Export Processing Zone Authority

April 20, 1988 Export Processing Zone Authority 4th Floor Legaspi Towers 300 Roxas Boulevard Metro Manila Attention : Ms . Elvira Ocampo-Adorable Sir/Madam : This relates to your letter, dated March 1, 1988, requesting the opinion of this Commission on the query posed therein. LibLex It appears therein that you receive a request from Philippine Phosphate Fertilizer Corporation (Philphos), an EPZA-registered firm for authority to sell phosphate rock and anhydrous ammonia to local firms for the reason that it is not economical to import these materials in small volumes. These two products are allegedly raw materials needed in the manufacture of fertilizer which Philphos imports from other countries in huge quantities. While you recognize the merits of the intention due to economic consideration, nevertheless, you have noted that the word " trading " does not seem to fall within the scope of the purposes of Philphos as stated in the articles of incorporation. Hence, your request as to whether or not Philphos may be authorized to engage in such activity. Anent thereto, please be advised that "Trading" means engaging in the exchange, purchase or sale of goods or other property. (Webster's Third New International Dictionary, Unabridged, 1976 ed., p. 2421). In this connection Article II of the approved amended articles of incorporation of Philippine Phosphate Fertilizer Corporation provides thus: "SECOND That the purposes for which such corporation is formed are: To conduct and carry on the business of converting, refining, treating, preparing for market, manufacturing, buying, selling , importing, exporting, exchanging and otherwise producing and dealing in fertilizer and all kinds of agricultural products, minerals, and all by-products of the foregoing. xxx xxx xxx (Emphasis supplied). It is therefore, evident from a reading of the purpose clause of Philphos that it is duly authorized to engage in trading of fertilizer and all kinds of agricultural products, minerals, and all by-products of the foregoing. As to whether or not Philphos may trade in phosphate rock and anhydrous ammonia, there is transmitted to you herewith a xeroxed copy of the letter of Bureau of Mines and Geo-Sciences dated March 28, 1988, for your information and guidance. Please be advised accordingly. Very truly yours, (SGD.) JULIO A. SULIT, JR. Chairman