by, inter alia , providing guidelines for:  tax incentive provisions for all investments promotion 
agencies;  IPP;  fiscal in centives to registered export enterprises;  fiscal incentiv es to registered domestic 
enterprises;  incentives to strategic projects;  and streamlining the institutional structure governing tax 
incentives. 
122 The positions of president, general manager, an d treasurer are not subject to this limitation. 
123 A one-stop import and export documentation system has been established to facilitate imports of 
equipment, spare parts, and raw ma terials, as well as exports.   
124 Micro enterprises have assets of up to PHP 3 million and employ from 1 to 9 employees;  small 
enterprises from PHP 3 to PHP 15 million and from 10 to 99 employees;  and medium enterprises from 
PHP 15 million to PHP 100 million and from 100 to199 employees. WT/TPR/S/261 Trade Policy Review 
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  103. The Small Business Corporation (SB Corporation) , an agency attached to the DTI and under 
the supervision of the BSP, provides credit guarantees and financing facilities to support SME 
development.  The SB Corporation provides funds either directly or through the banking system. 
(ii) Competition policy and price controls  
104. The Philippines does not yet have a general co mpetition law, but instead has several laws 
dealing with competition (Table III.8).  Several bills  dealing with competition are being deliberated in 
the Congress.  Competition has also been include d in some of the Philippines' regional trade 
agreements;  at ASEAN level, there are the Regional Guidelines on Competition Policy, and the 
Handbook on Competition Policy and Law for Business.125  The ASEAN-Australia New Zealand Free 
Trade Agreement, in its Chapter 14, targets coope ration in the promotion of competition, economic 
efficiency, consumer welfare, and the curtailm ent of anti-competitive practices.  Cooperation in 
competition issues is envisaged under the ASEA N-Japan Comprehensive Economic Partnership 
Agreement, Chapter 8 (Article 53).  The Phili ppines-Japan Economic Partnership Agreement, 
Chapter 12 (Articles 135-137), provides for the promotion of competition and cooperation on 
promoting competition by addressing anti-competitive activities.126  
105. On 9 June 2011, the Department of Justice w as designated as the Competition Authority with 
the following responsibilities127:  investigate all cases involving violations of competition laws and 
prosecute violators to prevent, restrain, and pu nish monopolization, cartels, and combinations in 
restraint of trade;  enforce competition polici es and laws to protect consumers from abusive, 
fraudulent, or harmful corrupt business practices;  su pervise competition in markets by ensuring that 
prohibitions and requirements of competition laws are adhered to, and to this end, call on other 
government agencies and/or entities for submission of reports and provision for assistance128;  monitor 
and implement measures to promote transparency an d accountability in markets; prepare, publish, and 
disseminate studies and reports on competition to info rm and guide the industry and consumers;  and 
promote international cooperation and strengthen Philippine trade relations with other countries, 
economies, and institutions in trade agreements. 
106. The Philippine Development Plan 2011-2016 recognizes the need to enact an anti-
trust/competition law to further promote competiti on in the economy.  Nonetheless, some existing 
legislation would conflict with the introduction of a general competition law;  for example, the 
imposition of price ceilings on certain goods and co mmodities in times of national emergencies under 
the Price Act would run counter to a general competition law.129 
                                                      
125 Both documents were launched by ASEAN in August 2010. 
126 Some of these agreements al so provide for capacity building and technical cooperation. 
127 Executive Order No. 45. 
128 Some of the key agencies are: the BSP;  the Insurance Commission;  the NFA;  the Sugar 
Regulatory Administration;  the Philippine Coconut Authority;  the Board of Investments;  the National 
Telecommunications Commission;  the Land Transportation Franchising and Regulatory Board;  the Civil 
Aeronautics Board;  the Maritime Industry Authority;  the Philippine Ports Authority;  and the Department of Energy, the Energy Regulatory Commission. 
129 Price ceilings are applicable only in areas d eclared as or placed under a state of calamity, 
emergency, martial law, rebellion, or war, or when the priv ilege of the writ of habeas corpus is suspended in that 
area.  They remain effective only for the duration of th e condition that brought them about.  According to the 
authorities, this mechanism prevents anti-competitiv e behaviour in times of emergencies (e.g. price 
manipulation) which traders may employ. The Philippines WT/TPR/S/261 
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  Table III.8 
Laws dealing with competition, 2011 
Law Description 
1987 Constitution Prohibits anti-competitive practices;  however, monopolies are not 
prohibited per se , only when public interest so requires;  prohibits 
acts that restrain trade or unfair competition 
Revised Penal Code (Article 186) Defines and penalizes monopolies a nd acts that restrain trade;  
penalties include imprisonment and fines ranging from PHP 200 
to PHP 6,000 
Civil Code (RA No. 386)  
 Allows for the collection of damages arising from unfair 
competition 
Corporation Code of the Philippines  Provides the ru les regarding mergers and consolidations, and the 
acquisition of all or substantially all the assets or shares of stock of 
corporations. 
Securities Regulation Code (RA No. 8799)  Prohibits fraud, manipulations, a nd insider trading;  it aims to 
protect investors, ensure full and fair disclosure about securities, 
minimize if not eliminate insider trading and other fraudulent or 
manipulative devices and practices that create distortions;  it prescribes, inter alia , the pre- and post-registration requirements 
for the issuance of securities and market participants, and 
identifies prohibited acts and prescribes the penalties 
Price Act (RA No. 7581)  Declares that cartels,  hoarding, and profiteering are illegal;  it only 
applies only to specific goods covered by the legislation 
Consumer Act (RA No. 7394) Imposes penalties fo r such behaviour as deceptive, unfair and 
unconscionable sales practices, in both goods and credit 
transactions 
Department of Trade and Industry, Department Administrative Order No.8 
Intellectual Property Code (RA No. 8293) 
 
 Prohibits chain distribution plans and pyramid sales schemes in 
the sale of consumer products 
Allows for civil actions and pe nalties arising from breaching 
patent and trade mark laws;  pe nalizes copyright infringement 
Source:  Information provided by the authorities. 
107. The Price Act allows for price ceilings to be  imposed on certain goods and commodities in 
times of national emergency declared by President.  The DTI monitors prices of commodities subject 
to the legislation.130  The National Price Coordinating Council, chaired by DTI, implements the price 
controls, in conjunction with other government departments.  The Depa rtment of Agriculture monitors 
prices of beef and poultry meat, rice, corn, cooking oil, fresh, dried fish and other marine products, 
fresh eggs, fresh and dried pork, fresh milk, fresh fr uit and vegetables, root crops, sugar, coffee, fresh 
dairy products, fertilizer (chemical and organic), pesticides, herbicides, poultry, swine and cattle 
feeds, and veterinary products for poultry, swine,  and cattle.  The Department of Health monitors 
pharmaceutical prices.  The Department of Enviro nment and Natural Resources monitors prices of 
firewood, charcoal, plywood, plyboard, nipa shingl es, and sawali.  The prices of certain goods, such 
as cement, are regulated on grounds of public interest. 
108. The National Food Authority (NFA) stabilizes paddy prices at the farm level and rice prices at 
the consumer level (Chapter IV(1)(i)).   
                                                      
130 These include "basic necessities" (i.e. canned fish and other marine products, processed milk, 
coffee, laundry soap, detergen t, candles, bread, and salt), and "prime  commodities" (i.e. fish sauce, flour, 
processed and canned pork, processed and canned beef an d poultry meat, noodles, vinegar, soy sauce, soap, 
paper, school supplies, cement, clinker, G.I. sheets, hollow blocks, construction nails, batteries, electrical 
supplies, light bulbs, and steel wires). WT/TPR/S/261 Trade Policy Review 
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  (iii) State-trading, state-owned enterprises, and privatization 
109. The Philippines has notified only the NFA as a state-trading enterprise as defined in GATT 
Article XVII and the Understanding on the Interpretation of Article XVII.131   
110. Presidential Proclamation No. 50 of 1986 laid  down the policy to promote privatization 
through an orderly, coordinated, and efficient programme for the prompt disposition of the large 
number of non-performing assets of government  financial corporations and certain 
government-owned or controlled corporations  (GOCCs), which were found unnecessary or 
inappropriate for government to maintain.  It al so created the Committee on Privatization and the 
Asset Privatization Trust.  Executive Order No. 323 of 2000 created an Interagency Privatization 
Council and a Privatization and Mana gement Office, under the Department of Finance, to continue 
the privatization of government assets and corporatio ns through the sale of assets and shares of stocks, 
lease, build-operate-transfer (BOT) schemes, and jo int-ventures.  Under R.A. No. 7886, a minimum 
of 10% of the sale of assets in corporate form ar e reserved for small local investors, to develop the 
domestic capital market.  Assets should be sold thr ough public auction, and negotiated sale may be 
pursued only in case of a failed bid process.132  Under R.A. No. 7661, sales of assets are published in 
at least three newspapers of general circulation for three consecutive days.133 
111. Since 1986, 85 GOCCs have been sold, as we ll as other government-owned assets, including 
Philippine National Oil Company-Energy Developmen t Corporation, Petron Corporation, Philippine 
Shipyard Corporation, Philippine National Bank,  Philippine Associated Smelting and Refining 
Corporation, and shares in Meralco and in the Philippine Telecommunications Investment 
Corporation.  In 2010, government assistance to GOCCs was PHP 21 billion (PHP 7 billion in 
September 2004).  The total deficit of GOCCs rose  from PHP 19.2 billion in 2000 to PHP 71 billion 
in 2010, led by the NFA, Power Sector Assets and Liabilities Management (PSALM) Corporation, 
and National Irrigation Administration. 
(iv) Intellectual property rights 
(a) Overview  
112. The Philippines' comprehensive legal framework  on IPRs has remained basically unchanged 
since its last TPR.  It comprises mainly the Intell ectual Property (IP) Code and its implementing rules 
and regulations (R.A. No. 8293 of 1998), including patent, trade mark, and copyright laws.  The IP 
Code has been amended several times, including through the Act Providing for the Protection of Layout Design (Topographies) of Integrated Circuits (R.A. No. 9150 of 2001);  the Act to Provide 
Protection to New Plant Varieties (R.A. No. 9168 of 2002);  and the Act on Universally Accessible 
Cheaper and Quality Medicines (R.A. No. 9502 of 2008).  Utility models and industrial designs are 
protected under the patent law.  In 2001, the Phili ppines' IPR legislation was reviewed by the WTO 
TRIPS Council.
134  On 30 March 2007, the Philippines acc epted the Protocol Amending the TRIPS 
Agreement.135  
                                                      
131 WTO document G/STR/N/4-7/PHL, 24 September 2002. 
132 Commission Audit Circular No. 89-296. 
133 The first publication is at least ten days prior to the scheduled biding date or date of negotiation. 
134 WTO document IP/Q-Q4/PHL/1, 18 February 2004. 
135 WTO document WT/Let/573, 4 April 2007. The Philippines WT/TPR/S/261 
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  113. The main institution responsible for administ ering and implementing the IP Code is the 
Intellectual Property Office (IPO).136  The National Committee on Intellectual Property Rights 
(NCIPR) was established in June 2008 to streng then both inter-agency collaboration and the 
enforcement of IPRs (section (g) below). 
114. The IP Code does not expressly prohibit or allow pa rallel imports of goods and services 
containing any form of IPRs.  Nonetheless, paralle l importation of patented drugs and medicines is 
allowed.137 
115. The Philippines has signed various IPR c onventions and treaties (Table III.9). 
Table III.9 
Membership in international IP R conventions and treaties, 2011 
Name Date of membership 
Paris Convention on the Protection of Industrial Property (1883) 27 September 1965 
Berne Convention for the Protection of Litera ry 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 Recogn ition 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 Phono grams Treaty 4 October 2002 
Source:  Information provided by the authorities. 
(b) Patents 
116. A patent takes effect on the date of the pub lication of the grant of the patent in the 
IPO Gazette.  The term of a patent is 20 years fro m 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".138  The law lists non-patentable inve ntions (e.g. discoveries, scientific 
theories, and mathematical methods).  Drugs and medicines excluded from patent protection include 
the mere discovery of a new form or new property of a known substance, which does not result in the enhancement of the known efficacy of  that substance, or the mere discovery of any new property or 
new use for a known substance or the mere use of a known process, unless such known process results 
in a new product that employs at least one new reactant.  Also excluded from patent protection are 
schemes, rules, and methods of performing ment al acts, playing games or doing business, and 
computer programs;  methods for the treatment of human or animal body by surgery or therapy and 
                                                      
136 The IPO has the mandate to: examine applications and issue registrations for patents and trade 
marks;  register technology-transfer agreements; promote the use of patent information as a tool for technology 
development; adjudicate contested proceedings affecting intellectual property rights;  and coordinate with 
government agencies and the private sector on the formulation and implementation of plans and policies to 
strengthen protection of IPRs (Section 5 of the IP Code). 
137 The limitation on patent rights applies after a drug or medicine has been introduced in 
the Philippines or anywhere else in the world by the patent owner, or by any party authorized to use the 
invention (Section 72.1 of the IP Code). 
138 An invention can be related to a product, or process , or an improvement of any of the foregoing. WT/TPR/S/261 Trade Policy Review 
Page 60 
  
  diagnostic methods practiced on the human or animal  body;  and plant varieties or animal breeds or 
essentially biological process for the production of plants or animals.139 
117. Patent owners have the right to assign, or transfer by succession the patent, to conclude 
licensing contracts for the patent, and to ex clusively use the patented good or process.140  However, 
the law places limitations on the patent rights141, and confers prior user right.142  Under specific 
circumstances, a government agency or third person  authorized by the Government may exploit the 
invention even without agreement of the patent owne r.  In addition, any interested party may, upon 
payment of the required fee, ask for the cancellation of a patent on grounds that the invention is not 
patentable, that the patent does not disclose the i nvention in a manner sufficiently clear that it could 
be carried out by anyone else, and that the patent is  contrary to public order or morality.  The inventor 
or the person that commissions the work has the right to own the patent.  Patents are granted using the 
first-to-file rule, and the right of priority is applied.143 
118. Compulsory licensing may be granted without  the patent owner's agreement on specific 
grounds, including:  nationa l emergency;  public interest, in part icular, 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.144  Adequate compensation has to be paid to the right holder 
according to the circumstances of each case.145   
(c) Copyright and related rights 
119. The IP Code protects literary and artistic works, which include audio-visual and 
cinematographic works, computer programs, de rivative works, performances, sound recordings, 
broadcasts, and neighbouring rights.146  These works do not require registration to be granted 
protection because works are protected by the sole fact of their creation.147  However, the deposit of 
literary and artistic works at the National Library a nd/or the Library of the Supreme Court is required 
to complete these libraries' records.148  The IP Code stipulates an author’s copyright or economic 
                                                      
139 Section 22 of the IP Code, as amended by RA No. 9502. 
140 Section 71.2 of the IP Code. 
141 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 or 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. 
142 Any person, who was using the invention prior to the filing date or priority date of the application 
when the patent was granted has the right to continue using it. 
143 A patent application is published in the IPO Gazette  together with the search document established 
by or on behalf of the IPO citing any documents that reflect prior art, after the expiration of eighteen months 
from the filing or priority date.  After publication of th e patent application, any inte rested party may inspect the 
application documents filed with the IPO and make observ ations concerning the patentability of the invention. 
The right to the patent belongs to the person who filed the application at the earliest filing date or the earliest 
priority date.  Hence, if a person has previously applie d for the same invention in another country, which affords 
similar privileges to Filipino citizens, the date of filing th e foreign application is considered as the day of filing 
in the Philippines.  If a patent is not granted, the appli cant may appeal the decision to the Director of the Bureau 
of Patents.  The Director's decision may be appealed to  the Director-General, and hi s decision may be appealed 
to the Court of Appeals.  Final appeal is to the Suprem e Court (Sections 7, 51, 52, and 71.2 of the IP Code).  
144 Section 93 of the IP Code. 
145 Sections 74 and 93 of the IP Code. 
146 Sections 172.1, 173.1, 203, 204 208 and 211 of the IP Code. 
147 Section 172.2 of the IP Code. 
148 Section 191 of the IP Code. The Philippines WT/TPR/S/261 
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  rights.149  The author has the ownership of copyrigh t over the work.  In case of works of joint 
authorship, the co-authors are the original owners of the copyright.150  In case of work created by an 
author during and in the course of his employment, the copyright belongs to:  the employee, if the creation of the object of copyright is not a part of his regular duties even if the employee uses the 
time, facilities, and materials of the employer; and the employer, if the work is the result of the 
performance of his regularly-assigned duties, unless ther e is an agreement, express or implied, to the 
contrary.
151  Terms of protection have  not changed during the period under review;  they vary 
according to the protected item. 
120. Copyright is granted if the work was first pub lished in the Philippines or first published in 
another country but published within 30 days in th e Philippines, if the author is a national or if 
producers of audio-visual work have their headquarters or habitual residence in the Philippines.152  
Protection is granted to national performers;  fore ign nationals are protected only if performing in 
the Philippines or if their performance  is incorporated in a sound record ing that is protected by the IP 
Code or the sound is carried by a broadcast protected under the IP Code.153  Protection for sound 
recordings is granted if produced by na tionals and first publis hed in the Philippines.154  The provisions 
of the IP Code apply to broadcasts made by br oadcasting organizations whose headquarters are 
situated in the Philippines, and broadcasts via transm itters situated in the Philippines, and broadcasts 
via transmitters situated in the Philippines.155  National treatment is provided to performers, producers 
of sound recordings, and broadcasti ng organizations, by virtue of in ternational conventions or other 
international agreements to wh ich the Philippines is a party. 
(d) Trade marks 
121. A trade mark must be registered in the Phili ppines to be protected.  A foreign trade mark 
owner may claim priority filing date.156  Marks that can be registered include visible signs capable of 
distinguishing goods (trade marks) and services (service marks).157  Applications for registration of a 
trade mark are filed with the IPO Bureau of Trademarks.158  A collective mark may be registered if it 
is capable of distinguishing the origin of any other common characteristic, including the quality of 
goods and services of different enterprises that use th e sign under the control of the registered owner 
of the collective mark.159  Trade names should be registered with IPO to be protected, and business 
names are protected as long as they  are registered with the DTI.160  
                                                      
149 These consist of the exclusive ri ght to carry out, authorize or prevent:  reproduction of the work;  
dramatization, translation, adaptation, abridgment, arrang ement or other transformation of the work;  first public 
distribution of the original an d each copy of the work by sa le or other forms of transfer  of ownership;   rental of 
the original or a copy of the work;  public display of the original or a copy of the work;  public performance of the work;  and other communication to the public of the work (Section 177 of the IP Code). 
150 In case of no agreement, the ru les on co-ownership apply (Sections 178.1, 2 of the IP Code). 
151 Section 178.3 of the IP Code. 
152 Section 221 of the IP Code. 
153 Section 222 of the IP Code. 
154 Section 223 of the IP Code. 
155 Section 224 of the IP Code. 
156 Sections 122 and 131 of the IP Code. 
157 Section 121.1 of the IP Code. 
158 See WTO (2005). 
159 Section 121.2 of the IP Code. 
160 Section 165.2 of the IP Code. WT/TPR/S/261 Trade Policy Review 
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  122. Protection of a trade mark is granted for ten years, and registration may be renewed 
(indefinitely) for periods of ten years.161  The owner of a mark has the exclusive right to prevent third 
parties from using identical or similar si gns when such use results in confusion.162  A mark may be 
transferred with or without the transfer of the business using the mark.163  Marks, with the exception 
of collective marks, may also be subject to licensing contracts.164 
123. Pre-grant opposition and post-grant cancellation proceedings are available under the IP Code. 
Any person who believes that he would be damaged by the registration of a mark may file an 
opposition within 30 days of publication of the mark in the IPO Gazette .165  A petition to cancel the 
registration of a mark may also be filed by any pe rson who believes that he/she will be damaged by 
registration of the mark.  The petition to cancel may be  filed within five years of registration of the 
mark, or at any time if the registered mark beco mes generic, or has been abandoned, or if the 
registration was obtained fraudulently, or if the regi stered mark is being used to misrepresent the 
source of the goods or services.166  Between 1999 and October 2011, 21,859 marks had been 
cancelled.  All registered trade marks are published in the IPO Gazette . 
(e) Utility models, industrial d esigns and layout designs 
124. Registration with the IPO Bureau of Patents is  necessary to protect utility models, industrial 
designs, and layout designs.  An invention qualifies for registration as a utility model if it is new and 
industrially applicable167, while an industrial design may be registered if it is new or original.168  
Layout-designs must be original in order to be registered.169 A utility model registration expires, 
without possibility of renewal, at the end of seven ye ars after the date of the filing of the application 
with the possibility of two renewals for five-year periods.170  Registration of an industrial design is for 
five years from the filing date of the application.171  Protection is granted to layout-designs for a non-
renewable period of ten years from the date of th e first commercial exploitation, anywhere in the 
world, or from the filing date of the application,  if the layout has not been previously exploited.172 
(f) Plant varieties 
125. New plant varieties may be protected if they ha ve been exploited in the Philippines for more 
than a year prior to the date of filing an appli cation to the National Plant Variety Protection Board173, 
or if they have been exploited in another country (w here the application has been filed) for more than 
four years or, in the case of vines and trees, fo r more than six years prior to the filing date.174  
According to the law, a plant is not considered new if  it has been in the market  five years prior to the 
                                                      
161 Section 122 and 131 of the IP Code. 
162 Section 147 of the IP Code. 
163 Section 149 of the IP Code. 
164 Section 150 of the IP Code. 
165 Section 134 of the IP Code. 
166 Section 151 of the IP Code. 
167 Section 109.1 of the IP Code. 
168 Section 151 of the IP Code. 
169 Section 113.2 of the IP Code, as amended by R.A. No. 9150. 
170 Section 109.3 of the IP Code. 
171 Section 118.1 of the IP Code. 
172 Section 118.5 of the IP Code, as amended by R.A. No. 9150. 
173 If an application is rejected, the Board informs th e applicant; however, the Board's decision is final, 
and in general, the applicant has no possibility of appeal.  See WTO (2005). 
174 Section 5 of R.A. No. 9168. The Philippines WT/TPR/S/261 
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  approval of the Act.175  As in the case of the application for a pa tent, the first to f ile and the priority 
date rules apply.  Trees and vines are protected fo r 25 years from the date of grant of the certificate 
while other types of plants are granted protection for 20 years.176  Compulsory licences may be 
granted under specific conditions and plant variety protection may be cancelled on specific grounds.  
The Board has the jurisdiction to issue compulsory  licences and to cancel certificates.  The Board's 
decision to cancel a certificate may be appealed. 
(g) Enforcement 
126. Since its last TPR, the Philippines has made e fforts to improve its enforcement of IPRs, 
including through the establishment, in June 2008, of the National Committee on Intellectual Property 
Rights (NCIPR) to coordinate the various institutions involved.177  The NCIPR comprises the DTI as 
Chair, IPO as Vice-Chair, and members from:  the De partment of Justice, Depa rtment of the Interior 
and Local Government, Bureau of Customs (B OC), National Telecommunications Commission, 
National Bureau of Immigration (NBI), Philippi ne National Police (PNP), Optical Media Board 
(OMB), National Book Development Board, Bureau  of Food and Drugs, and other agencies as 
determined by the Chair.  In addition, internati onal cooperation and public outreach campaigns have 
been organized to educate businesses, consumers, judges, prosecutors, and government officers.  
Specific legislation has also been passed to address copyright infringement, such as the Anti-
Camcording Act.178 
127. From 2005 to 21 September 2011, the combined en forcement operations of  NBI, BOC, OMB, 
and PNP, under the NCIPR, resulted in the confi scation of pirated and count erfeit goods amounting to 
PHP 23.8 billion (PHP 3.8 billion duri ng 1 January to 21 September 2011).179  
128. Sanctions for infringements of IPRs are:  (i) for patents, administrative and civil cases may be 
filed, and repetition of the offence constitutes a criminal action.180  Upon conviction, at the discretion 
of the court, an infringer may be imprisoned for six months to three years and/or fined PHP 100,000 to PHP 300,000
181;  (ii) for trade marks, the courts may award damages, impose a penalty of 
imprisonment from two to five years, and/or a fine ranging from PHP 50,000 to PHP 200,000182;  
(iii) for copyrights, fines and imprisonment depend upon the number of times the offence is 
                                                      
175 Section 5 of RA No. 9168. 
176 Holders of certificates have the right to, inter alia , produce and reproduce, propagate, sell, export, 
import, and stock plants.  The holder's rights extend to:  any varieties that are derived from the protected variety;  
varieties that are not distinct from the protected varieties;  and varieties whose production requires the repeated use of the protected variety.  The Act stipulates exceptions to holders' rights when the variety is used for non-
commercial or experimental purposes, to breed other distinct varieties, and for use by small farmers. 
177 Executive Order No. 736, 21 June 2008.  
178 RA No. 10088 of 2010.  The Anti-Camcording Act was enacted as a means to curb illegal 
camcording activities.  It prohibits and penalizes the unau thorized use, possession and/or control of audiovisual 
recording devices for the unauthorized recording of cinematographic films and other audiovisual works and/or their soundtracks in an exhibition facility. 
179 Recycling was used to convert junk compact discs into everyday items, including household 
products, building materials, and auto parts.  These methods are cost efficient and environment-friendly. 
180 Section 84 of the IP Code. 
181 Section 84 of the IP Code. 
182 Section 170 of the IP Code. WT/TPR/S/261 Trade Policy Review 
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  committed183;  and (iv) for plant varieties, imprisonment for three to six years and/or fines of at least 
PHP 100,000 or up to three times the profit de rived from the infringement are envisaged.184 
 
                                                      
183 Section 217 of the IP Code. 
184 Section 56 of R.A. No. 9168.