Republic Act No.

8792 IMPLEMENTING RULES AND REGULATIONS OF THE ELE TRONI OMMER E A T Pursuant to the provisions of Section 34 of Republic Act No. 8792, otherwise nown as the !lectronic "o##erce Act $the %Act&', the followin( i#ple#entin( rules an) re(ulations $the %Rules&' are hereb* pro#ul(ate)+ PART I DE LARATION OF POLI ! AND PRIN IPLES FOR ELE TRONI OMMER E PROMOTION "#pte$ I Decl#$#tio% o& Polic' Section ,. -eclaration of Polic*. . /he State reco(ni0es the vital role of infor#ation an) co##unications technolo(* $1"/' in nation2buil)in(3 the nee) to create an infor#ation2frien)l* environ#ent which supports an) ensures the availabilit*, )iversit* an) affor)abilit* of 1"/ pro)ucts an) services3 the pri#ar* responsibilit* of the private sector in contributin( invest#ents an) services in 1"/3 the nee) to )evelop, with appropriate trainin( pro(ra#s an) institutional polic* chan(es, hu#an resources for the infor#ation a(e, a labor force s ille) in the use of 1"/ an) a population capable of operatin( an) utili0in( electronic appliances an) co#puters3 its obli(ation to facilitate the transfer an) pro#otion of technolo(*3 to ensure networ securit*, connectivit* an) neutralit* of technolo(* for the national benefit3 an) the nee) to #arshal, or(ani0e an) )eplo* national infor#ation infrastructures, co#prisin( in both co##unications networ an) strate(ic infor#ation services, inclu)in( their interconnection to the (lobal infor#ation networ s, with the necessar* an) appropriate le(al, financial, )iplo#atic an) technical fra#ewor , s*ste#s an) facilities. Section 2. Authorit* of the -epart#ent of /ra)e an) 1n)ustr* an) Participatin( !ntities. . /he -epart#ent of /ra)e an) 1n)ustr* $-/1' shall )irect an) supervise the pro#otion an) )evelop#ent of electronic co##erce in the countr* with relevant (overn#ent a(encies, without pre4u)ice to the provisions of Republic Act. 7563 $"harter of 7an( o Sentral n( Pilipinas' an) Republic Act No. 879, $8eneral 7an in( Act'. "#pte$ II Decl#$#tio% o& P$i%ciple( &o$ Elect$o%ic o))e$ce P$o)otio% Section 3. Principles. . Pursuant to the #an)ate un)er Section 29 of the Act to )irect an) supervise the pro#otion an) )evelop#ent of electronic co##erce in the countr*, the followin( principles are hereb* a)opte) as 8overn#ent polic* on electronic co##erce+ $a' Role of the 8overn#ent. . 8overn#ent intervention, when re9uire), shall pro#ote a stable le(al environ#ent, allow a fair allocation of scarce resources an) protect public interest. Such intervention shall be no #ore than is essential an) shoul) be clear, transparent, ob4ective, non2 )iscri#inator*, proportional, fle:ible, an) technolo(icall* neutral. ;echanis#s for private sector input an) involve#ent in polic* #a in( shall be pro#ote) an) wi)el* use). $b' Role of the Private Sector. . /he )evelop#ent of electronic co##erce shall be le) pri#aril* b* the private sector in response to #ar et forces. Participation in electronic co##erce shall be pursue) throu(h an open an) fair co#petitive #ar et.

$c' 1nternational "oor)ination an) <ar#oni0ation. . !lectronic co##erce is (lobal b* nature. 8overn#ent policies that affect electronic co##erce will be internationall* coor)inate) an) co#patible an) will facilitate interoperabilit* within an international, voluntar* an) consensus2base) environ#ent for stan)ar)s settin(. $)' Neutral /a: /reat#ent. . /ransactions con)ucte) usin( electronic co##erce shoul) receive neutral ta: treat#ent in co#parison to transactions usin( non2electronic #eans an) ta:ation of electronic co##erce shall be a)#inistere) in the least bur)enso#e #anner. $e' Protection of =sers. . /he protection of users, in particular with re(ar) to privac*, confi)entialit*, anon*#it* an) content control shall be pursue) throu(h policies )riven b* choice, in)ivi)ual e#power#ent, an) in)ustr*2le) solutions. 1t shall be in accor)ance with applicable laws. Sub4ect to such laws, business shoul) #a e available to consu#ers an), where appropriate, business users the #eans to e:ercise choice with respect to privac*, confi)entialit*, content control an), un)er appropriate circu#stances, anon*#it*. $f' !lectronic "o##erce Awareness. . 8overn#ent an) the private sector will infor# societ*, both in)ivi)ual consu#ers an) businesses, about the potentials of electronic co##erce an) its i#pact on social an) econo#ic structures. $(' S#all an) ;e)iu#2Si0e) !nterprises. . 8overn#ent will provi)e s#all an) #e)iu#2si0e) enterprises $S;!s' with infor#ation an) e)ucation relevant to opportunities provi)e) b* (lobal electronic co##erce. 8overn#ent will create an environ#ent that is con)ucive to private sector invest#ent in infor#ation technolo(ies an) encoura(e capital access for S;!s. $h' S ills -evelop#ent. . 8overn#ent shall enable wor ers to share in the new an) )ifferent e#plo*#ent (enerate) b* electronic co##erce. 1n this re(ar), the 8overn#ent shall continue to pro#ote both for#al an) non2for#al s ills2 )evelop#ent pro(ra#s. $i' 8overn#ent as a ;o)el =ser. . 8overn#ent shall utili0e new electronic #eans to )eliver core public services in or)er to )e#onstrate the benefits )erive) therefro# an) to pro#ote the use of such #eans. 1n this re(ar), the 8overn#ent will be a pioneer in usin( new technolo(ies. 1n particular, the 8overn#ent 1nfor#ation S*ste# Plan $81SP', which is e:pecte) to inclu)e, but not be li#ite) to, online public infor#ation an) cultural resources, )atabases for health services, web sites at local, re(ional an) national levels an) public libraries an) )atabases, where appropriate, will be i#ple#ente) in accor)ance with the provisions of the Act an) RP>!7. $4' "onver(ence. . "onver(ence of technolo(ies is crucial to electronic co##erce an) will be supporte) b* appropriate (overn#ent policies. 8overn#ent will wor closel* with business in preparin( for an) reactin( to chan(es cause) b* conver(ence. $ ' -o#ain Na#e S*ste#. . /he 8overn#ent supports initiatives to ensure that 1nternet users will have a sufficient voice in the (overnance of the )o#ain na#e s*ste#. $l' Access to Public Recor)s. . 8overn#ent shall provi)e e9ual an) transparent access to public )o#ain infor#ation. $#' -ispute ;echanis#s. . 8overn#ent encoura(es the use of self2re(ulator* e:tra24u)icial )ispute settle#ent #echanis#s such as arbitration an) #e)iation as an effective wa* of resolvin( electronic co##erce )isputes. "#pte$ III Ob*ecti+e #%, Sp"e$e o& Applic#tio%

Section 4. ?b4ective of the Act. . /he Act ai#s to facilitate )o#estic an) international )ealin(s, transactions, arran(e#ents, a(ree#ents, contracts an) e:chan(es an) stora(e of infor#ation throu(h the utili0ation of electronic, optical an) si#ilar #e)iu#, #o)e, instru#entalit* an) technolo(* to reco(ni0e the authenticit* an) reliabilit* of electronic )ocu#ents relate) to such activities an) to pro#ote the universal use of electronic transactions in the (overn#ent an) b* the (eneral public. Section 6. Sphere of Application. . /he Act shall appl* to an* in) of electronic )ata #essa(e an) electronic )ocu#ent use) in the conte:t of co##ercial an) non2co##ercial activities to inclu)e )o#estic an) international )ealin(s, transactions, arran(e#ents, a(ree#ents, contracts an) e:chan(es an) stora(e of infor#ation. PART II OMMER E IN GENERAL

$e' %!lectronic )ata #essa(e& refers to infor#ation (enerate), sent, receive) or store) b* electronic, optical or si#ilar #eans, but not li#ite) to, electronic )ata interchan(e $!-1', electronic #ail, tele(ra#, tele: or telecop*. /hrou(hout these Rules, the ter# %electronic )ata #essa(e& shall be e9uivalent to an) be use) interchan(eabl* with %electronic )ocu#ent.& $f' %1nfor#ation an) "o##unications S*ste#& refers to a s*ste# for (eneratin(, sen)in(, receivin(, storin( or otherwise processin( electronic )ata #essa(es or electronic )ocu#ents an) inclu)es the co#puter s*ste# or other si#ilar )evice b* or in which )ata is recor)e) or store) an) an* proce)ures relate) to the recor)in( or stora(e of electronic )ata #essa(e or electronic )ocu#ent. $(' %!lectronic si(nature& refers to an* )istinctive #ar , characteristic an)Aor soun) in electronic for#, representin( the i)entit* of a person an) attache) to or lo(icall* associate) with the electronic )ata #essa(e or electronic )ocu#ent or an* #etho)olo(* or proce)ures e#plo*e) or a)opte) b* a person an) e:ecute) or a)opte) b* such person with the intention of authenticatin( or approvin( an electronic )ata #essa(e or electronic )ocu#ent. $h' %!lectronic )ocu#ent& refers to infor#ation or the representation of infor#ation, )ata, fi(ures, s*#bols or other #o)es of written e:pression, )escribe) or however represente), b* which a ri(ht is establishe) or an obli(ation e:tin(uishe), or b* which a fact #a* be prove) an) affir#e), which is receive), recor)e), trans#itte), store), processe), retrieve) or pro)uce) electronicall*. /hrou(hout these Rules, the ter# %electronic )ocu#ent& shall be e9uivalent to an) be use) interchan(eabl* with %electronic )ata #essa(e.& $i' %!lectronic e*& refers to a secret co)e, which secures an) )efen)s sensitive infor#ation that crosses over public channels into a for# )ecipherable onl* b* itself or with a #atchin( electronic e*. /his ter# shall inclu)e, but not be li#ite) to, e*s pro)uce) b* sin(le e* cr*ptos*ste#s, public e* cr*ptos*ste#s or an* other si#ilar #etho) or process, which #a* hereafter, be )evelope). $4' %1nter#e)iar*& refers to a person who in behalf of another person an) with respect to a particular electronic )ata #essa(e or electronic )ocu#ent sen)s, receives an)Aor stores or provi)es other services in respect of that electronic )ata #essa(e or electronic )ocu#ent. $ ' %Non2"o##ercial Activities& are those not fallin( un)er co##ercial activities. $l' %?ri(inator& refers to a person b* who#, or on whose behalf, the electronic )ata #essa(e or electronic )ocu#ent purports to have been create), (enerate) an)Aor sent. /he ter# )oes not inclu)e a person actin( as an inter#e)iar* with respect to that electronic )ata #essa(e or electronic )ocu#ent. $#' %Person& #eans an* natural or 4uri)ical person inclu)in(, but not li#ite) to, an in)ivi)ual, corporation, partnership, 4oint venture, unincorporate) association, trust or other 4uri)ical entit*, or an* (overn#ental authorit*.

ELE TRONI

"#pte$ I Ge%e$#l P$o+i(io%( Section 5. -efinition of /er#s. . @or the purposes of the Act an) these Rules, the followin( ter#s are )efine), as follows+ $a' %A))ressee& refers to a person who is inten)e) b* the ori(inator to receive the electronic )ata #essa(e or electronic )ocu#ent, but )oes not inclu)e a person actin( as an inter#e)iar* with respect to that electronic )ata #essa(e or electronic )ocu#ent. $b' %"o##ercial Activities& shall be (iven a wi)e interpretation so as to cover #atters arisin( fro# all relationships of a co##ercial nature, whether contractual or not. /he ter# shall li ewise refer to acts, events, transactions, or )ealin(s occurrin( between or a#on( parties inclu)in(, but not li#ite) to, factorin(, invest#ents, leasin(, consultin(, insurance, an) all other services, as well as the #anufacture, processin(, purchase, sale, suppl*, )istribution or transactin( in an* #anner, of tan(ible an) intan(ible propert* of all in)s such as co##o)ities, (oo)s, #erchan)ise, financial an) ban in( pro)ucts, patents, participations, shares of stoc , software, boo s, wor s of art an) other intellectual propert*. $c' %"o#puter& refers to an* )evice or apparatus sin(l* or interconnecte) which, b* electronic, electro2 #echanical, optical an)Aor #a(netic i#pulse, or other #eans with the sa#e function, can receive, recor), trans#it, store, process, correlate, anal*0e, pro4ect, retrieve an)Aor pro)uce infor#ation, )ata, te:t, (raphics, fi(ures, voice, vi)eo, s*#bols or other #o)es of e:pression or perfor# an* one or #ore of these functions. $)' %"onver(ence& refers to technolo(ies #ovin( to(ether towar)s a co##on point an) eli#ination of )ifferences between the provisionin( of vi)eo, voice an) )ata, usin( )i(ital an) other e#er(in( technolo(ies3 the co#in( to(ether of two or #ore )isparate )isciplines or technolo(ies3 the abilit* of )ifferent networ platfor#s to carr* an* in) of service3 an) the co#in( to(ether of consu#er )evices such as, but not li#ite) to, the telephone, television an) personal co#puter.

$n' %Service provi)er& refers to a provi)er of . i. ?nline services or networ access, or the operator of facilities therefor, inclu)in( entities offerin( the trans#ission, routin(, or provi)in( of connections for online co##unications, )i(ital or otherwise, between or a#on( points specifie) b* a user, of electronic )ata #essa(e or electronic )ocu#ents of the userBs choosin(3 or ii. /he necessar* technical #eans b* which electronic )ata #essa(e or electronic )ocu#ents of an ori(inator #a* be store) an) #a)e accessible to a )esi(nate) or un)esi(nate) thir) part*. Such service provi)ers shall have no authorit* to #o)if* or alter the content of the electronic )ata #essa(e or electronic )ocu#ent receive) or to #a e an* entr* therein on behalf of the ori(inator, a))ressee or an* thir) part* unless specificall* authori0e) to )o so, an) shall retain the electronic )ata #essa(e or electronic )ocu#ent in accor)ance with the specific re9uest or as necessar* for the purpose of perfor#in( the services it was en(a(e) to perfor#. "#pte$ II Le-#l Reco-%itio% o& Elect$o%ic D#t# Me((#-e( A%, Elect$o%ic Docu)e%t( Section 7. Ce(al Reco(nition of !lectronic -ata ;essa(es an) !lectronic -ocu#ents. . 1nfor#ation shall not be )enie) vali)it* or enforceabilit* solel* on the (roun) that it is in the for# of an electronic )ata #essa(e or electronic )ocu#ent, purportin( to (ive rise to such le(al effect. !lectronic )ata #essa(es or electronic )ocu#ents shall have the le(al effect, vali)it* or enforceabilit* as an* other )ocu#ent or le(al writin(. 1n particular, sub4ect to the provisions of the Act an) these Rules+ $a' A re9uire#ent un)er law that infor#ation is in writin( is satisfie) if the infor#ation is in the for# of an electronic )ata #essa(e or electronic )ocu#ent. $b' A re9uire#ent un)er law for a person to provi)e infor#ation in writin( to another person is satisfie) b* the provision of the infor#ation in an electronic )ata #essa(e or electronic )ocu#ent. $c' A re9uire#ent un)er law for a person to provi)e infor#ation to another person in a specifie) non2electronic for# is satisfie) b* the provision of the infor#ation in an electronic )ata #essa(e or electronic )ocu#ent if the infor#ation is provi)e) in the sa#e or substantiall* the sa#e for#. $)' Nothin( li#its the operation of an* re9uire#ent un)er law for infor#ation to be poste) or )ispla*e) in specifie) #anner, ti#e or location3 or for an* infor#ation or )ocu#ent to be co##unicate) b* a specifie) #etho) unless an) until a functional e9uivalent shall have been )evelope), installe), an) i#ple#ente). Section 8. 1ncorporation b* Reference. . 1nfor#ation shall not be )enie) vali)it* or enforceabilit* solel* on the (roun) that it is not containe) in an electronic )ata #essa(e or electronic )ocu#ent but is #erel* incorporate) b* reference therein. Section 9. =se Not ;an)ator*. . >ithout pre4u)ice to the application of Section 27 of the Act an) Section 37 of these

Rules, nothin( in the Act or these Rules re9uires a person to use or accept infor#ation containe) in electronic )ata #essa(es, electronic )ocu#ents, or electronic si(natures, but a personDs consent to )o so #a* be inferre) fro# the personDs con)uct. Section ,E. >ritin(. . >here the law re9uires a )ocu#ent to be in writin(, or obli(es the parties to confor# to a writin(, or provi)es conse9uences in the event infor#ation is not presente) or retaine) in its ori(inal for#, an electronic )ocu#ent or electronic )ata #essa(e will be sufficient if the latter+ $a' #aintains its inte(rit* an) reliabilit*3 an)

$b' can be authenticate) so as to be usable for subse9uent reference, in that+ $i' 1t has re#aine) co#plete an) unaltere), apart fro# the a))ition of an* en)orse#ent an) an* authori0e) chan(e, or an* chan(e which arises in the nor#al course of co##unication, stora(e an) )ispla*3 an) $ii' 1t is reliable in the li(ht of the purpose for which it was (enerate) an) in the li(ht of all relevant circu#stances. Section ,,. ?ri(inal. . >here the law re9uires that a )ocu#ent be presente) or retaine) in its ori(inal for#, that re9uire#ent is #et b* an electronic )ocu#ent or electronic )ata #essa(e if . $a' /here e:ists a reliable assurance as to the inte(rit* of the electronic )ocu#ent or electronic )ata #essa(e fro# the ti#e when it was first (enerate) in its final for# an) such inte(rit* is shown b* evi)ence aliun)e $that is, evi)ence other than the electronic )ata #essa(e itself' or otherwise3 an) $b' /he electronic )ocu#ent or electronic )ata #essa(e is capable of bein( )ispla*e) to the person to who# it is to be presente). $c' @or the purposes of para(raph $a' above+ $i' /he criteria for assessin( inte(rit* shall be whether the infor#ation has re#aine) co#plete an) unaltere), apart fro# the a))ition of an* en)orse#ent an) an* chan(e which arises in the nor#al course of co##unication, stora(e an) )ispla*3 an) $ii' /he stan)ar) of reliabilit* re9uire) shall be assesse) in the li(ht of the purpose for which the infor#ation was (enerate) an) in the li(ht of all relevant circu#stances. An electronic )ata #essa(e or electronic )ocu#ent #eetin( an) co#pl*in( with the re9uire#ents of Sections 5 or 7 of the Act shall be the best evi)ence of the a(ree#ent an) transaction containe) therein. Section ,2. Sole#n "ontracts. . No provision of the Act shall appl* to var* an* an) all re9uire#ents of e:istin( laws an) relevant 4u)icial pronounce#ents respectin( for#alities re9uire) in the e:ecution of )ocu#ents for their vali)it*. <ence, when the law re9uires that a contract be in so#e for# in or)er that it #a* be vali) or enforceable, or that a contract is prove) in a certain wa*, that re9uire#ent is absolute an) in)ispensable. Le-#l Reco-%itio% o& Elect$o%ic Si-%#tu$e( Section ,3. Ce(al Reco(nition of !lectronic Si(natures. An electronic si(nature relatin( to an electronic )ocu#ent or electronic )ata #essa(e shall be e9uivalent to the si(nature of a person on a written )ocu#ent if the si(nature+

$a' is an electronic si(nature as )efine) in Section 5$(' of these Rules3 an) $b' is prove) b* showin( that a prescribe) proce)ure, not alterable b* the parties intereste) in the electronic )ocu#ent or electronic )ata #essa(e, e:iste) un)er which+ $i' A #etho) is use) to i)entif* the part* sou(ht to be boun) an) to in)icate sai) part*Bs access to the electronic )ocu#ent or electronic )ata #essa(e necessar* for his consent or approval throu(h the electronic si(nature3 $ii' Sai) #etho) is reliable an) appropriate for the purpose for which the electronic )ocu#ent or electronic )ata #essa(e was (enerate) or co##unicate), in the li(ht of all circu#stances, inclu)in( an* relevant a(ree#ent3 $iii' 1t is necessar* for the part* sou(ht to be boun), in or)er to procee) further with the transaction, to have e:ecute) or provi)e) the electronic si(nature3 an), $iv' /he other part* is authori0e) an) enable) to verif* the electronic si(nature an) to #a e the )ecision to procee) with the transaction authenticate) b* the sa#e. /he parties #a* a(ree to a)opt supple#entar* or alternative proce)ures provi)e) that the re9uire#ents of para(raph $b' are co#plie) with. @or purposes of subpara(raphs $i' an) $ii' of para(raph $b', the factors referre) to in Anne: %2& #a* be ta en into account. Section ,4. Presu#ption Relatin( to !lectronic Si(natures. . 1n an* procee)in( involvin( an electronic si(nature, the proof of the electronic si(nature shall (ive rise to the rebuttable presu#ption that+ $a' /he electronic si(nature is the si(nature of the person to who# it correlates3 an) $b' /he electronic si(nature was affi:e) b* that person with the intention of si(nin( or approvin( the electronic )ata #essa(e or electronic )ocu#ent unless the person rel*in( on the electronicall* si(ne) electronic )ata #essa(e or electronic )ocu#ent nows or has notice of )efects in or unreliabilit* of the si(nature or reliance on the electronic si(nature is not reasonable un)er the circu#stances. Mo,e( o& Aut"e%tic#tio% Section ,6. ;etho) of Authenticatin( !lectronic -ocu#ents, !lectronic -ata ;essa(es, an) !lectronic Si(natures. . !lectronic )ocu#ents, electronic )ata #essa(es an) electronic si(natures, shall be authenticate) b* )e#onstratin(, substantiatin( an) vali)atin( a clai#e) i)entit* of a user, )evice, or another entit* in an infor#ation or co##unication s*ste#. =ntil the Supre#e "ourt, b* appropriate rules, shall have so provi)e), electronic )ocu#ents, electronic )ata #essa(es an) electronic si(natures, shall be authenticate), a#on( other wa*s, in the followin( #anner+ $a' /he electronic si(nature shall be authenticate) b* proof that a letter, character, nu#ber or other s*#bol in electronic for# representin( the persons na#e) in an) attache) to or lo(icall* associate) with an electronic )ata #essa(e, electronic

)ocu#ent, or that the appropriate #etho)olo(* or securit* proce)ures, when applicable, were e#plo*e) or a)opte) b* a person an) e:ecute) or a)opte) b* such person, with the intention of authenticatin( or approvin( an electronic )ata #essa(e or electronic )ocu#ent3 $b' /he electronic )ata #essa(e or electronic )ocu#ent shall be authenticate) b* proof that an appropriate securit* proce)ure, when applicable was a)opte) an) e#plo*e) for the purpose of verif*in( the ori(inator of an electronic )ata #essa(e or electronic )ocu#ent, or )etectin( error or alteration in the co##unication, content or stora(e of an electronic )ocu#ent or electronic )ata #essa(e fro# a specific point, which, usin( al(orith# or co)es, i)entif*in( wor)s or nu#bers, encr*ptions, answers bac or ac nowle)(e#ent proce)ures, or si#ilar securit* )evices. Section ,5. 7ur)en of Authenticatin( !lectronic -ocu#ents or !lectronic -ata ;essa(es. . /he person see in( to intro)uce an electronic )ocu#ent or electronic )ata #essa(e in an* le(al procee)in( has the bur)en of provin( its authenticit* b* evi)ence capable of supportin( a fin)in( that the electronic )ata #essa(e or electronic )ocu#ent is what the person clai#s it to be. Mo,e( &o$ E(t#bli("i%- I%te-$it' Section ,7. ;etho) of !stablishin( the 1nte(rit* of an !lectronic -ocu#ent or !lectronic -ata ;essa(e. 1n the absence of evi)ence to the contrar*, the inte(rit* of the infor#ation an) co##unication s*ste# in which an electronic )ata #essa(e or electronic )ocu#ent is recor)e) or store) #a* be establishe) in an* le(al procee)in(, a#on( other #etho)s $a' 7* evi)ence that at all #aterial ti#es the infor#ation an) co##unication s*ste# or other si#ilar )evice was operatin( in a #anner that )i) not affect the inte(rit* of the electronic )ocu#ent or electronic )ata #essa(e, an) there are no other reasonable (roun)s to )oubt the inte(rit* of the infor#ation an) co##unication s*ste#3 $b' 7* showin( that the electronic )ocu#ent or electronic )ata #essa(e was recor)e) or store) b* a part* to the procee)in(s who is a)verse in interest to the part* usin( it3 or $c' 7* showin( that the electronic )ocu#ent or electronic )ata #essa(e was recor)e) or store) in the usual an) or)inar* course of business b* a person who is not a part* to the procee)in(s an) who )i) not act un)er the control of the part* usin( the recor). A,)i((ibilit' #%, E+i,e%ti#l .ei-"t Section ,8. A)#issibilit* an) !vi)ential >ei(ht of !lectronic -ata ;essa(es an) !lectronic -ocu#ents. . @or evi)entiar* purposes, an electronic )ocu#ent or electronic )ata #essa(e shall be the functional e9uivalent of a written )ocu#ent un)er e:istin( laws. 1n an* le(al procee)in(, nothin( in the application of the rules on evi)ence shall )en* the a)#issibilit* of an electronic )ata #essa(e or electronic )ocu#ent in evi)ence+ $a' ?n the sole (roun) that it is in electronic for#3 or $b' ?n the (roun) that it is not in the stan)ar) written for#. /he Act )oes not #o)if* an* statutor* rule relatin( to the a)#issibilit* of electronic )ata #essa(es or electronic )ocu#ents, e:cept the rules relatin( to authentication an) best evi)ence. 1n assessin( the evi)ential wei(ht of an electronic )ata #essa(e or electronic )ocu#ent, the reliabilit* of the #anner in which it was (enerate), store) or co##unicate), the reliabilit* of the #anner in which its ori(inator was i)entifie), an) other relevant factors shall be (iven )ue re(ar).

Section ,9. Proof b* Affi)avit an) "ross2!:a#ination. . /he #atters referre) to in Section ,2 of the Act on a)#issibilit* an) evi)entiar* wei(ht, an) Section 9 of the Act on the presu#ption of inte(rit* of electronic si(natures, #a* be presu#e) to have been establishe) b* an affi)avit (iven to the best of the )eponentBs or affiantBs personal nowle)(e sub4ect to the ri(hts of parties in interest to cross2e:a#ine such )eponent or affiant as a #atter of ri(ht. Such ri(ht of cross2e:a#ination #a* li ewise be en4o*e) b* a part* to the procee)in(s who is a)verse in interest to the part* who has intro)uce) the affi)avit or has cause) the affi)avit to be intro)uce). An* part* to the procee)in(s has the ri(ht to cross2 e:a#ine a person referre) to in Section ,,, para(raph 4, an) sub2para(raph $c' of the Act. Rete%tio% o& Elect$o%ic D#t# Me((#-e #%, Elect$o%ic Docu)e%t Section 2E. Retention of !lectronic -ata ;essa(e an) !lectronic -ocu#ent. . Notwithstan)in( an* provision of law, rule or re(ulation to the contrar*+ $a' /he re9uire#ent in an* provision of law that certain )ocu#ents be retaine) in their ori(inal for# is satisfie) b* retainin( the# in the for# of an electronic )ata #essa(e or electronic )ocu#ent which+ $i' Re#ains accessible so as to be usable for subse9uent reference3 $ii' 1s retaine) in the for#at in which it was (enerate), sent or receive), or in a for#at which can be )e#onstrate) to accuratel* represent the electronic )ata #essa(e or electronic )ocu#ent (enerate), sent or receive)3 an), $iii' >here applicable, enables the i)entification of its ori(inator an) a))ressee, as well as the )eter#ination of the )ate an) the ti#e it was sent or receive). $b' /he re9uire#ent referre) to in para(raph $a' is satisfie) b* usin( the services of a thir) part*, provi)e) that the con)itions set forth in subpara(raphs $i', $ii' an) $iii' of para(raph $a' are #et. $c' Relevant (overn#ent a(encies tas e) with enforcin( or i#ple#entin( applicable laws relatin( to the retention of certain )ocu#ents #a*, b* appropriate issuances, i#pose re(ulations to ensure the inte(rit*, reliabilit* of such )ocu#ents an) the proper i#ple#entation of Section ,3 of the Act. "#pte$ III o))u%ic#tio% o& Elect$o%ic D#t# Me((#-e( A%, Elect$o%ic Docu)e%t( Section 2,. @or#ation an) Fali)it* of !lectronic "ontracts. . !:cept as otherwise a(ree) b* the parties, an offer, the acceptance of an offer an) such other ele#ents re9uire) un)er e:istin( laws for the for#ation an) perfection of contracts #a* be e:presse) in, )e#onstrate) an) prove) b* #eans of electronic )ata #essa(e or electronic )ocu#ents an) no contract shall be )enie) vali)it* or enforceabilit* on the sole (roun) that it is in the for# of an electronic )ata #essa(e or electronic )ocu#ent, or that an* or all of the ele#ents re9uire) un)er e:istin( laws for the for#ation of the contracts is e:presse), )e#onstrate) an) prove) b* #eans of electronic )ocu#ents. Section 22. "onsu##ation of !lectronic /ransactions with 7an s. . !lectronic transactions #a)e throu(h networ in( a#on( ban s, or lin a(es thereof with other entities or networ s, an) vice versa, shall be )ee#e) consu##ate) un)er rules an) re(ulations issue) b* the 7an( o Sentral un)er the succee)in(

para(raph hereun)er, upon the actual )ispensin( of cash or the )ebit of one account an) the correspon)in( cre)it to another, whether such transaction is initiate) b* the )epositor or b* an authori0e) collectin( part*3 Provided, that the obli(ation of one ban , entit*, or person si#ilarl* situate) to another arisin( therefro# shall be consi)ere) absolute an) shall not be sub4ecte) to the process of preference of cre)its3 Provided, however, that the fore(oin( shall appl* onl* to transactions utili0in( the Auto#ate) /eller ;achine switchin( networ . >ithout pre4u)ice to the fore(oin(, all electronic transactions involvin( ban s, 9uasi2ban s, trust entities, an) other institutions which un)er special laws are sub4ect to the supervision of the7an( o Sentral n( Pilipinas shall be covere) b* the rules an) re(ulations issue) b* the sa#e pursuant to its authorit* un)er Section 69 of Republic Act No. 879, $/he 8eneral 7an in( Act', Republic Act No. 7563 $the "harter of the 7an( o Sentral n( Pilipinas' an) Section 2E, Article G11 of the "onstitution. Section 23. Reco(nition b* Parties of !lectronic -ata ;essa(e. . As between the ori(inator an) the a))ressee of an electronic )ata #essa(e or electronic )ocu#ent, a )eclaration of will or other state#ent shall not be )enie) le(al effect, vali)it* or enforceabilit* solel* on the (roun) that it is in the for# of an electronic )ata #essa(e or electronic )ocu#ent. Att$ibutio% o& Elect$o%ic D#t# Me((#-e #%, Elect$o%ic Docu)e%t Section 24. ?ri(in of !lectronic -ata ;essa(e. . An electronic )ata #essa(e or electronic )ocu#ent is that of the ori(inator if it was sent b* the ori(inator hi#self. Section 26. ?ri(in of !lectronic -ata ;essa(e Not Personall* Sent b* an ?ri(inator. . As between the ori(inator an) the a))ressee, an electronic )ata #essa(e or electronic )ocu#ent is )ee#e) to be that of the ori(inator if it was sent+ $a' b* a person who ha) the authorit* to act on behalf of the ori(inator with respect to that electronic )ata #essa(e or electronic )ocu#ent3 or $b' b* an infor#ation an) co##unications s*ste# pro(ra##e) b*, or on behalf of the ori(inator to operate auto#aticall*. Section 25. >hen an ?ri(inator ;a* 7e 7oun) 7* an !lectronic -ata ;essa(e. . As between the ori(inator an) the a))ressee, an a))ressee is entitle) to re(ar) an electronic )ata #essa(e or electronic )ocu#ent as bein( that of the ori(inator, an) to act on that assu#ption, if+ $a' in or)er to ascertain whether the electronic )ata #essa(e was that of the ori(inator, the a))ressee properl* applie) a proce)ure previousl* a(ree) to b* the ori(inator for that purpose3 or $b' the electronic )ata #essa(e or electronic )ocu#ent as receive) b* the a))ressee resulte) fro# the actions of a person whose relationship with the ori(inator or with an* a(ent of the ori(inator enable) that person to (ain access to a #etho) use) b* the ori(inator to i)entif* electronic )ata #essa(es or electronic )ocu#ents as his own. /he provisions of this Section )o not e:clu)e other instances or circu#stances when an ori(inator #a* be boun) b* the reliance an) conse9uent action of an a))ressee respectin( an electronic )ata #essa(e, which purports to have been that of the ori(inator. Section 27. >hen an ?ri(inator ;a* Not 7e 7oun) 7* an !lectronic -ata ;essa(e. . As between the ori(inator an) the a))ressee, an a))ressee is not entitle) to re(ar) an electronic )ata #essa(e as bein( that of the ori(inator, an) to act on that assu#ption.

$a' as of the ti#e when the a))ressee has both receive) notice fro# the ori(inator that the electronic )ata #essa(e or electronic )ocu#ent is not that of the ori(inator, an) has reasonable ti#e to act accor)in(l*3 or $b' in a case within para(raph $b' Section 25 of these Rules, at an* ti#e when the a))ressee new or shoul) have nown, ha) it e:ercise) reasonable care or use) an* a(ree) proce)ure, that the electronic )ata #essa(e or electronic )ocu#ent was not that of the ori(inator. /he provisions of this Section )o not e:clu)e other instances or circu#stances when an ori(inator #a* not be liable for the reliance an) conse9uent action of an a))ressee respectin( an electronic )ata #essa(e, which purports to have been that of the ori(inator. Sep#$#te Receipt o& #%, E$$o$ o% Elect$o%ic D#t# Me((#-e #%, Elect$o%ic Docu)e%t Section 28. Assu#ption Re(ar)in( Receipt of Separate !lectronic -ata ;essa(es. . /he a))ressee is entitle) to re(ar) each electronic )ata #essa(e or electronic )ocu#ent receive) as a separate electronic )ata #essa(e or electronic )ocu#ent an) to act on that assu#ption, e:cept to the e:tent that it )uplicates another electronic )ata #essa(e or electronic )ocu#ent an) the a))ressee new or shoul) have nown, ha) it e:ercise) reasonable care or use) an* a(ree) proce)ure, that the electronic )ata #essa(e or electronic )ocu#ent was a )uplicate. Section 29. !rror on !lectronic -ata ;essa(e or !lectronic -ocu#ent. . /he a))ressee is entitle) to re(ar) the electronic )ata #essa(e or electronic )ocu#ent receive) as that which the ori(inator inten)e) to sen), an) to act on that assu#ption, unless the a))ressee new or shoul) have nown, ha) the a))ressee e:ercise) reasonable care, use) the appropriate proce)ure or applie) an a(ree) proce)ure+ $a' /hat the trans#ission resulte) in an* error therein or in the electronic )ata #essa(e or electronic )ocu#ent when the latter enters the )esi(nate) infor#ation an) co##unications s*ste#3 or $b' /hat electronic )ata #essa(e or electronic )ocu#ent is sent to an infor#ation an) co##unications s*ste# which is not so )esi(nate) b* the a))ressee for the purpose. Di(p#tc" #%, Receipt o& Elect$o%ic D#t# Me((#-e #%, Elect$o%ic Docu)e%t Section 3E. A(ree#ent on Ac nowle)(#ent of Receipt of !lectronic -ata ;essa(es or !lectronic -ocu#ents. . /he followin( rules shall appl* where, on or before sen)in( an electronic )ata #essa(e or electronic )ocu#ent, the ori(inator an) the a))ressee have a(ree), or in that electronic )ocu#ent or electronic )ata #essa(e, the ori(inator has re9ueste), that receipt of the electronic )ocu#ent or electronic )ata #essa(e be ac nowle)(e)+ $a' >here the ori(inator has not a(ree) with the a))ressee that the ac nowle)(#ent be (iven in a particular for# or b* a particular #etho), an ac nowle)(#ent #a* be (iven b* or throu(h an* co##unication b* the a))ressee, auto#ate) or otherwise, or an* con)uct of the a))ressee, sufficient to in)icate to the ori(inator that the electronic )ata #essa(e or electronic )ocu#ent has been receive). $b' >here the ori(inator has state) that the effect or si(nificance of the electronic )ata #essa(e or electronic )ocu#ent is con)itional on receipt of the ac nowle)(#ent thereof, the electronic )ata #essa(e or electronic )ocu#ent is treate) as thou(h it has never been sent, until the ac nowle)(#ent is receive).

$c' >here the ori(inator has not state) that the effect or si(nificance of the electronic )ata #essa(e or electronic )ocu#ent is con)itional on receipt of the ac nowle)(#ent, an) the ac nowle)(#ent has not been receive) b* the ori(inator within the ti#e specifie) or a(ree) or, if no ti#e has been specifie) or a(ree), within a reasonable ti#e, the ori(inator #a* (ive notice to the a))ressee statin( that no ac nowle)(#ent has been receive) an) specif*in( a reasonable ti#e b* which the ac nowle)(#ent #ust be receive)3 an) if the ac nowle)(#ent is not receive) within the ti#e specifie), the ori(inator #a*, upon notice to the a))ressee, treat the electronic )ocu#ent or electronic )ata #essa(e as thou(h it ha) never been sent, or e:ercise an* other ri(hts it #a* have. Section 3,. /i#e of -ispatch of !lectronic -ata ;essa(e or !lectronic -ocu#ent. . =nless otherwise a(ree) between the ori(inator an) the a))ressee, the )ispatch of an electronic )ata #essa(e or electronic )ocu#ent occurs when it enters an infor#ation an) co##unications s*ste# outsi)e the control of the ori(inator or of the person who sent the electronic )ata #essa(e or electronic )ocu#ent on behalf of the ori(inator. Section 32. /i#e of Receipt of !lectronic -ata ;essa(e or !lectronic -ocu#ent. . =nless otherwise a(ree) between the ori(inator an) the a))ressee, the ti#e of receipt of an electronic )ata #essa(e or electronic )ocu#ent is as follows+ $a' 1f the a))ressee has )esi(nate) an infor#ation an) co##unications s*ste# for the purpose of receivin( electronic )ata #essa(e or electronic )ocu#ent, receipt occurs at the ti#e when the electronic )ata #essa(e or electronic )ocu#ent enters the )esi(nate) infor#ation an) co##unications s*ste#3 Provi)e), however, that if the ori(inator an) the a))ressee are both participants in the )esi(nate) infor#ation an) co##unications s*ste#, receipt occurs at the ti#e when the electronic )ata #essa(e or electronic )ocu#ent is retrieve) b* the a))ressee. $b' 1f the electronic )ata #essa(e or electronic )ocu#ent is sent to an infor#ation an) co##unications s*ste# of the a))ressee that is not the )esi(nate) infor#ation an) co##unications s*ste#, receipt occurs at the ti#e when the electronic )ata #essa(e or electronic )ocu#ent is retrieve) b* the a))ressee. $c' 1f the a))ressee has not )esi(nate) an infor#ation an) co##unications s*ste#, receipt occurs when the electronic )ata #essa(e or electronic )ocu#ent enters an infor#ation an) co##unications s*ste# of the a))ressee. /hese rules appl* notwithstan)in( that the place where the infor#ation an) co##unications s*ste# is locate) #a* be )ifferent fro# the place where the electronic )ata #essa(e or electronic )ocu#ent is )ee#e) to be receive). Section 33. Place of -ispatch an) Receipt of !lectronic -ata ;essa(e or !lectronic -ocu#ent. . =nless otherwise a(ree) between the ori(inator an) the a))ressee, an electronic )ata #essa(e or electronic )ocu#ent is )ee#e) to be )ispatche) at the place where the ori(inator has its place of business an) receive) at the place where the a))ressee has its place of business. /his rule shall appl* even if the ori(inator or a))ressee ha) use) a laptop or other portable )evice to trans#it or receive his electronic )ata #essa(e or electronic )ocu#ent. /his rule shall also appl* to )eter#ine the ta: situs of such transaction to the e:tent not inconsistent with Philippine situs rules an) the re(ulations which #a* be pro#ul(ate) b* the 7ureau of 1nternal Revenue $71R'relatin( to the ta: treat#ent of electronic co##erce transactions. @or the purpose hereof . $a' 1f the ori(inator or the a))ressee has #ore than one place of business, the place of business is that which has the

closest relationship to the un)erl*in( transaction or, where there is no un)erl*in( transaction, the principal place of business. $b' 1f the ori(inator or the a))ressee )oes not have a place of business, reference is to be #a)e to its habitual resi)ence3 or $c' /he %usual place of resi)ence& in relation to a bo)* corporate, which )oes not have a place of business, #eans the place where it is incorporate) or otherwise le(all* constitute). Nothin( in this Section shall be )ee#e) to a#en) the rules of private international law. Secu$it' Met"o,( Section 34. "hoice of Securit* ;etho)s. . Sub4ect to applicable laws an)Aor rules an) (ui)elines pro#ul(ate) b* the -epart#ent of /ra)e an) 1n)ustr* an) other appropriate (overn#ent a(encies, parties to an* electronic transaction shall be free to )eter#ine the t*pe an) level of electronic )ata #essa(e or electronic )ocu#ent securit* nee)e), an) to select an) use or i#ple#ent appropriate technolo(ical #etho)s that suit their nee)s. ELE TRONI PART III OMMER E IN ARRIAGE OF GOODS

provi)es conse9uences for failin( either to carr* out the action in writin( or to use a paper )ocu#ent. $3' 1f a ri(ht is to be (rante) to, or an obli(ation is to be ac9uire) b*, one person an) no other person, an) if the law re9uires that, in or)er to effect this, the ri(ht or obli(ation #ust be conve*e) to that person b* the transfer, or use of, a paper )ocu#ent, that re9uire#ent is #et if the ri(ht or obli(ation is conve*e) b* usin( one or #ore electronic )ata #essa(es or electronic )ocu#ents+ Provided, /hat a reliable #etho) is use) to ren)er such electronic )ata #essa(es or electronic )ocu#ents uni9ue. $4' @or the purposes of para(raph $3', the stan)ar) of reliabilit* re9uire) shall be assesse) in the li(ht of the purpose for which the ri(ht or obli(ation was conve*e) an) in the li(ht of all the circu#stances, inclu)in( an* relevant a(ree#ent. $6' >here one or #ore electronic )ata #essa(es or electronic )ocu#ents are use) to effect an* action in subpara(raphs $f' an) $(' of Section 26 of the Act, no paper )ocu#ent use) to effect an* such action is vali) unless the use of electronic )ata #essa(e or electronic )ocu#ent has been ter#inate) an) replace) b* the use of paper )ocu#ents. A paper )ocu#ent issue) in these circu#stances shall contain a state#ent of such ter#ination. /he replace#ent of electronic )ata #essa(es or electronic )ocu#ents b* paper )ocu#ents shall not affect the ri(hts or obli(ations of the parties involve). $5' 1f a rule of law is co#pulsoril* applicable to a contract of carria(e of (oo)s which is in, or is evi)ence) b*, a paper )ocu#ent, that rule shall not be inapplicable to such a contract of carria(e of (oo)s which is evi)ence) b* one or #ore electronic )ata #essa(es or electronic )ocu#ents b* reason of the fact that the contract is evi)ence) b* such electronic )ata #essa(e or electronic )ocu#ent instea) of a paper )ocu#ent. ELE TRONI PART I/ TRANSA TIONS IN GO/ERNMENT

Section 36. Actions Relate) to "ontracts of "arria(e of 8oo)s. . >ithout )ero(atin( fro# the provisions of Part /wo of the Act, this Part of the Rules applies to an* action in connection with, or in pursuance of, a contract of carria(e of (oo)s, inclu)in( but not li#ite) to+ $a' $i' furnishin( the #ar s, nu#ber, 9uantit* or wei(ht of (oo)s3 $ii' statin( or )eclarin( the nature or value of (oo)s3 $iii' issuin( a receipt for (oo)s3 $iv' confir#in( that (oo)s have been loa)e)3 $b' $i' notif*in( a person of ter#s an) con)itions of the contract3 $ii' (ivin( instructions to a carrier3 $c' $i' clai#in( )eliver* of (oo)s3 $ii' authori0in( release of (oo)s3 $iii' (ivin( notices of loss of, or )a#a(e to (oo)s3 $)' (ivin( an* other notice or state#ent in connection with the perfor#ance of the contract3 $e' un)erta in( to )eliver (oo)s to a na#e) person or a person authori0e) to clai# )eliver*3 $f' (rantin(, ac9uirin(, renouncin(, transferrin( or ne(otiatin( ri(hts in (oo)s3 surren)erin(,

"#pte$ I Go+e$%)e%t U(e o& D#t# Me((#-e(0 Elect$o%ic Docu)e%t( #%, Elect$o%ic Si-%#tu$e( Section 37. 8overn#ent =se of !lectronic -ata ;essa(es, !lectronic -ocu#ents an) !lectronic Si(natures. . Notwithstan)in( an* law to the contrar*, within two $2' *ears fro# the )ate of the effectivit* of the Act, all )epart#ents, bureaus, offices an) a(encies of the (overn#ent, as well as all (overn#ent2owne) an)2controlle) corporations, that pursuant to law re9uire or accept the filin( of )ocu#ents, re9uire that )ocu#ents be create), or retaine) an)Aor sub#itte), issue per#its, licenses or certificates of re(istration or approval, or provi)e for the #etho) an) #anner of pa*#ent or settle#ent of fees an) other obli(ations to the (overn#ent, shall+ $a' accept the creation, filin( or retention of such )ocu#ents in the for# of electronic )ata #essa(es or electronic )ocu#ents3 $b' issue per#its, licenses, or approval in the for# of electronic )ata #essa(es or electronic )ocu#ents3 $c' re9uire an)Aor accept pa*#ents, an) issue receipts ac nowle)(in( such pa*#ents, throu(h s*ste#s usin( electronic )ata #essa(es or electronic )ocu#ents3 or $)' transact the (overn#ent business an)Aor perfor# (overn#ental functions usin( electronic )ata #essa(es or electronic )ocu#ents, an) for the purpose, are authori0e) to a)opt an) pro#ul(ate, after appropriate public hearin( an) with )ue publication in newspapers of (eneral circulation, the appropriate rules, re(ulations, or (ui)elines, to, a#on( others, specif* .

$(' ac9uirin( or transferrin( ri(hts an) obli(ations un)er the contract. Section 35. /ransport -ocu#ents. . $,' Sub4ect to para(raph $3', where the law re9uires that an* action referre) to in the i##e)iatel* prece)in( Section be carrie) out in writin( or b* usin( a paper )ocu#ent, that re9uire#ent is #et if the action is carrie) out b* usin( one or #ore electronic )ata #essa(es or electronic )ocu#ents. /he transport )ocu#ents referre) to herein shall inclu)e, but not be li#ite) to, those enu#erate) in Anne: %,& hereof. "oncerne) a(encies such as, but not li#ite) to, the -/1, -epart#ent of @inance, -?/", Philippine Ports Authorit* an) other port authorities, shall, within their respective #an)ates, issue appropriate rules an) (ui)elines with respect to transport )ocu#ents as provi)e) herein. $2' Para(raph $,' applies whether the re9uire#ent therein is in the for# of an obli(ation or whether the law si#pl*

$,' the #anner an) for#at in which such electronic )ata #essa(es or electronic )ocu#ents shall be file), create), retaine) or issue)3 $2' where an) when such electronic )ata #essa(es or electronic )ocu#ents have to be si(ne), the use of a electronic si(nature, the t*pe of electronic si(nature re9uire)3 $3' the for#at of an electronic )ata #essa(e or electronic )ocu#ent an) the #anner the electronic si(nature shall be affi:e) to the electronic )ata #essa(e or electronic )ocu#ent3 $4' the control processes an) proce)ures as appropriate to ensure a)e9uate inte(rit*, securit* an) confi)entialit* of electronic )ata #essa(es or electronic )ocu#ents or recor)s or pa*#ents3 $6' other attributes re9uire) of electronic #essa(es or electronic )ocu#ents or pa*#ents3 an) )ata

"#pte$ II RP.E1 Section 4E. RP>!7 /o Pro#ote the =se ?f !lectronic -ocu#ents an) !lectronic -ata ;essa(es 1n 8overn#ent an) to the 8eneral Public. . >ithin two $2' *ears fro# the effectivit* of the Act, there shall be installe) an electronic online networ in accor)ance with A)#inistrative ?r)er 332 an) <ouse of Representatives Resolution 89E, otherwise nown as RP>!7, to i#ple#ent Part 1F of the Act to facilitate the open, spee)* an) efficient electronic online trans#ission, conve*ance an) use of electronic )ata #essa(es or electronic )ocu#ents a#on(st all (overn#ent )epart#ents, a(encies, bureaus, offices )own to the )ivision level an) to the re(ional an) provincial offices as practicable as possible, (overn#ent2owne) an) 2controlle) corporations, local (overn#ent units, other public instru#entalities, universities, colle(es an) other schools, an) universal access to the (eneral public. /he RP>!7 networ shall serve as initial platfor# of the (overn#ent infor#ation infrastructure to facilitate the electronic online trans#ission an) conve*ance of (overn#ent services to evolve an) i#prove b* better technolo(ies or in)s of electronic online wi)e area networ s utili0in(, but not li#ite) to, fiber optic, satellite, wireless an) other broa)ban) teleco##unication #e)iu#s or #o)es. Section 4,. 1#ple#entin( A(encies. . /o facilitate the rapi) )evelop#ent of the (overn#ent infor#ation infrastructure, the -epart#ent of /ransportation an) "o##unications, National /eleco##unications "o##ission an) the National "o#puter "enter shall in coor)ination with each other, pro#ul(ate the appropriate issuances in accor)ance with their respective #an)ate to a((ressivel* for#ulate, pro#ote an) i#ple#ent a polic* environ#ent an) re(ulator* or non2re(ulator* fra#ewor that shall lea) to the substantial re)uction of costs of inclu)in(, but not li#ite) to, lease) lines, lan), satellite an) )ial2up telephone access, cheap broa)ban) an) wireless accessibilit* b* (overn#ent )epart#ents, a(encies, bureaus, offices, (overn#ent2owne) an) 2controlle) corporations, local (overn#ent units, other public instru#entalities an) the (eneral public, to inclu)e the establish#ent of a (overn#ent website portal an) a )o#estic internet e:chan(e s*ste# to facilitate strate(ic access to (overn#ent an) a#on(st a(encies thereof an) the (eneral public an) for the spee)ier flow of locall* (enerate) internet traffic within the Philippines. Section 42. "able /elevision an) 7roa)cast as /eleco##unications. . /he ph*sical infrastructure of cable an) wireless s*ste#s for cable /F an) broa)cast e:clu)in( pro(ra##in( an) content an) the #ana(e#ent thereof shall be consi)ere) as within the activit* of teleco##unications for the purpose of electronic co##erce an) to #a:i#i0e the conver(ence of 1"/ in the installation of the (overn#ent infor#ation infrastructure. "#pte$ III Deli%e#tio% o& Fu%ctio%( Section 43. -elineation of @unctions an) "oor)ination b* the -/1. . 1n the i#ple#entation of the Act, the followin( (overn#ent a(encies shall have the functions state) hereun)er+ $a' /he -epart#ent of /ra)e an) 1n)ustr* shall+ $i' Supervise an) coor)inate the full i#ple#entation of Section 27 of the Act. @or this purpose, all (overn#ent a(encies inten)in( to co#pl* with the sai) provision of law shall coor)inate with the -/1 in or)er to ensure a)herence with the principles provi)e) for in Section 38 of these Rules. ?bservance of all laws an) re(ulations on public bi))in(, )isburse#ents an) other restrictions, inclu)in( "?A policies, shall be #an)ator*.

$5' the full or li#ite) use of the )ocu#ents an) papers for co#pliance with the (overn#ent re9uire#ents3 Provided, /hat the Act shall b* itself #an)ate an* )epart#ent of the (overn#ent, or(an of state or statutor* corporation to accept or issue an* )ocu#ent in the for# of electronic )ata #essa(es or electronic )ocu#ents upon the a)option, pro#ul(ation an) publication of the appropriate rules, re(ulations, or (ui)elines. Nothin( in the Act or the Rules authori0es an* person to re9uire an* branch, )epart#ent, a(enc*, bureau, or instru#entalit* of (overn#ent to accept or process electronic )ata #essa(es3 con)uct its business3 or perfor# its functions b* electronic #eans, until the a)option, pro#ul(ation an) publication of the afore2#entione) appropriate rules, re(ulations or (ui)elines. Such rules, re(ulations or (ui)elines as well as the un)erl*in( technolo(ies utili0e) in the i#ple#entation of the Act an) these Rules shall confor# the principles set forth in the i##e)iatel* succee)in( section. Section 38. Principles 8overnin( 8overn#ent =se of !lectronic -ata ;essa(es, !lectronic -ocu#ents an) !lectronic Si(natures. . /he followin( principles shall (overn the i#ple#entation of Section 27 of the Act an) shall be #an)ator* upon all )epart#ents, bureaus, offices an) a(encies of the (overn#ent, as well as all (overn#ent2owne) an)2controlle) corporations+ $a' /echnolo(* Neutralit*. . All solutions i#ple#ente) shall neither favor a particular technolo(* over another nor )iscri#inate a(ainst or in favor of particular ven)ors of technolo(*. $b' 1nteroperabilit*. . All i#ple#entation of technolo(ical solutions shall ensure the interoperabilit* of s*ste#s for#in( part of the (overn#ent networ . $c' !li#ination of Re) /ape. . 8overn#ent processes shall be re2e:a#ine) an) if appropriate, si#plifie) or re2 en(ineere) to #a:i#i0e the functionalit* of technolo(* an) to eli#inate unnecessar* )ela*s in the )eliver* of (overn#ental services. $)' Securit* ;easures. . 8overn#ent shall i#ple#ent appropriate securit* #easures to (uar) a(ainst unauthori0e) access, unlawful )isclosure of infor#ation, an) to ensure the inte(rit* of store) infor#ation. $e' Au)itabilit*. . All s*ste#s installe) shall provi)e for an au)it trail. Section 39. 8overn#ent 1nfor#ation S*ste# Plan $81SP'. . 1t is hereb* #an)ate) that the 81SP shall be a)4uste), #o)ifie) an) a#en)e) to confor# to the provisions an) re9uire#ents of the Act, RP>!7 an) these Rules.

$ii' 1nstall an online public infor#ation an) 9ualit* an) price #onitorin( s*ste# for (oo)s an) services ai#e) in protectin( the interests of the consu#in( public availin( of the a)vanta(es of the Act. $iii' !stablish a voluntar* listin( s*ste# for all businesses or entities involve) in electronic co##erce inclu)in(, but not li#ite) to, value2a))e) service $FAS' provi)ers as this ter# is un)erstoo) in Republic Act No. 7926, ban s, financial institutions, #anufacturin( co#panies, retailers, wholesalers, an) on2line e:chan(es. /he list of electronic co##erce entities shall be #aintaine) b* the -/1 an) #a)e available electronicall* to all intereste) parties. $iv' Review, stu)* an) assess all le(al, technical an) co##ercial issues arisin( in the fiel) of electronic co##erce which #a* be )irecte) to the -/1 an) if necessar*, convene the appropriate (overn#ent a(encies in or)er to )iscuss, )eliberate on an) resolve the sa#e an) in the proper cases, pro#ul(ate a))itional rules an) re(ulations to i#ple#ent the Act. $b' /he 7an( o Sentral n( Pilipinas shall e:ercise an) perfor# such functions as #an)ate) un)er the Act inclu)in( the pro#ul(ation of the rules an) re(ulations to i#ple#ent the provisions of the Act with respect to ban s, 9uasi2ban s, trust entities, an) other institutions which un)er special laws are sub4ect to the 7an( o Sentral n( Pilipinas supervision. $c' /he -epart#ent of 7u)(et an) ;ana(e#ent shall i)entif* the fun) source for the i#ple#entation of Sections 37, 39 an) 4E of the Rules, consistent with the provisions of the annual 8eneral Appropriations Act, an) in its capacit* in #ana(in( the bu)(et e:ecution an) accountabilit* processes of (overn#ent, shall be responsible for puttin( such core processes on2line. PART / FINAL PRO/ISIONS Section 44. !:tent of Ciabilit* of a Service Provi)er. . !:cept as otherwise provi)e) in this Section, no person or part* shall be sub4ect to an* civil or cri#inal liabilit* in respect of the electronic )ata #essa(e or electronic )ocu#ent for which the person or part* actin( as a service provi)er as )efine) in Section 5$n' of these Rules #erel* provi)es access if such liabilit* is foun)e) on+ $a' /he obli(ations an) liabilities of the parties un)er the electronic )ata #essa(e or electronic )ocu#ent3 $b' /he #a in(, publication, )isse#ination or )istribution of such #aterial or an* state#ent #a)e in such #aterial, inclu)in( possible infrin(e#ent of an* ri(ht subsistin( in or in relation to such #aterial+ Provided, /hat . $i' /he service provi)er+ $,' )oes not have actual nowle)(e, or $2' is not aware of the facts or circu#stances fro# which it is apparent, that the #a in(, publication, )isse#ination or )istribution of such #aterial is unlawful or infrin(es an* ri(hts subsistin( in or in relation to such #aterial, or $3' havin( beco#e aware, a)vises the affecte) parties within a reasonable ti#e, to refer the #atter to the appropriate authorit* or, at the option of the parties, to avail of alternative #o)es of )ispute resolution3 $ii' /he service provi)er )oes not nowin(l* receive a financial benefit )irectl* attributable to the unlawful or infrin(in( activit*3 an) $iii' /he service provi)er )oes not )irectl* co##it an* infrin(e#ent or other unlawful act an) )oes not in)uce or cause another person or part* to co##it an* infrin(e#ent or other unlawful act an)Aor )oes not

benefit financiall* fro# the infrin(in( activit* or unlawful act of another person or part*3 Provided, further, /hat nothin( in this Section shall affect . $a' An* obli(ation foun)e) on contract3 $b' /he obli(ation of a service provi)er as such un)er a licensin( or other re(ulator* re(i#e establishe) un)er written law3 $c' An* obli(ation i#pose) un)er an* written law3 or $)' /he civil liabilit* of an* part* to the e:tent that such liabilit* for#s the basis for in4unctive relief issue) b* a court un)er an* law re9uirin( that the service provi)er ta e or refrain fro# actions necessar* to re#ove, bloc or )en* access to an* #aterial, or to preserve evi)ence of a violation of law. L#2&ul Acce(( Section 46. Cawful Access to !lectronic -ocu#ents, !lectronic -ata ;essa(es, an) !lectronic Si(natures. . Access to an electronic file, or an electronic si(nature of an electronic )ata #essa(e or electronic )ocu#ent shall onl* be authori0e) an) enforce) in favor of the in)ivi)ual or entit* havin( a le(al ri(ht to the possession or the use of the plainte:t, electronic si(nature or file an) solel* for the authori0e) purposes. Section 45. Cawful Access to !lectronic He*s. . /he electronic e* for i)entit* or inte(rit* shall not be #a)e available to an* person or part* without the consent of the in)ivi)ual or entit* in lawful possession of that electronic e*. /he testi#onial )isclosure of an electronic e* in an* procee)in( shall be li#ite) b* the "onstitutional ri(ht a(ainst self2incri#ination. Section 47. ?bli(ation of "onfi)entialit*. . !:cept for the purposes authori0e) un)er the Act, an* person who obtaine) access to an* electronic e*, electronic )ata #essa(e, or electronic )ocu#ent, boo , re(ister, correspon)ence, infor#ation, or other #aterial pursuant to an* powers conferre) un)er the Act, shall not conve* to or share the sa#e with an* other person. Pe%#l P$o+i(io%( Section 48. <ac in(. . <ac in( or crac in( which refers to unauthori0e) access into or interference in a co#puter s*ste#Aserver or infor#ation an) co##unication s*ste#3 or an* access in or)er to corrupt, alter, steal, or )estro* usin( a co#puter or other si#ilar infor#ation an) co##unication )evices, without the nowle)(e an) consent of the owner of the co#puter or infor#ation an) co##unications s*ste#, inclu)in( the intro)uction of co#puter viruses an) the li e, resultin( in the corruption, )estruction, alteration, theft or loss of electronic )ata #essa(es or electronic )ocu#ent shall be punishe) b* a #ini#u# fine of one hun)re) thousan) pesos $P,EE,EEE.EE' an) a #a:i#u# co##ensurate to the )a#a(e incurre) an) a #an)ator* i#prison#ent of si: $5' #onths to three $3' *ears. Section 49. Pirac*. . Pirac* or the unauthori0e) cop*in(, repro)uction, )isse#ination, )istribution, i#portation, use, re#oval, alteration, substitution, #o)ification, stora(e, uploa)in(, )ownloa)in(, co##unication, #a in( available to the public, or broa)castin( of protecte) #aterial, electronic si(nature or cop*ri(hte) wor s inclu)in( le(all* protecte) soun) recor)in(s or phono(ra#s or infor#ation #aterial on protecte) wor s, throu(h the use of teleco##unication networ s, such as, but not li#ite) to, the internet, in a #anner that infrin(es intellectual propert* ri(hts shall be punishe) b* a #ini#u# fine of one hun)re) thousan) pesos $P,EE,EEE.EE' an) a #a:i#u# co##ensurate to the )a#a(e incurre) an) a #an)ator* i#prison#ent of si: $5' #onths to three $3' *ears. /he fore(oin( shall be without pre4u)ice to the ri(hts, liabilities an) re#e)ies

un)er Republic Act No. 8293 or 1ntellectual Propert* "o)e of the Philippines an) other applicable laws. Section 6E. ?ther Penal ?ffenses. . Fiolations of the "onsu#er Act or Republic Act No. 7394 an) other relevant or pertinent laws throu(h transactions covere) b* or usin( electronic )ata #essa(es or electronic )ocu#ents, shall be penali0e) with the sa#e penalties as provi)e) in those laws. Section 6,. ?ther Fiolations of the Act. . ?ther violations of the provisions of the Act, shall be penali0e) with a #a:i#u# penalt* of one #illion pesos $P,,EEE,EEE.EE' or si:2$5' *ears i#prison#ent. Mi(cell#%eou( P$o+i(io%( Section 62. Statutor* 1nterpretation. . =nless otherwise e:pressl* provi)e) for, the interpretation of these Rules an) the Act shall (ive )ue re(ar) to the ActBs international ori(in . the =N"1/RAC ;o)el Caw on !lectronic "o##erce . an) the nee) to pro#ote unifor#it* in its application an) the observance of (oo) faith in international tra)e relations. /he (enerall* accepte) principles of international law an) convention on electronic co##erce shall li ewise be consi)ere). Section 63. Fariation b* A(ree#ent. . An* provision of the Act #a* be varie) b* a(ree#ent between an) a#on( parties3 Provided, that such a(ree#ent involves onl* the (eneration, sen)in(, receivin(, storin( or otherwise processin( of an electronic )ata #essa(e or electronic )ocu#ent. Nothin( shall authori0e contractin( parties to a(ree upon stipulations or covenants, which )efeat the le(al reco(nition, vali)it* an) a)#issibilit* of electronic )ata #essa(es, electronic )ocu#ents, or electronic si(natures. Section 64. Reciprocit*. . All benefits, privile(es, a)vanta(es or statutor* rules establishe) un)er this Act, inclu)in( those involvin( practice of profession, shall be en4o*e) onl* b* parties whose countr* of ori(in (rants the sa#e benefits an) privile(es or a)vanta(es to @ilipino citi0ens. 1nas#uch as the Act #erel* conte#plates the le(al reco(nition of electronic for#s of )ocu#ents an) si(natures an) )oes not a#en) an* law (overnin( the un)erl*in( substantive vali)it* of acts or transactions, this provision shall be sub4ect to e:istin( "onstitutional an) statutor* restrictions relative to activities which are reserve) to Philippine citi0ens or 4uri)ical entities partiall* or wholl*2owne) b* Philippine citi0ens. Section 66. ?versi(ht "o##ittee. . /here shall be a "on(ressional ?versi(ht "o##ittee co#pose) of the "o##ittees on /ra)e an) 1n)ustr*A"o##erce, Science an) /echnolo(*, @inance an) Appropriations of both the Senate an) <ouse of Representatives, which shall #eet at least ever* 9uarter of the first two *ears an) ever* se#ester for the thir) *ear after the approval of this Act to oversee its i#ple#entation. /he -/1, -7;, 7an( o Sentral n( Pilipinas, an) other (overn#ent a(encies as #a* be )eter#ine) b* the "on(ressional "o##ittee shall provi)e a 9uarterl* perfor#ance report of their actions ta en in the i#ple#entation of this Act for the first three $3' *ears. Section 65. -/1Bs "ontinuin( Authorit* to 1#ple#ent the Act an) 1ssue 1#ple#entin( Rules. . A#on( others, the -/1 is e#powere) to pro#ul(ate rules an) re(ulations, as well as provi)e 9ualit* stan)ar)s or issue certifications, as the case #a* be, an) perfor# such other functions as #a* be necessar* for the i#ple#entation of this Act in the area of electronic co##erce. Section 67. Separabilit*. . 1f an* provision in these Rules or application of such provision to an* circu#stance is hel) invali), the re#ain)er of these Rules shall not be affecte) thereb*.

Section 68. !ffectivit*. . /hese Rules shall ta e effect fifteen $,6' )a*s fro# the co#plete publication thereof in a newspaper of (eneral circulation. -one this III )a* of Jul*, 2EEE.