APPENDIX 7
GUIDELINES IN THE DETERMINATION OF ELIGIBILITY OF FOREIGN
SUPPLIERS, CONTRACTORS, AND CONSULTANTS TO PARTICIPATE IN
GOVERNMENT PROCUREMENT PROJECTS
1. GENERAL POLICY
In line with the economic, policies enunciated in the Constitution, particularly on the promotion of
Filipino labor, domestic materials, and locally produced goods, Republic Act No. 9184, in consonance
with Republic Act No. 5183, adopts as general principle the preference for Filipino nationals in the
award of Government's procurement contracts.
However, in light of the principles of economic exchange and expansion of trade and exports with other
countries on the basis of equality and reciprocity, with due regard to the government's initiatives in the
prohibition and/or regulation of monopolies and other situations that restrain trade and fair competition,
qualified foreign nationals may be eligible to participate in the public procurement of goods,
infrastructure projects and consultancy services; provided, however, that provisions on domestic
preference, Most- Favored National (MFN) status and non-discrimination treatments under applicable
laws and treaties are complied with.
2. SCOPE, APPLICATION AND PURPOSE
These guidelines shall govern procurement of goods, infrastructure projects, and consulting services by
all Departments, Bureaus, Offices and Agencies of the National Government, Government-Owned and/or
Controlled Corporations, Government Financing Institutions, State Universities and Colleges, and Local
Government Units and are formulated to clarify procurement policy on the eligibility of foreign bidders to
participate in domestically-funded public procurement opportunities, within the framework of national
and international economic and trade policies.
3. DEFINITION OF TERMS
For purposes of these guidelines, the following terms or words and phrases shall be defined as
follows:
3.1 Foreign Consultant refers to an individual, sole proprietorship, partnership, corporation or joint
venture other than those provided under Section 24.3.1 of the IRR of R.A. 9184.
3.2 Foreign Contractor refers to a citizen of a foreign country or an entity where Filipino
ownership or interest is less than seventy five percent (75%) offering infrastructure related services
other than consulting services.
3.3 Foreign Supplier refers to a citizen of a foreign country or an entity where Filipino ownership or
interest is less than sixty percent (60%) who is engaged in the manufacture or sale of the
merchandise or performance of the general services covered by his bid.