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XIII. SPECIAL LAWS B. RETAIL TRADE LIBERALIZATION - Coggle Diagram
XIII. SPECIAL LAWS
B. RETAIL TRADE LIBERALIZATION
TITLE
"RETAIL TRADE LIBERALIZATION ACT of 2000
Section 1. Title – This Act shall be known as the "Retail Trade Liberalization Act of 2000."
DEFINITION
"RETAIL TRADE"
ANY ACT
HABITUALLY SELLING
DIRECT TO GENERAL PUBLIC
4,
GOODS:
a.
FOR CONSUMPTION
Section 3. Definition. - As used in this Act.
(1) "Retail trade" shall mean ANY act, occupation or calling of habitually selling direct to the general public merchandise, commodities or good for consumption,...
"LUXURY GOODS"
NOT NEEDED FOR LIFE MAINTENANCE
;
DEMAND GENERATED IN LARGE PART BY:
a.
HIGH INCOME GROUPS
(2) "High-end or luxury goods" shall refer to goods which are not necessary for life maintenance and whose demand is generated in large part by the higher income groups.
INCLUDES:
JEWELRY
a.
BRANDED/DESIGNER
CLOTHING & FOOTWEAR
WEARING APPAREL
LEISURE & SPORTING GOODS
ELECTRONICS
OTHER PERSONAL EFFECTS
Luxury goods shall include, but are not limited to products such as; jewelry, branded or designer clothing and footwear, wearing apparel, leisure and sporting goods, electronics and other personal effects.
DOES NOT APPLY TO:
...but the restriction of this law shall not apply to the following:
MANU/PROC/WORKER'S SALES
a.
TO GENERAL PUBLIC
b.
100K MAX CAPITAL
(a) Sales by
manufacturer, processor, laborer, or worker, to the general public the products
manufactured, processed or products
by him
if his capital does not exceed One hundred thousand pesos(100,000.00);
FARMER/AGRICULTURIST'S SALES
(b) Sales by a farmer or agriculturist selling the products of his farm;
HOTEL/INN OWNER'S RESTO SALES
a.
INCIDENTAL TO HOTEL BUSINESS
(c) Sales in restaurant operations by a hotel owner or inn-keeper irrespective of the amount capital: provided, that the restaurant is incidental to the hotel business; and
MANU/PROC/ASSEM'S SALES:
a.
THROUGH A SINGLE OUTLET
b.
IRRESPECTIVE OF CAPITALIZATION
(d) Sales which are limited only to products manufactured, processed or assembled by a manufactured, processed or assembled by a manufacturer though a single outlet, irrespective of capitalization.
TREATMENT
SAME RIGHTS
NATBORN-LOST CITIZENSHIP
Section 4. Treatment of Natural Born Citizen Who Has Lost His Philippine Citizenship. - A natural-born citizen of the Philippines who resides in the Philippines shall be granted the same rights as Filipino citizens for purposes of this Act.
FOREIGN EQUITY PARTICIPATION
FOREIGN-OWNED PACs MAY ENGAGE OR INVEST IN RETAIL IF:
REGISTERED WITH
-
SEC
; OR
-
DTI
a.
IF FOREIGN
-
DTI ONLY
Section 5. Foreign Equity Participation. -
Foreign-owned partnerships, associations and corporation formed and organized under the laws of the Philippines may,
upon registration with the Securities and Exchange Commission (SEC) and the Department of Trade and Industry (DTI), or in case of foreign owned single proprietorships, with the DTI,
Engage or invest in the retail trade business, subject to the following categories.
NON-LUXURY RETAIL
$2.5M PUC - NO FOREIGN
Category A – Enterprises with paid-up capital of the equivalent in Philippine Peso of the than Two million five hundred thousand US dollars (US$2,500,000.00) shall be reserved exclusively for Filipino citizens and corporations wholly owned by Filipino citizens.
NON-LUXURY RETAIL
^$2.5M-7.5M - FOREIGN
a.
EXC: FIRST 2 YRS OF EFF OF RTL
-
60% MAX EQUITY
b.
$830,000 MIN
Category B – Enterprises with a minimum paid-up capital of the equivalent in Philippine Pesos of two million five hundred thousand US dollar (US$2,500,000.00) but less than Seven million five hundred thousand US dollars (US$7,500,000.00) may be wholly owned by foreigners except for the first two (2) years after the effectivity of this Act wherein foreign participation shall be limited to not more than sixty percent (60%) of total equity.
^$7.5M - FOREIGN
a.
$830,000 MIN
Category C – Enterprises with a paid-up capital of the equivalent in Philippine Pesos of Seven million five hundred thousand US dollars (US$7,500,000.00), or more may be wholly owned by foreigners:
Provided, however, That in no case shall the investments for establishing a store in Categories B and C be less than the equivalent in Philippine pesos of Eight hundred thirty thousand US dollars (US$830,000.00).
LUXURY PRODUCTS
$250,000 PER STORE - FOREIGN
Category D – Enterprises specializing in high-end or luxury products with a paid-up capital of the equivalent in Philippine Pesos of Two hundred fifty thousand US dollars (US$250,000.00) per store may be wholly owned by foreigners.
FOREIGNER MUST:
MAINTAIN MINIMUM CAPITAL
The foreign investor shall be required to maintain in the Philippines the full amount of the prescribed minimum capital
2 more items...
$50M
NET WORTH IN PARENT
and Fifty million US dollar (US$50,000,000.00) net worth in its parent corporation for category D;
[Sec 8.]
^80% F-EQUITY -> P.O. 30% F-EQUITY
Section 7. Public Offering of Shares of Stock. –
All retail trade enterprises under Categories B and C in which foreign ownership exceeds eighty percent (80%) of equity shall offer a minimum of thirty percent (30%) of their equity to the public through any stock exchange in the Philippine within eight (8) years from their start of operations.
$200M
NET WORTH MIN IN PARENT:
Section 8. Qualification of Foreign Retailers. -
No foreign retailer shall be allowed to engage in retail trade in the Philippine unless all the following qualifications are met:
(a) A minimum of Two hundred million US dollar (US$200,000,000.00) net worth in its parent corporation for Categories B and C,
[Sec 8.]
1 more item...
30% of that 80%?
Or like Cut down the 30% of the total equity of the corporation
FOREIGN INVESTORS ACQUIRING SHARES OF STOCK OF LOCAL RETAILERS
FOREIGN'S ACQUISITION OF SHARES:
$2.5M or ABOVE -> 60% EQUITY MAX
a.
WITHIN FIRST 2 YRS OF EFF RTL
-
AFTER: REMAINDER MAY BE ACQUIRED
--
CONSISTENT WITH ALLOWABLE FOREIGN PARTICIPATION
Section 6. Foreign Investors Acquiring Shares of Stock of Local Retailers. -
Foreign investors acquiring shares from
existing retail stores
whether or not publicly listed
whose net worth is in the EXCESS of the peso equivalent of Two million five hundred thousand US dollars (US$2,500,000.00)
may purchase only up to a maximum of sixty percent (60%) of the equity thereof within the first two (2) years from the effectivity of this Act and thereafter, they may acquire the remaining percentage consistent with the allowable foreign participation as herein provided.
QUALIFICATIONS
NET WORTH MIN IN PARENT:
-
$200M - B & C
-
$50M - D
Section 8. Qualification of Foreign Retailers. -
No foreign retailer shall be allowed to engage in retail trade in the Philippine unless all the following qualifications are met:
(a) A minimum of Two hundred million US dollar (US$200,000,000.00) net worth in its parent corporation for Categories B and C, and Fifty million US dollar (US$50,000,000.00) net worth in its parent corporation for category D;
[Sec 8.]
5 RETAILING BRANCHES
a.
IN OPERATION
b.
GLOBALLY
(b) (5) retailing branches or franchises in operation anywhere around the word
5-YEAR TRACK RECORD
(c) Five (5)-year track record in retailing; and
1 more item...
$25M IN ONE STORE
unless such retailer has at least one (1) store capitalized at a minimum of Twenty-five million US dollars (US$25,000,000.00);
1 more item...
DTI PRE-QUALIFIES F-RETAILERS
The DTI is hereby authorized to pre-qualify all foreign retailers, subject to the provisions of this Act, before they are allowed to conduct business in the Philippine.
DTI RECORDS QUALIFIED F-Rs
The DTI shall keep a record of Qualified foreign retailers who may, upon compliance with law, establish retail stores in the Philippine.
DTI TRACKS PARENT COMPANY
It shall ensure that parent retail trading company of the foreign investor complies with the qualifications on capitalization and track record prescribed in this section
NEDA'S BOARD'S LIST & ANNUAL REPORT ON FOREIGN RETAILERS OF LUXURY GOODS
The Inter- Agency Committee on Tariff and Related Matters Authority (NEDA) Board shall formulate and regularly update a list of foreign retailers of high-end or luxury goods and render an annual report on the same to Congress.
1ST 10 YRS AFTER EFF OF RTL
MIN-AGG-COST OF STOCK INVENT OF F-R
30% - B & C IN PH
10% - D IN PH
Section 9. Promotion of Locally Manufactured Products. - For ten (10) year after the effectivity of this Act,
at least thirty percent
(30%) of the aggregate cost of the stock inventory of foreign retailers falling under Categories B and C and ten percent
(10%) for category D shall be made in the Philippines.
PROHIBITED ACTIVITIES
CERTAIN RETAILING ACTIVITIES
OUTSIDE ACCREDITED STORES THRU:
a.
MOBILE/ROLLING STORES
b.
SALES REPS
c.
DOOR-TO-DOOR SELLING
d.
RESTOS
e.
SARI-SARI STORES
f.
SIMILAR RETAILING ACTIVITIES
Section 10. Prohibited Activities of Qualified Foreign Retailers. –
Qualified foreign retailers shall not be allowed to
engage in
certain retailing activities
outside their accredited stores
through the use of mobile or rolling stores or carts,
the use of sales representatives,
door-to-door selling,
restaurants and sari-sari stores and
such other similar retailing activities:
2 more items...
POLICY: TO PROMOTE
CONSUMER WELFARE
PRODUCTIVE INVESTMENT
BRING DOWN PRICES for:
a.
FILIPINO CONSUMER
Section 2. Declaration of Policy. –
It is the policy of the State
to promote consumer welfare in
attracting promoting and welcoming productive investment that will bring down price for the Filipino consumer,
CREATE MORE JOBS
PROMOTE TOURISM
ASSIST SMALL MANUFACTURERS
STIMULATE ECONOMIC GROWTH
create more jobs, promote tourism, assist small manufacturers, stimulate economic growth and
GLOBALLY COMPETITIVE PH GOODS
enable Philippine goods and services to become globally competitive through the liberalization of the retail trade sector.
MEANS: LIBERALIZE
PH RETAIL INDUSTRY
Pursuant to this policy, the Philippine retail industry is hereby liberalized
PURPOSE: TO ENCOURAGE
PH & COMPETITIVE RETAIL TRADE
FOR PH CONSUMER
a.
LOWER PRICES
b.
HIGHER QUALITY
c.
BETTER SERVICES
; and
d.
WIDER CHOICES
to encourage Filipino and competitive retail trade sector in the interest of empower the Filipino consumer through lower prices, higher quality goods, better services and wider choices.