Title
Restrictions on Foreign Use of Economic Documents
Law
Presidential Decree No. 1718
Decision Date
Jul 21, 1980
Presidential Decree No. 1718 safeguards the national interest by prohibiting the unauthorized transfer of vital documents and information to foreign entities and requiring prior written clearance for the enforcement of foreign judgments, with penalties for violators.
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Restrictions on Transfer of Documents and Information

  • Prohibits taking, sending, removing, or delivering documents/information related to business in the Philippines to foreign persons/governments without authority.
  • Allows exceptions when the transfer is:
    • Part of regular practice to head office or parent company abroad.
    • Connected to proposed business transactions.
    • Necessary for negotiation or conclusion of business transactions.
    • Required under an international agreement.
    • Authorized by the President's designated representatives.

Definition of "Document or Information"

  • Broadly defined to include originals and non-identical copies.
  • Encompasses all forms of recorded data: written, printed, typed, recorded, graphic, photographic, sound recordings, and computer-stored information.
  • Includes various records such as telexes, books of account, reports, memoranda, telegrams, diaries, appointment and log books, notes, communications, bulletins, charts, circulars, maps, expense accounts, surveys, bid materials, sales reports, price lists, and others.
  • Covers any device or record that stores or records such material.

Prohibition on Enforcement of Certain Foreign Judgments

  • Philippine courts or administrative bodies shall not entertain enforcement of foreign judgments against Philippine entities without prior written clearance from Presidential representatives:
    • Judgments awarding multiple, double, treble, or multiplied damages arising from alleged anti-trust cases.
    • Judgments based on laws dealing with anti-competitive agreements or practices.
    • Judgments on claims for contribution related to the above.
    • Proceedings relying on the restricted documents or information.

Reporting Foreign Legal Demands

  • Persons served with foreign legal demands involving restricted documents must inform the President's designated representatives.
  • Presidential representatives decide on compliance with such demands.
  • The President shall promulgate necessary rules or regulations to implement this process.

Penalties for Violations

  • Violation of the Decree or related orders leads to:
    • Imprisonment up to three years.
    • Fine up to P100,000.
    • Or both, at the court's discretion.
  • For juridical entities, penalties apply to officers responsible for violation.

Repealing Clause

  • Existing laws, orders, or regulations inconsistent with this Decree are repealed or modified accordingly.

Severability Clause

  • If any provision is declared unconstitutional or invalid, the remaining provisions continue in effect.

Effectivity Clause

  • The Decree takes effect immediately upon promulgation.

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