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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Repealed RA 1180 Liberalized the Philippine retail industry to encourage Filipino and foreign investors have an efficient and competitive retail sector; and Empower the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. Habitual act or business of selling.Definition and Coverage of “Retail Trade” Elements: a. commodities or goods for consumption. To the “general public.” c. Of “merchandise.

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  .

000. laborer.00 . to the general public of the products manufactured. processed or produced by him if his capital does not exceed P100.Exempted Transactions  Sales by a manufacturer. processor. or worker.

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

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

. 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  .500.00 but less US$7. 000 Category B – Enterprises with a minimum paid-up capital of the equivalent in Philippine Pesos US$2.000.Categories of Retail Trade Enterprises  Category A – Enterprises with paidup capital of the equivalent of less than US $ 2.000. 500.500.

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.00 . Category C.500.000. 000.Enterprises with a paidup capital of the equivalent in Philippine Pesos US$7.

00 per store .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.

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.

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

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

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 .

00 . Imprisonment of not less than 6 years and one day but not more than 8 years. 000. b. Fine not less than P1.000.000.00 but not more than P2.Penalty Clause a. 00.

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