WORLD TRADE
ORGANIZATIONS/DCS/W/PHL
24 January 2003
(03-0505)
Trade in Services Original:  English
THE PHILIPPINES
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version of the Schedule of Specific Commitments of the
Philippines in word format.  This document  does not substitute for the legally binding commitments
undertaken by the Philippines in its Schedule of Specific Commitments (GATS/SC/70;GATS/SC/70/Suppl.1/ Rev.1 and GATS/SC/70/Suppl.2)
Attached to the draft consolidated schedule is the Philippines' draft consolidated Article II
(MFN) Exemption List (GATS/EL/70 and GATS/EL/70/Suppl.1) in word format.
The draft consolidated versions of the Schedule and the MFN Exemption List were prepared
by the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
_______________
                                                          
1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/PHL
Page 2THE PHILIPPINES - SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL COMMITMENTS
ALL SECTORS 
INCLUDED IN THIS SCHEDULE
3) In Activities Expressly Reserved by Law to
Citizens of the Philippines (i.e., foreign
equity is limited to a minority share):
The participation of foreign investors in the
governing body of any corporation engaged inactivities expressly reserved to3) Access to Domestic Credit
A foreign firm, engaged in non-manufacturing
activities availing itself of peso borrowings,shall observe, at the time of borrowing, theprescribed 50:50  debt-to-equity ratio.  Foreignfirms covered are:
citizens of the Philippines by law shall be
limited  to the proportionate share of foreign
capital of such entities.
All executive and managing officers must be
citizens of the Philippines.(a) partnerships, more than 40 per cent of
whose capital is owned by non-Filipino
citizens;  and(b) corporations, more than 40 per cent ofwhose total subscribed capital stock is ownedby non-Filipino citizens.
Acquisition of Land
All lands of the public domain are owned bythe State.This requirement does not apply to banks and
non-bank financial intermediaries
Only citizens of the Philippines or
corporations or associations at least 60 per
cent of whose capital is owned by suchcitizens may own land other than public landsand acquire public lands through lease.
Foreign investors may lease only  private-
owned lands.S/DCS/W/PHL
Page 3Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4) Entry and Temporary Stay of Natural Persons
Supplying Services
Non-resident aliens may be admitted to the
Philippines for the supply of a service after a
determination of the non-availability of aperson in the Philippines who is competent,able and willing, at the time of application, toperform the services for which the alien is
desired.
1
II. SECTOR SPECIFIC COMMITMENTS
2. COMMUNICATION
SERVICES
All subsectors 3) No franchise, certificate, or any other form of
authorization for the operation of a publicutility shall be granted except to citizens of the
Philippines or to corporations or associations
organized under the laws of the Philippines atleast 60 per cent of whose capital is owned bysuch citizens
3),4)Limitations listed in the horizontal section
shall also apply
B. Courier Services 1) Commercial presence is required2) None3) None4) None1) None
2) None3) None4) None
                                                          
1 The Philippines shall undertake a review of this provision with in two (2) years after the entry into force of the Agreement fo r the Philippines.S/DCS/W/PHL
Page 4Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
C. Telecommunication
Services
The following services (a-
g) are offered only on a
facilities basis, for public
use, using either wired orwireless technology exceptcable television (CATV)and satellite
(a) Voice telephone services
- Local services- Toll services
DomesticInternational1) Unbound
2) Unbound3) Entry is subject to the following requirements
and conditions:1) None
2) None3)
(b) Telegraph Services (i) Franchise from from Congress of the
Philippines(i) The number of non-Filipino citizens in the
Board of Directors of an entity shall beproportionate to the aggregate share offoreign capital of that entity.
(c) Telex Services(d) Packet-switched data
transmission services
(e) Circuit-switched data
transmission services(ii) Certificate of Public Convenience and
Necessity (CPCN) from the National
Telecommunications Commission(ii) All executives and managers must be 
citizens of the Philippines.
(f) Facsimile services(g) Others
Cellular Mobile
Telephone Service(iii) Foreign equity is permitted up to 40%
(iv) Resale of private leased lines is not
allowed
(v) Call back, dial back and other similar
schemes which result in the same
operation are not authorized.
(vi) Subject to the availability and efficient
utilization of radio frequencies
4) Unbound 4) UnboundS/DCS/W/PHL
Page 5Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Voice mail
On-line information anddata base retrievalElectronic data exchange
Videotex1) Only through duly enfranchised and
certificated domestic publictelecommunications carriers
2) None
3) Operation subject to securing of:
(i) Franchise from the Congress of thePhilippines(ii) Certificate of Public Convenience andNecessity (CPCN) from the National
Telecommunications Commission
4) None1) None
2) None
3) None
4) NoneS/DCS/W/PHL
Page 6Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
COMMUNICATION SERVICES
The commitments in communication services are in accordance with th e General Agreement on Trade in Services and its Annex on Te lecommunications.  In support of
market access commitments undertaken, the following principles will form the basis for the regulatory framework in basic teleco mmunications.
1. Competitive safeguard
Appropriate measures shall be maintained for the purpose of preventing suppliers from engaging in or continuing anti-competitiv e practices
2. Interconnection
In order to achieve viable, efficient, reliable and universal telecommunications services, a fair and reasonable interconnectio n of facilities of authorized public 
network operators and other providers of telecommunications services shall be provided.
Interconnection shall be at any technically feasible point in the network, under non-discriminatory terms and conditions, in a timely fashion, and on terms and 
conditions that are fair, transparent and reasonable.
A service supplier requesting interconnection with another supplier will have recourse after a reasonable period of time which has been made publicly known to an 
independent domestic body, which may be a regulatory body referred to in paragraph 5 below, to resolve disputes regarding appro priate terms, conditions and rates for 
interconnection within a reasonable period of time, to the extent that these have not been established previously.
3. Universal Service
Universal service obligations, as may be defined by the appropriate  Authority, shall be administered in a transparent, non-disc riminatory and competitively neutral 
manner.
Authorized international gateway and mobile cellular telephone se rvice providers are required by law to install a set number of  local exchange lines in designated areas.S/DCS/W/PHL
Page 7Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4. Public availability of licensing criteria
Where a license is required, the following shall be made publicly available:
(a) all the licensing criteria and the period of time normally requ ired to reach a decision con cerning an application for a lice nse;
(b) the terms and conditions of individual licenses
The reasons for the denial of a license will be made known to the applicant upon request.
5. Independent regulators
The regulatory body is separate from, and not accountable to, any supplier of a basic telecommunica tions services.  The decisio ns of and the procedures used by 
regulators shall be impartial with respect to all market participants.
The regulation of telecommunication suppliers shall rely principall y on an administrative process that is stable, transparent a nd fair, giving due emphasis to technical, 
legal, economic and financial considerations, and with du e regard to the observance of due process at all times.
A national consultative forum shall be maintained to allow interaction among the telecommunications industries, user groups, an d academic and research institutions on
important issues in the field of communications.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of  scarce resources which are frequencies, numbers and rights of way, will be carried  out in an objective, timely, transparent 
and non-discriminatory manner.  The current state of allocated frequency bands will be made publicly available, but detailed id entification of frequencies allocated for 
specific government uses is not required.S/DCS/W/PHL
Page 8Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
7. FINANCIAL SERVICES
The commitments in financial services are in accordance with the General Agreement in Trade in Services and its Annex on Financ ial Services
All subsectors 3) The appropriate regulatory authority in the
Philippines shall determine whether publicinterest and economic conditions justify
authorization for the  establishment of
commercial presence or expansion of existingoperations in banking and other financialservices in the Philippines.  For foreignfinancial institutions with internationally
recognized standing such determination shall
include a demonstrated capacity to contribute
to the attainment of Phillipine developmentobjectives particularly in the promotion oftrade, investments and appropriate technologytransfer; and the country of incorporation  has
strategic trade and investment relations with
the Philippines.
In banking, the Monetary Board shall ensurethat at all times seventy per cent (70%) of theresources or assets of the Philippine bankingsystem is held by domestic banks which are at
least majority-owned by Filipinos.
3),4)Limitations listed in the horizontal section
shall also apply.S/DCS/W/PHL
Page 9Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Banking and Other
Financial Services
(excluding Insurance)
Commercial Banking:
- Acceptance of deposits and
other repayable funds fromthe public
- Lending of all types,
including consumer credit,mortgage credit, andfinancing of commercialtransaction1) Commercial presence is required
2) None3) I. Forms of commercial presence
(a) Establishment of foreign bank branches. 
Bound for ten (10) new licences for the period1995-2000.  Full banking authority to new andexisting foreign bank branches.1) None
2) None3) A foreign bank, widely-owned and publiclylisted, may avail itself of only one form of
commercial presence at a time.  However, this shall
not preclude secondary investment in the equity of alocally incorporated bank not exceeding thirty per
cent (30%) of voting stock or forty per cent (40%)upon approval by the President of the Phillipines.
- All payment and money
transmission services,
including credit, charge anddebit cards, travellerscheques and bankers draftsEach foreign bank shall be allowed to
establish a maximum of four (6) branches,
with the first two (2) of these branches atlocations of its choice and the remaining two(2) branches at locations designated by theMonetary Board.
- Guarantees and
commitmentsThe prescribed capital ratio shall consist of the
permanently assigned capital and "net due to"
account not exceeding the equivalent of four(4) times the amount of permanently assignedcapital.  The permanently assigned capital andfifteen per cent (15%) of the required "netdue to" account shall be inwardly remitted and
converted into Philippine currency.S/DCS/W/PHL
Page 10Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Trading for own account or
for account of customers,whether on an exchange, inan over-the-counter market
or otherwise, the following:
-M o n e y  m a r k e t
instruments(bank's own
promissory
notes, repurchaseagreements, andcertificatesof assignment/participation
with recourse);(b) Acquisition of up to forty-nine per cent
(49%) of the voting stock of an existingdomestic bank.  Existing foreign banksowning voting stock beyond the fifty-one
(51%) of the voting
(c) Investing in up to forty-nine per cent
(49%) of the voting stock of a new locally
incorporated banking subsidiary.  Existing
investments of foreign banks beyond the fifty-one percent (51%) level will be maintained attheir existing levels.
- foreign exchange;
- derivative products
including, but notlimited to, futures andoptions;The majority of the members of the Board of
Directors of a locally incorporated bank shallbe citizens of the Philippines.
- exchange rate and interest
rate instruments,  includingproducts such as swaps,forward rate agreements;and
- other allowable negotiable
instruments and financialassetsFor foreign service suppliers other than banks,
aggregate share in the voting stock of a locallyincorporated bank shall be limited to thirty percent (30%) or up to forty per cent (40%) uponapproval by the President of the
Philippines. Shareholding in a locally
incorporated bank must not exceed twenty percent (20%) for an individual and thirty percent (30%) for a corporation.S/DCS/W/PHL
Page 11Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Participation in issues of all
kinds of securities,including underwriting andplacement as agent
(whether publicly or
privately) and provision ofservices related to suchissuesII. Scope Of Operations
Prior authority is required for the following:
- acceptance of deposit substitutes and
other repayable funds from the public;
- guarantees and commitments;
- performance of trust,  investment 
management and other fiduciary functions
- Asset management,  such as
cash or portfoliomanagement, all forms ofcollective investmentmanagement, custodial,
depository and trust
servicesUnderwriting (firm and best efforts basis) may
be performed only by commercial bankswith expanded commercial bankingauthority.
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall havetwo Filipino understudies.
Investment houses:
- Purchase and sell, distribute
or arrange to distribute on aguaranteed basis securitiesof other corporations1) Commercial presence is required
2) None3) Must be organized as a stock corporation
Subject to foreign equity limitation of forty-
nine per cent (49%)1) None
2) None3) None
- Participate as soliciting
dealer or selling groupmember in tender offers,block sales, or exchange
offering of securitiesThe majority of the members of the Board of
Directors shall be citizens of the PhilippinesS/DCS/W/PHL
Page 12Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Deal in options, rights or
warrants relating tosecurities
- Act as financial consultant,
investment adviser orbroker
- Act as portfolio
manager/financial agent
- Design pension, profit-
sharing and other employeebenefits plansAn investment house is not  allowed to engage
in banking operations
Prior authority is required for the performance
of quasi-banking functions
4) None 4) None
Financial Advisory
Services, as follows:
- credit reference and
analysis1) None
2) None
3) Required to be organized as a commercial
bank, or an investment house,  or a non-bankfinancial intermediary1) None
2) None
3) None
- investment and portfolio
research and adviceFor commercial banks,  all limitations
mentioned under mode 3 above forcommercial banks shall apply
For investment houses,  all limitations
mentioned under mode 3 above for investment
houses shall apply
Foreign equity participation is bound at fortyper cent (40%) for non-bank financialintermediary
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall have
two Filipino understudies.S/DCS/W/PHL
Page 13Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Factoring 1) Commercial presence is required
2) None3) Must be performed by a financing company
only, organized either as a corporation or
general partnership.1) None
2) None3) None
Subject to foreign equity limitation of fortyper cent (40%)
Membership of non-Filipino citizens in the
Board of Directors is limited to one-third of
the Board's total membership in the case of acorporation; no foreign managing partners inthe case of a general partnership.
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall have
two Filipino understudies.
Financial leasing 1) Commercial presence is required
2) None3) Must be performed by a financing company
only, organized either as a corporation or 
general partnership.1) None
2) None3) NoneS/DCS/W/PHL
Page 14Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Subject to foreign equity limitation of forty
per cent (40%)
Membership of non-Filipino citizens in theBoard of Directors is limited to one-third of
the Board's total membership in the case of a
corporation;  no foreign managing partners inthe case of a general partnership.
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall have
two Filipino understudies.
Money broking and ForeignExchange broking1) Commercial presence is required
2) None3) Required to be organized as a commercial
bank or a non-bank financial intermediary
For commercial banks,  all other limitations
mentioned in mode 3 above for commercialbanks shall apply.1) None
2) None3) None
Foreign equity participation is bound at fortyper cent (40%) for non-bank financialintermediary.
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall havetwo Filipino understudies.
Credit card services 1) Commercial presence is required
2) None3) Required to be organized as a commercial
bank or a non-bank financial intermediary1) None
2) None3) NoneS/DCS/W/PHL
Page 15Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
For commercial banks,  all other limitations
mentioned in mode 3 above for commercialbanks shall apply.
Foreign equity participation is bound at forty
per cent (40%) for non-bank financialintermediary.
4) None 4) A non-Filipino citizen employed as officer or
assigned to do technical functions shall have
two Filipino understudies.
Promotion and provision ofinformation by arepresentative office aboutthe services or products
offered by a foreign bank1) Commercial presence is required
2) None3) None4) None1) None
2) None3) None4) None
Securitiesdealership/brokerage
- Trading for own account or
for account of customers,
whether in an exchange, inan  over-the- countermarket or otherwise,  thefollowing:1) Commercial presence is required
2) None3) Required to be organized as an investment
house or as a securities broker/dealer
corporation or partnership.
For investment houses, all other limitations
mentioned under mode (3) above forinvestment houses shall apply.1) None
2) None3) None
- Equities and its
derivative productssuch as warrantsand options
- Transferable securitiesFor securities broker/dealer - must be a
member of the stock exchange.  Membershipis limited to 200. Underwriting is allowedonly on best-efforts basis.
4) None 4) NoneS/DCS/W/PHL
Page 16Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Participation in issues of all
kinds of securities,including under-writing andplacement as agent
(whether publicly or
privately) and provision ofservices related to suchissues1) Commercial presence is required
2) None3) Required to be organized as an investment
house or as a securities broker/dealer
corporation or partnership.
For investment houses, all other limitations
mentioned under mode (3) above forinvestment houses shall apply.
For securities broker/dealer - must be a
member of the stock exchange.  Membershipis limited to 200. Underwriting is allowedonly on best-efforts basis.
4) None1) None
2) None3) None
4) None
Performance of the
functions of stock transferagent such as but notlimited to monitoring theissuance and transfer of
stock certificates1) Commercial presence is required
2) None3) Must be organized either as a corporation or
partnership with at least one certified publicaccountant duly licensed in the Philippines
4) None1) None
2) None3) None
4) None
Transactions of an issuer
primarily engaged in thebusiness of investing,reinvesting or trading in
securities1) Commercial presence is required
2) None3) Must be performed by an investment
company.
Foreign equity participation is bound at forty
per cent (40%)1) None
2) None3) None
All members of the Board of Directors mustbe citizens of the Philippines.
4) None 4) NoneS/DCS/W/PHL
Page 17Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Sale of contracts for the
payment of benefits orperformance of futureservices such as life,
education, pension and
internment plans1) Commercial presence is required
2) None3) Foreign equity participation is bound at forty
per cent (40%)
4) None1) None
2) None3) None
4) None
Insurance
All subsectors3),4)Limitations listed in the all-sector
horizontal section and all financial servicessection shall apply.
3) Limitations in market access listed in the
specific sub-sectors below shall not apply toexisting wholly or majority foreign-ownedauthorized
2 insurance/reinsurance companies
and to those insurance/reinsurance companies
that will be permitted entry for the period
October 1994-October 1996 under the termsand conditions of Department of FinanceOrder No. 100 and 100-A.
4) Qualified Non-Filipino citizens may be
employed for technical positions only within
the first five (5) years of operation of the
enterprise, their stay not to exceed five (5)years upon entry.Each employed non-Filipino citizen shall haveat least two (2) Filipino understudies.
Life insurance as follows:
-O r d i n a r y
-G r o u p- Industrial
- Health and accident
- Annuities1) Risks located in the Philippines should be
insured with the companies authorized
3  to
transact business in the Philippines
2) Same as (1) above3) Market access is limited to:1) Unbound
2) Unbound
3) None
                                                          
2 The company which had been issued a licence or a certificate of authority by the Insurance Commission to transact business in the Philippines prior to 1 October
1994.S/DCS/W/PHL
Page 18Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(a) Acquisition of up to forty per cent (40%)
of the voting stock of an existingdomestic insurance company.
(b) Investing in up to forty per cent (40%) of
the voting stock of a new locallyincorporated insurance company.
Participation of non-Filipino citizens in theBoard of Directors of a locally incorporated
insurance company is limited to one-third of
the Board's total membership.
4) None 4) None
                                                                                                                                                                                                                                                                                       
3 Authorized means the company has been issued a licence or a certif icate of authority by the Insurance Commission to transact b usiness in the Philippines.S/DCS/W/PHL
Page 19Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
General non-life, as
follows:
- Fire and allied risks/
earthquakes/shock/typhoon/
floods/tidal wave
- Marine ocean
marine/inland
marine/marine hull/aviation1) Risks located in the Philippines shall be
insured with the companies authorized4  to
transact business in the Philippines
2) Same as (1) above
3) Market access is limited to:
(a) Acquisition of up to forty per cent (40%) of
the voting stock of an existing domesticinsurance company.
(b) Investing in up to forty per cent (40%) of 
the voting stock of a new locally incorporated insurance company1) Unbound
2) Unbound
3) None
- Casualty motor car/health
and accident/burglary/
engineering miscellaneous-
- Suretyship fidelity/surety
bondsParticipation of non-Filipino citizens in the
Board of Directors of a locally incorporated
insurance company is limited to one third of
the Board's total membership.
4) None 4) None
Insurance auxiliary
services, as follows:
- acturial consultancies- average adjustors1) Commercial presence is required
2) None
3) Subject to foreign equity limitation of forty
per cent (40%)
Participation of non-Filipino citizens in the
Board of Directors of domestic companies is
limited to one third of the Board's total
membership.1) Unbound
2) None
3) None
4) None 4) None
                                                          
4 Authorized means the company has been issued a licence or a certif icate of authority by the Insurance Commission to transact b usiness in the Philippines.S/DCS/W/PHL
Page 20Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Reinsurance/
Retrocession1) Priority cessions to authorized
insurance/reinsurance companies
Foreign unauthorised reinsures should be
represented by resident agents duly registered
with the Insurance Commission1) None
Ten per cent (10%) of total insurance cessions
to foreign  unauthorised reinsures should beceded to the National  Reinsurance
Corporation of the  Philippines.
2) Same as (1) above
3) Market access is limited to:
(a) Acquisition of up to forty per cent (40%)
of the voting stock of an existing
domestic reinsurance company.2) None
3) None
(b) Investing in up to forty per cent (40%) of
the voting stock of a new locallyincorporated reinsurance company.
Participation of non-Filipino citizens in the
Board of Directors of a locally incorporated
reinsurance company is limited to one third ofthe Board's total membership.
4) None 4) None
9. TOURISM AND TRAVEL
RELATED SERVICES
A. Hotels and RestaurantsS/DCS/W/PHL
Page 21Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Tourism accommodation
facilities
-H o t e l
-R e s o r t
- Pension house-T o u r i s t  i n n-A p a r t e l1) Unbound*
2) None3) Subject to foreign equity limitation of 40 per
cent for pension house, tourist inn and apartel
4) As a general rule, only citizens of the
Philippines can be employed in tourism-oriented establishments.1) Unbound*
2) None3) None
4) None
However, for hotels and resorts, aliens may be
employed subject to the pertinent provisions
of the Tripartite Agreement among the
Department of Tourism, Department of Laborand Employment and the Bureau ofImmigration, as follows: 
(i) Only hotels/resorts duly accredited by the
Department of Tourism shall be allowed to
engage the services of aliens
(ii) Aliens may occupy a maximum of four
(4) managerial positions in a hotel or resortestablishment
(iii) For new hotels or resorts, aliens requiredduring the pre-operation stage and up to six(6) months after opening of the hotel/resort tothe public may be employed
(iv) The services of aliens may be engaged
during special occasions/events such as food
festivals, provided the service contract shall belimited to a period of three (3) monthsrenewable for a maximum period of anotherthree (3) months
                                                          
* Due to lack of technical feasibility.S/DCS/W/PHL
Page 22Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Specialty Restaurants 1) Unbound*
2) None3) No foreign equity is allowed if the specialty
restaurant is not part of the facilities of a hotel1) Unbound*
2) None3) None
4) Aliens may be employed in specialty
restaurants subject to pertinent provisions of the Tripartite Agreement among the Department of Tourism, Department of Labor and Employment and the Bureau of 
Immigration, as follows:4) None
(i) Only specialty restaurants duly accredited
with the Department of Tourism as wellas those forming part of the integratedoperation of accredited hotels/resorts may
be allowed to engage the services of
aliens;
(ii) A specialty restaurant with a minimum of
75-seat capacity shall be allowed toemploy one (1) alien Specialty Chef orSous Chef.  In the initial stage of
operation of a specialty restaurant and for
a maximum period of two (2) years, three(3) more alien specialty chefs or souschefs may be employed; and
(iii) A specialty restaurant with a seating
capacity of 500 or more may be allowed
to employ three (3) additional aliens in
any of the following positions: specialtychef, sous chef, food service manager or acombination of the above.
Professional CongressOrganizers1) Unbound*
2) None3) Subject to foreign equity limitation of 40 per
cent
4) None1) Unbound*
2) None3) None
4) NoneS/DCS/W/PHL
Page 23Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Travel Agencies 1) Commercial presence is required
2) None3) Subject to foreign equity limitation of 40 per
cent
4) Managers and executives must be resident
Filipino citizens1) None
2) None3) None
4) None
11 TRANSPORT SERVICES
A. Maritime Transport
Services
All subsectors 3) No franchise, certificate, or any other form of
authorization for the operation of a publicutility shall be granted except to citizens of thePhilippines or to corporations or associationsorganized under the laws of the Philippines at
least  60 per cent of whose capital is owned by
such citizens.
4) Only aliens qualified to hold technical
positions may be employed within the firstfive years of operation of the enterprise,  theirstay not to exceed five (5) years upon entry.
Each employed alien should have at least two
(2) Filipino understudies.
3),4)Limitations listed in the horizontal section
shall also apply
International Transport(passenger and freight),except
(a) cabotage transport, and
(b) government-owned
cargoes
51) None2) None3) None4) For specialized vessels, aliens may be
employed as supernumeraries only for a
period of six months.1) None
2) None3) None4) None
                                                          
5 Subject to the Cargo Reservation Law which requires that cargoes  owned by government-owned or controlled corporations shall be  shipped on board Philippine flag
vessels.S/DCS/W/PHL
Page 24Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Leasing/rental of vessels
without crew1) None
2) None3) Bareboat charter or lease contract subject to
approval by the Maritime Industry  Authority
(MARINA)
4) None1) None
2) None3) None
4) None
Maintenance and repair of
vessels1) Unbound*
2) Any repairs, conversion or drydocking of
Philippine-owned or registered vessels are
required to be done at domestic ship repair
yards registered with the Maritime IndustryAuthority (MARINA).1) Unbound*
2) None
3) None4) None3) None
4) NoneS/DCS/W/PHL
Page 25Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
C. Air Transport Services
Leasing/rental of aircraft
without crew1) None
2) None3) Lease contract subject to approval by the Civil
Aeronautics Board
4) None1) None
2) None3) None
4) None
Maintenance and repair of
aircraft1) Unbound*
2) None
3) None
4) None1) Unbound*
2) None
3) None
4) None 
General Sales and CargoSales Agency1) Commercial presence is required
2) None3) None
4) None1) None
2) None3) None
4) None
E. Rail Transport Services
Passenger and freight
transport1) Unbound*
2) None
3) None
4) None1) Unbound*
2) None
3) None
4) None 
Maintenance and repair ofrail transport equipment1) Unbound*
2) None3) None
4) None1) Unbound*
2) None3) None
4) None
                                                          
* Due to lack of technical feasibility.S/DCS/W/PHL
Page 26Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
F. Road Transport Services
Passenger and freight
transport1) Unbound*
2) None3) Provisional authority/certificate of public
convenience must be secured from the Land
Transportation Franchising and RegulatoryBoard (LTFRB)1) Unbound*
2) None3) None
New entrants are subject to economic needstest, as follows:(a) the need to provide protection toinvestments of operators in unservedareas/developmental routes;  and(b) the route measured capacity test for
number of vehicles.
4) None 4) None
Maintenance and repair ofroad vehicles1) Unbound*
2) None3) None
4) None1) Unbound*
2) None3) None
4) None
H. Services Auxiliary to all
Modes of Transport
Cargo handling servicesStorage and warehousing 
servicesContainer yard and depotservices1) Unbound*
2) None
3) None4) None1) Unbound*
2) None
3) None4) None
 
                                                          
*Due to lack of technical feasibilityS/DCS/W/PHL
Page 27Modes of supply: (1) Cross-border supply (2) Consumption abroad (3) Commercial presence (4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Freight forwarding services 1) None
2) None3) None4) None1) None
2) None3) None4) None
_______________S/DCS/W/PHL
Page 28
THE PHILIPPINES – LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
ALL SECTORS
Entry and temporary stay
of natural personssupplying servicesA special visa category is
provided for traders andinvestors of countries withwhich the Philippines hasconcluded treaties on entry
rights for traders and investors
Under this special category, the
labor market test is waived andsimplied entry procedures areprovidedAll countries Expiry date or termination
of bilateral treaties onentry rights for traders andinvestorsTo facilitate entry into the
Philippines, on the basis ofreciprocity, of foreign nationals forpurposes of trade, investment andrelated activities
Maritime TransportServices
Liner cargo trade Executive Order 769 provides
for a preferential cargo sharingarrangement with countries
which are parties to the
UNCTAD Liner Code
Under the above-mentioned
arrangement, a Party to the
UNCTAD Liner Code
effectively implementing theCode is assured of at least 40per cent share of its bilateralexport and import liner cargotrade with the PhilippinesAll countries which have
acceded to the UNCTAD LinerCodeIndefinite Ensure effective participation of
Philippine ocean-going fleet inPhilippine liner cargo tradeS/DCS/W/PHL
Page 29Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
Cabotage transport Access to domestic shipping is
reserved for Philippine ownedor registered vessels
However, limited access to
domestic shipping is granted to
countries with which the
Philippines has concludedagreements on Amity,Commerce and NavigationAll countries Expiry date or termination
of bilateral agreements onAmity, Commerce andNavigationAllow limited access to cabotage
transport on a reciprocal basis
Commercial banking Authorization for financial
service suppliers of another
Member to establish
commercial presence or expandexisting operations incommercial banking in thePhilippines shall be subject to a
reciprocity test.All countries Indefinite To ensure Philippine financial service
suppliers are accorded full market
access and national treatment in the
financial servicemarket of another Member.
__________