Mr. Erotido L. Valdez

September 8, 1980 Mr. Erotido L. Valdez Avon Pacific, Inc. Regional Office Fortune Bldg., 160 Legaspi St. Legaspi Village Makati, Metro Manila Sir : This has reference to your letter dated July 18, 1980, inquiring from this Commission whether the inward remittances in the amount of $6,667.00 as salary of Mr. Kenneth C. Tyas, Area Director of Avon Pacific, Inc., Regional Office can be credited as part of the minimum remittance of $50,000 required under P. D. 218, as amended. We wish to inform you that Section 3 of the Rules and Regulations promulgated by this Commission on June 26, 1973, implementing P.D. 218 states: "SECTION 3. Every registered regional or area headquarters of a multinational company shall submit to the Securities and Exchange Commission the following reports: a. . . . b. . . . c. An annual report showing its operations in the Philippines including proofs of inward remittances amounting to at least 50,000 US dollars or its equivalent in other foreign currencies in the Philippines during the past year. All funds of the Regional Headquarters shall be utilized for salaries and other emoluments, including fringe benefits of personnel, rental of offices, transportation expenses, communication fees and similar costs for the maintenance of regional or area headquarters in the Philippines." From the foregoing, you can, therefore, credit the amount of $6,667.00 as part of the minimum remittance of US $50,000 in compliance with the requirements of P. D. 218. Please be guided accordingly. Very truly yours, (SGD.) ROSARIO N. LOPEZ Director Corporate and Legal Department