THE PHILIPPINES Schedule of Specific Commitments (For the First
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ASEAN-KOREA AGREEMENT ON TRADE IN SERVICES ANNEX/SC1 ________________________________________________________________________ THE PHILIPPINES Schedule of Specific Commitments (For the First Package of Commitments) 1 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments I. HORIZONTAL COMMITMENTS Unbound* means unbound due to lack of technical feasibility. ALL SECTORS INCLUDED 3) In Activities Expressly Reserved by Law 3) Access to Domestic Credit IN THIS SCHEDULE to Citizens of the Philippines (i.e. foreign equity is limited to a minority share): A foreign firm, engaged in non- manufacturing activities availing The participation of foreign investors in itself of peso borrowings, shall the governing body of any corporation observe, at the time of borrowing, engaged in activities expressly the prescribed 50:50 debt-to- reserved to citizens of the Philippines equity ratio. Foreign firms covered by law shall be limited to the are: proportionate share of foreign capital of such entities. a) Partnerships, more than 40 per cent of whose capital is All executive and managing officers owned by non-Filipino must be citizens of the Philippines. citizens; and Acquisition of Land b) Corporations, more than 40 per cent of whose total All lands of the public domain are subscribed capital stock is owned by the State. owned by non-Filipino citizens. Only citizens of the Philippines or corporations or association at least 60 This requirement does not apply to per cent of whose capital is owned by banks and non-bank financial such citizens may own land other than intermediaries public lands and acquire public lands through lease. 1),2),3),4) All measures taken by local government units are unbound. Foreign investors may lease only private-owned lands. 1), 2),3),4) All measures governing 2 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments permanent residents are unbound. 4) Entry and Temporary Stay of Natural Persons Supplying Services Non-resident aliens may be admitted to the Philippines for the supply of a service after a determination of the non- availability of a person in the Philippines who is competent, able and willing, at the time of application, to perform the services for which the alien is desired 1),2),3),4) All measures taken by local government units are unbound. 1),2),3),4) All measures governing permanent residents are unbound. II. SECTOR-SPECIFIC SECTION 1. BUSINESS SERVICES A. PROFESSIONAL SERVICES All subsectors 1) Service Outputs: For professions with specific service outputs (e.g., plans, specifications, audit reports), such outputs shall be recognized by the Philippine Government only if the foreign professional is registered with the Professional Regulation Commission (PRC). 3 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments 4) Upon recommendation of the 4) Upon recommendation of the concerned Professional Regulatory concerned PRB, the PRC may Board (PRB), the PRC may approve approve registration of and registration of and authorize issuance authorize issuance of certificate of certificate of registration/license and of registration/ license and professional identification card with or professional identification card without examination to a foreigner who with or without examination to a is registered under the laws of his foreigner who is registered under state/country and whose certificate of the laws of his state/country and registration issued therein has not whose certificate of registration been suspended/revoked: provided, issued therein has not been suspended/revoked: provided, • Requirements for registration/ licensing in said foreign state/ country • Requirements for registration/ are substantially the same as those licensing in said foreign required/ contemplated by laws of the state/country are substantially Philippines and that the laws of such the same as those foreign state/country allow citizens of required/contemplated by laws of the Philippines to practice the the Philippines and that the laws profession on the same basis and of such foreign state/country grant the same privileges as those allow citizens of the Philippines enjoyed by subjects or citizens of such to practice the profession on the foreign country/state; same basis and same basis and grant the same grant the same privileges as those privileges as those enjoyed by enjoyed by subjects or citizens of such subjects or citizens of such foreign country/state; foreign country/state; same basis and grant the same privileges as those enjoyed by subjects or citizens of such foreign • That the Commission may, upon country/state; recommendation of the Board concerned, authorize the issuance of a • That the Commission may, upon certification/ license or special recommendation of the Board temporary permit to: concerned, authorize the 4 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments issuance of a certification/ license or special temporary - Foreign professionals who desire to permit to: practice their professions in the country under reciprocity and other international agreements. - Foreign professionals who desire to practice their - Consultants in foreign funded, joint- professions in the country venture or foreign assisted projects under reciprocity and other of the government international agreements. - Employees of Philippine/ foreign - Consultants in foreign funded, private firms/ institutions pursuant to joint-venture or foreign law, or health professionals assisted projects of the engaged in humanitarian mission government for a limited period of time - Employees of Philippine/ foreign private firms/ • Agencies/organizations/ individuals institutions pursuant to law, or whether public or private, who secure health professionals engaged the services of a foreign professional in humanitarian mission for a for reasons aforementioned shall be limited period of time responsible for securing a special permit from the PRC. • That agencies/organizations individuals whether public or private, who secure the services of a foreign professional for reasons aforementioned shall be responsible for securing a special permit from the PRC. 5 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments F. OTHER BUSINESS SERVICES Services Related to Energy Distribution (CPC 887) Energy distribution networks such as pipelines for transmission, 1) Unbound* 1) Unbound* distribution and supply of natural gas, and power transmission 2) None 2) None and distribution systems 3) Up to 40 percent foreign equity 3) None, except as indicated in the participation is allowed. horizontal section. Limitations listed in the horizontal section shall also apply. 4) Employment of foreign professionals: 4) Employment of foreign professionals: As indicated in the horizontal section for Professional Services. As indicated in the horizontal section for Professional Limitations listed in the horizontal Services. section shall also apply. Services Related to Power Generation 1) Unbound* 1) Unbound* Construction of Power Plants (as provided under the BOT scheme) 2) None 2) None 3) Up to 100 percent foreign equity is 3) A Contractor’s License (Regular allowed under the BOT scheme. or Special) issued by the 6 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments However, a Special Contractor's Philippine Contractors License is required to undertake Accreditation Board (PCAB) is construction activities. required to undertake construction activities. Limitations listed in the horizontal section shall also apply. A. The Regular Contractor’s License is reserved for, and issued only to, Filipino sole proprietorships or partnerships/corporations with at least 60 percent Filipino equity and duly organized and existing under and by virtue of Philippine laws. B. A Special Contractor's License may be given to foreign companies on a project-to-project basis such as BOT. Limitations listed in the horizontal section shall also apply. 4) Unbound 4) Unbound 2. COMMUNICATION SERVICES All subsectors 3) No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or 7 AK-ATS/SC1/PHI 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 Limitations on National Treatment Additional Commitments to corporations or associations organized under the laws of the Philippines