Attys. Wilma M. Valdemoro Cua

May 21, 2001 ATTYS. WILMA M. VALDEMORO CUA MA. JAZMIN B. BANAL Romulo Mabanta Buenaventura Sayoc and De Los Angeles 30th Floor, Citibank Tower, Citibank Plaza 8741 Paseo De Roxas, Makati City Dear Attys. Cua and Banal, This is in reply to your letter dated May 3, 2001 requesting our confirmation that a corporation engaged in the business of customs brokerage may be one hundred percent (100%) owned by foreigners. Under the Fourth Regular Foreign Investment Negative List, practice of all professions, particularly customs brokerage, is limited to Filipino citizens (save in cases prescribed by law). However, as you have correctly pointed out, the words " services involving" (practice of profession) have already been deleted in the 4th FINL. Thus, at present, the citizenship requirement would refer only to individuals who intend to practice any profession in the Philippines, and not to corporations the business of which would require the services of licensed professionals. We confirm your opinion. Therefore, as a business, customs brokerage may now be undertaken by corporations which are wholly owned by foreigners, provides that it shall engage the services of at least two (2) licensed Filipino customs brokers and that it shall comply with other pertinent registration requirements. Very truly yours, (SGD.) BENITO A. CATARAN Director Company Registration and Monitoring Department