# distributing a product in the Philippines



## lukejackson (Jan 17, 2014)

Hi guys,

I've looked extensively online, but have had trouble finding relevant information. 

I'm currently finishing my masters in Development Practice -- that is, the study of developing countries. It's an extremely difficult industry to get into, for example, the Asian Development Bank or United Nations require roughly 8 years of experience (for my field, at least). 

I'm thinking of doing an internship in the Philippines, as I have volunteered for NGOs there in the past and love the place. I expect to save a fair bit for my internship (3-6 months), upon completion, I will most likely return to Australia unless I am offered a decent job. 

My brother currently runs a distribution business in Singapore (mid to high end cosmetics/gourmet food products etc). I was thinking of doing something similar as a way to earn some money on the weekends in Philippines, using his catalogue of goods. 

However, I am unsure as to the legalities of this. I can be under his employ (from Singapore), if I wished. However, can someone guide me to any literature regarding distribution of products?

I do not expect to have 'offices' etc in Philippines, and it would be a very small amount of goods, as I would effectively just be working on the weekends. 

Any input would be appreciated. 

Also, not to sound conceited, but I have some friends there who do modelling/appear as extras in Filipino tv/magazines etc. I talked to some people in the industry there who seemed willing to take me on. Good idea or not worth the hassle?

Kind regards and thanks.


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## JimnNila143 (Jul 23, 2013)

lukejackson said:


> Hi guys,
> 
> I've looked extensively online, but have had trouble finding relevant information.
> 
> ...


According to the PBI a foreigner can obtain an indefinite stay visa if they were to have a business here, PROVIDED that they hire a minimum of TEN (10) Filipinos to work for them, however, Philippine Law states that every business that exists in the Philippines has to be at least SIXTY PERCENT (60%) Filipino owned. Trust is the most important thing here as far as a business and the employees MUST be trustworthy. Never hire family of your Filipino spouse. You would have to obtain permission to import your product(s) and of course, there will be import fees and duty taxes applied for anything shipped here. You will also need to consider that the products you import, the demand for such is determined by who can afford your products. Remember that only about TEN PERCENT (10%) of the Philippine population is considered wealthy or well to do, the rest are usually quite poor and pesos can be short in coming. It is not necessary to have an office here but you will need a place for the products to be housed where they can be distributed. I will need to do a little more research on this but if I can help you I will try. I am planning to start a small business here myself in the very near future. I am, by profession, a Professional Photographer, and have the capability of creating brochures, price lists, publications, etc.


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## lukejackson (Jan 17, 2014)

Thanks for the response. 

I am wondering if there is any way to do it in which I simply act as a mediary. For example, facilitating sales in Philippines of a Australian/NZ/American product and gaining a commission from the manufacturers. 

Looking at the business visa, a letter from your business (for example, the business in Australia) and a letter of invitation from the Filipino business is required. 

Effectively, I would be acting for the principle manufacturer. 

I have some good contacts in Manila and Baguio in regards to high end retail, so that is a plus. However, I only envisioned doing this as a side line while interning/volunteering or in a graduate position on maybe $800 USD a month. 

As a result, I don't want to have to set up a business in Philippines or invest much money within Philippines.

I think my best bet is likely to talk to a lawyer when I get there and see what the best ways to do it may be (if it is possible to do at all!) or if there are any loopholes I can exploit etc.


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## JimnNila143 (Jul 23, 2013)

You would probably have to deal with the Philippine government about this, I don't know which branch of the government you would need to contact though. I will see what I can do about this and get back with you.


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## JimnNila143 (Jul 23, 2013)

Here are the import regulations of the Philippine Customs Service:

Filipino Customs: Regulations, Export-Import Procedures of Philippines Customs.


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