Description of Measure: If any investor desires to engage in a fishery in the exclusive economic zone, he shall apply to the Department of Fisheries in the prescribed form. Such an investor shall form a joint venture with State organization (or) existing joint venture company or private Myanmar Company, subject to the approval of the Government. Provided that in exceptional circumstances, he may apply for permission to operate a fishery in other fisheries waters.(Chapter 3, para 6 at Law Relating to the Fishing Rights of Foreign Fishing Vessels)(1989). Such an investor shall initially discuss with the Department of Fisheries under the Ministry of Livestock and Fishery. The Ministry shall submit the proposal to Cabinet through Myanmar Investment Commission (MIC) and Trade Council. After getting approval from Cabinet, MIC will issue the investment permit. An investor who has been granted a fishery on application under section 6 shall obtain a licence and register at the Department of Fisheries.
Source of Measure: - Law relating to the Fishing Right of Foreign Fishing Vessels (1989). - Myanmar Marine Fisheries Law (1990).
Justification: For fishing of marine fish, prawn, and other aquatic organism, different treatment is given to Myanmar citizens according to the provisions of the Myanma Marine Fisheries Law (1990).
7.
Sector: Services Incidental to Fishery
Sub-Sector: - Services related to processing on board for fish, crustaceans and mollusks and other related services, exploitation of sea-products. - Services related to exploitation of fresh water fisheries. - Quarantine, quality control of aquaculture and processing products, services on supply of feed, medicines and chemical for aquaculture.
Industry Classification: CPC 88200
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: If any investor desires to engage in fishery activities in the exclusive economic zone, he shall apply to the Department of Fisheries in the prescribed form. Such an investor shall form a joint venture with State organization (or) existing joint venture company or private Myanmar Company, subject to the approval of the Government. Provided that in exceptional circumstances, he may apply for permission to operate fishery activities in other fisheries waters. (Chapter 3, para 6 at Law Relating to the Fishing Rights of Foreign Fishing Vessels)(1989) Such an investor shall initially discuss with the Department of Fisheries under the Ministry of Livestock and Fishery. The Ministry shall submit the proposal to Cabinet through Myanmar Investment Commission (MIC). After getting approval from Cabinet, MIC will issue the investment permit. An investor who has been granted such permit on application under Chapter 3 para 6 shall obtain a licence and register at the Department of Fisheries. Foreign investor shall comply not only with the regulations, directives and notifications of Department of Fisheries but also international rules and regulations.
Source of Measure: - Law relating to the Fishing Rights of Foreign Fishing Vessels (1989). - Myanma Marine Fisheries Law (1990) - Freshwater Fisheries Law (1991) - Law Amending the Myanmar Marine Fisheries Law (1993) - Law Amending the Law relating to the Fishing Rights of Foreign Fishing Vessels (1993)
Justification: For fishing of marine fish, prawn, and other aquatic organism, different treatment is given to Myanmar citizens according to the provisions of the Myanma Marine Fisheries Law (1990)
8.
Sector: Mining and Quarrying, and Services Incidental to Mining and Quarrying
Sub-Sector: - Exploration and Extraction of Natural Gas (ISIC 1110) - Exploration and Extraction of Petroleum (ISIC 1110) - Services relating to Exploration and Extraction of Natural Gas (CPC 88300) - Services relating to Exploration and Extraction of Petroleum (CPC 88300)
Industry Classification: ISIC 1110 CPC 88300
Level of Government: Central
Type of Obligation: National Treatment Senior Management and Board of Directors
Description of Measure: According to the section-3 of State-owned Economic Enterprises (SEEs) Law (1989), Exploration and Extraction of Natural Gas and Petroleum are restricted activities to be carried out solely by the State. However, investor who wants to engage in these activities shall initially discuss with the Ministry of Energy under Production Sharing Contract. The Ministry shall submit the proposal to Cabinet through MIC and Trade Council. After getting approval from Cabinet, the Government will issue notification subject to the Stateowned Economic Enterprises Law. The Management Committee shall consist of a total of 7 members, 4 from the Myanmar side, one of whom shall act as Chairman and 3 from the investor side according to Production Sharing Contract or according to the agreement between Ministry of Energy and the investor.
Source of Measure: State-owned Economic Enterprises Law (1989).
9.
Sector: Services incidental to Mining and Quarrying
Sub-Sector: Gemstone
Industry Classification: CPC 88300
Level of Government: Central
Type of Obligation: National Treatment Senior Management and Board of Directors
Description of Measure: Foreigners and foreign companies are not allowed for prospecting, exploration and mining of gemstone. Services relating to prospecting, exploration and mining of gemstone are only allowed to the Companies formed solely with Myanmar Citizen under the Special Company Act 1950. The composition of Joint Management Committee may consist of a minimum of five members and to be mutually agreed by Product Sharing Contract (PSC) Partners. A minimum of three members from Myanmar side one of who shall act as chairman and two members from the partner company. The Joint Management Committee is responsible for assisting the General Manager in decision making in financial, technical and procurement issues.
Source of Measure: - Ministerial Policy - State-owned Economic Enterprises Law (1989) - Myanmar Gemstone Law (1995)
10.
Sector: All Sector (Land Ownership)
Sub-Sector :
Industry Classification :
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: National Treatment may not apply to any measures affecting land property and natural resources associated with land (5). Land is owned by the State. However, government-owned lands, lands owned by the government department, organization and Private lands owned by the citizens can be leased up to initial 50 Years depending upon the category of business, industry and the volume of amount and extendable two consecutive terms of 10 years subject to the approval of the Myanmar Investment Commission.
The Farmland Law does not authorize the right of ownership, but provide land use certificate to have the right to utilize the land. The person who has the right to use the farmland shall have the following rights:
(a) right to have the farmland in possession, right to use the farm-land, right to enjoy the benefit arises from this right; (b) right to sell, mortgage, lease, exchange and give the whole or part of the farmland in accord with the stipulated terms and conditions; (c) right to accept the decision of the relevant court in accord with the existing law if the dispute arises relating to the inheritance of the right to use the farmland; (e) right to use for common interest with the investment of village co-operative or with the private investors for the development of agriculture in the farmland; (f) right to use the farm land for common interest, with the foreigner or the organization in which the foreigner is included, in accord with the Foreign Investment Law of the Republic of the Union of Myanmar by cooperating. Collection of land tax/revenue is yet to be decided by the State. The Vacant, Fallow and Virgin Lands Management Law permits for the agriculture, livestock breeding and affiliated economic enterprise in respect of the period: (g) In the agricultural business: (i) for perennial plant and orchard, permit not exceeding 30 years commencing from the year of permission: (ii) for seasonal crop, permit so long as there is breach of the stipulated terms and conditions (h) In the livestock breeding business, permit not exceeding 30 years commencing from the year of permission. (i) Permit multiple extension not exceeding 30 years in total depending upon the type of business after the expiry of the permitted period. (j) For the mineral production business permit will be granted in coordination with the ministry of mines of the Union Government. (k) For other lawful businesses permitted by the Government, permission will be granted in coordination with the respective Ministry of Union Government. (l) The Central Committee for The vacant, fallow and virgin Lands management shall determine the rate of security fees to be paid by the person who has obtained the right to cultivate or utilize the vacant, fallow and virgin lands in accordance with the type of business. (m) Depending upon the type of business and kind of crops, rate of land revenue to be collected and period for exemption of land revenue for cultivation and utilization of vacant fallow and virgin lands shall be decided by the Central Committee for vacant, fallow and virgin Lands. Investment by the foreigners and organizations Involving foreigners can be undertaken according to the approval of Myanmar Investment Commission.
Source of Measure : - The Transfer of Immovable Property Restriction Law (1987). - The Foreign Investment Law (2012) - The Foreign Investment Rule (2013) - Farmland Law (2012) - Farmland Rules (2012) - Vacant, Fallow and Waste Land Management Law (2012) - Vacant, Fallow and Waste Land Management Rules(2012)
11.
Sector: All Sectors
Sub-Sector: -
Industry Classification: -
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: Company incorporation
A foreign company, whether a hundred percent owned or a joint venture and a branch/ representative office, is required to apply and obtain a permit for business operation. A joint venture with the State equity formed under the Special Company Act 1950 is exempted from obtaining a permit.
Source of Measure:
- Myanmar companies Act (1914)
- Special Company Act (1950)
- Directives
Philippines
1.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Sources of Measure PHILIPPINES : All Sectors : - : - : Central and Regional : National Treatment : National Treatment shall not apply to any measure affecting land and property associated with land, including their acquisition, ownership, lease, development, utilization, conservation and protection. : -1987 Constitution of the Republic of the Philippines. -Civil Code of the Philippines (Republic Act (R.A.) No. 386). -Public Land Act (Commonwealth Act (C.A.) No. 141). -Indigenous Peoples Rights Act of 1997 (R.A. No. 8371). -Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179) -Agriculture and Fisheries Modernization Act of 1997 (R.A. No. 8435). -Special Purpose Vehicle Act of 2002 (R.A. No. 9182). -Investors' Lease Act (R.A. No. 7652). -Comprehensive Agrarian Reform Law of 1988 (R.A. No. 6657, as amended by RA No. 9700). -Philippine Mining Act of 1995 (R.A. No. 7942). -Philippine Fisheries Code of 1998 (R.A. No. 8550). -Water Code of the Philippines (Presidential Decree (P.D.) No. 1067). -Condominium Act (R.A. No. 4726). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (Executive Order (E.O.) No. 220). -Presidential and Administrative Issuances.
2.
Sector : All Sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to: 1. a right, franchise, privilege, property or business, which is expressly reserved by the Constitution or the laws of the Philippines to its citizens and its qualified entities that has been transferred, conveyed or leased to a foreign investor not possessing the prescribed requisites by the Constitution or such laws; and 2. a foreign investor that intervenes in the management, operation, administration or control of such businesses which are reserved for Filipinos, whether such investors are officers, employees or laborers therein, except technical personnel whose employment may be specifically authorized by the Secretary of Justice. Note: The election of aliens as members of the board of directors or governing body of corporation or associations engaging in partially nationalized activities shall be allowed in proportion to their allowable participation or share in the capital of such entities. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Act to Punish Acts of Evasion of the Laws on the Nationalization of Certain Rights, Franchises or Privileges (C.A. No. 108, as amended by P. D. No. 715). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
3.
Sector : All sectors Sub-Sector : - Industry Classification : - Level of Government : Central Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment shall not apply to measures affecting the establishment of a corporation, partnership, sole proprietorship, association or branch office of a foreign corporation. The operations of these entities shall be subject to their continuing compliance with registration and qualification requirements. Domestic corporations shall comply with the following requirements: 1. Majority of the incorporators must be residents of the Philippines. 2. Corporate secretary shall be a resident and citizen of the Philippines. 3. Treasurer shall be a resident of the Philippines 4. Majority of the directors must be residents of the Philippines. Branch of a foreign corporation shall have at least one resident agent in the Philippines. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Corporation Code of the Philippines of 1980 (Batas Pambansa (B. P.) Blg. 68). -Presidential and Administrative Issuances.
4.
Sector : All sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Description of Measure : National Treatment shall not apply to any measure relating to registration of foreign investment (equity and debt) and foreign loans with the Bangko Sentral ng Pilipinas. Note: Registration of a foreign investment (equity and debt) with the Bangko Sentral ng Pilipinas (BSP) is required if the foreign exchange needed to service the repatriation of capital and the remittance of dividends, profits and earnings which accrue thereon shall be sourced from Authorized Agent Banks (AABs) or AAB foreign exchange corporations. The approval and registration with BSP of a foreign loan is required if the foreign exchange needed to service the loan shall be sourced from AABs or AAB foreign exchange corporations, except in the following cases, which require BSP prior approval and registration regardless of source of foreign exchange for servicing: (a) public debt; and (b) private debt which are: (i) guaranteed by government corporations and/or government financial institutions, or by AABs; or (ii) granted by local banks and directly funded or collateralized by offshore loans or deposits. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179). -Foreign Borrowings Act of 1966 (R.A. No. 4860) -New Central Bank Act (R.A. No. 7653). -Manual of Regulations on Foreign Exchange Transactions (BSP Circular 645). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
5.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure PHILIPPINES : All sectors : : - : Central and Regional : National Treatment : National Treatment shall not apply to any measure relating to cooperatives. No foreign equity allowed. Note: As a general concept, a cooperative is a duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve a lawful common, social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles. : -1987 Constitution of the Republic of the Philippines. -Cooperative Code of the Philippines (R.A. No. 6938). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances
6.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : All sectors : : - : Central : National Treatment Senior Management and Board of Directors : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to: 1. certain areas of investments, when national interest1 so dictates; and, 2. regulation over foreign investments within its national jurisdiction and in accordance with its national goals and priorities, as embodied in the Philippines Medium Term Development Plan and provided that such measure shall not affect such existing investments, where such measure is necessary and would not constitute arbitrary or unjustifiable discrimination or a disguised restriction on foreign investments. : -1987 Constitution of the Republic of the Philippines. -Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179). -Omnibus Investments Code of 1987 (E. O. No. 226, as amended). -Special Economic Zone Act of 1995 (R.A. No. 7916, as amended by R.A. No. 8748). -Bases Conversion and Development Act of 1992 (R.A. No. 7227, as amended by R.A. No. 9400). -Medium Term Philippine Development Plan. -Presidential and Administrative Issuances. ∞ 1 Illustrative examples of NT and SMBD obligation-inconsistent measures in relation to national interest can include decreasing allowable foreign equity to allow more efficient control in the production, distribution and sale of commodities, e.g., oil, during an economic crisis or after a natural calamity, and consequent to the decrease in allowable foreign equity is the reduction in the allowable representation in the senior management and board of directors.
7.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : All sectors : : - : Central : National Treatment Senior Management and Board of Directors : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to small and medium sized domestic market enterprise2. Foreign equity is restricted to a maximum of 40% for domestic market enterprises with paid-in equity capital of less than the equivalent of USD 200,000 Note: Members of the Board of Directors or governing body of corporation or associations shall be allowed in proportion to their allowable participation or share in the capital of such enterprises. : -1987 Constitution of the Republic of the Philippines. - Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179). -Presidential and Administrative Issuances. ∞ 2 The concept of a small and medium sized domestic market enterprise is an enterprise with paid in equity capital of less than the equivalent of USD 200,000.00.
8.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure PHILIPPINES : All sectors : - : - : Central : National Treatment Senior Management and Board of Directors : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to portfolio investments, which shall include but not be limited to stocks listed in the Philippine Stock Exchange, bonds and other securities. : -1987 Constitution of the Republic of the Philippines. -Manual of Regulations on Foreign Exchange Transactions (BSP Circular 645). - Presidential and Administrative Issuances.
9.
Sector : All sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Description of Measure : National Treatment shall not apply to any measure relating to export requirement. Foreign-owned corporations/entities3 shall export at least 60% of their output to be considered an export enterprise and subject to certain terms and conditions4. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Foreign Investments Act of 1991 (R.A. No. 7042). -Export Development Act of 1994 (R.A. No. 7844). -Omnibus Investments Code of 1987 (E.O. No. 226, as amended). -Special Economic Zone Act of 1995 (R.A. No. 7916 as amended by R.A. No. 8748). -Bases Conversion and Development Act of 1992 (R.A. No. 7227, as amended by R.A. No. 9400). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Other economic and free port zones' laws. -Other Investment Laws. -Presidential and Administrative Issuances. ∞ 3 For guidance on foreign-owned corporations/entities, a "Philippine National" shall mean a citizen of the Philippines or a domestic partnership or association wholly owned by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least sixty percent (60%) of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines or a corporation organized abroad and registered as doing business in the Philippine under the Corporation Code of which one hundred percent (100%) of the capital stock outstanding and entitled to vote is wholly owned by Filipinos or a trustee of funds for pension or other employee retirement or separation benefits, where the trustee is a Philippine national and at least sixty percent (60%) of the fund will accrue to the benefit of Philippine nationals: Provided, That where a corporation and its non- Filipino stockholders own stocks in a Securities and Exchange Commission (SEC) registered enterprise, at least sixty percent (60%) of the capital stock outstanding and entitled to vote of each of both corporations must be owned and held by citizens of the Philippines and at least sixty percent (60%) of the members of the Board of Directors of each of both corporations must be citizens of the Philippines, in order that the corporation shall be considered a Philippine national. 4 Terms and conditions shall include but not be limited to equity restrictions, minimum investment thresholds, technology transfer, and quality requirements.
10.
Sector : All sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure affecting the grant of licenses and permits. This shall include but not be limited to equity restrictions, minimum investment thresholds, duration or validity, areas or hectarage and other conditions and requirements. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179). -Omnibus Investments Code of 1987 (E.O. No. 226, as amended). -People's Small-Scale Mining Act of 1991 (R.A. No. 7076). -Philippine Mining Act of 1995 (R.A. No. 7942). -Magna Carta of Small Farmers (R.A. No. 7607). -Decree Authorizing Aliens as well as Associations, Corporations or Partnerships owned in whole or in part by Foreigners to Engage in the Rice and Corn Industry, and for other purposes (P.D. No. 194). -Agriculture and Fisheries Modernization Act of 1997 (R.A. No. 8435). -Revised Forestry Code (P.D. No. 705). -Special Economic Zone Act of 1995 (R.A. No. 7916, as amended by R.A. No. 8748). -Bases Conversion and Development Act of 1992 (R.A. No. 7227, as amended by R.A. No. 9400). -Laguna Lake Development Act (R.A. No. 4850, as amended). -Local Government Code of 1991 (R.A. No. 7160) -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
11.
Sector : All Sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to privatization programs and divestment of assets requirement5 . Source of Measure : -1987 Constitution of the Republic of the Philippines. -Omnibus Investments Code of 1987 (E.O. No. 226, as amended). -Build Operate Transfer Law (R.A. No. 7718). -Electric Power Industry Reform Act (R. A. No. 9136). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances. ∞ 5 The divestment of assets shall be in accordance with the law of registration of the entity and other conditions as mutually agreed by the State and the foreign investors.
12.
Sector : All sectors Sub-Sector : - Industry Classification : - Level of Government : Regional and Local Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure of Autonomous Region of Muslim Mindanao and the Cordillera Administrative Region. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Indigenous Peoples Rights Act of 1997 (R.A. No. 8371). -Local Government Code of 1991 (R.A. No. 7160). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
13.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure PHILIPPINES : Manufacturing : Printing and Publishing (e.g., publishing of brochures/pamphlets, printing of catalogues on account of machinery producers) : ISIC 2211, 2219, 2221 : Central : National Treatment : No foreign equity allowed. : -1987 Constitution of the Republic of the Philippines. -Presidential Memorandum dated 04 May 1994. -Presidential and Administrative Issuances.
14.
Sector : All Sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors (SMBD) obligations shall not apply to any measure relating to the employment of foreign nationals. Restrictions may be imposed on the number, duration and type of SMBD positions where foreign nationals may be employed. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Labor Code of the Philippines, as amended (P.D. No. 442, as amended). -Philippine Immigration Act of 1940, (C.A. No. 613, as amended). -Act to Punish Acts of Evasion of the Laws on the Nationalization of Certain Rights, Franchises or Privileges (C.A. No. 108, as amended by P.D. No. 715). -Omnibus Investments Code of 1987 (E.O. No. 226). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
15.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure PHILIPPINES : Manufacturing and Services Incidental : - : ISIC Division 15-36 (All manufacturing) ISIC 2927 (Manufacture of weapons and ammunitions) ISIC 2429 (Manufacture of other chemical products n.e.c.) ISIC 3530 (Manufacture of aircraft and spacecraft) ISIC 2423 (Manufacture of pharmaceuticals, medicinal chemicals and botanical products) ISIC 2710 (Manufacture of basic iron and steel) and 2731 (Casting of iron and steel) ISIC 3220 (Manufacture of television and radio transmitters and apparatus for line telephony and line telegraphy) ISIC 3320 (Manufacture of optical instruments and photographic equipment) : Central and Regional : National Treatment Senior Management and Board of Directors : National Treatment and the Senior Management and Board of Directors obligations shall not apply to measures relating to investments such as but not limited to the following sectors, for reasons of security, defense, risk to health and morals: 1. Manufacture of firecrackers and other pyrotechnic devices 2. Manufacture of arms and explosives 3. Manufacture of dangerous drugs National Treatment and the Senior Management and Board of Directors obligations shall not apply to measures relating to investments such as but not limited to the following sectors, consistent with economic development goals: 1. Manufacture of iron and steel products; and, 2. Establishment, installation, addition and operation of any wood or forest products processing plants. Measures may include but not be limited to foreign equity restrictions and export requirements. : -1987 Constitution of the Republic of the Philippines. -Foreign Investments Act of 1991 (R.A. No. 7042, as amended by R.A. No. 8179.) -Iron & Steel Industry Act (R.A. No. 7103). -Omnibus Investments Code of 1987 (E.O. No. 226). -Comprehensive Dangerous Drugs Act of 2002 (R.A. No. 9165). Page 15 of 20 PHILIPPINES -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Medium Term Philippine Development Plan. - Treaties. -Presidential and Administrative Issuances.
16.
Sector : Agriculture and Fishery and Services Incidental Sub-Sector : - Industry Classification : ISIC 0111 (Growing of cereals and other crops n.e.c) ISIC 0500 (Fishing, operation of fish hatcheries and fish farms; service activities incidental to fishing) CPC Groups 881-882 (Services incidental to agriculture, hunting and forestry) (Services incidental to fishing) Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to food security, poverty alleviation and social equity, income enhancement and profitability, global competitiveness and sustainability. This shall include restrictions on foreign equity.6 Source of Measure : -1987 Constitution of the Republic of the Philippines. -Agriculture and Fisheries Modernization Act of 1997 (R.A. No. 8435). -Decree Authorizing Aliens as well as Associations, Corporations or Partnerships owned in whole or in part by Foreigners to Engage in the Rice and Corn Industry, and for other purposes (P.D. No. 194). -Philippine Fisheries Code of 1998 (R.A. No. 8550). -High Value Crops Development Act of 1995 (R.A. 7900). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances. ∞ 6 For illustrative purposes, small-scale fishing is closed to foreign investments while foreign equity in the production of biofuel crops and deep-sea fishing may be allowed up to 40% subject to other requirements and terms and conditions imposed by the relevant authorities.
17.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure PHILIPPINES : Forestry and Services Incidental : : ISIC 0200 (Forestry, logging and related service activities) CPC Group 881 (Services incidental to agriculture, hunting and forestry) Central and Regional : National Treatment : Senior Management and Board of Directors : National Treatment and the Senior Management and Board of Directors obligations shall not apply to any measure relating to utilization, exploitation, occupation, possession, or conduct of any activity within any forest and grazing land. Foreign equity may be allowed up to 40%, subject to government approval Note: Members of the Board of Directors or governing body of corporation or associations shall be allowed in proportion to their allowable participation or share in the capital of such enterprises. : -1987 Constitution of the Republic of the Philippines. -Revised Forestry Code of the Philippines (P.D. No. 705). -Chainsaw Act (R.A. No. 9175). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances.
18.
Sector : Mining and Quarrying and Services Incidental Sub-Sector : - Industry Classification : ISIC Section C (Mining & Quarrying) CPC Group 883 (Services Incidental to Mining) Level of Government : Central and Regional Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : National Treatment and the Senior Management and Board of Directors obligations shall not apply to measures relating to exploration, development and utilization of mineral resources7. This shall include but not be limited to prohibition on foreign equity in small-scale mining and restriction on foreign equity on other mining activities. Source of Measure : -1987 Constitution of the Republic of the Philippines. -People's Small-Scale Mining Act of 1991 (R.A. No. 7076). -Establishing Small-scale Mining as a New Dimension in Mineral Developments (P.D. No. 1899). -Philippine Mining Act of 1995 (R.A. No. 7942). -Geothermal Energy, Natural Gas and Methane Gas Law (R.A. No. 5092). -Atomic Energy Regulatory and Liability Act of 1968 (R.A. No. 5207). -Coal Development Act of 1976 (PD 972). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances. ∞ 7 For greater certainty, mineral resources shall include, but not be limited to metallic and non-metallic minerals, oil, geothermal, petroleum, natural gas, coal, and radioactive materials such as uranium and thorium.
19.
Sector : All Sectors Sub-Sector : - Industry Classification : - Level of Government : Central and Regional Type of Obligation : National Treatment Description of Measure : National Treatment shall not apply to measures affecting national patrimony8 and the rights of indigenous cultural communities in accordance with national development. Source of Measure : -1987 Constitution of the Republic of the Philippines. -Indigenous Peoples Rights Act of 1997 (R.A. No. 8371). -Local Government Code of 1991 (R.A. No. 7160). -Organic Act for the Autonomous Region in Muslim Mindanao (R.A. No. 6734). -Creating the Cordillera Administrative Region (E.O. No. 220). -Presidential and Administrative Issuances. ∞ 8 "National patrimony" refers to the natural resources of the Philippines and cultural heritage of the Filipinos. It also refers to Filipinos' intelligence in arts, sciences and letters.
Singapore
1.
Sector : All Sectors Sub-Sector : - : - Level of Government : Central Type of Obligation : National Treatment Description of Measure : 1. Financial institutions extending Singapore dollar (S$) credit facilities (i) exceeding S$5 million per entity to non-resident financial entities; or (ii) arranging S$ equity or bond issues for non-residents, shall ensure that where the S$ proceeds are to be used outside Singapore, they are swapped or converted into foreign currency upon draw-down or before remittance abroad. 2. Financial institutions shall not extend S$ credit facilities to nonresident financial entities if there is reason to believe that the S$ proceeds may be used for S$ currency speculation. Source of Measure : -Insurance Act, Cap. 142, MAS Notice 149. -Banking Act, Cap. 19, MAS Notice 757. -Finance Companies Act, Cap. 108, MAS Notice 816. -Monetary Authority of Singapore Act, Cap. 186, MAS Notice 1105. -Securities and Futures Act, 2001, Act 42 of 2001, MAS Notice 1201. ∞ Page
2.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment : Individual investors, apart from the Singapore Government, shall be subject to the following equity ownership limits in the enterprises, and/or their successor bodies, listed below: (i) Singapore Technologies Engineering: 15% (ii) Singapore Power, Power Grid, Power Supply, Power Gas: 10% (iii) PSA Corporation: 5% (iv) Singapore Airlines: 5% For the purposes of this reservation, ownership of equity by an investor in these enterprises and/or their successor bodies includes both direct and indirect ownership of equity. : Government directives.
3.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment Senior Management and Board of Directors : Only a Singapore citizen, Singapore permanent resident or Singapore Employment Pass holder shall be allowed to register a business without appointing a local manager. A local manager shall be a Singapore citizen, Singapore permanent resident or Singapore Employment Pass holder. All locally incorporated companies shall comply with the following requirements: (i) At least 1 director of the company shall be resident in Singapore. (ii) All branches of foreign companies registered in Singapore shall have at least 2 agents resident in Singapore. To be resident in Singapore, a person shall either be a Singapore citizen or Singapore permanent resident or Singapore Employment Pass holder. : -Business Registration Act, Cap. 32, 2001 Revised Edition. -Companies Act, Cap. 50, 1994 Revised Edition.
4.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment : : NT shall not apply to any measure affecting the type of activities which may be conducted on land or the usage of land, including but not limited to, land zoning, land use and urban planning policies. Urban Redevelopment Authority Act, Chapter 340, 1985 Revised Edition
5.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment : NT shall not apply to any measure affecting State Land, including but not limited to alienation and divestment. : State Lands Act, Cap. 314, 1996 Revised Edition/
6.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment Senior Management and Board of Directors : NT and SMBD shall not apply to any measure affecting: (i) the full or partial devolvement to the private sector of services provided in the exercise of governmental authority; (ii) the divestment of its equity interests in, and/or the assets of, an enterprise that is wholly owned by the Singapore government; and (iii) the divestment of its equity interests in, and/or the assets of, an enterprise that is partially owned by the Singapore government. : Government Policy.
7.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Manufacturing : Manufacturing of Arms and Explosives : - : Central : National Treatment Senior Management and Board of Directors : NT and SMBD shall not apply to any measure affecting the arms and explosives sector. The manufacture, use, sale, storage, transport, importation, exportation and possession of arms and explosives are regulated for the protection of vital security interests. : Arms and Explosives Act, Cap. 13, 1985 Revised Edition.
8.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : All Sectors : - : - : Central : National Treatment Senior Management and Board of Directors : NT and SMBD shall not apply to any measure in relation to the retention of a controlling interest by the Singapore Government in Singapore Technologies Engineering ("the Company") and/or its successor body, including but not limited to controls over the appointment and termination of members of the Board of Directors, divestment of equity and dissolution of the Company. : Government Policy.
9.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Manufacturing : - : 1551, 1553, 1600, 2710, 2731, 1549, 3140 : Central : National Treatment : NT shall not apply to any measure affecting the manufacture for sale or other commercial purpose of any goods scheduled in the Control of Manufacture Act. (i) beer and stout, (ii) cigars, (iii) drawn steel products, (iv) chewing gum, bubble gum, dental chewing gum, or any like substance; : (v) cigarettes (vi) matches, and (vii) firecrackers. Control of Manufacture Act, Cap. 57, 2001 Revised Edition.
10.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Manufacturing : Manufacturing of Optical Discs : 2230 : Central : National Treatment : NT shall not apply to any measure affecting the manufacture for sale or other commercial purpose of any goods scheduled in the Manufacture of Optical Discs Act. (i) compact discs (CD), including compact discs-read only memory (CD-ROM), (ii) digital video discs (DVD), including digital video discs-read only memory (DVD-ROM), (iii) video compact discs (VCD), (iv) master discs, and (v) stampers. : Manufacture of Optical Discs Act, Cap. 170C, 2005 Edition Revised
11.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Agriculture : - : - : Central : National Treatment : NT shall not apply to any measure affecting pig farming. (No more licences are issued for this sector.) : Government policy.
12.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Mining : - : ISIC Divisions 10 – 14 CPC 883 : Central : National Treatment : NT shall not apply to any measure affecting quarrying. (No more licences are being issued for this sector.) : Sand and Granite Quarries Act, Cap. 284, 1985 Revised Edition.
13.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure SINGAPORE : Manufacturing : Publishing and printing of newspapers Newspapers means any physical publication containing news, intelligence, reports of occurrences, or any remarks, observations or comments relating thereto or to any matter of public interest, printed in any language and published for sale or free distribution at intervals not exceeding one week. : 2212 : Central : National Treatment Senior Management and Board of Directors : NT and SMBD shall not apply to any measure affecting the publishing or printing of newspapers, including but not limited to, shareholding limits and management control. : Newspaper and Printing Presses Act (Cap. 206).
Thailand
1.
Sector : Manufacturing, Agriculture, Forestry, and Fishery Sub-Sector : -Printing of newspaper -Extraction of Thai herbs -Making or casting Buddha images and monk alms bowls -Rice farming, farming or gardening -Animal farming -Forestry and wood fabrication from natural forest -Fishery for aquatic animals in Thai waters and within Thailand's exclusive economic zone Industry Classification : ISIC 2221, 2423, 2899, 011, 012, 0130, 0140, 0200, 0500 Level of Government : Central Type of Obligation : National Treatment Description of Measure : Foreigner1 is not allowed to have equity participation of 50% or more of registered capital. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 1 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
2.
Sector : Manufacturing Sub-Sector : -Carved wood -Thai silk yarn, weaving Thai silk or Thai silk pattern printing -Thai musical instruments -Goldware, silverware, nielloware, bronzeware or lacquerware -Crockery of Thai arts and culture -Wood fabrication for furniture and utensil production Industry Classification : ISIC 1711, 1712, 2021, 2023, 2029, 2221, 2693, 2720, 3692 Level of Government : Central Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : More than 50% of Thai equity participation is required. Foreigner2 is allowed to obtain 50% or more of registered capital, subject to all following conditions: 1. Permission by the Minister of Commerce with the approval of the Cabinet is required, and following condition shall be fulfilled; -Thai nationals or Thai juridical persons shall hold the shares of not less than 40% of the capital of that foreign juridical person. -The number of Thai directors shall not be less than two-fifths of the total number of directors. or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted; 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht; 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. 2 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
3.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Manufacturing : -Rice milling -Plywood, veneer board, chipboard or hardboard -Lime : ISIC 1531, 1532, 2021, 2029, 2694 : Central : National Treatment : More than 50% of Thai equity participation is required. Foreigner3 is allowed to obtain 50% or more of registered capital, subject to following conditions: 1. Permission under Foreign Business Act B.E. 2542 (1999) by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee is required. or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted; 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht; 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 3 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
4.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Manufacturing : Manufacture of sugar from sugar-cane : ISIC 1542 : Central : National Treatment Senior Management and Board of Directors : Foreigner4 shall be prohibited from manufacturing of sugar from sugarcane, unless permission is obtained from the Cabinet. : -Foreign Business Act B.E. 2542 (1999), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 4 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
5.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Manufacturing : Tobacco products : ISIC 1600 : Central : National Treatment Senior Management and Board of Directors : Prohibitions or restrictions which are inconsistent with National Treatment and Senior Management and Board of Directors may apply to foreigner5 in manufacture of Tobacco products. : Tobacco Act B.E. 2509 (1966), as amended. ∞ 5 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
6.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Manufacturing : Playing cards : ISIC 2221 : Central : National Treatment Senior Management and Board of Directors : Prohibitions or restrictions which are inconsistent with National Treatment and Senior Management and Board of Directors may apply to foreigner6 in manufacture, production, or printing of playing card : Playing cards Act B.E. 2586 (1943), as amended. ∞ 6 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
7.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Manufacturing : Alcoholic beverages and ethyl alcohol : ISIC 1551-3 : Central : National Treatment Senior Management and Board of Directors : Prohibitions or restrictions which are inconsistent with National Treatment and Senior Management and Board of Directors may apply to foreigner7 in manufacture and production of alcoholic beverages and ethyl alcohol. : Liquor Act B.E. 2493 (1950) Ministerial regulations Administrative guidelines ∞ 7 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
8.
Sector : Agriculture and Services Incidental to Agriculture Sub-Sector : -Silkworm farming -Services incidental to silkworm farming -Salt farming, including underground salt -Services incidental to salt farming, including underground salt Industry Classification : ISIC 0122, 1422; CPC 88110, 88120 Level of Government : Central Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : More than 50% of Thai equity participation is required. Foreigner8 is allowed to obtain 50% or more of registered capital, subject to all following conditions: 1. Permission by the Minister of Commerce with the approval of the Cabinet is required, and following condition shall be fulfilled; -Thai nationals or Thai juridical persons shall hold the shares of not less than 40% of the capital of that foreign juridical person. -The number of Thai directors shall not be less than two-fifths of the total number of directors. or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted; 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht; 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 8 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
9.
Sector : Agriculture Sub-Sector : Plant cultivation, propagation including artificial and transplant propagation, and breeding Industry Classification : ISIC 0111 Level of Government : Central Type of Obligation : National Treatment Description of Measure : More than 50% of Thai equity participation is required. For onion seed, foreigner is allowed to obtain up to 51% of registered capital, subject to laws and regulations. Foreigner9 is allowed to obtain 50% or more of registered capital, subject to following conditions: 2. Permission under Foreign Business Act B.E. 2542 (1999) by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee is required. Or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted. 3. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht. 4. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 5. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 9 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
10.
Sector : Fishery Sub-Sector : Fishery, specifically aquaculture Industry Classification : ISIC 0500 Level of Government : Central Type of Obligation : National Treatment Description of Measure : More than 50% of Thai equity participation is required. For the culture of tuna deep sea cage and indigenous breeding spiny lobsters; Panulirus versicolor, P. homarus, P. ornatus, P. longipes, P. penicilatus and P. polyphagus, foreigner is allowed to obtain up to 51% of registered capital, subject to laws and regulations. Foreigner10 is allowed to obtain 50% or more of registered capital, subject to following conditions: 1. Permission under Foreign Business Act B.E. 2542 (1999) by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee is required. Or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted. 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht. 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 10 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
11.
Sector : Forestry Sub-Sector : Forestry from forest plantation Industry Classification : ISIC 0200 Level of Government : Central Type of Obligation : National Treatment Description of Measure : More than 50% of Thai equity participation is required. Foreigner11 is allowed to obtain 50% or more of registered capital, subject to following conditions: 1. Permission under Foreign Business Act B.E. 2542 (1999) by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee is required. Or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted. 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht. 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 11 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999), as amended.
12.
Sector : Mining Sub-Sector : -Mining, including rock blasting or crushing -Rock salt mining Industry Classification : ISIC 10 -14 Level of Government : Central Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : Equity participation of up to 60% by foreigner12 is allowed subject to criteria listed below; 1. Foreigner which is a juridical person of Member State must be registered as a registered ordinary partnership, limited partnership or limited company in Thailand. 2. A debt to equity ratio of 3:1 or lower shall be maintained. 3. Concessions must be granted by the Department of Primary Industries and Mines, Ministry of Industry as provided by the Mineral Act B.E. 2510 (1967) as amended by the Mineral Act (No.2) B.E. 2516 (1973), the Mineral Act (No.3) B.E. 2522 (1979), the Mineral Act (No.4) B.E. 2534 (1991); and the Mineral Act (No.5) B.E. 2545 (2002). 4. At least two fifths of the member of Board of Directors must be Thai nationals. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. - Administrative guidelines. ∞ 12 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
13.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Services Incidental to Agriculture, Forestry, Fishery, and Manufacturing : -Services incidental to rice farming, farming or gardening, animal farming -Services incidental to forestry and wood fabrication from natural forest -Services incidental to fishery for aquatic animals in Thai waters and within Thailand's exclusive economic zone -All services incidental to manufacturing : CPC 88110, 88120, 88130, 88140, 8820, 884-885 : Central : National Treatment : More than 50% of Thai equity participation is required. Foreigner13 is not allowed to have equity participation of 50% or more of registered capital. : -Foreign Business Act B.E. 2542 (1999), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 13 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
14.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : Services Incidental to Mining : : CPC 8830 : Central : National Treatment Senior Management and Board of Directors : More than 50% of Thai equity participation is required. Foreigner14 is allowed to obtain 50% or more of registered capital, subject to all following conditions; 1. Permission by the Minister of Commerce with the approval of the Cabinet is required, and following condition shall be fulfilled; -Thai nationals or Thai juridical persons shall hold the shares of not less than 40% of the capital of that foreign juridical person. -The number of Thai directors shall not be less than two-fifths of the total number of directors. Or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted; 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht; 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 14 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
15.
Sector : Services Incidental to Agriculture, Forestry, and Fishery Sub-Sector : -All services incidental to Agriculture, except services incidental to rice farming, farming or gardening, and animal farming -All services incidental to Forestry, except forestry and wood fabrication from natural forest -All services incidental to Fishery, except services incidental to fishery for aquatic animals in Thai waters and within Thailand specific economic zone Industry Classification : CPC 88110, 88120, 88130, 88140, 8820, Level of Government : Central Type of Obligation : National Treatment Senior Management and Board of Directors Description of Measure : More than 50% of Thai equity participation is required. Foreigner15 is allowed to obtain 50% or more of registered capital, subject to following conditions: 1. Permission by the Director-General of the Department of Business Development with the approval of the Foreign Business Committee is required. Or Promotion under Investment Promotion Act B.E. 2520 (1977) or permission under law governing Industrial Estate Authority of Thailand or other related laws is granted; 2. The minimum capital used at the commencement of the business operation shall not be less than that prescribed by ministerial regulations and shall in no case be less than three million Baht; 3. Foreigner shall apply for license or certificate from Department of Business Development, Ministry of Commerce; and 4. Foreigner shall comply with other conditions prescribed in Foreign Business Act B.E. 2542 (1999) and related laws. Source of Measure : -Foreign Business Act B.E. 2542 (1999), as amended. -Investment Promotion Act B.E. 2520 (1977), as amended. - Ministerial regulations. -Administrative guidelines. ∞ 15 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999).
16.
Sector Sub-Sector Industry Classification Level of Government Type of Obligation Description of Measure Source of Measure : All sectors : : - : Central : National Treatment Senior Management and Board of Directors : In order to operate business in Thailand, foreigner16 shall obtain a license or certificate from the Department of Business Development, and comply with conditions set forth in the Foreign Business Act B.E. 2542 (1999)17 and subsidiary legislations. : -Foreign Business Act B.E. 2542 (1999), as amended. - Ministerial regulations. - Administrative guidelines. ∞ 16 For the purposes of this reservation, the definition of ‘foreigner' can be found in Foreign Business Act B.E. 2542 (1999). 17 For illustrative purposes, ‘conditions set forth in the Foreign Business Act B.E. 2542 (1999)' may include, for example, the ratio of the capital and loans and the number of foreign directors who must have domicile in the Kingdom.