WHEREAS, there is a need to amend the Fourth Regular Foreign Investment Negative List to reflect changes to List B, as recommended by the Secretary of the Department of National Defense and indorsed by the National Economic and Development Authority;

WHEREAS, any amendment of List B shall not be made more often than once every two years, pursuant to Section 8 of RA 7042, as amended;

WHEREAS, no amendment has been made to List B of the Fourth Regular Foreign Investment Negative List since its issuance on 24 August 2000.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:

SECTION 1.   Item 2, List B, Annex A of EO No. 286, s. 2000 is hereby amended to read as follows:

"2.        Manufacture, repair, storage and/or distribution of products requiring Department of National Defense (DND) clearance:

a.         Guns and ammunition for warfare

b.         Military ordinance and parts thereof (e.g. torpedoes, mines, Depth charges, bombs, grenades, missiles)

c.         Gunnery, bombing and fire control systems and components

d.         Guided missiles/missile systems and components

e.         Tactical aircraft (fixed and rotary-winged), parts and components thereof

f.          Space vehicles and component systems

g.         Combat vessels (air, land and naval) and auxiliaries

h.         Weapons repair and maintenance equipment

i.          Military communications equipment

j.          Night vision equipment

k.         Stimulated coherent radiation devices, components and accessories

l.          Armament training devices

m.        Others as may be determined by the Secretary of the Department of National Defense

However, the manufacture or repair of these items may be authorized by the Secretary of National Defense to non-Philippine nationals; Provided that a substantial percentage of output, as determined by the said agency, is exported.  Provided further that the extent of foreign equity ownership allowed shall be specified in the said authority/clearance."

SECTION 2.   This Executive Order shall take effect immediately.

Adopted: 15 April 2002

By the President:

(SGD.) ALBERTO G. ROMULO
Executive Secretary