On 31 May 2024, over 14 members of the E-Commerce Memorandum of Understanding ("MOU") gathered for the Fourth Annual Review and Assessment of the MOU.
During the meeting, members pushed to amend the terms of the MOU to factor in the broader objectives of Republic Act No. 11967 or the Internet Transactions Act of 2023 ("ITA") for a fairer and safer online space. The members suggested implementing measures that will strictly observe existing policy prohibiting prescription drugs from being made available for purchase online.
The proposed amendments aim to promote closer collaboration with law enforcement agencies, including the members of the National Committee on Intellectual Property Rights (NCIPR): the Department of Trade and Industry, Intellectual Property Office of the Philippines (IPOPHL), Department of Justice, Bureau of Customs, Food and Drug Authority, National Bureau of Investigation, Philippine National Police, Optical Media Board, National Book Development Board, Office of the Special Envoy on Transnational Crime, Department of the Interior and Local Government, National Telecommunications Commission, Department of Information and Communications Technology, Bureau of Internal Revenue, and Bureau of Immigration.
The members of the MOU also suggested finetuning the MOU's terms to standardise the methods and metrics in searching counterfeit items.
On 14 May 2024, the Philippines, through the Intellectual Property Office of the Philippines ("IPOPHL"), joined 193 Member States of the World Intellectual Property Organization ("WIPO") in the historical adoption of the WIPO Treaty on Intellectual Property, Genetic Resources and Associated Traditional Knowledge ("Treaty"). After 25 years of negotiation, Member States have finally adopted a treaty that addresses the interface between intellectual property, genetic resources ("GRs"), and traditional knowledge associated with GRs ("ATK").
The Treaty requires the disclosure of certain information in patent applications whose inventions are based on GRs and/or ATK. If there is a patent application for claimed inventions based on genetic resources, each contracting party shall require the applicants to disclose the country of origin or source of the genetic resource. Moreover, if there is a patent application for claimed inventions based on ATK, each contracting party shall require applicants to disclose the Indigenous Peoples or local community, as applicable, who provided the traditional knowledge. This mandatory disclosure is seen as a mechanism to stop the misappropriation of GRs and ATK. While GR cannot be directly protected as intellectual property, inventions developed using them can be protected as such, usually through a patent.
Following the adoption of the treaty, IPOPHL announced that it will recommend to the Office of the President, through the Department of Foreign Affairs, the ratification of the Treaty and for the Philippines. The historical Treaty is set to take effect three months after the ratification of at least 15 contracting states.
On 7 May 2024, the Department of Energy ("DOE") issued Circular No. 2024-05-14 ("Circular") or the Guidelines on Biofuel Blend Implementation, which covers all Downstream Oil Industry ("DOI") participants and the local biofuel producer industries.
Following the drastic increase in the cost of fuel over the past years, the National Biofuels Board ("NBB") has determined that an increase in the bioethanol blend will reduce the pump price of diesel and gasoline fuel and help alleviate the burden of rising prices on consumers.
Beginning 1 October 2024, it will be mandatory that all diesel fuel distributed and sold by DOI participants in the country contain biodiesel blend at 3%.
Further, DOI participants may voluntarily offer gasoline fuel containing 20% bioethanol blend to their consumers. Increasing the ethanol blend to 20% may result in a reduction of more than one-peso in the line pump price.
Cambodia and the Philippines have recently concluded a Double Taxation Agreement ("DTA") which aims to ease the burden of double taxation on individuals and entities operating in these two countries. This, in turn, removes trade and investment barriers and encourages cross-border economic activities.
The final draft of the DTA covers the taxation of income earned by citizens and residents of both Cambodia and the Philippines. It will also describe how each country’s tax administration will be carried out and how credit taxes are paid in accordance with the tax rules in both countries.
Negotiations on the DTA began in 2018, with a subsequent meeting held in 2019. Cambodia and the Philippines are expected to sign the DTA in October 2024.
The successful negotiation of the DTA strengthens the economic tie between the contracting states. It demonstrates a commitment to bilateral cooperation and understanding and future collaborations in various sectors, such as education, tourism, and technology.
On 30 April 2024, the Global Cross-Border Privacy Rules ("CBPR") Forum announced the launch of the Global CBPR System and the Global Privacy Recognition for Processors ("PRP") System. This initiative paves the way for a more unified approach to cross-border data privacy. This follows on from the National Privacy Commission's participation in the Global CBPR Forum and Global Cooperation Arrangement for Privacy Enforcement ("CAPE") in March 2024. The Global CAPE is a multilateral arrangement for privacy enforcement authorities to collaborate and cooperate in cross-border data protection and privacy enforcement. Among the objectives of Global CAPE is to establish mechanisms for effective cross-border cooperation on the enforcement of data protection and privacy laws and the Global CBPR Framework.
The Global CBPR System is a voluntary accountability-based scheme to facilitate data protection and privacy respecting personal information flows across jurisdictions. This includes a set criterion for bodies to be recognised as Accountability Agents, who will assess and certify personal information controllers as being Global CBPR compliant. The Global PRP System represents the baseline requirements a personal information processor must meet in order to be recognised by an approved Accountability Agent and provide assurances with respect to the processor's data protection and privacy policies and practices. The Global CBPR Forum released a comprehensive set of policies, rules, guidelines, and questionnaires which will be used by Accountability Agents in assessing companies seeking certification as Global CBPR- and/or Global PRP-compliant.
To ensure transparency and clarity, the Global CBPR Forum also released a comprehensive set of policies, rules, and guidelines which explains the core elements of the Global CBPR and Global PRP Systems, their governance structure, and the roles and responsibilities of certified companies, Accountability Agents, Private Enforcement Authorities ("PEA") and Forum Members. To date, PEAs from 12 jurisdictions are members of the Global CAPE, including Australia, Bermuda, Canada, Dubai International Financial Center, Japan, South Korea, Mexico, the Philippines, Singapore, Chinese Taipei, United Kingdom, and the United States.
On 29 April 2024, the Bangko Sentral ng Pilipinas ("BSP") issued Circular No. 1193 ("Circular"). The Circular amended Section 911 of the Manual of Regulations for Banks and Section 911-Q of the Manual of Regulations for Non-Bank Financial Institutions. It amends the current risk reporting and notification requirements.
Under the new regime, all covered BSP-supervised financial institutions are now required to submit an "ML/TF/PF Risk Event Report" ("Risk Report") which covers data and information on significant risks arising from money laundering ("ML"), terrorist financing ("TF"), and proliferation financing ("PF"). The Risk Report shall be submitted to BSP within 24 hours from the date of knowledge or discovery of occurrence, which, as specified in the Circular, refers to the time the event has been known or should have been known to the covered person. This Risk Report, as further explained in the Circular, is intended to facilitate BSP in identifying emerging ML/TF/PF risks and other supervisory concerns.
To determine whether an ML/TF/PF risk event is significant and reportable, the following are considered: (i) the amount involved represents 1% or more of the covered person's total qualifying capital; and (ii) regardless of the amount involved, the covered person has determined that the ML/TF/PF-related incident has a material impact on the covered person and/or the financial system.
At the minimum, the Risk Report should contain the following: (i) the date of knowledge or discovery of occurrence of the event or incident; (ii) brief description of the event/incident; (iii) initial root cause of the event/incident and responses/actions taken; and (iv) impact on the covered person based on initial assessment.
Non-compliance with the Risk Report requirements is subject to applicable monetary penalties and other corrective actions to be enforced by BSP. The Circular took effect from 24 May 2024.
