September 19, 2019
SEC-OGC OPINION NO. 41-19
RE: RETAIL TRADE; PROSTHETICS
Atty. Demosthenes B. Donato
Donato & Zarate Attorneys and Counselors-at-Law
7/F Electra House, 115 Esteban Street, Legaspi Village
1229 Makati City, Philippines
Dear Atty. Donato :
This refers to your letter dated 25 March 2019 requesting confirmation of your position that the business of prosthetics, which involves the design, fabrication and assembly of prosthetic implants or artificial limbs for natural persons with missing body parts, constitutes a service activity and not a sale or retail trade activity, pursuant to Article 1467 of the Civil Code and related jurisprudence.
This request was made on behalf of Instalimb, Inc. ("Instalimb"), a limited liability company formed, organized and existing under the laws of the State of Japan, which is planning to establish a 100% Japanese-owned manufacturing company in the Philippines by 2020.
It is posited that inasmuch as the build of the human body is unique for each and every human being, it necessarily follows that the design, fabrication and assembly of prosthetic implants or artificial limbs is also unique for each and every human being....
