solely for the purpose of having the same processed by another entity in the

Solely for the purpose of having the same processed

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solely for the purpose of having the same processed by another entity in the Philippines; Consignment by a foreign entity of equipment with a local company to be used in the processing of products for export; Collecting information in the Philippines ; and Performing services auxiliary to an existing isolated contract of sale which are not on a continuing basis, such as installing in the Philippines machinery it has manufactured or exported to the Philippines, servicing the same, training domestic workers to operate it , and similar incidental services. “DOING BUSINESS” IN THE PHIL AS PRESENTED IN THE DTI IMPLEMENTING RULES
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It implies a continuity of commercial dealings and arrangements and the performance of acts or works or the exercise of some of the functions normally incident to the purpose or object of a foreign corporation’s organization. Where a single act or transaction, however, is not merely incidental or casual but indicates the foreign corporation's intention to do other business in the Philippines, said single act or transaction constitutes doing business. Participating in a bidding process constitutes “doing business” because it shows the foreign corporation’s intention to engage in business in the Philippines. To be doing business in the Philippines requires that the contract must be perfected or consummated in Philippine soil. DOING BUSINESS” IN THE PHIL FROM THE POINT OF VIEW OF JURISPRUDENCE
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Insurance Business – A foreign corporation with a settling agent in the Philippines which issues twelve marine policies covering different shipments to the Philippines is doing business in the Philippines. ( General Corp. of the Phil. v. Union Insurance Society of Canton, Ltd., 87 Phil. 313 [1950]) A foreign corporation which had been collecting premiums on outstanding policies is doing business in the Philippines. ( Manufacturing Life Ins. v. Meer, 89 Phil. 351 [1951]) Air Carriers – Off-line air carriers having general sales agents in the Philippines are engaged in business in the Philippines and that their income from sales of passage here (i.e., uplifts of passengers and cargo occur to or from the Philippines) is income from within the Philippines. ( South African Airways v. Commissioner of Internal Revenue, 612 SCRA 665 [2010]) EXAMPLES
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" isolated transaction " - a transaction or series of transactions set apart from the common business of a foreign enterprise in the sense that there is no intention to engage in a progressive pursuit of the purpose and object of the business organization Single or isolated acts, contracts, or transactions of foreign corporations are not regarded as a carrying on of business. Typical examples of these are the making of a single contract, sale with the taking of a note and mortgage in the state to secure payment thereof, purchase, or note, or the mere commission of a tort. In these instances, there is no purpose to do any other business within the country . (MR. Holdings, Ltd. V. Bajar, 380 SCRA 617 [2002]) ISOLATED TRANSACTIONS
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Recovery on the collision of two vessels at the Manila Harbor.
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  • Fall '19
  • Gilbert R. Huafana

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