Section 19Sec./Art. 19

Prohibition on the Sale of Materiel to Private Entities. - Materiel in the form of weapons, ammunition, explosives, and weapons systems, and other similar materiel, produced under the SRDP shall solely be for the use of the state's uniformed services and other law enforcement agencies. Sale of materiel to private entities in the Philippines, both natural and juridical, shall be prohibited, unless otherwise allowed under existing laws and regulations, including but not limited to Republic Act No. 10591 or the "Comprehensive Firearms and Ammunition Regulation Act". All sales of materiel to private entities allowed under this section shall be subject to value-added tax and other applicable taxes.

The prohibition shall not apply to sale to foreign governments and their agencies and to foreign private entities, subject, however, to the imposition of the applicable taxes and duties: Provided, That exports shall only be allowed upon satisfaction of the material requirements of the AFP, uniformed services, other law enforcement agencies, and GOCCs mentioned under Section 18 of this Act.