Mrs. Cecilia P. Gaston

January 29, 1981 Mrs. Cecilia P. Gaston Deputy Administrator for Pesticides Fertilizer and Pesticide Authority 6th Floor, Raha Sulayman Bldg. Benavides St., Makati Metro Manila Dear Mrs. Gaston: We refer to your letter of 16 January 1981, requesting opinion on whether regional headquarters of multinational companies licensed by this Commission pursuant to P.D. 218, are allowed to register pesticide products in their names and conduct research/experiments to support their local efficacy claims. Presidential Decree 218 limits the activities of regional headquarters to acting as a supervisory, communications and coordinating center for its affiliates, subsidiaries and branches in the Asia Pacific Region. The "Primer on the Establishment of Regional Headquarters in the Philippines" has defined "supervision" as superintending, overseeing and guiding the activities of affiliates, subsidiaries or branch offices in the Asia Pacific Region to conform with approved policies and objectives without participating directly in the execution of the work or activities necessary to implement said policies and objectives; "coordination" means adjusting, arranging or harmonizing the policies and workings of the affiliates, subsidiaries or branches for their harmonious and efficient functioning and "communication" means transmitting, giving and receiving information, messages and instructions. Of the six corporations you mentioned, only Chevron Chemicals, International Inc. and FMC International S.A. are registered and licensed as regional headquarters. By observing the foregoing activities allowed of regional headquarters, it appears that these corporations cannot register pesticide products in their names and conduct research and experiments. The Imperial Chemical Industries, Schering Agro-chemicals and Velsicol Chemical Corporation are neither registered as regional headquarters under the above decree nor are they registered as domestic corporations or partnerships with this Commission. Upon the other hand, Diamond Shamrock Pacific Limited is a representative office of a foreign corporation in the Philippines. A perusal of its license issued by the SEC disclosed that it is authorized to (1) act as a message and coordination center between local distributors and head office as well as regional office for all Diamond Shamrock Corporation products; (2) To undertake or cause market surveys and similar studies; (3) To conduct credit investigations and information gathering regarding Filipino businessmen or firms; (4) To assist in the procurement of supplies and machineries needed by clients; and (5) to conduct liaison work between itself and the parent company. prcd It cannot, therefore, undertake activities other than the aforementioned. We trust that the foregoing would help in the formulation of your licensing policies. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department