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FILIPINIZATION LAWS UNDER THE CONSTITUTION: Art. XIV. Sec. 5 - Franchise, certificate or authorization for the operation of a public utility shall be granted only to citizens of the Philippines or to corporation at least 60% of the capital of which is owned by such citizens. Participation of foreign investors in governing body shall be limited to their proportionate share in the capital. Art. XIV. Sec. 9 - Disposition, exploration, development, exploitation or utilization of natural resources shall be limited to citizens of the Philippines or to corporations or associations at least 60% of the capital of which is owned by such citizens. Art. XIV. Sec. 14 - Private land shall not, except by hereditary succession, be transferred or conveyed except to individuals, corporations or associations qualified to acquire or hold lands of the public domain. Art. XV. Sec. 8(1) - Ownership and management of mass media shall be limited to citizens of the Philippines or to corporations or associations wholly owned and managed by such citizens. Art. XV. Sec. 7(2) - The governing body of every entity engaged in commercial telecommunications shall in all cases be controlled by citizens of the Philippines. Art XV. Sec. 8(7) - Educational institutions other than those established by religious order, mission boards, and charitable organizations, shall be owned solely by citizens of the Philippines, or corporations or associations 60% of the capital of which is owned by such citizens. Control and administration of educational institutions shall be vested in citizens of the Philippines. UNDER EXISTING STATUES: Anti-Dummy Law: C.A. No. 108, as amended by R.A. No. 134 and P.D. No. 715 - Penalizes persons not qualified under nationalization laws who intervene in the management, operation, administration or control of the nationalized business, privilege or activity, except technical personnel whose employment may be specifically authorized by the Secretary of Justice (Sec.2-A). Atomic Energy: R.A. No. 5207 - issuance of license to acquire, own or operate atomic energy facility limited to Philippine citizens or entities with at least 60% Philippine capital. Banking R.A. No. 337, as amended by P.D. No. 71 - 70% of voting stock of the banking institutions shall be owned by Filipino citizens, except new banks established by consideration of branches or agencies of foreign banks in the Philippines. Two-thirds of members of board of directors shall be Filipino citizens. R.A. No. 4093, as amended by P.D. No. 119 - 70% of voting stock of the private development banks shall be owned by Filipino citizens, except new banks established by consideration of branches or agencies of foreign banks in the Philippines. Two-thirds of the members of the board of directors shall be Filipino citizens. R.A. No. 720, as amended by R.A. Nos. 1097, 5939 & P.D. No. 122 - Capital stock of rural banks shall be 100% owned and held (directly or indirectly) by Filipino citizens. All members of the board of directors shall be Filipino citizens. R.A. No. 3779, as amended by R.A. No. 4378, Sec. 4(b) - 60% of the capital stock of savings and loan associations shall be owned by citizens of the Philippines. Two-thirds of the members of the Board of Directors shall be Philippine citizens Civil Aeronautics: R.A. No. 776 - Grantee of permit to engage in domestic air commerce and/or air transportation must be Filipino citizens or a corporation or association with majority Filipino capital. Coconut Industry: R.A. No. 1369 - Grantee of loans to finance establishment of coconut centrals and mills must be Filipino citizens or a corporation or association with majority Filipino capital. Cooperatives: R.A. No. 2023 - Non-agricultural cooperative associations may be organized by 15 or more persons who are citizens of the Philippines. Cottage Industry: R.A. No. 3470, as amended by R.A. No. 5326 - All cottage industries shall be owned and operated by Philippine citizens or by juridical person with at least 75% Philippine capital. All members of its Board of Directors shall be Filipino citizens. Educational Intuitions: P.D. No. 176 - All educational institutions other than those which are already established or which may hereafter be established by religious orders, mission boards and charitable organizations, shall be owned solely by citizens of the Philippines, or corporations or associations at least 60% of which is owned by such citizens. Control and administration of all education institutions already established or hereafter to be established in the Philippines shall be vested in the citizens of the Philippines. Financing Companies: R.A. No. 5980 - at least 60% of the capital stock of financing companies should be owned by citizens of the Philippines; 2/3 of the members of the board of directors of the corporation must be Filipino citizens; In case of partnerships, all the managing partners must be citizens of the Philippines. Fishing and Other Aquatic Rights: P.D. No. 704, as amended by P.D. No. 1015 The issuance of license to operate commercial fishing boat and pearl fishing boat in the territorial waters of the Philippines is limited to citizens of the Philippines or a juridical person with at least 60% Filipino capital. (Sec. 17 & 20 P.D. No. 704) The issuance of license as fisherman to work on vessel engaged in commercial fishing is limited to citizens of the Philippines. (Sec. 17, P.D. No. 704) The issuance of license to exploit, occupy, produce, culture, capture or gather fish or fry or fishery/aquatic products is limited to citizens of the Philippines or a juridical person 60% of the capital of which is owned by the citizens of the Philippines (Sec. 16 P.D. No. 704 in relation to Sec. 9, Art. XIV, New Constitution). Foreign Loans: R.A. No. 4860, Sec. 3 - A, as amended by R.A. No. 6142 and P.D. No. 81 - Re lending by government financial institutions to private sector of foreign loans obtained by these institutions limited to Filipino citizens, partnerships, cooperatives, associations or private corporations at least 70% of the outstanding and paid-up capital of which shall be held by Filipinos until loan is fully paid. Forest Lands: R.A. 121 - Leasing or granting of permits to use forest land for special purposes limited to citizens of the Philippines or corporations or associations with at least 60% Philippine capital. Under Public Act 3674, the granting of permit, license or concession for cutting and gathering timber or other forest products forest is limited to citizens of the Philippines or to corporation or association at least 60% the capital of which is owned by Filipino citizens (see also Sec. 59 of P.D. 705). Industrial tree plantations and tree farm is limited to citizens of the Philippines or corporations or associations 60% of the capital of which is owned by citizens of the Philippines (Secs. 34 and 59, P.D. 705). Geothermal Energy: R.A. No. 5092 - Re granting of permits and/or leases for exploration, tapping and utilization of geothermal energy, natural gas methane gas. Lesse or permittee must be citizens of the Philippines or juridical person with at least 60% Filipino capital. (Sec. 6) Government Contracts: R.A. No. 5183, Sec. 4 - R awarding of contracts for the supply to, or procurement by, any government-owned or controlled corporation of materials, equipment, goods and commodities. Limited to Filipino citizens or juridical persons, 60% of the capital stock of which must be owned by Filipino citizens. R.A. No. 5279 - Contract for construction of public works project by private persons limited to contractors with at least 60% Filipino capital. (Sec. 1) Government Obligations: R.A. No. 304 (Back Pay Law), as amended by R.A. No. 879 - Re acceptance or discounting of back pay negotiable certificates of indebtedness limited to Filipino citizens, banks or financial institutions with at least 60% Filipino capital. Investment Companies: R.A. No. 5186 - BOI registered enterprises engaged in any area declared as preferred "no-pioneer" in the Investment Priorities Plan is limited to corporations at least 60% capital stock of which is owned and held by Philippine nationals, and at least 60% of the members of the Board of Directors of which are citizens of the Philippines. R.A. No. 6135 - Registration as export producer, service exporter or export trader, limited to citizens of the Philippines, or juridical entity with at least 60% Philippine capital. /Sec. 6(b)/ Availment of incentives for registered export traders limited to Philippine citizens or juridical entity with at least 70% Philippine capital. /Sec. 6(c)/ Labor: The issuance of a license or authority to recruit or hire workers is limited to citizens of the Philippines or corporations, partnerships or entities at least 60% of the authorized capital stock of which is owned and/or controlled by Filipino citizens. (Section 27 P.D. No. 442 as amended by P.D. 850) Minerals and Mineral Lands/Coal and Petroleum: Public Act No. 2719 (Coal Land Act), as amended by Act No. 3516, R.A. No. 740 and P.D. No. 972 - Lessee of unreserved and unappropriate coal-bearing lands must be Filipino citizens or juridical person with at least 60% capital. C.A. No. 137 (Mining Act), as amended No. 309 R.A. Nos. 225, 746 and 4388 and P.D. 463 - Disposition, exploitation, development or utilization or mine mineral lands of the public domain, limited to Filipino citizens corporations or associations with at least 60% Filipino capital R.A. No. 387 as amended by P.D. No. 910 (Petroleum Act of 1949) Re exploration, development, exploitation, or utilization of petroleum resources; concessionaire or transferee must be Filipino citizens or juridical person with 60% Filipino capital. (See P.D. Nos. 87 & 782 re conversion of petroleum concessions to service contracts) P.D. No. 1101. The exploration and exploitation of radioactive minerals containing uranium and thorium is limited to citizens of the Philippines or corporations or association of the capital of which is owned by Filipino citizen (Sections 2 & 3; see also C.A. No. 137 as amended, supra). Pawnshops: P.D. No. 114 - Regulating the establishment and operation of pawnshops - Only Filipino citizen or partnerships at least 70% of the capital of which is owned by Filipino citizens a corporation at least 70% of the voting capital stock is owned by the citizens of the Philippines, or if there be no capital stock is owned by the citizens of the Philippines, or if there be no capital stock, at least 70% of the members entitled to vote are citizens of the Philippines, may establish pawnshops. (Sec. 8) Private Lands: Act No. 3038 - Sale or lease of lands of the private domain of the Government of the Philippines limited to persons qualified to acquire public lands. R.A. No. 133, as amended by R.A. Nos. 4381 & 3882 - Mortgage of private real property may be any person, but only Filipino citizens or corporations or associations with 60% Filipino capital can bid for such mortgaged property if foreclosed. R.A. No. 267, as amended by R.A. No. 4981 - Re expropriation by cities, municipalities and provinces of home sites and landed estates for resale, preference in sales given to Filipino occupants and veterans. C.A. No. 310 - Punishing the transfer of private agricultural lands to disqualified persons in violation of the Constitution. Public Lands: C.A. No. 141 (Public Land act), as amended - Applicant for homestead, free patens and judicial confirmation of imperfect or incomplete title to public lands shall be Filipino citizen. Applicants for sale and lease shall be Philippine citizens or juridical person with at least 60% Filipino capital. R.A. No. 274 - Re subdivision and sale of lands within military reservation no longer needed for military purpose; sale limited to Filipino citizens or corporations or associations with at least 60% Filipino capital. R.A. No. 477 - Lease and sale of lands transferred to the Republic of the Philippines under the Philippine Property Act of 1946 and R.A. No.8 and all public lands and improvements thereon transferred from the Bureau of Lands to NAFCO, limited to Filipino citizens or corporations or associations with at least 60% Filipino capital. R.A. No. 730 - Sale without public auction of public lands for residential purposes, limited to Filipino citizens. R.A. No. 782 - Issuance of free patent to occupants of disposable agricultural public lands, limited to natural-born citizens of the Philippines. C.A. No. 452, as amended by R.A. Nos. 1252 & 3985 - Re granting of leases or permits for pasture purposes, lessee or permittee must be citizens of the Philippines or juridical persons with at least 60% Filipino capital. Lease and sale of marshy lands and lands bordering shores or banks of navigable rivers or lakes limited to Filipino citizens or to corporations or associations 60% of the capital of which is owned by Filipino citizens. (R.A. No. 293) Public Utilities: C.A. No. 146 (Public Service Act), as amended by C.A. No. 454 and R.A. Nos. 178, 723, 1270, 2031, 2677 and 3792 - Issuance of certificates of public convenience and necessity limited to Filipino citizen or juridical person with at least 60% Filipino capital. Reparations: R.A. No. 1789, as amended by R.A. Nos. 2611, 3079, & P.D. Nos. 332 & 934 - Capital goods and services received as reparations available only to Filipino citizens and entities wholly owned by Filipino citizens. Goods other than capital goods procured from reparations shall be sold only to bona fide retailers who are Filipino citizens or entities wholly owned by Filipino citizens. Retail Trade: R.A. No. 1180 (Retail Trade Nationalization Law) - Retail trade business is limited to Filipino citizens or juridical persons with 100& Filipino capital. R.A. No. 1292 - Re granting of credit facilities for the operation of retail business, grantee must be Filipino citizen who is a bona fide retailer. Rice & Corn: R.A. No. 3018, as amended by P.D. No. 194 - Only Filipino citizens or 100% Filipino-owned corporation may engage in the rice and/or corn industry: foreign equity participation in alien or business organization that may be allowed by NGA to engage in the rice and corn industry shall be transferred to Filipino citizens within period established by NGA. R.A. No. 3452, as amended by R.A. 4643, Sec. 1 - Introducing a system of payment in the purchase of palay, rice and corn against warehouse receipt or quedan. Only Filipino banks for the purpose of paying for palay, rice and corn sold to the Administration. Shipping: Sec. 806, R.A. No. 2937 a amended by P.D. No. 761. The registration and issuance of a certificate of Philippine registry of a vessel of domestic ownership and of Philippine registry of a vessel of domestic ownership and of more than 15 tons gross is limited to citizens of the Philippines or corporations or associations organized under the laws of the Philippines at least sixty per centum of the capital stock or capital of which is wholly owned by citizens of the Philippines, and, in the case of corporations or associations which will engage in coastwise trade the president or managing directors thereof shall be such citizens: Provided, That the members of the crew of the vessel, except specialized fishing vessels, shall all be citizens of the Philippines. (See also P.D. No. 866 allowing the temporary registration of foreign-owned vessels under certain conditions) Sec. 1176-1/4 Rev. Adm. Code; Sec. 812, Tariff & Customs Code Re Issuance of License of yachts exclusively for pleasure; licensee must be Filipino citizens. Sec. 1218, Rev. Adm. Code; Sec. 911, Tariff & Customs Code Re Issuance of bay and river license, owner of vessel must be Filipino citizens or judicial person with at least 75% Filipino capital. R.A. No. 1407 (Phil. Overseas Shipping Act), as amended by R.A. Nos. 4146, 5963 & 6106 and P.D. Nos. 744, 764 - Any citizen of the Philippines, or any association or corporation organized under the laws of the Philippines at least 60% of the capital of which is owned by the citizens of the Philippines may engage in overseas shipping business and in the construction of modern vessels for overseas service. (Sec. 1, R.A. No. 1407, as amended) Re exemption from payment of taxes on income derived from overseas shipping business and in the construction of modern vessels and exemption from customs duty and compensating tax on machineries, equipments and materials used for shipbuilding and ship repair, construction of boats for overseas service; limited to Filipino citizens or juridical person with at least 60% Filipino capital. (Sec. 2, R.A. No. 1407, as amended by P.D. No. 764; Sec. 1(a) P.D. No. 666) Grantee of loans to finance construction, purchase, acquisition and operation of ocean-going vessels, must be Filipino citizen or juridical person with at least 60% Filipino capital. (Sec. 3, R.A. No. 1407) Grantee of loans to finance shipbuilding, ship repair, shipbuilding structures and facilities and to finance and purchase and acquisition of necessary equipments needed for shipbuilding purposes must be Filipino citizen or juridical person 60% of the capital of which are owned by Filipino citizens. (sec. 3(a), R.A. No. 1407 as amended by P.D. No. 744) Re sale of vessels mortgaged to the government, vendee must be Filipino citizen or juridical person with at least 60% Filipino capital. (Sec. 7, R.A. 1407) Mortgage or encumbrance on vessels engaged in overseas shipping business may be constituted only by citizens of the Philippines or juridical entities with at least 75% Philippine capital. (Sec. 111/2, R.A. 6106) Tobacco: P.D. No. 62 - Amending Tobacco Laws concerning the Virginia Tabacco Administration Board to import foreign leaf tobacco for blending purposes limited to bona fide cigarette manufactures, owned or controlled by Filipino citizens. (Sec. 1) Wild Flowers & Plants: Act No. 3983 - Licenses for the collection, possession, transportation, sale or export of protected wild plants and flowers granted only to Philippine citizens or corporations of associations with 61% capital of which is owned by citizens of the Philippines. 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