Philippines

Compliance/Financial Considerations

If you intend to do any of the following in Philippines, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2.

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Philippines, consult the campus Research Administration Compliance Office at 642-0120.

Tax Reporting. The University and its employees may be taxed in foreign countries. The tax implications for operating in Philippines may be found at the Internal Revenue Service’s United States-Philippines Income Tax Convention. For further clarification, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance.

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122.  Transparency International’s 2018 survey of perceived public sector corruption rated Philippines at 36 out of 100 (99th out of 180 countries reviewed, i.e. somewhat corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.  

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations.

Articles

The US State Department's page on PHILIPPINES may be found HERE.

Personal Safety

THE PHILIPPINES CONTINUES TO MAINTAIN VARYING COMMUNITY QUARANTINE RESTRICTIONS NATIONWIDE THROUGH AT LEAST NOVEMBER 30 AMID ONGOING CORONAVIRUS DISEASE (COVID-19) ACTIVITY. THE COUNTRY REMAINS UNDER CODE RED SUBLEVEL 2 ON THE CODE ALERT SYSTEM, INDICATING ONGOING LOCAL VIRUS TRANSMISSION WITH GREATER NUMBERS OF CASES THAN THE GOVERNMENT CAN ADDRESS. WHILE MOST FOREIGN NATIONALS REMAIN BANNED FROM ENTERING THE COUNTRY, THE GOVERNMENT HAS ALLOWED FOREIGNERS TO USE INVESTOR VISAS TO ENTER THE COUNTRY SINCE NOVEMBER 1. AUTHORITIES WILL ALSO ALLOW ENTRY FOR FOREINGERS USING VISAS ISSUED B THE STATE AGENCIES AURORA PACIFIC ECONOMIC ZONE AND FREEPORT AUTHORITY AND SUBIC BAY METROPOLITAN AUTHORITY. EXCEPTIONS FROM TEH ENTRY BAN ARE ALSO IN PLACE FOR FOREIGN NATIONALS WITH LONG TERM VISAS, AMONG OTHERS. INBOUND FOREIGN NATIONALS MUST SECURE A QUARATINE FACILITY AND A COVID-19 TESTING PROVIDER BEFORE THE TRIPS AND UNDERGO TWO WEEK QUARANTINE UPON ARRIVAL. OTHER VISAS AND APPLICATIONS AND VISA FREE PRIVILEGES REMAIN SUSPENDED.  

Note: this page contains basic risk information. For more details, please contact the Risk Services Office at risk@berkeley.edu.

THE U.S. STATE DEPARTMENT ISSUED A TRAVEL WARNING FOR THE PHILIPPINES ON JULY 17, 2017.  TRAVELERS TO THE PHILIPPINES ARE WARNED AGAINST GOING TO MARAWI, MINDANAO, AND THE SULU ARCHIPELAGO. TRAVELERS SHOULD READ THE ENTIRE TRAVEL WARNING BEFORE DEPARTURE AND TAKE APPROPRIATE STEPS TO ASSURE THEIR PERSONAL SAFETY.

If you are traveling to the Philippines on University-related business, please sign up for the University’s travel insurance program here. For more information on the travel insurance program, please go here

Because everyone’s health is unique, we suggest seeking the advice of a medical professional before traveling internationally. Members of the campus community interested in protecting their health while abroad may schedule an appointment with the University Health Services International Travel Clinic

The quality of health care in the Philippines varies. Care can be very good in Manila, as well as in urban areas with a developing medical tourism industry, but in rural areas little more than basic care may be available. If an ambulance is necessary, private alternatives are best. For English speakers, Lifeline Rescue Emergency has proven helpful (dial 16-911 or 632-839-2520). The US Embassy provides this list of hospitals and medical facilities in the Philippines, but cannot guarantee quality of service.

Air pollution can be a problem in urban areas. If you have a chronic respiratory condition such as asthma, please consult a medical professional prior to your trip and carry appropriate medications.

Travelers should assume that drinking water in the Philippines is contaminated by raw sewage, industrial pollutants, or agricultural waste. Water from the Boac and Makulapnit Rivers is contaminated with heavy metals. Local marine waters are also unsafe. To reduce the risk of gastrointestinal discomfort or illness, drink only bottled, boiled, or purified water. Travelers should use well-recognized brands of bottled water whenever possible.

Street vendors and other unregulated food distributors often have poor hygiene standards and should be avoided. Travelers should also avoid raw or undercooked meat dishes and unpasteurized dairy products, which frequently harbor bacterial and parasitic pathogens. Puffer fish (butete) is widely considered a panacea in Southern Mindanao, but unless properly prepared it can cause numbness, vomiting, weakness, and death. Cooking does not inactivate the toxin.

Travelers risk contracting a number of serious illnesses in the Philippines, including:

  • Malaria, transmitted by mosquito bites, year-round but especially from May to November in the rural areas of most provinces. Manila and other major urban areas are generally safe from the disesase.
  • Dengue fever, also transmitted by mosquito bites, year-round but particularly from May to November in urban areas, including Bacolod, Benguet, Bulacan, Davao, Cebu, Iloilo, Manila, Nueva Ecija, and Quezon City.
  • Tuberculosis. The World Health Organization considers the Philippines a high-risk country. Travelers staying for an extended time should get a pre-departure PPD skin test. Avoid crowded public spaces and mass transportation whenever possible.
  • Japanese Encephalitis, transmitted via mosquito and generally associated with rainy season and rice cultivation. Recent outbreaks have been reported in Luzon, Manila, and Nueva Ecija.
  • Schistosomiasis, a parasitic infection. Avoid swimming anywhere but well-chlorinated pools. Risk is especially high in freshwater bodies in Leyte, Mindanao, Samar, southern Luzon, and the east coasts of Mindoro and Bohol Islands.
  • Filariasis, a low risk for short-term travelers, but one that may lead to lymphatic dysfunction. The disease is transmitted via multiple mosquito bites.
  • Heterophyiasis, caused by consumption of raw or undercooked fish. Risk is highest in northern Mindanao.

Crime is a serious risk in urban areas, including Metro Manila. Although pickpocketing and theft are most common, travelers may also fall victim to armed assaults and robberies, particularly at night, in places frequented by tourists, and on the outer islands. Avoid flashing valuables or leaving them unattended. Beware of locals who befriend you immediately or quickly offer food or drink, as they may be scam artists. Restrict credit card use to reputable hotels, restaurants, and stores. Avoid public transportation and hire taxis through trusted intermediaries.

Religious and ethnic strife periodically rend the Philippines, particularly in the south, where Abu Sayyaf, a Muslim separatist organization, has kidnapped and murdered Westerners. Avoid travel to Mindanao, Jolo, and Basilan. The New People’s Army and Moro Islamic Liberation Front also present a risk of political violence. Large demonstrations are common in Manila and may be fueled by anti-American or anti-Chinese sentiment.

Typhoons (hurricanes) frequently strike the Philippines. To optimize your preparation for a hurricane, review this guidance from the Federal Emergency Management Agency (FEMA).

Legal/Political

Criminal Penalties: You are subject to local laws. If you violate local laws, even unknowingly, you may be expelled, arrested, or imprisoned.

Furthermore, some laws are also prosecutable in the United States, regardless of local law. 

The judicial process in the Philippines can be lengthy, and persons charged with a crime can be held in indefinite pre-trial detention as their case makes its way through the judicial system. Penalties for possessing, using, or trafficking in illegal drugs in the Philippines are severe:

  • Convicted offenders can expect long jail sentences and heavy fines.
  • If a traveler is found to have any amount of drugs on his or her person, or nearby, when arriving at or departing from the Philippines, he or she will be charged with trafficking.
  • Trafficking is non-bailable, and the maximum penalty is life imprisonment.
  • If you intend to enter the Philippines with a prescribed controlled substance (e.g., medical marijuana), obtain clearance from the Philippine government first. 
  • Since June 2016, Philippine authorities have conducted a public campaign against illegal drugs. This has resulted in armed confrontations between authorities and suspected drug dealers and users.

Carry a copy of your passport at all times in the event that you are asked about your citizenship. You may be questioned by authorities if you take pictures of certain buildings, especially government buildings or military installations. Driving under the influence of alcohol or drugs could land you immediately in jail.

The Bureau of Immigration may consider the participation of foreigners in demonstrations or political rallies in the Philippines to be a violation of the terms of admission. Foreign nationals who participate in demonstrations, political rallies, or other activity deemed anti-government in nature may be detained and deported for violating Philippine immigration laws.

In the Philippines, any adult in the company of a minor under 12 years old who is not related within the “fourth degree” may be subject to a severe penalty. U.S. citizens should be aware of this law both to avoid unlawful behavior and to protect themselves against potentially frivolous accusations.

Arrest Notification: If you are arrested or detained, ask police or prison officials to notify the U.S. Embassy immediately. 

LGBTI Travelers: There is no prohibition on entry into the Philippines by LGBTI individuals. Transgender travelers should be aware that immigration officials may require supporting documents if the gender in the traveler’s passport does not reflect the gender expression of a transgender person. According to Philippine law, an individual’s sex must match that assigned at birth as reflected on the official birth certificate, even in cases of post-operative sex reassignment.

Same-sex relationships are not illegal in the Philippines, but they lack legal recognition. No federal law prohibits discrimination against LGBTI individuals. Several cities, however, have passed local ordinances protecting LGBTI rights. Despite these legislative efforts, LGBTI individuals continue to face discrimination and harassment.