REPUBLIC ACT NO. 8792 June 14, 2000 AN ACT PROVIDING AND USE OF ELECTRONIC CO ERCIAL AND NON!

CO ERCIAL TRANSACTIONS, PENALTIES FOR UNLA"FUL USE T#EREOF, AND OT#ER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: PART I S#ORT TITLE AND DECLARATION OF POLIC$ Se%&'(n 1. Short Title- This Act shall be known and cited as the "Electronic Commerce Act." Se%&'(n 2. Declaration of Policy- The State recognizes the vital role of information and communications technology !CT" in nation-building# the need to create an information-friendly environment which su$$orts and ensures the availability% diversity and affordability of !CT $roducts and services# the $rimary res$onsibility of the $rivate sector in contributing investments and services in !CT# the need to develo$% with a$$ro$riate training $rograms and institutional $olicy changes% human resources for the information age% a labor force skilled in the use of !CT and $o$ulation ca$able of o$erating and utilizing electronic a$$liances and com$uters# its obligation to facilitate the transfer and $romotions of technology# to ensure network security% connectivity and neutrality of technology for the national benefit# and the need to marshal% organize and de$loy national information infrastructures% com$rising in both communications network and strategic information services% including their interconnection to the global information networks% with the necessary and a$$ro$riate legal% financial% di$lomatic and technical framework% systems and facilities. PART II ELECTRONIC CO ERCE IN GENERAL C#APTER I GENERAL PROVISIONS

Se%&'(n ). Ob ective- This Act aims to facilitate domestic and international dealings% transactions% arrangements agreements% contracts and e&changes and storage of information through the utilization of electronic% o$tical and similar medium% mode instrumentality and technology to recognize the authenticity and reliability of electronic data messages or electronic documents related to such activities and to $romote the universal use of electronic transactions in the government and by the general $ublic. Se%&'(n 4. Sphere of !pplication- This Act shall a$$ly to any kind of electronic document used in the conte&t of commercial and noncommercial activities to include domestic and international dealings% transactions% arrangements% agreements contracts and e&changes and storage of information. Se%&'(n *. Definition of Terms- 'or the $ur$oses of this Act% the following terms are defined% as follows( a" "Addressee" refers to a $erson who is intended by the originator to receive the electronic data message or electronic document% but does not include a $erson acting as an intermediary with res$ect to that electronic data message or electronic data document."Com$uter" refers to any device or a$$aratus singly or interconnected which% by electronic% electro-mechanical% o$tical and)or magnetic im$ulse% or other means with the same function% can receive% record% transmit% store% $rocess% correlate% analyze% $ro*ects% retrieve% and)or $roduce information% data% te&t% gra$hics% figures% voice% video% symbols or other modes of e&$ression or $erform any one or more of these functions. b" "Electronic data message" refers to information generated% sent% received or stored by electronic% o$tical or similar means. c" "!nformation and Communications System" refers to a system for generating% sending% receiving% storing% or otherwise $rocessing electronic documents and includes the com$uter system or other similar device by or in which data is recorded

or stored and any $rocedures related to the recording or storage of electronic document. d" "Electronic signature" refers to any distinctive mark% characteristic and)or sound in electronic from% re$resenting the identity of a $erson and attached to or logically associated with the electronic data message or electronic document or any methodology or $rocedures em$loyed or ado$ted by a $erson and e&ecuted or ado$ted by such $erson with the intention of authenticating or a$$roving an electronic data message or electronic document. e" "Electronic document" refers to information or the re$resentation of information% data% figures% symbols or other modes of written e&$ression% described or however re$resented% by which a right is established or an obligation e&tinguished% or by which a fact may be $rove and affirmed% which is receive% recorded% transmitted% stored% $rocessed% retrieved or $roduced electronically. f" "Electronic key" refers to a secret code which secures and defends sensitive information that crossover $ublic channels into a form deci$herable only with a matching electronic key. g" "!ntermediary" refers to a $erson who in behalf of another $erson and with res$ect to a $articular electronic document sends% receives and)or stores $rovides other services in res$ect of that electronic data message or electronic document. h" "+riginator" refers to a $erson by whom% or on whose behalf% the electronic document $ur$orts to have been created% generated and)or sent. The term does not include a $erson acting as an intermediary with res$ect to that electronic document. i" "Service $rovider" refers to a $rovider of!. +nline services or network access or the o$erator of facilities therefor including entities offering the

transmission% routing% or $roviding of connections for online communications% digital or otherwise% between or among $oints s$ecified by a user% of electronic documents of the user,s choosing# or !!. The necessary technical means by which electronic documents of an originator may be stored and made accessible to designated or undesignated third $arty. Such service $roviders shall have no authority to modify or alter the content of the electronic document received or to make any entry therein on behalf of the originator% addressee or any third $arty unless s$ecifically authorized to do so% and who shall retain the electronic document in accordance with the s$ecific re-uest or as necessary for the $ur$ose of $erforming the services it was engaged to $erform. C#APTER II LEGAL RECOGNITION OF ELECTRONIC DATA AND ELECTRONIC DOCU ENTS ESSAGES

Se%&'(n +. "egal Recognition of #lectronic Data $essages!nformation shall not be denied validity or enforceability solely on the ground that it is in the form of electronic data message $ur$orting to give rise to such legal effect% or that it is merely incor$orated by reference in that electronic data message. Se%&'(n 7. "egal Recognition of #lectronic documents- Electronic documents shall have the legal effect% validity or enforceability as any other document or legal writing% anda" .here the law re-uires a document to be in writing% that re-uirement is met by an electronic document if the said electronic document maintains its integrity and reliability and can be authenticated so as to be usable for subse-uent reference% in that i. The electronic document has remained com$lete and unaltered% a$art from the addition of any endorsement and any authorized change% or any change which arises

in the normal course of communication% storage and dis$lay# and ii. The electronic document is reliable in the light of the $ur$ose for which it was generated and in the light of all relevant circumstances. b" /aragra$h a" a$$lies whether the re-uirement therein is in the from of an obligation or whether the law sim$ly $rovides conse-uences for the document not being $resented or retained in its original from. c" .here the law re-uires that a document be $resented or retained in its original form% that re-uirement is met by an electronic document ifi. There e&ists a reliable assurance as to the integrity of the document from the time when it was first generated in its final from# and ii. That document is ca$able of being dis$layed to the $erson to whom it is to be $resented( /rovided% That no $rovision of this Act shall a$$ly to vary any and all re-uirements of e&isting laws on formalities re-uired in the e&ecution of documents for their validity. 'or evidentiary $ur$oses% an electronic document shall be the functional e-uivalent of a written document under e&isting laws. This Act does not modify any statutory any statutory rule relating to admissibility of electronic data massages or electronic documents% e&ce$t the rules relating to authentication and best evidence. Se%&'(n 8. "egal Recognition of #lectronic Signatures.- An electronic signature on the electronic document shall be e-uivalent to the signature of a $erson on a written document if the signature is an electronic signature and $roved by showing that a $rescribed $rocedure% not alterable by the $arties interested in the electronic document% e&isted under which-

a" A method is used to identify the $arty sought to be bound and to indicate said $arty,s access to the electronic document necessary for his consent or a$$roval through the electronic signature# b" Said method is reliable and a$$ro$riate for the $ur$ose for which the electronic document was generated or communicated% in the light of all circumstances% including any relevant agreement# c" !t is necessary for the $arty sought to be bound% in or order to $roceed further with the transaction to have e&ecuted or $rovided the electronic signature# and d" The other $arty is authorized and enable to verify the electronic signature and to make the decision to $roceed with the transaction authenticated by the same. Se%&'(n 9. Presumption Relating to #lectronic Signatures-!n any $roceedings involving an electronic signature% it shall be $resumed that% a" The electronic signature is the signature of the $erson to whom it correlates# and b" The electronic signature was affi&ed by that $erson with the intention of signing or a$$roving the electronic document unless the $erson relying on the electronically designed electronic document knows or has noticed of defects in or unreliability of the signature or reliance on the electronic signature is not reasonable under the circumstances. Se%&'(n 10. Original Documents.0" .here the law re-uires information to be $resented or retained in its original form% that re-uirement is met by an electronic data message or electronic document if#

a" the integrity of the information from the time when it was first generated in its final form% as an electronic document is shown by evidence aliunde or otherwise# and b" where otherwise it is re-uired that information be resented% that the information is ca$able of being dis$layed to the $erson to whom it is to be $resented. 1" /aragra$h 0" a$$lies whether the re-uirement therein is in the form of an obligation or whether the law sim$ly $rovides conse-uences for the information not being $resented or retained in its original form. 2" 'or the $ur$ose of sub$aragra$h a" of $aragra$h 0"( a" the criteria for assessing integrity shall be whether the information has remained com$lete and unaltered% a$art from the addition of any endorsement and any change which arises in the normal course of communication% storage and dis$lay # and b" the standard of reliability re-uired shall be assessed in the light of $ur$osed for which the information was generated and in the light of all the relevant circumstances. Se%&'(n 11. !uthentication of #lectronic Data $essages and #lectronic Documents%& 3ntil the Su$reme Court by a$$ro$riate rules shall have so $rovided% electronic documents% electronic data messages and electronic signatures% shall be authenticated by demonstrating% substantiating and validating a claimed identity of a user% device% or another entity is an information or communication system% among other ways% as follows# a" The electronic signatures shall be authenticated by $roof than a letter % character% number or other symbol in electronic form re$resenting the $ersons named in and attached to or logically associated with an electronic data message% electronic

document% or that the a$$ro$riate methodology or security $rocedures% when a$$licable% were em$loyed or ado$ted by such $erson% with the intention of authenticating or a$$roving in an electronic data message or electronic document# b" The electronic data message or electronic document shall be authenticated by $roof that an a$$ro$riate security $rocedure% when a$$licable was ado$ted and em$loyed for the $ur$ose of verifying the originator of an electronic data message or electronic document% or detecting error or alteration in the communication% content or storage of an electronic document or electronic data message from a s$ecific $oint% which% using algorithms or codes% identifying words or numbers% encry$tions% answers back or acknowledgement $rocedures% or similar security devices. The su$reme court may ado$t such other authentication $rocedures% including the use of electronic notarization systems as necessary and advisable% as well as the certificate of authentication on $rinted or hard co$ies of the electronic documents or electronic data messages by electronic notaries% service $roviders and other duly recognized or a$$ointed certification authorities. The $erson seeking to introduce an electronic data message or electronic document in any legal $roceeding has the burden of $roving its authenticity by evidence ca$able of su$$orting a finding that the electronic data message or electronic document is what the $erson claims it on be. !n the absence of evidence to the contrary% the integrity of the information and communication system in which an electronic data message or electronic document is recorded or stored may be established in any legal $roceeding a." 4y evidence that at all material times the information and communication system or other similar device was o$erating in a manner that did not affect the integrity of the electronic data message or electronic document% and there are no other

reasonable grounds to doubt the integrity of the information and communication system% b." 4y showing that the electronic data message or electronic document was recorded or stored by a $arty to the $roceedings who is adverse in interest to the $arty using it# or c." 4y showing that the electronic data message or electronic document was recorded or stored in the usual and ordinary course of business by a $erson who is not a $arty to the $roceedings and who did not act under the control of the $arty using the record. Se%&'(n 12. !dmissibility and #vidential 'eight of #lectronic Data $essage or electronic document. !n any legal $roceedings% nothing in the a$$lication of the rules on evidence shall deny the admissibility of an electronic data message or electronic document in evidence a" +n the sole ground that it is in electronic form# or b" +n the ground that it is not in the standard written form% and the electronic data message or electronic document meeting% and com$lying with the re-uirements under Sections 5 or6 hereof shall be the best evidence of the agreement and transaction contained therein. !n assessing the evidential weight of an electronic data message or electronic document% the reliability of the manner in which it was generated% stored or communicated% the reliability of the manner in which its originator was identified% and other relevant factor shall be given due regard. Se%&'(n 1), Retention of #lectronic Data $essage or #lectronic Document. 7otwithstanding any $rovision of law% rule or regulation to the contrary a" The re-uirement in any $rovision of law that certain documents be retained in their original form is satisfied by

retaining them in the form of an electronic data message or electronic document which i" 8emains accessible so as to be usable for subse-uent reference# ii" !s retained in the format in which it was generated% sent or received% or in a format which can be demonstrated to accurately re$resent the electronic data message or electronic document generated% sent or received# iii" Enables the identification of its originator and addressee% as well as the detemination of the date and the time it was sent or received. b" The re-uirement referred to in $aragra$h a" is satisfied by using the services of a third $arty% $rovided that the conditions set fourth in sub$aragra$h s !"% ii" and iii" of $aragra$h a" are met. Se%&'(n 14. Proof by !ffidavit% - The matters referred to in Section 01% on admissibility and Section 9% on the $resum$tion of integrity% may be $resumed to have been established by an affidavit given to the best of the de$onent,s knowledge sub*ect to the rights of $arties in interest as defined in the following section. Se%&'(n 1*. Cross #(amination. 0" A de$onent of an affidavit referred to in Section 0: that has been introduced in evidence may be cross-e&amined as of right by a $arty who has introduced the affidavit or has caused the affidavit to be introduced. 1" Any $arty to the $roceedings has the right to cross-e&amine a $erson referred to in section 00% /aragra$h :% sub $aragra$h c.

CO

C#APTER III. UNICATION OF ELECTRONIC DATA ELECTRONIC DOCU ENTS

ESSAGES OR

0" An electronic data message or electronic document is that of the originator if it was set by the originator himself. 1" As between the originator and the addressee% an electronic data message or electronic document is deemed to be that of the originator if it was sent( a" by a $erson who had the authority to act on behalf of the originator with res$ect to that electronic data message or electronic document# or b" by an information system $rogrammed by% or on behalf of the originator to o$erate automatically. 2" As between the originator and the addressee% an addressee is entitled to regard an electronic data message or electronic document as being that of the originator% and to act on that assum$tion% if( a" in order to ascertain whether the electronic data message or electronic document was that of the originator% the addressee $ro$erly a$$lied a $rocedure $reviously agreed to by the originator for that $ur$ose# or b" the electronic data message or electronic document as received by the addressee resulted from the actions of a $erson whose relationshi$ with the originator or with any agent of the originator enabled that $erson to again access to a method used by the originator to identify electronic data message or electronic documents as his own. :" /aragra$h 2" does not a$$ly( a" as of the time when the addressee has both received notice from the originator that the electronic data message or electronic document is not that of the

Se%&'(n 1+. )ormation of *alidity of #lectronic Contracts. 0" E&ce$t as otherwise agreed by the $arties% an offer% the acce$tance of an offer and such other elements re-uired under e&isting laws for the formation of contracts may be e&$ressed in% demonstrated and $roved by means of electronic data messages or electronic documents and no contract shall be denied validity or enforceability on the sole ground that it is in the form of an electronic data message or electronic document% or that any or all of the elements re-uired under e&isting laws for the formation of contracts is e&$ressed% demonstrated and $roved by means of electronic data messages or electronic documents. 1" Electronic transactions made through networking among banks% or linkages thereof with other entities or networks% and vice versa% shall be deemed consummated u$on the actual dis$ensing of cash or the debit of one account and the corres$onding credit to another% whether such transaction is initiated by the de$ositor or by an authorized collecting $arty( provided% That the obligation of one bank% entity% or $erson similarly situated to another arising therefrom shall considered absolute and shall not be sub*ected to the $rocess of $reference of credits. Se%&'(n 17. Recognition by Parties of #lectronic Data $essage or #lectronic document. As between the originator and the addressee of an electronic data message or electronic document% a declaration of will or other statement shall not be denied legal effect% validity or enforceability solely on the ground that it is in the form of an electronic data message or electronic document. Se%&'(n 18. !ttribution of #lectronic Data $essage.

originator% and has reasonable time to act accordingly# or b" in a case within $aragra$h 2" sub-$aragra$h b"% at any time when the addressee knew or should have known% had it e&ercised reasonable care of used any agreed $rocedure% that the electronic data message or electronic document was not that of the originator. ;" .here an electronic data message or electronic document is that of the originator or is deemed to be that of the originator% or the addressee is entitled to act on that assum$tion% then% as between the originator and the addressee% the addressee is entitled to regard the electronic data message or electronic document as received as being what the originator intended to send% and to act on that assum$tion. The addressee is not so entitled when it knew or should have known% had it e&ercised treasonable care or used any agreed $rocedure% that the transmission resulted in any error in the electronic data message or electronic document as received. 5" The addressee is entitled to regard each electronic data message or electronic document received as a se$arate electronic data message o r electronic document and to act on that assum$tion% e&ce$t to the e&tent that it du$licates another electronic data message or electronic document and the addressee knew or should have known% had it e&ercised reasonable care or used any agreed $rocedure% that the electronic data message or electronic document was a du$licate. Se%&'(n 19. #rror on #lectronic Data $essage or #lectronic Document. The addressee is entitled to regard the electronic data message or electronic document received as that which the originator intended to send% and to act on that assum$tion% unless the addressee knew or should have known% had the addressee e&ercised reasonable care or used the a$$ro$riate $rocedure

a" That the transmission resulted in any error there in or in the electronic data message or electronic document enters the designated information system% or b" That electronic data message or electronic document is sent to an information system which is not so designated by the addressee for the $ur$oses. Se%&'(n 20. !greement on !c+no,ledgement of Receipt of #lectronic Data $essage or #lectronic Document% The following rules shall a$$ly where% on or before sending an electronic data message or electronic document% the originator and the addressee have agreed% or in that electronic document or electronic data message% the originator has re-uested% that recei$t of the electronic document or electronic data message be acknowledge( a." .here the originator has not agreed with the addressee that the acknowledgement be given in $articular method% an acknowledgement may be given by or through any communication by the addressee% automated or otherwise% or any conduct of the addressee% sufficient to indicate to the originator that the electronic data message or electronic document has been received. b." .here the originator has stated that the effect or significance of the electronic data message e or electronic document is conditional on recei$t of the acknowledgement thereof% the electronic data message or electronic document is treated as though it has never been sent% until the acknowledgement is received. c." .here the originator has not stated that the effect or significance of the electronic data message or electronic document is conditional on recei$t of the acknowledgement% and the acknowledgement has not been received by the originator within the time s$ecified or agreed or% if no time has been s$ecified or agreed% within the reasonable time% the originator may give notice to the addressee stating that no acknowledgement has been received and s$ecifying a

reasonable time by which the acknowledgement must be received# and if the acknowledgement is not received within the time s$ecified an sub$aragra$h c"% the originator may% u$on notice to the addressee% treat the electronic data message or electronic document as though it had never been sent% or e&ercise any other rights it may have. Se%&'(n 21. Time of Dispatch of #lectronic Data $essages or #lectronic Documents. 3nless otherwise agreed between the originator and the addressee% the dis$atch of an electronic data message or electronic document occurs when it enters an information system outside the control of the originator or of the $erson who sent the electronic data message or electronic document on behalf of the originator. Se%&'(n 22. Time of Receipt of #lectronic Data $essages or #lectronic Documents. 3nless otherwise agreed between the originator and the addressee% the time of recei$t of an electronic data message or electronic document is as follows( a." !f the addressee has designated an information system for the $ur$ose of receiving electronic data messages or electronic documents% recei$t occurs at the time when the electronic data message or electronic document enters the designated information system: Provide- ho,ever- That if the originator and the addressee are both $artici$ants in the designated information system% recei$t occurs at the time when the electronic data message or electronic document is retrieved by the addressee# b." !f the electronic data message or electronic document is sent to an information system of the addressee that is not the designated information system% recei$t occurs at the time when the electronic data message or electronic document is retrieved by the addressee# c." !f the addressee has not designated an information system% recei$t occurs when the electronic data message or electronic document enters an information system of the addressee.

These rules a$$ly not with standing that the $lace where the information system is located may be different from the $lace where the electronic data message or electronic document is deemed to be received. Se%&'(n 2). Place of Dispatch and Receipt of #lectronic Data $essages or #lectronic Documents.- 3nless otherwise agreed between the originator and the addressee% an electronic data message or electronic document is deemed to be dis$atched at the $lace where the originator has its $lace of business and received at the $lace where the addressee has its $lace of business. This rule shall a$$ly even if the originator or addressee had used a la$to$ other $ortable device to transmit or received his electronic data message or electronic document. This rules shall also a$$ly to determine the ta& situs of such transaction. 'or the $ur$ose hereof a. !f the originator or addressee has more than one $lace of business is that which has the closet relationshi$ to the underlying transaction or% where there is no underlying transaction% the $rinci$al $lace of business. b. !f the originator or the addressee does not have a $lace of business% reference is to be made to its habitual residence# or c. The "usual $lace of residence" in relation to a body cor$orate% means the $lace where it is incor$orated or otherwise legally constituted. Se%&'(n 24. Choice of Security $ethods. Sub*ect to a$$licable laws and )or rules and guidelines $romulgated by the <e$artment of Trade and !ndustry with other a$$ro$riate government agencies% $arties to any electronic transaction shall be free to determine the ty$e of level of electronic data message or electronic document security needed% and to select and use or im$lement a$$ro$riate technological methods that suit their need.

ELECTRONIC CO

PART III ERCE IN CARRIAGE OF GOODS

g" ac-uiring or transferring rights and obligations under the contract. Se%&'(n 2+. Transport Documents. 0" Sub*ect to $aragra$h 2"% where the law re-uires that any action referred to in Section 1; be carried out in writing or by using a $a$er document% that re-uirement is met if the action is carried out by using one or more electronic data messages or electronic documents. a" /aragra$h 0" a$$lies whether the re-uirement there in is in the form of an obligation or whether the law sim$ly $rovides conse-uences for failing either to carry out the action in writing or to use a $a$er document. b" !f a right is to be granted to% or an obligation is to be ac-uired by% one $erson and no $erson% and if the law re-uires that% in order to effect this% the right or obligation must be conveyed to that $erson by the transfer% or use of% a $a$er document% that re-uirement is met if the right or obligation is conveyed by using one or more electronic data messages or electronic documents( Provided- that a reliable method is used to render such electronic data messages or electronic documents uni-ue. c" 'or the $ur$oses of $aragra$h 2"% the standard of reliability re-uired shall be assessed in the light of the $ur$ose for which the right or obligation was conveyed and in the light of all the circumstances% including any relevant agreement. d" .here one or more electronic data messages or electronic documents are used to effect any action in sub$aragra$h f" and g" of Section 1;% no $a$er document used to effect any such action is valid unless the use of electronic data message or electronic document has been terminated and re$laced by the used of $a$er documents. A $a$er document issued in these circumstances shall contain a statement of such termination. The re=$lacement of the electronic data messages or electronic documents by $a$er documents shall not affect the rights or obligation of the $arties involved.

Se%&'(n 2*. !ctions Related to Contracts of Carriage of .oods. without derogating from the $rovisions of /art Two of this Act% this Cha$ter a$$lies to any action in connection with% or in $ursuance of% a contract of carriage of goods% including but not limited to( a" i" furnishing the marks% number% -uantity or weight of goods# ii" stating or declaring the nature or value of goods# iii" issuing a recei$t for goods# iv" confirming that goods have been loaded# b" i" notifying a $erson of terms and conditions of the contract# ii" giving instructions to a carrier# c" i" claiming delivery of goods# ii" authorizing release of goods# iii" giving notice of loss of% or damage to goods# d" giving any other notice or statement in connection with the $erformance of the contract# e" undertaking to deliver goods to a named $erson or a $erson authorized to claim delivery# f" granting% ac-uiring% renouncing% surrendering% transferring or negotiating rights in goods#

e" !f a rule of laws is com$ulsorily a$$licable to a contract of carriage of goods which is in% or is evidenced by% a $a$er document% that rule shall not be ina$$licable to such a contract of carriage of goods which is evidenced by one or more electronic data messages or electronic documents by reason of the fact that the contract is evidenced by such electronic data message or electronic documents instead of by a $a$er document. PART IV ELECTRONIC TRANSACTIONS IN GOVERN ENT Se%&'(n 27. .overnment /se of #lectronic Data $essages- #lectronic Documents and #lectronic Signature% 7ot with standing any law to the contrary% within two 1" years from the date of the effectivity of this Act% all de$artments% bureaus% offices and agencies of the government% as well as all government-owned and controlled cor$orations% that $ursuant to law re-uire or acce$t the filling of documents% re-uire that documents be created% or retained and)or submitted% issue $ermits% licences or certificates of registration or a$$roval% or $rovide for the method and manner of $ayment or settlement of fees and other obligations to the government% shall a" acce$t the creation% filing or retention of such documents in the form of electronic data messages or electronic documents# b" issue $ermits% licences% or a$$roval in the form of electronic data messages or electronic documents# c" re-uire and)or acce$t $ayments% and issue recei$t acknowledging such $ayments% through systems using electronic data messages or electronic documents# or d" transact the government business and)or $erform governmental factions using electronic data messages or electronic documents% and for the $ur$ose% are authorized to ado$t and $romulgate% after a$$ro$riate $ublic hearing and with due $ublications in news$a$ers of general circulation% the

a$$ro$riate rules% regulations% or guidelines% to% among others% s$ecify 0" the manner and format in which such electronic data messages or electronic documents shall be filed% created% retained or issued# 1" where and when such electronic data messages or electronic documents have to signed% the use of an electronic signature% the ty$e of electronic signature re-uired# 2" the format of an electronic data message or electronic document and the manner the electronic signature shall be affi&ed to the electronic data messages or electronic documents# :" the control $rocesses and $rocedures a$$ro$riate to ensure ade-uate integrity% security and confidentiality of electronic data messages or electronic documents or records of $ayments# ;" other attributes re-uired to electronic data messages or electronic documents# and 5" the full or limited use of the documents and $a$ers for com$liance with the government re-uirements( provided- That this Act shall be itself mandate any de$artment of the government% organ of state or statutory cor$oration to acce$t or issue any document in the form of electronic data messages or electronic documents u$on the ado$tion% $romulgation and $ublication of the a$$ro$riate rules% regulations or guidelines. Se%&'(n 28. RP'#B Promote the /se of #lectronic Documents or #lectronic Data $essages in .overnment and to the .eneral Public ..ithin two 1" years from the effectivity of this Act% There shall be installed an electronic online network in accordance with

Administrative +rder 221 and >ouse of 8e$resentatives 8esolution ?9@% otherwise known as 8/.E4% to im$lement /art !A of this Act to facilitate the o$en% s$eedy and efficient electronic online transmission% conveyance and use of electronic data messages or electronic documents amongst all government de$artments% agencies% bureaus% offices down to the division level and to the regional and $rovincial offices as $racticable as $ossible% government owned and controlled cor$orations% local government units% other $ublic instrumentalities% universities% colleges and other schools% and universal access to the general $ublic. The 8/.E4 network shall serve as initial $latform of the government information infrastructure B!!" to facilitate the electronic online transmission and conveyance of government services to evolve and im$rove by better technologies or kinds and electronic online wide area networks utilizing% but not limited to% fiber o$tic% satellite% wireless and other broadband telecommunication mediums or modes. To facilitate the ra$id develo$ment of the B!!% the <e$artment of Trans$ortation and Communications% 7ational Telecommunications Commissions and the 7ational Com$uter Center are hereby directed to aggressively $romote and im$lement a $olicy environment and regulatory framework that shall lead to the substantial reduction of costs of including% but not # limited to% lease lines% land% satellite and dial-u$ tele$hone access% chea$ broadband and wireless accessibility by government de$artments% agencies% bureaus% offices% government owned and controlled cor$orations% local government units% other $ublic instrumentalities and the general $ublic% to include the establishment of a government website $ortal and a domestic internal e&change system to facilitate strategic access to government and amongst agencies thereof and the general $ublic and for the s$eedier flow of locally generated internal traffic within the /hili$$ines. The $hysical infrastructure of cable and wireless system for cable TA and broadcast e&cluding $rogramming content and the management thereof shall be considered as within the activity of telecommunications for the $ur$ose of electronic commerce and to ma&imize the convergence of !CT in the installation of the B!!.

Se%&'(n 29. !uthority of the Department of Trade and 0ndustry and Participating #ntities. The <e$artment of Trade and !ndustry <T!" shall direct su$ervise the $romotion and develo$ment of electronic commerce in the country with relevant government agencies% without $re*udice to the $rovision of 8e$ublic Act 65;2 Charter of 4angko Sentral ng /ili$inas" and 8e$ublic Act 7o. 226% Beneral 4anking Act" as amended. Among others% the <T! is em$owered to $romulgate rules and regulations% as well as $rovide -uality standards or issue certifications% as the case may be% and $erform such other function as may be necessary for the !m$lementation of this Act in the area of electronic commerce to include% but not limit to% the installation of an online $ublic information and -uality and $rice monitoring system for goods and services aimed in $rotecting the interests of the consuming $ublic availing of the advantages of this Act. PART V FINAL PROVISIONS Se%&'(n )0. #(tent of "iability of a Service Provider . E&ce$t as otherwise $rovided in this Section% no $erson or $arty shall be sub*ect to any civil or criminal liability in res$ect of the electronic data message or electronic document for which the $erson or $arty acting as a service $rovider as defined in Section ;% merely $rovides access if such liability is founded on a" The obligations and liabilities of the $arties under the electronic data message or electronic document# b" The Caking% $ublication% dissemination or distribution of such material or any statement made in such material% including $ossible infringement of any right subsisting in or in relation to such material. Provided- That i. The service $rovider does not have actual knowledge% or is not aware of the facts or circumstances from which it is a$$arent% that the making% $ublication% dissemination or distribution of each material is

unlawful or infringes any rights subsisting in or in relation to such material# ii The service $rovider does not knowingly receive a financial benefit directly attributable to the unlawful or infringing activity# and iii. The service $rovider does not directly commit any infringement or other unlawful act and does not endues cause another $erson or $arty to commit any infringement or other unlawful act and)or does not benefit financially from the infringing activity or unlawful act or another $erson or $arty# Providerfurther% That nothing in this Section shall affect a" Any obligation founded on contract# b" The obligation of a service $rovider as such under a licensing or other regulatory regime established under written law# c" Any obligation im$osed under any written law# d" The civil liability of any $arty to the e&tent that such liability forms the basis for in*unctive relief issued by a court under any law re-uiring that the service $rovider take or refrain from action necessary to remove% block or deny access to any material% or to $reserve evidence of a violation of law. Se%&'(n )1. "a,ful !ccess. Access to an electronic file% or an electronic signature of an electronic data message or electronic document shall only be authorized and enforced in favor of the individual or entity having a legal right to the $ossession or the use of $lainte&t% electronic signature or file or solely for the authorized $ur$oses. The electronic key for identity or integrity shall not be made available to any $erson or $arty without the consent of the individual or entity in lawful $ossession of that electronic key#

Se%&'(n )2. Obligation of Confidentiality. E&ce$t for the $ur$oses authorized under this Act% any $erson who obtained access to any electronic key% electronic data message or electronic document% book% register% corres$ondence% information% or other material $ursuant to any $owers conferred under this Act% shall not convey to or share the same with any other $erson. Se%&'(n )). Penalties% - The following Acts% shall be $enalized by fine and)or im$risonment% as follows( a" >acking or crackling with refers to unauthorized access into or interference in a com$uter system)server or information and communication system# or any access in order to corru$t% alter% steal% or destroy using a com$uter or other similar information and communication devices% without the knowledge and consent of the owner of the com$uter or information and communications system% including the introduction of com$uter viruses and the like% resulting in the corru$tion% destruction% alteration% theft or loss of electronic data messages or electronic documents shall be $unished by a minimum fine of +ne >undred Thousand $esos / 0@@%@@@.@@" and a ma&imum commensurate to the damage incurred and a mandatory im$risonment of si& 5" months to three 2" years# b" /iracy or the unauthorized co$ying% re$roduction% dissemination% or distribution% im$ortation% use% removal% alteration% substitution% modification% storage% u$loading% downloading% communication% making available to the $ublic% or broadcasting of $rotected material% electronic signature or co$yrighted works including legally $rotected sound recording or $honograms or information material on $rotected works% through the use of telecommunication networks% such as% but not limited to% the internet% in a manner that infringes intellectual $ro$erty rights shall be $unished by a minimum fine of +ne >undred Thousand $esos / 0@@%@@@.@@" and a ma&imum commensurate to the damage incurred and a mandatory im$risonment of si& 5" months to three 2" years#

c" Aiolations of the Consumer Act of 8e$ublic Act 7o. 629: and other relevant to $ertinent laws through transaction covered by or using electronic data messages or electronic documents% shall be $enalized with the same $enalties as $rovided in those laws# d" +ther violations of the $rovisions of this Act% shall be $enalized with a ma&imum $enalty of +ne million $esos /0%@@@%@@@.@@" or si& 5" years im$risonment. Se%&'(n )4. 0mplementing Rules and Regulations. The <T!% <e$artment of 4udget and Canagement and the 4angko Sentral ng /ili$inas are hereby em$owered to enforced the $rovisions of this Act and issue im$lementing rules and regulations necessary% in coordination with the <e$artment of Trans$ortation and Communications% 7ational Com$uter Center% 7ational information Technology Council% Commission on Audit% other concerned agencies and the $rivate sector% to im$lement this Act within si&ty 5@" days after its a$$roval. 'ailure to !ssue rules and regulations shall not in any manner affect the e&ecutory nature of the $rovisions of this Act. Se%&'(n )*. Oversight Committee% There shall be Congressional +versight Committee com$osed of the Committees and Trade and !ndustry)Commerce% Science and Technology% 'inance and A$$ro$riations of both the Senate and >ouse of 8e$resentatives% which shall meet at least every -uarter of the first two years and every semester for the third year after the a$$roval of this Act to oversee its im$lementation. The <T!% <4C% 4angko Sentral ng /ili$inas% and other government agencies as may be determined by the Congressional Committee shall $rovide a -uarterly $erformance re$ort of their actions taking in the im$lementation of this Act for the first three 2" years. Se%&'(n )+. !ppropriations% & The amount necessary to carry out the $rovisions of Sections 16 and 1? of this Act shall be charged against any available funds and)or savings under the Beneral A$$ro$riations Act of 1@@@ in the first year of effectivity of this Act. Thereafter% the

funds needed for the continued im$lementation shall be included in the annual Beneral A$$ro$riations Act. Se%&'(n )7. Statutory 0nterpretation. 3nless otherwise e&$ressly $rovided for% the inter$retation of this Act shall give due regard to its international origin and the need to $romote uniformity in its a$$lication and the observance of good faith in international trade relations. The generally acce$ted $rinci$les of international law and convention and electronic commerce shall likewise be considered. Se%&'(n )8. *ariation of !greement% As between $arties involved in generating% sending% receiving% storing or otherwise $rocessing electronic data message or electronic document% any $rovisions of this Act may be varied by agreement between and among them. Se%&'(n )9. Reciprocity% All benefits% $rivileges% advantages or statutory rules established under this Act% including those involving $ractice of $rofession% shall be en*oyed only by $arties whose country origin grants the same benefits and $rivileges or advantages to 'ili$ino citizens. Se%&'(n 40. Separability Clause. The $rovisions of this Act are hereby declared se$arable and in the event of any such $rovision is declared unconstitutional the other $rovisions to remain in the force and effect. Se%&'(n 41. Repealing Clause. All other laws% decrees% rules and regulations or $arts thereof which are inconsistent with the $rovisions of this Act are hereby re$ealed% amended or modified accordingly. Se%&'(n 42. #ffectivity. This Act shall take effect immediately after its $ublication in the Official .a1ette or in at least two 1" news$a$ers of general circulation. A$$roved( Dune 0:% 1@@@

A. . N(. 01!7!01!SC RULES ON ELECTRONIC EVIDENCE Acting on the Cemorandum dated 0? Dune 1@@0 of the Committee on the 8evision of the 8ules of Court to <raft the 8ules on E-Commerce Eaw =8.A. 7o. ?691F submitting the 8ules on Electronic Evidence for this Court,s consideration and a$$roval% the Court 8esolved to A//8+AE< the same. The 8ules on Electronic Evidence shall a$$ly to cases $ending after their effectivity. These 8ules shall take effect on the first day of August 1@@0 following thier $ublication before the 1@th of Duly in two news$a$ers of general circulation in the /hili$$ines 06th Duly 1@@0.

Se%&'(n 1. Definition of terms% 'or $ur$oses of these 8ules% the following terms are defined% as follows( a" "Asymmetric or $ublic cry$tosystem" means a system ca$able of generating a secure key $air% consisting of a $rivate key for creating a digital signature% and a $ublic key for verifying the digital signature. b" "4usiness records" include records of any business% institution% association% $rofession% occu$ation% and calling of every kind% whether or not conducted for $rofit% or for legitimate or illegitimate $ur$oses. c" "Certificate" means an electronic document issued to su$$ort a digital signature which $ur$orts to confirm the identity or other significant characteristics of the $erson who holds a $articular key $air. d" "Com$uter" refers to any single or interconnected device or a$$aratus% which% by electronic% electro-mechanical or magnetic im$ulse% or by other means with the same function% can receive% record% transmit% store% $rocess% correlate% analyze% $ro*ect% retrieve and)or $roduce information% data% te&t% gra$hics% figures% voice% video% symbols or other modes of e&$ression or $erform any one or more of these functions. e" "<igital signature" refers to an electronic signature consisting of a transformation of an electronic document or an electronic data message using an asymmetric or $ublic cry$tosystem such that a $erson having the initial untransformed electronic document and the signer,s $ublic key can accurately determine( i. whether the transformation was created using the $rivate key that corres$onds to the signer,s $ublic key# and ii. whether the initial electronic document had been altered after the transformation was made.

RULES ON ELECTRONIC EVIDENCE Ru,e 1 COVERAGE Se%&'(n 1. Scope% 3nless otherwise $rovided herein% these 8ules shall a$$ly whenever an electronic document or electronic data message% as defined in 8ule 1 hereof% is offered or used in evidence. Se%&'(n 2. Cases covered% These 8ules shall a$$ly to all civil actions and $roceedings% as well as -uasi-*udicial and administrative cases. Se%&'(n ). !pplication of other rules on evidence% !n all matters not s$ecifically covered by these 8ules% the 8ules of Court and $ertinent $rovisions of statutes containing rules on evidence shall a$$ly. Ru,e 2 DEFINITION OF TER S AND CONSTRUCTION

f" "<igitally signed" refers to an electronic document or electronic data message bearing a digital signature verified by the $ublic key listed in a certificate. g" "Electronic data message" refers to information generated% sent% received or stored by electronic% o$tical or similar means. h" "Electronic document" refers to information or the re$resentation of information% data% figures% symbols or other modes of written e&$ression% described or however re$resented% by which a right is established or an obligation e&tinguished% or by which a fact may be $roved and affirmed% which is received% recorded% transmitted% stored% $rocessed% retrieved or $roduced electronically. !t includes digitally signed documents and any $rint-out or out$ut% readable by sight or other means% which accurately reflects the electronic data message or electronic document. 'or $ur$oses of these 8ules% the term "electronic document" may be used interchangeably with "electronic data message". i" "Electronic key" refers to a secret code which secures and defends sensitive information that crosses over $ublic channels into a form deci$herable only with a matching electronic key. *" "Electronic signature" refers to any distinctive mark% characteristic and)or sound in electronic form% re$resenting the identity of a $erson and attached to or logically associated with the electronic data message or electronic document or any methodology or $rocedure em$loyed or ado$ted by a $erson and e&ecuted or ado$ted by such $erson with the intention of authenticating% signing or a$$roving an electronic data message or electronic document. 'or $ur$oses of these 8ules% an electronic signature includes digital signatures. k" "E$hemeral electronic communication" refers to tele$hone conversations% te&t messages% chatroom sessions% streaming audio% streaming video% and other electronic forms of communication the evidence of which is not recorded or retained.

l" "!nformation and communication system" refers to a system for generating% sending% receiving% storing or otherwise $rocessing electronic data messages or electronic documents and includes the com$uter system or other similar devices by or in which data are recorded or stored and any $rocedure related to the recording or storage of electronic data messages or electronic documents. m" "Gey $air" in an asymmetric cry$tosystem refers to the $rivate key and its mathematically related $ublic key such that the latter can verify the digital signature that the former creates. n" "/rivate key" refers to the key of a key $air used to create a digital signature. o" "/ublic key" refers to the key of a key $air used to verify a digital signature. Se%&'(n 2. Construction% These 8ules shall be liberally construed to assist the $arties in obtaining a *ust% e&$editious% and ine&$ensive determination of cases. The inter$retation of these 8ules shall also take into consideration the international origin of 8e$ublic Act 7o. ?691% otherwise known as the Electronic Commerce Act. Ru,e ) ELECTRONIC DOCU ENTS Se%&'(n 1. #lectronic documents as functional e2uivalent of paper& based documents% .henever a rule of evidence refers to the term writing% document% record% instrument% memorandum or any other form of writing% such term shall be deemed to include an electronic document as defined in these 8ules. Se%&'(n 2. !dmissibility% An electronic document is admissible in evidence if it com$lies with the rules on admissibility $rescribed by the 8ules of Court and related laws and is authenticated in the manner $rescribed by these 8ules.

Se%&'(n ). Privileged communication% The confidential character of a $rivileged communication is not lost solely on the ground that it is in the form of an electronic document. Ru,e 4 BEST EVIDENCE RULE Se%&'(n 1. Original of an electronic document% An electronic document shall be regarded as the e-uivalent of an original document under the 4est Evidence 8ule if it is a $rintout or out$ut readable by sight or other means% shown to reflect the data accurately. Se%&'(n 2. Copies as e2uivalent of the originals% .hen a document is in two or more co$ies e&ecuted at or about the same time with identical contents% or is a counter$art $roduced by the same im$ression as the original% or from the same matri&% or by mechanical or electronic re-recording% or by chemical re$roduction% or by other e-uivalent techni-ues which accurately re$roduces the original% such co$ies or du$licates shall be regarded as the e-uivalent of the original. 7otwithstanding the foregoing% co$ies or du$licates shall not be admissible to the same e&tent as the original if( a" a genuine -uestion is raised as to the authenticity of the original# or b" in the circumstances it would be un*ust or ine-uitable to admit the co$y in lieu of the original. Ru,e * AUT#ENTICATION OF ELECTRONIC DOCU ENTS Se%&'(n 1. Burden of proving authenticity% The $erson seeking to introduce an electronic document in any legal $roceeding has the burden of $roving its authenticity in the manner $rovided in this 8ule.

Se%&'(n 2. $anner of authentication% 4efore any $rivate electronic document offered as authentic is received in evidence% its authenticity must be $roved by any of the following means( a" by evidence that it had been digitally signed by the $erson $ur$orted to have signed the same# b" by evidence that other a$$ro$riate security $rocedures or devices as may be authorized by the Su$reme Court or by law for authentication of electronic documents were a$$lied to the document# or c" by other evidence showing its integrity and reliability to the satisfaction of the *udge. Se%&'(n ). /roof of electronically notarized document. A document electronically notarized in accordance with the rules $romulgated by the Su$reme Court shall be considered as a $ublic document and $roved as a notarial document under the 8ules of Court. Ru,e + ELECTRONIC SIGNATURES Se%&'(n 1. #lectronic signature% An electronic signature or a digital signature authenticated in the manner $rescribed hereunder is admissible in evidence as the functional e-uivalent of the signature of a $erson on a written document. Se%&'(n 2. !uthentication of electronic signatures% An electronic signature may be authenticated in any of the following manner( a" 4y evidence that a method or $rocess was utilized to establish a digital signature and verify the same# b" 4y any other means $rovided by law# or c" 4y any other means satisfactory to the *udge as establishing the genuineness of the electronic signature.

Se%&'(n ). Disputable presumptions relating to electronic signatures% 3$on the authentication of an electronic signature% it shall be $resumed that( a" The electronic signature is that of the $erson to whom it correlates# b" The electronic signature was affi&ed by that $erson with the intention of authenticating or a$$roving the electronic document to which it is related or to indicate such $erson,s consent to the transaction embodied therein# and c" The methods or $rocesses utilized to affi& or verify the electronic signature o$erated without error or fault. Se%&'(n 4. Disputable presumptions relating to digital signatures% 3$on the authentication of a digital signature% it shall be $resumed% in addition to those mentioned in the immediately $receding section% that( a" The information contained in a certificate is correct# b" The digital signature was created during the o$erational $eriod of a certificate# c" 7o cause e&ists to render a certificate invalid or revocable# d" The message associated with a digital signature has not been altered from the time it was signed# and% e" A certificate had been issued by the certification authority indicated therein. Ru,e 7 EVIDENTIAR$ "EIG#T OF ELECTRONIC DOCU ENTS Se%&'(n 1. )actors for assessing evidentiary ,eight% !n assessing the evidentiary weight of an electronic document% the following factors may be considered(

a" The reliability of the manner or method in which it was generated% stored or communicated% including but not limited to in$ut and out$ut $rocedures% controls% tests and checks for accuracy and reliability of the electronic data message or document% in the light of all the circumstances as well as any relevant agreement# b" The reliability of the manner in which its originator was identified# c" The integrity of the information and communication system in which it is recorded or stored% including but not limited to the hardware and com$uter $rograms or software used as well as $rogramming errors# d" The familiarity of the witness or the $erson who made the entry with the communication and information system# e" The nature and -uality of the information which went into the communication and information system u$on which the electronic data message or electronic document was based# or f" +ther factors which the court may consider as affecting the accuracy or integrity of the electronic document or electronic data message. Se%&'(n 2. 0ntegrity of an information and communication system% !n any dis$ute involving the integrity of the information and communication system in which an electronic document or electronic data message is recorded or stored% the court may consider% among others% the following factors( a" .hether the information and communication system or other similar device was o$erated in a manner that did not affect the integrity of the electronic document% and there are no other reasonable grounds to doubt the integrity of the information and communication system#

b" .hether the electronic document was recorded or stored by a $arty to the $roceedings with interest adverse to that of the $arty using it# or c" .hether the electronic document was recorded or stored in the usual and ordinary course of business by a $erson who is not a $arty to the $roceedings and who did not act under the control of the $arty using it. Ru,e 8 BUSINESS RECORDS AS E-CEPTION TO T#E #EARSA$ RULE Se%&'(n 1. 0napplicability of the hearsay rule% A memorandum% re$ort% record or data com$ilation of acts% events% conditions% o$inions% or diagnoses% made by electronic% o$tical or other similar means at or near the time of or from transmission or su$$ly of information by a $erson with knowledge thereof% and ke$t in the regular course or conduct of a business activity% and such was the regular $ractice to make the memorandum% re$ort% record% or data com$ilation by electronic% o$tical or similar means% all of which are shown by the testimony of the custodian or other -ualified witnesses% is e&ce$ted from the rule on hearsay evidence. Se%&'(n 2. Overcoming the presumption% The $resum$tion $rovided for in Section 0 of this 8ule may be overcome by evidence of the untrustworthiness of the source of information or the method or circumstances of the $re$aration% transmission or storage thereof. Ru,e 9 ET#OD OF PROOF Se%&'(n 1. !ffidavit evidence% All matters relating to the admissibility and evidentiary weight of an electronic document may be established by an affidavit stating facts of direct $ersonal knowledge of the affiant or based on authentic records. The affidavit must affirmatively show the com$etence of the affiant to testify on the matters contained therein.

Se%&'(n 2. Cross&e(amination of deponent% The affiant shall be made to affirm the contents of the affidavit in o$en court and may be cross-e&amined as a matter of right by the adverse $arty. Ru,e 10 E-A INATION OF "ITNESSES Se%&'(n 1. #lectronic testimony% After summarily hearing the $arties $ursuant to 8ule 9 of these 8ules% the court may authorize the $resentation of testimonial evidence by electronic means. 4efore so authorizing% the court shall determine the necessity for such $resentation and $rescribe terms and conditions as may be necessary under the circumstances% including the $rotection of the rights of the $arties and witnesses concerned. Se%&'(n 2. Transcript of electronic testimony% .hen e&amination of a witness is done electronically% the entire $roceedings% including the -uestions and answers% shall be transcribed by a stenogra$her% stenoty$ist or other recorder authorized for the $ur$ose% who shall certify as correct the transcri$t done by him. The transcri$t should reflect the fact that the $roceedings% either in whole or in $art% had been electronically recorded. Se%&'(n ). Storage of electronic evidence% The electronic evidence and recording thereof as well as the stenogra$hic notes shall form $art of the record of the case. Such transcri$t and recording shall be deemed $rima facie evidence of such $roceedings. Ru,e 11 AUDIO, P#OTOGRAP#IC, VIDEO, AND EP#E ERAL EVIDENCE Se%&'(n 1. !udio- video and similar evidence% Audio% $hotogra$hic and video evidence of events% acts or transactions shall be admissible $rovided it shall be shown% $resented or dis$layed to the court and shall be identified% e&$lained or authenticated by the $erson who made the recording or by some other $erson com$etent to testify on the accuracy thereof.

Se%&'(n 2. #phemeral electronic communications% E$hemeral electronic communications shall be $roven by the testimony of a $erson who was a $arty to the same or has $ersonal knowledge thereof. !n the absence or unavailability of such witnesses% other com$etent evidence may be admitted. A recording of the tele$hone conversation or e$hemeral electronic communication shall be covered by the immediately $receding section. !f the foregoing communications are recorded or embodied in an electronic document% then the $rovisions of 8ule ; shall a$$ly. Ru,e 12 EFFECTIVIT$ Se%&'(n 1. !pplicability to pending cases% These 8ules shall a$$ly to cases $ending after their effectivity. Se%&'(n 2. #ffectivity% These 8ules shall take effect on the first day of August 1@@0 following their $ublication before the 1@th of Duly 1@@0 in two news$a$ers of general circulation in the /hili$$ines.