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RETAIL TRADE LIBERALIZATION ACT 2000

R.A. No. 8762 (RTLA2000)

• Carpio • Ernacio • Maceda • Manaois • Palanca • Profugo • Singcol•

RTLA 2000
 

Repealed RA 1180 Liberalized the Philippine retail industry to encourage Filipino and foreign investors have an efficient and competitive retail sector; and Empower the Filipino consumers

” . b. Of “merchandise.Definition and Coverage of “Retail Trade” Elements: a.” c. To the “general public. commodities or goods for consumption. Habitual act or business of selling.

it is rather.RETAIL TRADE Consumption  Not the character of the business conducted by either seller or buyer that matters. whether the purchaser uses or consumes the goods or whether he resells the same or passes them on ultimate consumer  .

RETAIL TRADE Consumer Goods  Producer Goods  Auxiliary Goods  .

laborer. 000.00 . processed or produced by him if his capital does not exceed P100. to the general public of the products manufactured. or worker. processor.Exempted Transactions  Sales by a manufacturer.

regardless of the capital Sales in restaurant operations by a hotel owner or inn-keeper irrespective of the amount of capital. provided that the restaurant is incidental to the hotel business  . Sales by a farmer or agriculturist. of the products of his farm.

irrespective of capitalization . through a single outlet owned by a manufacturer of products manufactured. Sales to the general public. processed or assembled in the Philippines.

 Sales to industrial and commercial users or consumers who use the products bought by them to render service to the general public and/or produce or manufacture of goods which are in turn sold by them. .

Special Exemption for Former Natural-Born Filipinos  Granted the same rights as Filipino citizens for purposes of retail trade under RA 8762 .

00  .500. 500.Categories of Retail Trade Enterprises  Category A – Enterprises with paidup capital of the equivalent of less than US $ 2.000. 000 Category B – Enterprises with a minimum paid-up capital of the equivalent in Philippine Pesos US$2.000.00 but less US$7.500.

Enterprises with a paidup capital of the equivalent in Philippine Pesos US$7.00 .500. Category C. provided that in no case shall the investments for establishing a store be less than the peso equivalent of US$830.00 or more may be wholly owned by foreigners.000. 000.

 Category D – Enterprises specializing in high-end or luxury products with a paid-up capital of the equivalent in Philippine Pesos of US$250.000.00 per store .

A minimum of Net Worth of -US$200M of the registrant corporation in Catergories B and C -US$50M of the registrant corporation in Catergory D .Foreign Retailers  Prequalification Requirements a.

c. in operation anywhere around the world unless such retailer has at least one store.b. capitalized at a minimum of US$25M. .year track record in retailing. Five. Five retailing branches or franchises.

or juridical entities formed or incorporated in. They must be nationals. countries in which allow the entry of Filipino retailers .d.

Application for Prequalification  A request duly signed and acknowledged under oath by an authorize officer of the foreign retailer  Must be submitted to the Board of Investments before filing a formal application Must be accompanied by a certification from the home-country or local embassy  .

Prohibited Activities of Qualified Foreign Retailers  Not allowed to engage in certain retailing activities outside their accredited stores .

000. b.00 but not more than P2. 00.00 . Imprisonment of not less than 6 years and one day but not more than 8 years. 000.000.Penalty Clause a. Fine not less than P1.

Source Law on Sales by Villanueva (2009)  RA 8762  .