Atty. Lucas M. Nunag

October 14, 2002 SEC OPINION Atty. Lucas M. Nunag Quisumbing Torres Law Offices 11th Floor, Pacific Star Bldg., Makati Avenue, corner Sen. Gil J. Puyat Avenue, Makati City 1200 S i r : This refers to your letter dated September 30, 2002 requesting confirmation of your opinion that the proposed business of your client does not constitute "retail trade". Republic Act 8762, or the Retail Trade Liberalization Act of 2000 defines what constitutes retail trade activity. An exception to such definition is provided for under Section 2, Rule I of the Rules and Regulations Implementing Republic Act No. 8762, as follows: "Section 2. Sales Not Considered As Retail . The following sales are not considered as retail: xxx xxx xxx (e) Sales to industrial and commercial users or consumers who use the products bought by them to render service to the general public and/or produce or manufacture of goods which are in turn sold by them; or (f) . . ." The intended sale by your client, a foreign corporation, of high technology computer equipment to small and medium-sized industrial and commercial users or consumers utilizing the products bought by them to render service to the general public and/or produce or manufacture goods which in turn are sold by them falls within the aforestated exception. On the basis of the facts as stated in your letter, we hereby confirm your opinion. ECcTaS Very truly yours, (SGD.) BENITO A. CATARAN Director Company Registration and Monitoring Department