Foreign Equity Participation Requirements
- Foreign-owned businesses may engage in retail trade upon registration with SEC (partnerships, corporations) or DTI (single proprietorships).
- Minimum paid-up capital for foreign retailers is ₱25,000,000.
- Foreign retailer’s country of origin must allow Filipino retailers entry.
- For foreign retailers with more than one store, minimum investment per store is ₱10,000,000.
- The per-store investment requirement does not apply to foreign retailers already engaged legitimately before this amendment.
- Proof of qualification under RA 8762 and related rules must be submitted to DTI.
- Paid-up capital must be maintained in the Philippines unless notified to SEC or DTI about repatriation and cessation of operations.
- SEC or DTI monitors actual use of paid-up capital in Philippine operations.
- Failure to maintain paid-up capital without proper notification subjects foreign retailers to penalties or restrictions on future business.
- Certification from BSP is required for inward remittance of capital or proof of capital deposit in a Philippine bank for registration.
Periodic Review of Paid-up Capital Requirement
- DTI, SEC, and NEDA will jointly review the minimum paid-up capital every three years after the Act’s effectivity.
- Recommendations from these agencies will be submitted to Congress.
Labor Policy on Employment of Foreign Nationals
- Employment of foreign nationals by foreign retailers must comply with the Labor Code.
- Nonavailability of competent, able, and willing Filipino citizens must be determined before hiring foreign nationals.
- State policy promotes preferential use of Filipino labor as per the Constitution.
Deleted Provisions
- Sections 8 and 9 of RA 8762 are deleted without replacement.
Encouragement to Promote Locally Manufactured Products
- Foreign retailers are encouraged to stock inventories of Philippine-made products.
Implementing Agencies and Rulemaking
- SEC is responsible for monitoring foreign partnerships, associations, and corporations engaging in retail trade.
- DTI is responsible for single proprietorships.
- Both agencies keep records of registered retail entities.
- Within 90 days after approval, DTI, in coordination with SEC and NEDA, shall issue implementing rules and regulations.
Penalties for Violations
- Imprisonment from 4 to 6 years.
- Fines ranging from ₱1,000,000 to ₱5,000,000.
- Penalties apply to responsible officers in partnerships, corporations, or associations.
- Deportation for non-citizen offenders after sentence.
- Additional dismissal and permanent disqualification from public office if offender is a Filipino public officer or employee.
Separability Clause
- Invalidity or unconstitutionality of any provision does not affect other provisions which remain effective.
Repealing Clause
- All laws, decrees, orders, and issuances inconsistent with this Act are repealed, amended, or modified accordingly.
Effectivity
- The Act takes effect 15 days after publication in the Official Gazette or two newspapers of general circulation in the Philippines.