Other Limitation

2ND 5TH PARAGRAPH

ARTICLE XII SECTION 2

Use and enjoyment of the nations marine

wealth in its archipelagic waters, territorial sea,
and exclusive economic zone.

Reserve exclusively to Filipino Citizens.

Corporations are excluded or at least must fully owned by Filipinos.

Exclusive economic zone extend to the distance of 200 nautical

miles beyond and from baselines from which the territorial sea is
measured. (PD No. 1599)

The Congress may, by law, allow small- scale utilization

of natural resources by Filipino citizens, as well as
cooperative fish farming, with priority to subsistence
fishermen and fish workers in rivers, lakes, bays, and
lagoons.

In favor of subsistence fishermen and fish workers.

Small- scale Sole proprietorships

Marginal fisherman an individual engaged in fishing whose margin

of reward from his harvest of fish, as measured by existing price levels,
is barely sufficient to yield a profit or cover the cost of gathering the
fish.

- As one engaged in subsistence fishing, which shall be

limited to the sale, barter or exchange of marine products produced by
himself and his immediate family. (Sec. 131 of LGC)

Subsistence fisherman one whose catch yields but the irreducible

minimum for his livelihood.

Limitation on Service Contract

Service Contract agreement with foreign- owned corporations involving

either technical or financial assistance for large- scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils.

Foreign- owned corporation corporation owned by foreigners.

Purpose: State shall promote the development and use of local scientific
and technical resources.

Limitations:

In accordance with general terms and condition of provided by law.

Based on real contribution to the economic growth and general welfare.

The President shall notify the Congress of every contract entered into within
30 days from its execution.