SUBJECT : Corporations engaging in customs brokerage business

November 14, 2003 SEC OPINION NO. 63-03 Atty. Enrico Pedro Ingles 7th Floor Valero Tower 122 Valero Street, Salcedo Village 1227 Makati City SUBJECT : Corporations engaging in customs brokerage business S i r : This refers to your letter dated 27 October 2003 addressed to Director Benito A. Cataran regarding the plan of Nippon Express Philippine Corporation (NEPC) to engage in customs brokerage business. We confirm your opinion that customs brokerage may now be undertaken by corporations which are wholly owned by foreigners provided said companies shall engage the services of at least two (2) licensed Filipino customs brokers and they shall comply with other pertinent registration requirements. [SEC Opinion dated May 21, 2001] ESIcaC However, we decline to confirm that this Commission " allows NEPC to amend its primary purpose to include `customs brokerage' in its Articles of Incorporation". As a matter of policy, the Commission does not render opinion on matters which clearly involve the exercise of business discretion or judgment as it properly falls within the authority and competence of the management of the company. [SEC Letter to Ms. Elvira Benitez dated 20 October 2003] For your information and guidance. AcaEDC (SGD.) VERNETTE G. UMALI-PACO General Counsel