LETTER TO THE EDITOR

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News circulating on the Merit International versus Fedex case may have created a misconception that concerns our company. Please assist us in clarifying this.

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The issue was published in your website: http://www.manilatimes.net/enginex/fedex-operations-illegal-appellate-court-rules/21439/ and in your print edition.

The case is Merit International Inc. et al. versus Federal Express Pacific, Inc. The Court of Appeals promulgated a decision on the abovementioned case in which it cited another case decided by the Supreme Court in 2004 that involved Royal Cargo Corporation.

Our Company, Royal Cargo Combined Logistics, Inc. (RCCLI) is a different and distinct corporation from Royal Cargo Corporation. Royal Cargo Corporation, which was mentioned in the Merit International versus FedEx case and in various press reports, has changed its corporate name and is now DHL Global Forwarding, Inc. (DHL).

Mr. Michael Kurt Raeuber, who served as the President of Royal Cargo Corporation (presently DHL) for years, has resigned from his post in this company in 2006 and is currently part of the management of RCCLI.

RCCLI, a leading Philippine freight forwarder, is a Filipino company with ownership structure of 72% Filipino and 28% foreign and is not engaged in any nationalized or partly nationalized industry such as public utilities. As such, its management and leadership can be assumed by foreigners as long as they are stockholders or corporate officers.

The Department of Justice previously rendered a legal opinion that international freight forwarding is not covered in the constitutional limitation on nationalized and partly nationalized businesses unlike domestic freight forwarding. We do realize however that the highest court has to come out with a final interpretation of what “public utility” includes and if international freight forwarding is covered by constitutional prohibitions or limitations. Another point that may need to be elucidated is whether foreign entities can engage in and bill out domestic forwarding services by using subcontractors that are fully owned by Filipinos.

The owners of Royal Cargo Combined Logistics, Inc. strictly adhere to what the law mandates and have formed a separate company, Iris Logistics, Inc., a 100% Filipino-owned Company that provides domestic services.”

Thank you.
Apple Ocampo
Ma. Theresa D. Ocampo
Marketing and Communications Specialist
ROYAL CARGO COMBINED LOGISTICS, INC.
Royal Cargo Building, Sta. Agueda Avenue, Pascor Drive
Parañaque City, Metro Manila 1704 – Philippines
Tel +63 (2) 851 6229 loc. 140 • Fax +63 (2) 851-7454
Mobile +63 (917) 584 8131
Email theresa.ocampo@royalcargo.com

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