Introduction
The Philippines’ Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (Republic Act No. 6969, or R.A. 6969) and its implementing rules and regulations, Department Administrative Order (DAO) 1992-29, constitute the core regulatory framework for chemical management in the country. This legislation aims to ensure the safe circulation and environmental sustainability of chemicals within the Philippines by regulating their registration, import, and use.
However, in practice, chemical companies in the Philippines face a critical challenge while fulfilling their compliance obligations: how to protect their Confidential Business Information (CBI) while satisfying chemical substances notification requirements.
The Growing Need for Confidentiality in the Chemical Supply Chain
Commercial confidentiality is integral to a company's operations across every stage of the chemical lifecycle—from production and import to processing and use. Information such as chemical substance identity, product formulation and composition, manufacturing process parameters, supplier and customer lists, procurement strategies, and pricing models directly relates to a company's core competitiveness. The unauthorized disclosure of this information could lead to product imitation, loss of market share, or damage to business relationships.
Consequently, a major concern for multinational chemical companies in the compliance process is finding a way to provide the necessary declaration information to the Department of Environment and Natural Resources (DENR) while preventing the leakage of critical commercial data.
Chemical Substance Notification and Information Disclosure Requirements in the Philippines
Under R.A. 6969 and DAO 1992-29, companies importing or using chemicals in the Philippines must determine whether their substances are existing chemicals (listed in the Philippine Inventory of Chemicals and Chemical Substances, or PICCS) or new chemicals.
Existing Chemical Substances (Listed in PICCS)
Companies must provide chemical identification information to prove that their product's chemical components are listed in PICCS. To protect chemical substance identity and product formulation without directly disclosing the full composition, companies can apply for a confidential PICCS Certificate. This certificate will only display the chemical substance’s generic name and the conclusion of whether it is listed in PICCS, without revealing specific chemical names or other identifying information.
The following is a sample of the PICCS certificate:
New Chemical Substances (Not Listed in PICCS)
If a chemical substance is not included in PICCS, enterprise should submit the corresponding New Chemical Substance Notification based on the substance's category and quantity before manufacture or importation, such as:
Small Quantity Importation (SQI) Application
Polymer Exemption Application
These notification must be submitted to the DENR's Environmental Management Bureau (EMB) in the name of the Philippine importer or manufacturer. They require the submission of the notified substance's identity, manufacturer information, and the product's full composition, which often involves highly sensitive commercial data.
Philippine Chemical Confidentiality: Challenges and Compliance Solutions
In multi-layered supply chain scenarios, information disclosure often involves multiple parties. For example:
Overseas Manufacturer A → Overseas Distributor B → Philippine Importer C
The New Chemical Substance Notification must be submitted by the Philippine Importer C. The required information including the manufacturer's details, new chemical substance identity, and the product's full composition—not only increases commercial risk but may also violate the internal confidentiality policies of Manufacturer A and Distributor B.
To address this issue, companies can adopt a Third-Party Submission model.
By utilizing a third-party organization with the necessary technical capabilities to act as the "information holder and submitter," the substance information and full product composition can be submitted directly to the Philippine EMB. This mechanism ensures:
• The technical information of Manufacturer A remains confidential.
• Commercial information is isolated between Manufacturer A and Importer C.
• The declaration materials are legally compliant and successfully approved.
Conclusion
As the Philippines continues to strengthen its chemical management regulations, companies must strike a balance between regulatory compliance and information protection.
The judicious use of the Confidential PICCS Certificate application and the Third-Party Submission mechanism allows enterprises to meet the legal requirements of R.A. 6969 while effectively safeguarding their core competitiveness.
As a professional Philippine chemical compliance consulting agency, we are dedicated to helping our clients achieve a triple win in regulatory compliance, information confidentiality, and supply chain cooperation, ensuring that your products are safely, legally and sustainably introduced and sold in the Philippine market.
For more information and inquiries, please feel free to contact us at customer@reach24h.com.
