Mr. Joseph S. Catalano

March 13, 2003 SEC OPINION NO. 07-03 Mr. Joseph S. Catalano Contracting Officer, GSO Contracting & Procurement EMBASSY OF THE UNITED STATES OF AMERICA Manila, Philippines Dear Sir : This refers to your letter dated 26 November 2002 regarding the intention of the U.S. Embassy to resolicit its local guard requirement for security services within the U.S. Government-owned and leased facilities for a new contract to commence January 2004. SCHIac As to the provisions you mentioned in said letter, we confirm that the principles of exterritoriality and extraterritoriality are still observed. However, any security agency of any embassy must coordinate with the local officials and the Philippine National Police within the vicinity so that security measures and policies can be properly observed. Under existing laws, foreigners who come to the Philippines for employment are required to secure the necessary working visa from the Bureau of Immigration and alien employment certificates from the Department of Labor and Employment. Anent your request for a detailed list of requirements necessary for registration with the Commission, we are enclosing the following documents for your perusal: a. Pamphlet 2 Citizen's Manual on the Registration of Corporations and Partnerships b. Pamphlet 3 Citizen's Manual on Fees and Charges c. Other necessary data forms Lastly, as to your inquiry of exemption, under List A, Item 5 of the Implementing Rules and Regulations of Republic Act 7042, foreign equity is not allowed in the organization of private security agencies in the Philippines by virtue of Republic Act 5487. Although such law is observed in the Philippines, a U.S. security firm nevertheless is not exempted from SEC registration requirements. The security entity shall be considered as a foreign corporation engaged in an activity classified as an export enterprise with no minimum capital requirement. Such consideration is made in order to serve as pertinent information for any state responsibility or international claim that may arise. We hope we have clarified matters regarding your concerns. Very truly yours, (SGD.) VERNETTE UMALI-PACO General Counsel