Westchem Marketing Enterprises, Inc.

March 24, 1983 Westchem Marketing Enterprises, Inc. Suite 302 J & L Bldg. 251 EDSA, Greenhills Metro Manila Attention : Mr . Eulogio A . Topacio, Jr . President Gentlemen: This refers to your letter dated January 27, 1983 requesting the legal opinion of this Commission on whether your company can legally accept the offer of Nagase & Company, Ltd., a Japanese Company which has a regional headquarters in the Philippines, to participate to the extent of 30% of the total equity of the Westchem Industries, Inc. which is a duly registered 100% Filipino Corporation. According to your letter, your corporation is engaged in the business of trading chemicals which are imported mainly from Japan. These are then sold to your industrial customers who use them either as part of the products which they manufacture, or by reprocessing them and/or using them to enable them to render service to the general public. LibLex Please be informed that the above description of your company's business falls squarely under one of the exclusions to the meaning of the term "retail business" under RA 1180 (as amended by Presidential Decree 714), to wit: "SECTION 4. As used in this Act, the term "retail business" shall mean any act, occupation or calling of habitually selling direct to the general public merchandise, commodities or goods for consumption, but shall not include: xxx xxx xxx c) A manufacturer or processor selling to industrial and commercial users or consumers who use the products brought by them to render services to the general public and/or to produce or manufacture goods which are in turn sold by them." In view thereof, your company can legally accept the offer of Nagase & Company Ltd. under RA 1180, as amended. Please be guided accordingly. Very truly yours, (SGD.) JESUS J. VALDES Associate Commissioner